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The following piece is a response to SA Editor, Racheal Granby's wrap-up of a recent Barron's article titled "Ten Stocks to Hold Long-Term." Granby writes, "With the Dow off more than 50% from its October 2007 peak, there's rarely been a better time for long-term investors to pick up stocks on the cheap. Barron's put together a list of ten great stocks to hold for five years or longer."
For several months now, I’ve heard all of this talk of hyperinflation. I’m sure you have too. I’ve seen that word so many times over the past year that I might have even used it without realizing it.
It’s been endless. Ever since Obama has entered office, he has continued to fool Americans by expressing his “outrage” and “shamefulness” of these ridiculous taxpayer-funded banking bonuses. Yet, the fact is that Obama has been playing naïve Americans. It’s all an act designed to convince you he’s mad. Yet, he has done nothing, proving what a puppet he really is. When will this charade end?
I won’t go into any type colorful description of the “showdown” between Jon Stewart and CNBC’s Kim Cramer. If you’re reading this you already know about it. What I want to talk about is the fact that this “highly anticipated showdown” was staged. In fact, it was the media that made it “highly anticipated.” It was the Hollywood theatrics used by the producers of both shows that made it a “showdown.” And chances are you feel for it.
It seems as if many have been fooled by those supporting the banks. The general argument that has been made is that mark-to-market accounting has been largely responsible for the banking mess since it creates price transparency for assets held on the books daily.
The Savings & Loan Crisis had Michael Milken. The dotcom charade had Bernie Ebbers, Kenneth Lay, and Jeffery Skilling. These men have been selected as the scapegoats to distract the public away from the real criminals that caused each crisis. And now, the world’s largest real estate and banking crisis – much larger than all previous heists combined – has Bernie Madoff. He will serve the same purpose. Michael Milken was certainly involved in the S&L crisis, but he wasn’t the only villain. After only serving a couple of years (for good behavior) at Club Fed, he returned to society a very wealthy man. What other type of behavior besides “good” is possible at Club Fed? Milken was certainly a scapegoat of the S&L crisis, but he certainly was not innocent. Yet, he is like many scapegoats from white collar crimes who manage to get off easy. One reason is because they have big money to buy their way out. But another reason is because white-collar crime is deemed to be relatively benign in America. This mentality must change now. Americans must demand it.
I’m really sick and tired of these economists out there who continue to claim that America will not enter a depression. These are the same bozos that have yet to acknowledge the fact that the U.S. is in a recession and has been for several months now. In fact, as I have previously mentioned, I can make a very strong case that the U.S. has been in the early stages of a silent, modest depression for at least two years; at the very least a protracted recession masked by credit. After the appropriate adjustments have been made for GDP, the U.S. economy has had no more than 3 to 4 quarters of GDP growth since 2005. Thus far, we have seen drastic emergency interventions by the Federal Reserve and U.S. Treasury – measures not taken since the Great Depression. Thus far, we have seen the failure of the sixth largest U.S. bank – Washington Mutual, representing the largest bank failure in U.S. history.
NOTE: Mike Stathis predicted the precise details of the financial crisis in his 2006 book, America's Financial Apocalypse. The Jewish Mafia REFUSED to publish this landmark book because it exposed the widespread fraud committed by the Jewish Mafia. Instead, the Jewish Mafia published useless marketing books written by their broken clock tribemens (like Peter Schiff's useless book which was wrong about most things and was written a year AFTER Stathis' book). Stathis also released a book focusing on strategies to profit from the real estate collapse in early 2007. The Jewish media crime bosses prefer to simply ignore those who speak the truth and threaten to expose them as the best way to hide the scams from the public. In contrast, the Jewish media crime bosses continuously promote Jewish con men and clowns who have terrible track records as a way to enrich them all while steering the audience to their sponsors, most of which are Jewish Wall Street and related firms. Figure it out folks. It's not rocket science. View Mike Stathis' Track Record here, here, here, here, here, here and here. Membership Resources __________________________________________________________________________________________________________________ Mike Stathis holds the best investment forecasting track record in the world since 2006. View Mike Stathis' Track Record here, here, here, here, here, here and here. Check here to download Chapter 12 of Cashing in on the Real Estate Bubble. So why does the media continue to BAN Stathis? Why does the media constantly air con men who have lousy track records? These are critical questions to be answered. You need to confront the media with these questions. Watch the following videos and you will learn the answer to these questions: You Will Lose Your Ass If You Listen To The Media __________________________________________________________________________________________________________________ This is the chapter that shows where Mike recommended shorting Fannie, Freddie, sub-primes, homebuilders, GM, GE, etc. Just as I was ready to pass out in my chair last night, I regained full consciousness after hearing a news headline. Can you guess what caught my attention? No, it wasn’t the buyout of AIG’s asset management business by our friends in Dubai. And no, it wasn’t over Citigroup’s purchase of a Spanish construction company using taxpayer funds. In fact, although these deals were recently announced, they didn’t make the headline news. Instead, it was more on the rumor that the Big 3 auto execs plan to drive, possibly via car pool in a Chevy Volt to Washington today. Their purpose of course is to present a “more structured” bailout plan; in other words, a better rehearsed begging session.
NOTE: Mike Stathis predicted the precise details of the financial crisis in his 2006 book, America's Financial Apocalypse. The Jewish Mafia REFUSED to publish this landmark book because it exposed the widespread fraud committed by the Jewish Mafia. Instead, the Jewish Mafia published useless marketing books written by their broken clock tribemens (like Peter Schiff's useless book which was wrong about most things and was written a year AFTER Stathis' book). Stathis also released a book focusing on strategies to profit from the real estate collapse in early 2007. The Jewish media crime bosses prefer to simply ignore those who speak the truth and threaten to expose them as the best way to hide the scams from the public. In contrast, the Jewish media crime bosses continuously promote Jewish con men and clowns who have terrible track records as a way to enrich them all while steering the audience to their sponsors, most of which are Jewish Wall Street and related firms. Figure it out folks. It's not rocket science. View Mike Stathis' Track Record here, here, here, here, here, here and here. Membership Resources __________________________________________________________________________________________________________________ Mike Stathis holds the best investment forecasting track record in the world since 2006. View Mike Stathis' Track Record here, here, here, here, here, here and here. Check here to download Chapter 12 of Cashing in on the Real Estate Bubble. So why does the media continue to BAN Stathis? Why does the media constantly air con men who have lousy track records? These are critical questions to be answered. You need to confront the media with these questions. Watch the following videos and you will learn the answer to these questions: You Will Lose Your Ass If You Listen To The Media __________________________________________________________________________________________________________________ Shocking as it may seem, in just five years, GM has lost $73 billion, or $129 per share. Ford and Chrysler haven’t faired any better. And now they’re pleading for an even bigger bailout using Paulson-like scare tactics. Instead of lines like “people will lose their pensions and 401(k) plans,” the Big Three are predicting over 1 million job losses if they don’t get taxpayer funds. Has Washington forgotten that America is supposed to be a free market economy? If businesses can’t make it on their own they must fail. Otherwise, taxpayer bailouts will create the worst kind of socialism possible – selective socialism for corporations. At least in real socialist societies, everyone is provided with higher education and healthcare. America’s form of socialism favors only corporations. The recent $25 billion “loan” to the Big Three wasn’t enough. But don’t expect an additional $50 billion to help either. The U.S. auto machine is broken beyond repair, making it absolutely ridiculous to keep funding its losses with taxpayer funds. Apparently, House Speaker Nancy Pelosi and Senate Majority Leader Harry Reid disagree. The democratic-controlled Congress continues to squander taxpayer funds with no regard for the people. We have already seen Pelosi strike a deal with T. Boone Pickens, with the attempt to use taxpayer funds to fuel his useless wind power plan. In my view, Pelosi should be brought up on allegations of insider trading, abuse of power with the intent to profit. At the very least, Pelosi’s actions demonstrate the intent to profit by proposing taxpayer subsidies to enhance the financial merits of her stake in Pickens’ company. Apparently, the easiest way to get IPO shares is to run for office. That way, you can help determine the fate of your investment. Why hasn’t this been covered on the televised media? By now, you should know the answer. Mrs. Pelosi and Mr. Reid, neither of you possess adequate financial expertise to determine what is best for the auto industry. And you certainly have no idea what is going on in the economy, much like your peers in Washington. You need to step aside and let some real experts without any agendas assess the situation. My verdict is absolutely no bailout for these miserably run companies. The Big Three are in trouble not because of the economic problems but because they spend too much on labor costs to make products at the low end of consumer demand.
In my last piece, I think I made it clear that the vast majority of economists are not only clueless, but very dangerous to your financial health. Make no mistake. At best they are broadcasters not forecasters. They’re better equipped working with historians to document events after they’ve happened. Yet, the media keeps them in the spotlight when reporting what to expect, even after history has shown they always fail to deliver.
I Repeat… I continue to be amazed by so many out there, from the pundits with their agendas to the so-called experts who zoom in on every grain of short-term optimism with an electron microscope while explaining away the reality. Not much has changed since I last wrote. Let me repeat in case you haven’t been following me. We are going to see… - An earnings meltdown - Hundreds of bank failures over the next few years - Hundreds of hedge fund blow ups - Soaring corporate defaults (already beginning) - A huge junk bond market (soon to come) - A large oil correction which will rebound and make new highs down the road (in progress) - Real estate prices collapse by 30% (35% worst case scenario)
Bailout or Not. Depression is Upon Us McCain, along with Paulson, Bernanke, Bush and others are using scare tactics hoping to rush the approval of this historic banking bailout plan. Threats of a “disaster” and a “severe economic crisis” have been interpreted by the media as a “depression” if the bill is not passed immediately. Politicians continue to scare the public stating that without a bailout, pension and 401(k) plans will be threatened. Are the conditions very serious? Definitely. The point is that they are so serious that a bailout won’t do much at this point other than waste taxpayer money with no real accountability. Finally, as far as I can tell, this bailout really doesn’t do much if anything to help taxpayers. Surely by now, Americans are on to this game. “Drill now or pay more later.” Sound familiar? Just another recent scare tactic to help push off-shore drilling bills through Washington. But the reality is that drilling more won’t solve the energy problem. It’s only a quick fix. “Bailout now or face a severe economic period.” Likewise, a bailout won’t prevent a severe economic period. We certainly have a huge problem, but nothing will prevent the disaster. Leveraging the Inevitable Collapse Pension plans and 401(k)s are in trouble whether the bailout plan passes or not. Nothing will bail America out of the inevitable payback period. Anyone who does not realize this lacks a comprehensive understanding all of the issues. Perhaps you have been watching too much television. As I have stated many times in the past, the current real estate-driven credit crisis is just stage one of the depression. NOTE: Mike Stathis predicted the precise details of the financial crisis in his 2006 book, America's Financial Apocalypse. The Jewish Mafia REFUSED to publish this landmark book because it exposed the widespread fraud committed by the Jewish Mafia. Instead, the Jewish Mafia published useless marketing books written by their broken clock tribemens (like Peter Schiff's useless book which was wrong about most things and was written a year AFTER Stathis' book). Stathis also released a book focusing on strategies to profit from the real estate collapse in early 2007. The Jewish media crime bosses prefer to simply ignore those who speak the truth and threaten to expose them as the best way to hide the scams from the public. In contrast, the Jewish media crime bosses continuously promote Jewish con men and clowns who have terrible track records as a way to enrich them all while steering the audience to their sponsors, most of which are Jewish Wall Street and related firms. Figure it out folks. It's not rocket science. View Mike Stathis' Track Record here, here, here, here, here, here and here. Membership Resources Mike Stathis holds the best investment forecasting track record in the world since 2006. View Mike Stathis' Track Record here, here, here, here, here, here and here. Check here to download Chapter 12 of Cashing in on the Real Estate Bubble. So why does the media continue to BAN Stathis? Why does the media constantly air con men who have lousy track records? These are critical questions to be answered. You need to confront the media with these questions. Watch the following videos and you will learn the answer to these questions: You Will Lose Your Ass If You Listen To The Media
Accountability is a Must Would I support a bailout? Maybe. But that’s a very big maybe. At the very least I would need to see a clear plan with specific guidelines, executed by credible and competent leaders; not one man who appears to be lost. They would all need to be held accountable. And I mean ACCOUNTABLE. But such a plan would need to focus on job creation, not bankers’ salvation. We need a bailout for Americans not bankers. Americans need jobs; good jobs with good benefits. In part, this means free trade must be restructured so that it becomes fair trade. Unfortunately, this is not going to happen anytime soon, if ever because current trade policies only benefit corporate America – you know, the real governing body of this nation. And they have ensured Washington will vote as big business wants via billions of lobbyist dollars that hits the hands of politicians each year. So if you really think your vote counts, think again. Pushing all of that aside, let’s deal with the plan that will most likely end up passing instead of the plan that will actually benefit the people. It would need to be structured with irrevocable financial limits, clear rules on how much is paid, how assets will be valued, and limits for each bank. The plan would also need to lay out specific guidelines, rules and limitations for selling the assets to private firms. Finally, the plan should put forth directives that seek to prosecute bank, Wall Street, and mortgage CEOs and other villains responsible for this mess. Not one of these elements is contained in the current bailout proposal. NOTE: Mike Stathis predicted the precise details of the financial crisis in his 2006 book, America's Financial Apocalypse. The Jewish Mafia REFUSED to publish this landmark book because it exposed the widespread fraud committed by the Jewish Mafia. Instead, the Jewish Mafia published useless marketing books written by their broken clock tribemens (like Peter Schiff's useless book which was wrong about most things and was written a year AFTER Stathis' book). Stathis also released a book focusing on strategies to profit from the real estate collapse in early 2007. The Jewish media crime bosses prefer to simply ignore those who speak the truth and threaten to expose them as the best way to hide the scams from the public. In contrast, the Jewish media crime bosses continuously promote Jewish con men and clowns who have terrible track records as a way to enrich them all while steering the audience to their sponsors, most of which are Jewish Wall Street and related firms. Figure it out folks. It's not rocket science. View Mike Stathis' Track Record here, here, here, here, here, here and here. Membership Resources Mike Stathis holds the best investment forecasting track record in the world since 2006. View Mike Stathis' Track Record here, here, here, here, here, here and here. Check here to download Chapter 12 of Cashing in on the Real Estate Bubble. So why does the media continue to BAN Stathis? Why does the media constantly air con men who have lousy track records? These are critical questions to be answered. You need to confront the media with these questions. Watch the following videos and you will learn the answer to these questions: You Will Lose Your Ass If You Listen To The Media
Blind Man’s Bluff Most of us have played Blind Man’s Bluff as children. It’s such a popular game among kids that several versions now exist. In case you don’t remember, here’s the original version. A person is blindfolded and referred to as “it.” Everyone runs around trying to avoid being touched (tagged) by this person (it). If they are tagged they lose the game and become spectators. The game continues until “it” has tagged everyone. In another version, “it” attempts to identify the person tagged by feeling their face. If the person is correctly identified by “it” that person is eliminated from the game. The bailout plan has a striking resemblance to Blind Man’s Bluff, except the game will take a very long time to end while registering an uncertain cost because the Treasury will be running around blind, not knowing what kind of debt they are buying, how to manage it, or how much this junk is worth. Paulson and company has no way to identify the true nature of the banks’ debt. Therefore, they won’t be able to fully assess or manage risk. The banks aren’t even able to do this, yet the Treasury will succeed? Most likely the next Treasury Secretary will be running around for many years blindly throwing taxpayer money at the financial system. And as they dig themselves deeper and deeper into this black hole, they will use more scare tactics to secure even more money from taxpayers. The only winners will be the banks, those who buy bank debt from the Treasury and big investors who invest in banks that have been revitalized by taxpayer money, like Bill Gross and Warren Buffett. NOTE: Mike Stathis predicted the precise details of the financial crisis in his 2006 book, America's Financial Apocalypse. The Jewish Mafia REFUSED to publish this landmark book because it exposed the widespread fraud committed by the Jewish Mafia. Instead, the Jewish Mafia published useless marketing books written by their broken clock tribemens (like Peter Schiff's useless book which was wrong about most things and was written a year AFTER Stathis' book). Stathis also released a book focusing on strategies to profit from the real estate collapse in early 2007. The Jewish media crime bosses prefer to simply ignore those who speak the truth and threaten to expose them as the best way to hide the scams from the public. In contrast, the Jewish media crime bosses continuously promote Jewish con men and clowns who have terrible track records as a way to enrich them all while steering the audience to their sponsors, most of which are Jewish Wall Street and related firms. Figure it out folks. It's not rocket science. View Mike Stathis' Track Record here, here, here, here, here, here and here. Membership Resources Mike Stathis holds the best investment forecasting track record in the world since 2006. View Mike Stathis' Track Record here, here, here, here, here, here and here. Check here to download Chapter 12 of Cashing in on the Real Estate Bubble. So why does the media continue to BAN Stathis? Why does the media constantly air con men who have lousy track records? These are critical questions to be answered. You need to confront the media with these questions. Watch the following videos and you will learn the answer to these questions: You Will Lose Your Ass If You Listen To The Media
As a desperate attempt to stop the bleeding, banks are stepping up with further efforts to protect delinquent homeowners. To date, this represents the most radical effort to stop the avalanche of foreclosures. It’s thought these ridiculous bailouts will help restore the housing market which will provide more stability to the economy. The problem is that these plans are still insufficient to make any impact. And there is nothing to absorb the massive inventory of housing. If Washington wants to help homeowners make mortgage payments, they need to stop letting corporations send jobs overseas. Similar to the banking bailout, the latest “solution” from Washington will continue to waste taxpayer money. More important, it will reward the wrong people and punish responsible homeowners. It’s been estimated that the banks, FHA and Hope Alliance have already halted over 2 million foreclosures. But you cannot cheat the system. Robbing Peter to pay Paul will eventually lead to more adverse consequences. Unlike the previous programs to bail out homeowners, these newer more aggressive plans establish a new precedent that effectively dissolves what was once a free market economy; an economic system once built on rewarding the winners and punishing the losers. As you know, today we are seeing the exact opposite.
This is the first time I’ve written anything about the Yahoo-Microsoft deal because I typically don’t allow myself to get distracted by noise. In fact, I’ve been receiving numerous email requests for more articles. My response is that I do not feel the need to pump pieces out on a daily basis because I have no time for soap operas. The fact is that there really isn’t anything new in the economy as far as I am concerned. I’ve said all that needs to be said. Just read my archives. As trivial as I view the whole Yahoo-Microsoft soap opera, it’s annoying to have seen so many obsess over it. So I wanted to point out a few things. From day one when Microsoft made a bid for Yahoo, investors should have sold Yahoo. This is a basic rule followed by all sophisticated investors. You never wait around to see what happens. Why would you? Take the money and run. Here’s why.
As many of you may know, on March 27, 2008, Ford (F) completed negotiations to sell its Jaguar and Land Rover divisions to Tata Motors (TTM), a division of the Indian conglomerate Tata Group. The deal went for a reported $2.3 billion, despite Ford’s original cost of $5.2 billion for the duo ($2.5 billion for Jaguar in 1989 and $2.7 billion for Land Rover in 2000). However, after Ford pays $600 million into the pension funds of these companies, the deal will only net them $1.7 billion. But with total losses exceeding $15 billion in just the past two years alone, Ford was clearly desperate. It had no choice. It needed cash, and fast.
What I find remarkable is how the same guys who missed this financial apocalypse continue to follow useless theoretical risk models based on math. Too funny. I suppose they have little choice since they have no other training. In this case, myopia can be disastrous. You can neither measure nor control risk using mathematical equations. The best risk managers have real trading experience. More important, they are leaders in thought. Most Wall Street professionals have been fooled by these highly flawed risk models because they do not have math degrees. So when exposed to the intricate theorems and equations, they become hypnotized into thinking they have found some Holy Grail.
For many years now we’ve all seen the reckless use of taxpayer funds by Washington. This irresponsible and unaccountable waste of tax dollars has been particularly prominent during President Bush’s tenure - from billions going to blow up bridges, roads and buildings in Iraq, only to rebuild them - to the Department of Homeland Security, which is no more than a joke. Meanwhile, America’s own infrastructure is in badly need of repair, with current estimates anywhere between $1.5 to $3 trillion and growing each day. Has anyone asked where this money is going to come from? I guess it seems like a trivial issue given the current problems. But it’s going to be a big problem in the not-so-distant future. My guess is that Washington’s inability to pay for these repairs will ultimately lead to the privatization of the transportation department, prison system and many more services expected by taxpayers.
I’m not talking about the banks or even the retailers. We all know they will continue to slide. I’m talking about everything else. With no real median wage growth since 1999, and soaring inflation for gas, food and healthcare, it’s obvious consumers have had much less to spend.
I was checking some news late night and I ran across this title about the most indebted nation in the world. Of course it caught my attention because I though the media was finally ready to start informing Americans of the truth. Without surprise, the article identified a nation other than the United States. Have a look.
Let me be clear about a few things. First, regardless who wins the upcoming presidential election, there will be no real change in America. In order to really understand why you have to know what is goin...
Each day we continue to feel the damaging effects of high oil prices. And while oil has recently corrected down by close to 30% from record highs, it is still very high and is likely to make new records within the next 2 years. Yet, Washington refuses to respond appropriately, and has even denied that inflation has become a problem. As I have discussed in previous articles, Washington has many ways to hide inflation, GDP and employment data. But consumers are starting to realize something is fishy. Apparently, the presidential candidates still think voters are brainless, as they continue their charade of deceit and distractions by proposing useless solutions like gas tax holidays, off-shore drilling, and windfall profits taxes for oil companies – none of which will solve America’s dependence on fossil fuels. In the future, I will address the pitfalls of Mr. Pickens’ proposed wind energy solution. Maybe voters are brainless because they seem to swallow everything they are fed by Washington and the media machine. Fortunately, oil prices are correcting. But remember the effects of high oil prices are delayed in the economy by up to one year. In addition, the longer-term effects may be delayed by up to two years since inflation is a lagging indicator.
Wall Street created this mess and they continue to mislead everyone who bothers to listen. But it will be Wall Street that signals a bottom if you know what to look for. Watch for massive down...
In my previous article, I made a compelling case for investment in oil trusts, specifically Canadian trusts. After all, 14% returns are much better than the market’s historical average of around 8%. So what’s the catch? Well, we obviously need to consider the risks before we make any decisions. In the end, you should understand your risk tolerance and investment horizon. After considering the risks, you will be able to determine a risk-reward profile for these investments. This is the general method to determine suitability for all investments.
As written in the Barron’s this week (July 26, 2008), Lawrence Strauss interviews Mr. Lee Cooperman, co-founder, chairman and chief executive officer of Omega Advisors, a $5 billion long...
It’s shocking to see so many who remain in denial about the economy, specifically the pundits. Until they see two consecutive quarters of negative GDP growth (a ridiculously misleading metric – see my previous article “How Washington is Fooling You With GDP Data”) they refuse to admit we are in a recession. And the media acts as puppets, repeating these same lines without scrutinizing the data. Who do these people think they’re kidding? If you’re running a show designed to help investors, shouldn’t you be ahead of the curve instead of behind it? Serving as broadcasters for inaccurate data that’s been manipulated to fool the public does nothing to aid an audience looking for real investment guidance. Apparently, even Washington realizes GDP data is highly inaccurate and makes revisions for up to five years. As of 2004, such revisions have already introduced question as to whether there was a recession in 2001. By 2012, we might see data that indicated we were in a recession in 2008. But that certainly won’t help anyone except historians who document the Bush era, in what will be remembered as the worst recovery attempt in U.S. history. By now, even the most financially unintelligent consumers realize we’re in a recession. They feel it every time they fill up their gas tank and buy food. They’ve been patiently waiting for real pay increases. Instead, all they’ve gotten are a couple of rebate checks from Washington. What kind of charade is this?
On Friday, IndyMac joined the long and growing list of bankrupt mortgage companies (Accredited Home Lenders, Novastar Financial, Fremont General and dozens of others) that have been taken down by what has already surpassed mortgage and bank losses of the Savings & Loan Crisis. This was all predicted by me and in fact, I recommended investors to SHORT these stocks in 2007. Check here to download Chapter 12 of Cashing in on the Real Estate Bubble. While Indy marks only the sixth bank failure since the official start of the banking-real estate avalanche in February 2007, you can bet this is only the beginning. The last wave of bank failures in the U.S. occurred during the recession of ’90-’91, when 502 banks failed in a 3-year period. Prior to that, more than 1,600 banks insured by the Federal Deposit Insurance Corporation (FDIC) were closed or received FDIC financial assistance between 1980 and 1994 due mainly to the Savings & Loan crisis. Now if you think the collapse of IndyMac doesn’t affect you, think again. The FDIC estimates the takeover will cost between $4 and $8 billion. Given what I know about government estimates, it’s likely to cost much more. Whatever the costs, it’s coming from taxpayers. But there’s more to it. Indy’s insolvency signals that the banking crisis is not only live and well, but only just beginning. Before it’s over, I estimate a total of about $10 trillion in losses as a result of Greenspan’s real estate bubble - $1.5 to $2.0 trillion in direct losses by banks and mortgage companies (much more than Wall Streets ever increasing estimates that are now up to $500 billion), $7 trillion in paper losses due to real estate devaluations, and $1.0 trillion in lost incomes (and decreased consumer spending resulting in income losses for others) due to job losses and lay-offs in the real estate, mortgage, banking and construction industries, as well as non-real estate related job losses due declining economic conditions attributed to the real estate and banking crisis. In total, I would roughly estimate a loss of around 6 million jobs from 2007 to 2011. Already, an estimated 250,000 jobs have been lost in the residential lending sector alone. And as the economy continues to stall, more jobs will be lost from other industries, causing more foreclosures which will only damage the real estate market further, or at best, cause it to lag for several years. The paper losses will come back over time. But for others, a decline in home values can flip you upside down in no time. And if you need to refinance an ARM, you will be out of luck unless you can come up with the difference between the outstanding mortgage balance and the market value of your home - plus any amount required for down payment. This is how many have lost their homes.
Although not yet official, the verdict is on the way. Bear Stearns led the death march a few months ago. Now, Lehman’s bankruptcy filing signals the halfway mark of what will end up being the death of Wall Street. Now Goldman Sachs stands alone as the sole remaining true Wall Street firm.
Searching for Sanity Wall Street’s business model is broken. The high stakes game of Russian roulette which Wall Street never seemed to lose, is taking them down one by one. Commercial banks aren’t in much better shape either. In fact, the business model of the entire financial system is broken. And the pain is only going to get worse. Facing pressure from the Federal Reserve and the SEC, in July the Financial Accounting Standards Board withdrew a newly passed rule requiring banks to book their assets at current market value. Why was this rule rapidly withdrawn? Quite frankly, because it would have made every major bank insolvent.
Amidst speculation that Freddie and its big brother Fannie are facing insolvency, U.S. Treasury Secretary Paulson said the primary focus was supporting Fannie and Freddie "in their current form as they carry out their important mission." Well, the fact of the matter is that “carrying out their mission” is what got them into this mess to begin with. Paulson delivered the subtle message that has been interpreted by most that he won’t bail the GSEs out. But if the GSEs aren’t able to raise sufficient capital, it’s going to initiate a printing frenzy by Bernanke, with or without a conservatorship. Before we consider exactly what Paulson’s statement means, have a look at the following excerpts I put into print in 2006. "Because Fannie and Freddie lack sufficient government oversight, they haven’t maintained adequate capital reserves needed to safeguard the security of payments to investors. And due to exemption from the SEC Act of 1933, they aren’t required to reveal their financial position. In fact, they’re the only publicly traded companies in the Fortune 500 exempt from routine SEC disclosures required for adequate transparency and investor accountability. As a result, many feel the GSEs are exposing themselves to excessive risk." "Recent investigations have forced Fannie to restate earnings to the tune of nearly $11 billion from 1998 to mid-2004. The SEC has fined them $400 million and the management is now being investigated by the Department of Justice. Thus far, Fannie Mae was found to have misrepresented its risk position, acted irresponsibly, and manipulated earnings so company executives would receive huge bonuses.” “The original intended purpose of the GSEs was to focus on affordable housing for the private sector. Yet, dozens of studies have shown that Freddie and Fannie have not been dedicating their resources towards this mission, but have been supplying funds to the overall market. Therefore, the GSEs have been a significant stimulus for the rapid growth of sub-prime loan market that has contributed to the enormous risks we see within the real estate bubble." Source: America’s Financial Apocalypse: How to Profit from the Next Great Depression Is this the “important mission” of the GSEs Paulson was referring to - Fraud, mismanagement, excessive risk, and abuse by management of a quasi-government agency? NOTE: Mike Stathis predicted the precise details of the financial crisis in his 2006 book, America's Financial Apocalypse. The Jewish Mafia REFUSED to publish this landmark book because it exposed the widespread fraud committed by the Jewish Mafia. Instead, the Jewish Mafia published useless marketing books written by their broken clock tribemens (like Peter Schiff's useless book which was wrong about most things and was written a year AFTER Stathis' book). Stathis also released a book focusing on strategies to profit from the real estate collapse in early 2007. The Jewish media crime bosses prefer to simply ignore those who speak the truth and threaten to expose them as the best way to hide the scams from the public. In contrast, the Jewish media crime bosses continuously promote Jewish con men and clowns who have terrible track records as a way to enrich them all while steering the audience to their sponsors, most of which are Jewish Wall Street and related firms. Figure it out folks. It's not rocket science. View Mike Stathis' Track Record here, here, here, here, here, here and here. Membership Resources __________________________________________________________________________________________________________________ Mike Stathis holds the best investment forecasting track record in the world since 2006. View Mike Stathis' Track Record here, here, here, here, here, here and here. Check here to download Chapter 12 of Cashing in on the Real Estate Bubble. So why does the media continue to BAN Stathis? Why does the media constantly air con men who have lousy track records? These are critical questions to be answered. You need to confront the media with these questions. Watch the following videos and you will learn the answer to these questions: You Will Lose Your Ass If You Listen To The Media __________________________________________________________________________________________________________________
Running Out of Options With the recent collapse in share price, both GSEs are going to have a very difficult time raising capital. You won’t find many buyers of the stock after its recent dive. And issuing debt doesn’t seem to be much of an option. The last thing investors want is to buy debt from companies involved in the mortgage mess. Even if they could find buyers, they would be forced to issue a very high coupon, which would add another drag on cash flows. For Fannie and Freddie to have any chance at all to raise additional capital, it’s likely they’ll have to issue some type of convertible preferred stock, with very attractive features (warrants, enhanced voting rights, very attractive conversion rate, etc.) The Truth Won’t Always Set You Free All of this aside, we need to remember there’s no real evidence that either GSE is flirting with insolvency. However, we cannot ignore the market sentiment. We must keep in mind that market perception can create a self-fulfilling prophecy. I have seen market panic or even rumors destroy companies many times in the past. The stock gets beaten down, and then rating agencies downgrade the debt, causing higher interest payments to be made due to the increased risk. Finally, the company cannot raise capital since the stock is so low. If the stock remains low over an extended period, rating agencies sometimes downgrade the company and its outstanding debt. Sometimes debt covenants are triggered, forcing immediate payment of debt. There are numerous possibilities. The point is that it is never a good situation – unless you had a short position, which points to incentives to create solvency rumors. NOTE: Mike Stathis predicted the precise details of the financial crisis in his 2006 book, America's Financial Apocalypse. The Jewish Mafia REFUSED to publish this landmark book because it exposed the widespread fraud committed by the Jewish Mafia. Instead, the Jewish Mafia published useless marketing books written by their broken clock tribemens (like Peter Schiff's useless book which was wrong about most things and was written a year AFTER Stathis' book). Stathis also released a book focusing on strategies to profit from the real estate collapse in early 2007. The Jewish media crime bosses prefer to simply ignore those who speak the truth and threaten to expose them as the best way to hide the scams from the public. In contrast, the Jewish media crime bosses continuously promote Jewish con men and clowns who have terrible track records as a way to enrich them all while steering the audience to their sponsors, most of which are Jewish Wall Street and related firms. Figure it out folks. It's not rocket science. View Mike Stathis' Track Record here, here, here, here, here, here and here. Membership Resources __________________________________________________________________________________________________________________ Mike Stathis holds the best investment forecasting track record in the world since 2006. View Mike Stathis' Track Record here, here, here, here, here, here and here. Check here to download Chapter 12 of Cashing in on the Real Estate Bubble. So why does the media continue to BAN Stathis? Why does the media constantly air con men who have lousy track records? These are critical questions to be answered. You need to confront the media with these questions. Watch the following videos and you will learn the answer to these questions: You Will Lose Your Ass If You Listen To The Media __________________________________________________________________________________________________________________
My advice is to find some people who you trust; those with proven track records, those who are not tied to the television shows. Figure it out. You are only going to be misled by the mainstream media. They will only come clean after it is too late, fooling you into thinking they actually warned you in a timely manner. But as you can see, this is simply not a reflection of reality. That is how the dotcom charade worked and that is how this one if playing out. It’s game that is played. Stop being played and become a player.
Buy you ask? Yes. Not stocks, unless you’re talking about oil. And unless you’re the best of the best of traders you’ll probably want to buy the oil trusts, but only if you b...
Mr. Greenspan, you have been the individual most responsible for the current crisis; a crisis which commenced only a few years after you tried to minimize the dotcom collapse, which of course you also created. By flooding the banks with ridiculously low interest rates you thought this Ponzi scheme economy could run on worthless money forever. But when you saw the end was coming, you quietly made your exit.
Those of you who are familiar with my previous publications know my real estate forecasts remain unchanged since first published in 2006.
It’s that time of year again when the cheeseball marketers and penny stock newsletter bozos gather to pitch their bull to the sheep. The name of one of the biggest of these events is the Money Show, organized by a company called Intershow. Let me be blunt. The speakers at this event (labeled “leading investment experts”) are either morons or they have biased agendas. Of course, that’s just my own opinion. Whether they are complete idiots or not, the fact is that they are all there for one purpose; to promote their agendas.
I failed to post anything about the market rally on this site (since it's still not 100% up and running). But I did make a couple of brief posts elsewhere a couple of days ago. Basically wha...
Without a doubt, Warren Buffet is one of the leading investors in the world. There’s no disputing that. But let’s face it. His skills have been over-exaggerated by the media. Of more detriment, the media continues to deliver the message that what Buffett invests in matters to you. As you will see, he has been made into a god-like figure by the financial media for very precise reasons. Journalists lacking investment expertise often reference Buffett as a way to add credibility by association. Ultimately, they utilize the Buffett “brand name” to make money. An interview with Buffett draws a large audience because the media has convinced the herd that what he says or does actually matters to them. And this translates into huge advertisement opportunities for those who sell this fantasy. You’ve probably seen online ads telling you how you can “get in” on the “next Berkshire Hathaway” by subscribing to a service that discloses what Buffett is buying. Once again, these people are trying to make money from you by leveraging the Buffett name. They understand the marketing power behind investment celebrities. They realize the sheep will be drawn to the Buffett name because the media has brainwashed them to think they can profit by piggybacking onto his investments. Therefore, they’ll be willing to pay for information disclosing what he has invested in. These are the same sheep that are always looking for easy money. They are the same suckers who watch CNBC and FBN. Perhaps you know some of them personally.
That’s right. You read it correctly. Now why would I say something that even most “experts” would laugh at? Because I want to point out once again how so many out there are in the dark, even the so-called experts; you remember, the guys who missed this entire meltdown. Of course, now with so many banks in a dangerous position, I’ve seen many advisers change face and jump on the doom bandwagon. Some have advised investors to remove their money from banks and buy U.S. Treasuries as a safer investment. The rational goes as follows. “U.S. Treasuries are backed by the full faith and credit of the U.S. Government and they have never defaulted.” The first point I’d like to make is this….there’s always a first time. Prior to the present, the MBS market never blew up either. And it’s obvious to any sophisticated investor that the credit risk for U.S. Treasuries continues to increase. While it could take some time, the fact is that the FDIC will cover all bank deposits that do not exceed the $100,000 limit. After all, the FDIC is a government agency. So can we not say that it too is backed by the full faith and credit of the U.S. government? Sure we can because it’s a fact. So as far as safety of principal, the FDIC is equal to U.S. Treasury securities. Now let’s look at the disadvantages of buying U.S. Treasuries.
For all of you out there who listen to economists and think they know what’s going on, hopefully you will begin to realize that the official data you see is nothing but an illusion after you read this multi-part series of articles.
I continue where I left off – discussing just a few of the ways Washington tries to fool us by its misuse and manipulation of data. Washington likes to remind critics that Americans enjoy the highest living standard in the world. As evidence of this, government “experts” discuss statistics such as GDP growth, employment, wealth, income and wage growth, and other economic data without defining exactly what they are referring to or explaining all the assumptions used. In Part 1 of this series, we saw how hedonics can alter GDP and inflation data. Here we look at some additional problems with GDP. After you read this piece, I hope you will agree that the misuse of GDP data as an indicator of economic strength has been one of the biggest errors made in the field of U.S. economics. I can make a strong case that over the past three years there has been virtually no GDP growth other than maybe three quarters. After adjusting for hedonics, the use of debt and the other gimmicks, it’s clear the U.S. economy has grown little since 2005. Sound crazy? Sure it does – but only if you’ve accepted the data from Washington at face value, as the media always does. But this grand illusion cannot remain hidden much longer. Already, we are seeing just some of the effects of Washington’s deception – the real estate meltdown and banking crisis.
The government and related agencies are responsible for reporting the nation’s economic data. Thus, they’re in the driver’s seat to manipulate this data, while dumping so much of it onto consumers that they can’t possibly analyze what’s really going on. Each day, “critical” economic numbers are released by one or more agencies connected to Washington. And consumers look to Wall Street and the media to make heads or tails of this data. Of course, Wall Street is always going to paint a rosier picture for its own benefit. Meanwhile, the mainstream media merely serves as a puppet for Wall Street. The main problem is that by the time this data has been reported it’s already been manipulated. And when Wall Street gets a hold of it they make matters worse, tugging and pulling on the meaning of the numbers as a way to create market volatility. And this generates a lot of trading commissions. The media does its part as well, interviewing analysts, fund managers and pundits to analyze the data. Analysts gain more banking business for companies they tout, while the firm’s market makers and hedge funds take the short side as the dumb money rushes in. Fund managers pump up their number one holdings through praises of “great buying opportunities.” Yet the SEC never investigates whether these funds dump the stock shortly thereafter. And corporations continue to advertise on radio and television networks that maintain a policy of remaining bullish indefinitely. Together, they all feast upon the money created from this propaganda bonanza. Unfortunately, much of this money comes from individual investors who have been fooled by the “experts.” Always keep in mind the manner by which broadcasting networks make money. Then look at who they are interviewing and you will see their agenda.
Deficits, Debt and Excess Consumption As you may recall, in February 2008 President Bush unveiled a whopping $3.1 trillion budget that boost military spending and reduced health benefits for retirees. This was the first $3 trillion-plus annual budget in world history. Since there is no way Washington can come up with this money, Bush’s will end up creating another huge annual deficit. Of course this will have to be financed by investors – almost exclusively China – adding even more to the national debt. This ridiculous budget is just another force serving to destroy America’s future. But the White House hides the full extent of these deficits by allocating certain items to the off-balance category. Similar to annual deficits, off-balance expenses are added to the national debt each year.
You might recall a recent article I wrote called "Madoff in Perspective" where I point out that the real Ponzi scheme is being ignored - that orchestrated by the financial industry. I also make mention of this intentional fraud in America's Financial Apocalypse 2009 Update a few months earlier... "What Madoff did was nowhere near as fraudulent as what the banking and mortgage executives did. Yet, he has become the latest scapegoat in this cycling pattern of booms and busts orchestrated by the Federal Reserve, Washington and Wall Street. Hopefully by now you're starting to figure out how the media is using every chance they get to deflect blame from the real villains; their Wall Street sponsors. But remember, Madoff's charade had absolutely nothing to do with this crisis. So the question begs to be answered…when will we see Fuld (Lehman Brothers), Thain (Merrill Lynch), Killinger (Washington Mutual), O'Neal (Merrill Lynch), Prince (Citigroup), Cayne (Bear Stearns), Schwartz (Bear Stearns), Dimon (JP Morgan), Blankfein (Goldman Sachs), Thompson (Wachovia), Raines (Fannie Mae), Paulson (former U.S. Treasury), Greenspan (former Fed Chairman), Cox (former SEC Chairman), and hundreds if not thousands of others responsible for this mess in handcuffs? Don't hold your breath. It didn't happen after the S&L Crisis or the dotcom meltdown. And it's not going to happen now. Hopefully, you know how the game is played. They'll pick out a few scapegoats; minor players, as a way to appease naïve Americans. This is the way it works. This is the sad reality of America . It's the American Dream for the rich and powerful, and the American Nightmare for everyone else. If you're a true American, you'll contact your congressmen and demand they be brought to justice. If they get enough calls, they'll feel the pressure to file charges. That's how it works. The media knows this. That's why they've done everything but stir the pot." Tigers Never Change Their Stripes "Don't forget, these men cleared billions of dollars in bonuses by fudging financial statements while packaging trillions of dollars of fraudulent loans into securities. This was money taken from shareholders who were lied to, and investors who bought these toxic securities. It was a twist on the classic pump-and-dump scheme.
WASHINGTON (Reuters) - More U.S. chief executives got pay raises than had their pay cut in 2008, a year when billions in taxpayer dollars went to prop up struggling companies and millions of workers...
I decided to check out a couple of these so-called tea parties so I could confirm what I already knew. Let me just say this. I was disgusted by the naive nature of those in attendence...
In the previous part of this article we saw how what Buffett invests in doesn’t matter to you. Let’s look at an example how the media uses the Buffett name to make money. I’d like to direct your attention to a story by Reuters, published on August 22, 2008. “Buffett Sees Weak Economy Until 2009 Surely this is no news. Let’s see now. It’s the end of August, so there are four months left until 2009. A person would have to be a complete fool to think the economy would get better prior to 2009. But the fact is that the investment world consists of a lot of fools who have been brainwashed by the media.
Previously, I discussed the fact that what Warren Buffett invests in doesn’t matter to you. Then I followed up by explaining how the media uses Buffett to make money. Here, I complete the lesson by showing you how Buffett uses the media to cash in. Similar to Britney Spears and other “celebrities,” Buffett also benefits from Hollywood antics. You see, Buffett has been made into a financial celebrity, just as Alan Greenspan and many others have. Media exposure is just as good for Britney’s record sales as it is for shares of Berkshire Hathaway. It’s a two-way street of profits. The media creates big name financial celebrities in order to draw a big audience. A big audience drives big ad revenues. And financial celebrities like Buffett benefit because investors will invest in Berkshire.
Trillions of dollars for the bailouts haven’t satisfied the banks and automakers. They want more, and they’re spending your dollars to make sure they get it. According to the Associated Press, the top 10 recipients of the TARP spent about $9.5 million on lobbying during the first quarter of 2009.
While some would consider Cramer a “stock pumper,” others would consider him their savior. I would consider him the “Dr. Phil” of Wall Street because, similar to Phil, he designs shows based on resolving some controversial issue with the intended goal of helping lost souls. I find it of no surprise that Cramer has made appearances on Dr. Phil. Both are in the same line of work – cheeseball marketing. At the end of each show both Dr. Phil and Cramer emerge as some sort of “Superman.” In short, both of these shows are more about entertainment than anything else and they create an illusion of “value” for their misguided viewers. While this approach isn't really damaging for the Dr. Phil Show, it can be highly damaging for a show based on investments. As a result, Jim Cramer and the rest of CNBC serve as stock pumpers because the financial industry pays the bills there through buying ad time. So the question is whether Cramer is intentionally manipulating stocks. Many people would say yes. I would tend to agree. What we do know is that he likes a stock one day and often hates the same stock a few weeks or even days later. Of course, after a stock he previously told you to buy collapses, he never bothers to remind you how terrible his advice is. This man has no conscious and does not know the meaning of the word “accountable.” This on-off approach serves a purpose. It forces you to watch the daily drama so you won't miss when he turns sour on a stock you bought based upon his favorable review, which often includes yelling and screaming “Buy! Buy! Buy!” It’s possible that Cramer has more “Buys” than Wall Street. Meanwhile, he mentions so many stocks that it is virtually impossible to keep up with what he says. This too is intentional. It is designed to confuse you; to overwhelm you so you won’t remember how poor his track record is. Why would anyone with a brain waste their time following this guy other than to research his horrendous track record for a piece like this?
NOTE: Mike Stathis predicted the precise details of the financial crisis in his 2006 book, America's Financial Apocalypse. The Jewish Mafia REFUSED to publish this landmark book because it exposed the widespread fraud committed by the Jewish Mafia. Instead, the Jewish Mafia published useless marketing books written by their broken clock tribemens (like Peter Schiff's useless book which was wrong about most things and was written a year AFTER Stathis' book). Stathis also released a book focusing on strategies to profit from the real estate collapse in early 2007. The Jewish media crime bosses prefer to simply ignore those who speak the truth and threaten to expose them as the best way to hide the scams from the public. In contrast, the Jewish media crime bosses continuously promote Jewish con men and clowns who have terrible track records as a way to enrich them all while steering the audience to their sponsors, most of which are Jewish Wall Street and related firms. Figure it out folks. It's not rocket science. View Mike Stathis' Track Record here, here, here, here, here, here and here. __________________________________________________________________________________________________________________ Mike Stathis holds the best investment forecasting track record in the world since 2006. View Mike Stathis' Track Record here, here, here, here, here, here and here. Check here to download Chapter 12 of Cashing in on the Real Estate Bubble. So why does the media continue to BAN Stathis? Why does the media constantly air con men who have lousy track records? These are critical questions to be answered. You need to confront the media with these questions. Watch the following videos and you will learn the answer to these questions: You Will Lose Your Ass If You Listen To The Media __________________________________________________________________________________________________________________ Despite attempts made by Greenspan and Bernanke, there is no way to avert the payback period that has been building for over two decades.
For some strange reason, economists, and those who actually give credence to what they say seem to think that a single period eighty years ago set a precedent cast in stone for what to expect from this depression. As a result, the masters of propaganda continue to insist that you cannot have a depression without deflation.
Maybe there's a good reason why CNBC has a show called Fast Money. If you follow the advice of these guys, your money is likely to evaporate very fast. Likewise, I'm beginning to see why Cramer's show is called Mad Money. You're likely to get mad if you follow his advice. Or maybe you have to be a mad man to watch it.
For anyone who believes any positive earnings reports from the banks, you probably also believe there will be a real recovery in the economy. These “earnings” are even less credible than those reported by the banks during the height of their Ponzi scheme in 2007. Earnings? From the banks? It’s laughable. Let me now state what I consider to be facts related to the bigger picture of this economic fiasco. Fact #1. All Major Banks Are Insolvent. This has been true now for over a year. It remains true despite the Treasury and Fed already having pumped in over $13 trillion in the form of loans or guarantees into the financial system; just over the past twelve months alone. But this is still insufficient. Several trillions more will be needed, and much of this will be lost forever.
Fact #5. Most of the Lost Jobs Will Not Return What no one seems to understand is the fact that these job losses are not temporary. Most of them simply aren’t coming back. I’ll guarantee it. The only jobs that will return are those that no one wants; the low-paying, no benefits, dead-end jobs. It’s the same situation that played out after the dotcom collapse. This is part of the reason why there’s been no real recovery since 2001. As I discussed in America’s Financial Apocalypse, it was all an illusion fueled by a real estate bubble. It was another one of Greenspan’s bubble.
I ran across an interesting story about how Japan is using a somewhat innovative approach to deal with its own symptoms of what will eventually be recorded in history books as the global depression. http://www.nytimes.com/2009/04/23/business/global/23immigrant.html The Japanese government is paying travel expenses (plus a little extra money), or about $3000 apiece for migrant workers who agree to return back to their homeland. They must agree never to come back to Japan for work. Critics in Japan have lashed out at the program calling it “inhumane” and “destructive” for the future economy. Maybe the Japanese government realizes just how bad things are going to get. As bad as things are in the United States, they are even worse in Japan. With expectations of a productivity decline of over 6% for this year alone (more than twice the decline expected in the U.S.), Japanese officials realize that it’s time to take some drastic measures. So they’re willing to help preserve what jobs remain for Japanese citizens. That begs the question…why can’t Washington learn from the Japanese?
The news of Andrew Cuomo's letter to Congress revealing that former Treasury Secretary Paulson threatened to fire Bank of America's CEO Ken Lewis and oust the board if they tried to block the Merrill Lynch deal is not at all shocking to me. Nor is it a surprise that Bernanke “requested” this from Paulson. If you’ve been reading my articles, you know that the Treasury Department is the subordinate of the Federal Reserve. http://www.businessinsider.com/henry-blodget-paulson-contradicts-bernanke-blames-bernanke-for-lewis-threat-2009-4 So this latest news confirms much of what I suspected from the very beginning. In fact, I wrote a piece shortly after the announcement of the buyout calling it a bailout orchestrated by the Fed. /article_details-86.html It was all too obvious to me based on the sequence of events, as well as the overly generous takeout price offered for Merrill by BAC. I will guarantee you this is just the tip of the iceberg. There are (and continue to be) many more hidden negotiations and power plays from behind the scenes regarding the bank bailouts, seizures and bankruptcies.
NAR Chief Economist Lawrence Yun continues to prove he's lost in the woods. I'm sure most of you who have followed the real estate market recall his long list of ridiculous predictions. Do you remember when he claimed house prices would rebound in 2007? His quotes continue to supply stand-up comedians with new material. One could reasonably argue that Yun is committing consumer fraud by trying to entice people to buy into a market that is poised to fall further. I suppose he thinks his ridiculous predictions will restore confidence in the real estate market. If in fact his role is to spread optimism, the NAR should be legally required to post an appropriate disclaimer stating their real purpose.
You’ve all probably seen or heard about the recently released Harvard Housing study. Among other things, the report discusses the fact that the median wage-earner is unable to afford the...
While some of the recommendations in this commentary may seem like no-brainers, its real purpose is to illustrate how investment themes relate to the bigger picture.
I just wanted to go on record with something that should be obvious for sophisticated investors; the merger of Sears and Kmart is a terrible deal and will not last. Even if it does, it is certainly no...
I just wanted to make something clear with all this talk about satellite radio. I'll be blunt. It's going nowhere.
I wanted to discuss this whole swine flu hype that’s been blown out of proportion to illustrate how the media creates illusions from what would seem to be valid information. This also relates to the investment world because today, virtually everything that hits newswires is spun further by the financial media. This of course is done intentionally. In the end, most who jump aboard the hype - whether it’s the stem cell hype, the ethanol hype or the swine flu hype – end up losing while the ones who understand what’s going on take your money. As you might know, I do not watch CNBC or FBN. I don’t even have cable because I don’t have time for trash (although I realize there are a few good channels). But I’m willing to bet the bubble networks have been all over the swine flu panic as a way to create trading blurbs. Understand this. You should always stay away from this trash unless you are a dedicated day trader. Then again, I don’t recommend anyone try to become a day trader because they eventually all get blown out.
In just over three months, President Obama has equaled the destruction created by President Bush’s eight years in the White House. Given what lies ahead, I have no doubt he will surpass Bush’s record as the nation’s most disastrous president. I never thought I’d live to see a president exceed Bush’s record. Perhaps this is one of America’s new trends. It’s unlikely the polls will confirm this inevitable reality because the media will continue to blame Bush for everything that goes wrong, while giving Obama full credit for anything that might go well. But you shouldn’t expect much to go well. All we’re likely to see are illusions, false claims, denials and cover-ups. A note to readers; this piece certainly isn’t about democrats or republicans. If you think there’s a real difference between the two parties, you’ve been fooled. If you fall into that category, I suggest you get up to speed real fast. As a part of this educational process, you need to stop watching television and listening to the talking heads on radio because they preach lies, while refusing to air anyone who opposes their misguided and inaccurate views. It’s the way they control your thoughts. It’s a cleverly disguised form of censorship. If you listen to the propaganda from America’s mainstream media, most likely you’ve already been brainwashed.
Here I continue from Part 1. Let me give you a brief example how the media has brainwashed the American public. In early April, the results of Obama’s approval poll were released. The results were as follows: Obama’s approval rating: 66% (a new high and higher than Clinton and Bush) Americans who think America is headed in the right direction: 36% Americans who approve of Obama’s proposals for the banking industry: 33% Americans who approve of Obama’s proposals for the auto industry: 47% The fact is that most Americans do not approve of Obama’s job as president. They’re certainly against the bailouts and lack of accountability for the banking crooks. So then, ask yourself how his approval rating is so high while Americans are clearly dissatisfied with the policies he has taken. Is this not a direct reflection of his leadership? Perhaps the media has redefined how Americans think about “likeability” and leadership. So how could this be?
Last week I released a piece that no other (qualified) financial professional was willing to expose because (in my opinion) they don’t want the masses to know how event-driven media-hyped trading works. If everyone knew how the game is played, they wouldn’t be able to make the easy money.
I've read and heard countless investors who have been thinking the banks were a "good deal" since the first big market sell off in January 2008. Since then many are down another 60% - some even more. Every month I see new investors looking to pick up a "bargain" in the financials without realizing the only bargains have been short positions. Most investors have been programmed by the financial media to always buy stocks when they go down because "in the long-term they are a great value."
I haven't made any comments about these so-called stress tests for the banks because it was obvious (to me anyway) it was just the latest PR scam devised by Larry Summers (carried out by his puppet, Geithner) to exaggerate the financial health of the banking system. While I was confident the results of these “tests” would be ludicrous, I wanted to hold off until they were released so I could deliver the knockout punch. In short, it's clear these "stress tests" weren't so stressful, as I had suspected. Before examining the results, let’s begin by looking at some of the brainwashing journalism involved in this PR campaign.
Printing more money won't solve America’s problems; quite the opposite. It's going to damage the economy further. And these effects will be lasting. You will see them soon. At the very least, we...
The economy is bad and getting worse. And it certainly isn't going to improve by much for a long time. Sure, the government will fool many with it's bogus data. But at the end of the day, millions will realize they just can't make ends meet. Some will adjust their spending behavior. Others will look for new opportunities. Among these opportunities, millions will look to the infomercial gurus, who promise to teach you how to become rich if you buy their course or book. And of course we also have the "free" seminars; the guys who tour the nation with get-rich-quick scams. You've seen them. They advertise on TV, the Internet; everywhere. This group includes the government grant guys, the real estate gurus, and of course Donald Trump (who is not in attendence) and Robert Kiyosaki.
I'm getting quite bored watching the latest economic headlines surface. Bored you say? Yes BORED.
This article was modified from a portion of the The Wall Street Investment Bible. That’s right. This material is contained with the appendix of the book; not the body. Mike saved even more insightful content for the body. If you’re like most investors, you’ve probably stopped looking at your 401(k) statements and other investment accounts. The pain associated with watching your retirement savings evaporate for over a year has become too much for most to bear. But this highlights an important lesson. You need to understand your investments. Simply having a fund that invests in companies you’re familiar with isn’t enough. Knowing the fees, turnover ratio, historical performance, risk-adjusted returns, and so forth isn’t enough either. When you invest in managed funds, closed-end funds, REITs, or oil trusts, you really need to dig deep. You not only have to understand the investments of each fund, but you also need to understand how the funds work. Hopefully, after you read this article you’ll be prepared to act quickly when the next bear market strikes.
As I continue from Part 1, let me explain further why mutual funds can get killed during bear markets. A down market is the best way to lower the cost basis of the fund’s securities positions. But during a bear market, funds have very little cash because investors aren’t buying funds. As well, remember that fund managers can’t go to cash so they’re not able to lower the cost basis of their most undervalued positions. But they have another, often bigger problem to contend with; net redemptions.
I just ran across a news headline by CNBC so I knew it would provide a learning point. Have a look First of all, don't be fooled by the seemingly neutral tone of the article. While there are statements that one could conclude are cautious, if you read it from a neutral position, you will come away with a bullish stance. This is a lesson in psychology more than anything. First, notice the title. In itself sets the tone of the piece as far as I am concerned. Why couldn't the title be "Will the S&P sell off to retest new lows?" Remember, the intermediate to long term trend is what matters. And that trend is still down. To focus on the short-term plays into the hands of Wall Street and online brokers, who will make more money when investors are focused on short-term trading. If you still don't see my point, just look at the bullish versus bearish comments:
If you think President Obama runs America, think again. Like many U.S. presidents before him, Obama is merely a puppet. Larry Summers is making most of the decisions. He's pulling Ob...
In the recent past, I have cautioned investors against becoming prey to the vultures seeking to exploit your desperation, panic, fear and in some cases, ignorance of what the future of the capital mar...
You may have read an article I wrote on Jim Cramer and the "bubble" network, CNBC. In this piece, I plan to really get into the details of how the media ser...
I find it ridiculous that Washington has led America into another trap by supporting ethanol. By now, we all know how expensive it is to produce ethanol from agricultural sources. This is especially true for U.S.-based ethanol producers since conversion into ethanol from corn is highly inefficient. When you are running low on one natural resource, you cannot try to substitute it with another and not expect problems. That is exactly what has happened with ethanol. So why haven’t gas prices dropped?
I wanted to show you another example of the media continues to run to the so-called experts who have no idea what they are talking about. U.S. Inflation to Approach Zimbabwe Level, Faber Says “I am 100 percent sure that the U.S. will go into hyperinflation,” Faber said.
You might have heard about Dallas Mavericks owner, media owner, and dotcom lotto winner Mark Cuban's alleged case of insider trading by the SEC. If not, I made reference to in a recent pie...
You might be wondering why a leading investment strategist would harp on the media so much. Well, friends, the fact is that understanding the tricks and motives of the media is the single most important step towards becoming a great investor. I hope you see that by now. Whether you do or not, I’m going to beat it into your head. So allow me to continue where I left off from Part I of this series. Kudlow has my book, as does Cramer and several other useless clowns and shills in both print and broadcast media. And they’ve had it for two years, giving them more than ample time to realize what to expect. Why is this important? Because the book predicted everything in detail unlike no one else.
I happened to have the TV on the other day while eating dinner. I wasn't paying attention, but when I heard this distinctively nasal, monotone annoying voice, I knew who it was. So I wanted to see what this clown was up to. Apparently, Ben Stein did a commercial with Shaq for Comcast. In it, Stein is identified as an economist.
As I continue my breakdown of the inner workings of the media, I first wanted to emphasize that all of the players within this propaganda machine cooperate with each other. They all air the same content because this creates a perception of validation. What they air becomes your perception of reality, whether it’s about North Korea, Iraq, Palestine or the stock market and the economy. If you’re told the same thing over and over again, eventually you’ll believe it; especially when different people – people you trust, say it. This is how most Americans have been convinced we are fighting a war on terror, yet the Mexican border remains open for “terrorists” from the Middle East to easily pass if they so choose. This is also how Americans were convinced Iraq had WMDs. In reality, much different motives were behind these illusions created by the media. Hopefully, you are beginning to understand why the media machine is the most dangerous force in America today.
The SEC has formally charged Angelo Mozilo, former CEO of Countrywide Financial, with fraud related to the mortgage debacle.
By now, surely everyone knows about the infamous Nigerian email scams. But were you aware that these scams have cleared hundreds of millions of dollars (if not more) in just a few years time? The reason so many scammers exist is because there are too many ignorant and desperate people out there who make them rich. The same could be said about the "popularity" of CNBC and FBN. As the economy continues its gradual permanant decline, you will see more and more scammers appear, taking advantage of the desperation of millions looking to restore their previous living standards.
Just a note about my postings. Some of you may be wondering why I have been making so many posts about the media, while ignoring the market and economy. The reason is two-fold. First of all, understanding how the media deceives and controls your mind is the single-biggest step you can take towards becoming a sophisticated investor. But the main reason is because I don't dramatize the economy and market on a daily basis like everyone else.
Early last year, I made a prediction that seemed obvious, given what I knew about the banking system and the fate of the stock market. I predicted there would be thousands of hedge funds shutting down over the next few years. The avalanche is already in progress. Just last year, in Q3 some 7% of all hedge funds shut down, 344 funds in total. This set a record. It's likely that over 1000 hedge funds shut down in 2008 alone. Yet, the bleeding still continues.
You may recall a few previous articles I've posted on the vultures out there that prey on your desperation. Some of the most dangerous wolves of the pack are the investment newsletters, and there are thousands. They are potentially very dangerous because they prey on your greed and desire for easy money. Meanwhile, they send you misleading claims if not outright lies. Hopefully by now you realize that AVA Investment Analytics NOT INCLUDED in this huge group. These are the same guys who rent or sell your email and mailing address to other companies, from credit cards and insurance to other newsletters. They also bombard your mailbox daily; sometimes several times each day with bogus claims and scare tactics to get you to subscribe. They make you think you can easily become rich, if only you subscribe to their service. Once you subscribe, they have you hooked like a fish. Then they offer you a buffet of other services. Before you know it, you're spending more money for these services and trading commissions than you've made in years. But that's a rarer outcome. Most end up losing money; sometimes a lot of money. The problem is that for one reason or another, whether it's the huge minimums required from financial firms or bad experiences with them in the past, you find yourself on your own. And you certainly won't get a lick of real assistance from registered reps working for online brokers, because quite frankly these guys are morons. So you find yourself all alone, faced with the daunting task of going up against the pros and winning. Despite what the TV commercials from online brokers tell you, the odds are stacked way against you. A few wise investors realize this, but many fall for these delusions. These are the people who learn the hard way trading on their own. Some are seduced by the repetitive infomercials for trading services. I'll address these scam artists in the future. Here, I plan to focus on the newsletter guys. To hook you, they send out emails and snail mail pieces claiming their trades made huge returns. I can guarantee you that these claims are always deceptive if not outright lies. Let's take a look at a man you may have heard of. His name is Martin Weiss. He heads several online and print newsletter publications including the "Safe Money Report," "Money and Markets" and several others. He always refers to himself as "Dr. Martin Weiss." This should be your first warning sign. Those who have a Ph.D.s should never refer to themselves as Dr. since it implies a medical doctor. When I see that, I always run. Has anyone ever heard of Dr. Phil? yes, Dr. Phil the psychologist, not the medical doctor psychiatrist. But then again, Dr. Seuss wasn't a real doctor now was he. One might assume that "Dr." Weiss might have a Ph.D. in economics, business or finance. But that is not the case. His Ph.D. is in anthropology. Anthropology?? That seems odd. Now then, we ask whether he received any professional training from Wall Street? Like virtually all of the thousands of other investment newsletter guys out there, as far as I been able to determine, the answer is NO. In fact, I'll bet on it. So then, where did he gain his "investment experience?" Perhaps "Dr." Weiss gained his experience from day-trading in his mom's basement like so many others who claim to be experts? Well, maybe. But he loves sharing the legendary stories about his father. It's a shame I've never seen any verification about these stories that supposedly took place several decades ago.
I ran across a link to an article from Forbes and I got so upset I wanted to share it with you so you could see how low the financial media stoops to brainwash people, creating a new generation of sheep, while promoting their financial sponsors. The reason why I became so upset at this advertisement (disguised as an article) is because it targets kids and brainwashes parents to think that kids should be spending their online time "more wisely" by learning about investments. "Your children already spend way too much time on the Web. Why not start them on some fund Web sites that teach them sound investment principals." Yea! Great idea! NOT. What a manipulative, dirty, filthy ad. The "author" is such a HACK.
I ran across an interesting announcement that bodes well for Fidelity and KKR. But I’m willing to bet it will be a bad deal for unsuspecting Fidelity investors. Kolberg Kravis Roberts & Co. (KKR), a large well-known leveraged-buyout firm (which I consider a corporate raider) has announced that it plans to give Fidelity access to IPOs from its portfolio companies. In turn, Fidelity plans to provide IPO shares to its customers.
It usually doesn’t take me too long before I spot media trash that stirs me up so much that I just have to write about it. That really says more about the state of the media today than it does about me. This morning it took me all of 10 seconds to run across a piece I felt compelled to write about because I wanted to illustrate how the media continues to manufacture propaganda. In this case, there are no clear agendas involved other than selling ads. It’s more of a case of incompetence and irresponsible journalism. The article was written a few days ago by a journalist with U.S. News and World Report. As you might imagine, I ran across it online, as I would rather go streaking than be caught dead with a physical copy of this trash publication in my hands. After all, rummaging through media stories on the Internet doesn’t demonstrate a commitment to any specific publication, unlike the case when you’re holding a newspaper or magazine and reading through it. The point of this commentary is to highlight the ludicrous nature of the article’s title, as well as the lack of substance of the content. Okay, so how is this reporter able to determine the top 10 housing markets for the next 10 years when I can’t even determine that? Let’s have a look.
In Part 3 of this series, I was discussing the “media club,” pointing out how no one in the media (regardless what their position is) is on your side. If they were and they had truly valuable insights, you can bet they wouldn’t be interviewed because the media only serves the interests of Wall Street. This how the media club basically works. Once you’ve been on CNBC or FBN a few times, you’re likely to make the rounds to CNN, Bloomberg TV, CBS, ABC, etc. Ultimately, if things go well and you’re a “good boy,” you’ll be interviewed by all of the networks. In the best of scenarios, you’ll be turned into a media ham like Peter Schiff, Nouriel Roubini and others have. Their articles will be pumped into all of the useless websites like that partner with the media. When you see their pieces on a website, you should know to run for the hills. Whenever the New York Times, Washington Post, WSJ, Financial Times, Forbes, or other large publications wants to interview an “expert,” they will either select pro-Wall Street guys or they will play the “follow the leader approach,” interviewing guys who have established a “media presence.”
Let me give you a brief example how the entire media industry partners with these masters of deception. On Sunday September 2008, the Washington Post published an op-ed by one of the biggest Wall Street hacks around, Don Luskin. I don’t want to subject you to the full extent of Luskin’s pseudo-intellectual babble, so I’ve deleted much of the article to spare you from further disgust. If you want to read the article in entirety, the link is posted. Let’s have a look…
The following report was released on June 10th as a follow-up to subscribers to the June newsletter.
I’ve sat by now for about ten years now, waiting for someone from the financial industry to point out what I am about to reveal. I meant to write about this but I kept forgetting. I have to conclude that no one has written or spoken in the media about what I’m about to reveal because many simply are unaware of what I deem to be obvious. Others don’t want to go against their colleagues in the financial industry. But what these guys seem to forget is that their first loyalty should lie with the investment public. I feel the need to point out what I feel to be very disturbing facts behind PIMCO’s Total Return Fund. In short, I feel the fees charged are excessive by any reasonable measure. And when you consider the size of the fund (being the largest mutual fund in the world) this should be further evidence that you can’t win with Wall Street. The scary part is that you have some really large investors in this fund; investors that are supposed to be “sophisticated;” even investors with a fiduciary responsibility to their clients.
The latest from the AIG continues now with another greedy attorney fighting for bonus money for AIG employees - the same people who helped collapse the global economy.
That’s what the envelope states in large bold faced print I recently received. I was naturally curious so I opened it. Perhaps I was a bit naïve but I thought it had to do with some offer to get health care coverage for say participating in some type of survey.
In Part 5 of this series, I discussed how Don Luskin serves as one of the biggest Wall Street hacks on TV. This is specifically why Larry Kudlow has him on his pro-Wall Street, neo-conservatism show. I demonstrated just how dedicated Luskin is towards this mission by discussing his ever so timely op-ed in the Washington Post. So let me finish where I left off. Mr. Luskin, congratulations. That op-ed will probably make history books someday as an example of why many U.S. newspapers went bankrupt. It certainly marks you as a fool. But don’t think of that piece as the clincher. You’ve had many appearances on Kudlow (your fellow hack buddy) that labeled you a fool and hack prior to that.
I recently ran across this advertisement piece by Forbes disguised as an article and I just had to bring it to your attention so you can see just another way the media works with big industry and Washington to brainwash the unsuspecting masses. It's a list of the "Top 10 Things to Buy Before the Economy Improves." Notice the first thing on their list. "Buy a house." The FACT is that home ownership in MOST cases does not represent an investment, as I clearly demonstrated in America's Financial Apocalypse (2006 extended version).
Through much of this series, I’ve been talking about CNBC. But there’s a new kid on the block; Fox Business Network (FBN). Why do you think they started this network? Because they saw how many suckers were stupid enough to watch CNBC. Rupert Murdock recognized the potential profits of a drama-filled investment network after seeing CNBC’s “success.” He realized you could fool people into thinking your network delivers timely insight, while selling ads to the financial industry. By watching CNBC, Murdoch saw how lucrative the Hollywood marketing model could be when applied to Wall Street. All one needs are some Wall Street hacks, some babes, (preferably with big boobs) live footage of the cocaine-addicted traders on the exchange, and bingo. So Murdock spun off his own financial propaganda network from FOX called the FOX Business Network or FBN.
By now, if you've been reading my media deception articles, you should know why the media is in financial trouble. It's not because of the economy. It's due to the absence of valuable content.
Fresh off the press, the mystery behind Steve Jobs' medical leave of absense has been revealed. According to the WSJ, he recently received a liver transplant. My question is, how was Mr. Jobs able to get a transplant so fast?
Those of you of you who have been following me know that I’ve written several articles discussing the tricks and motives of the financial media, but I have mainly been focused on the broadcast media. As you might suspect, many more are on the way….THAT IS, ASSUMING YOU GUYS START VISITING THE AD SPONSORS…..because I feel it is critical to understand how the media works. In this article, I wanted to give you another example of how the print media takes your money by selling you bogus claims.
First, before you begin to read this typical example of subtle hack journalism, I want you to have a look at the ad for Ron Insana. Apparently, this former CNBC hack has teamed up with Cramer and thestreet.com for a new gig. I’ll discuss him in the near future. Next, have a look at the ad below. You’ll see a guy who looks like Kojac’s son; just another useless trading service with bogus claims, headed by dirt bags with no professional industry experience or insights. If you think I'm wrong, I invite you to fork over your money to this clown.
In 2006, Ron Insana’s “popularity” with the sheep viewers of CNBC led to his resignation in order to start a fund of hedge funds (FoF). I don’t know the details of this arrangement, but I’d say he was approached by some guys who had some access to investment capital, and they wanted to leverage Insana’s “popularity” on CNBC as a way to raise more capital.
Have a look at Gross’ Total Return Fund’s top 10 holdings. Recall this is the world’s largest mutual fund.
Ever since (finally) acknowledging the problems within the real estate and banking industries, several historic actions have been taken by Washington, Wall Street, the Federal Reserve and the U.S. Treasury – all in desperation.
Let’s continue with the elements needed for America to mount a real and sustainable economic recovery.
An article from the Huffington Post today claims that Ford is "secretly" in talks to sell Volvo. First, let me say that this is another example of the media trying to create the perception of valuable content.
Attached below in PDF is a propaganda piece I came across while doing some research. It serves to illustrate a valuable lesson, as well as remind you about reality. The report was written by the US-China Business Council. Lesson #1: NEVER EVER trust anything pumped out by the Chamber of Commerce (local, state or federal). This also applies to these bilateral trade organizations. They are cheerleaders like the rest of the government bodies. See Also: The Damaging Consequences Of Free Trade Free Trade And The Suicide Of A Superpower (Part 1) Free Trade And The Suicide Of A Superpower (Part 2) Free Trade And The Jewish Mafia Ford As A Crystal Ball For America Ford: Playing Its Last Hand? GM Lines Up for Its Take Washington's War Against America's Middle Class Video: Educating A Libertarian Hack From Harvard
First he got involved with casinos. He just happened to pick the wrong spot (Atlantic City). Of course, everyone knows in real estate, the most important thing is "location, location, location." Yet, Trump claims to be a real estate expert. Next, he got involved with the Miss Universe Organization, owned also by NBC. As a result, Trump makes certain to create drama with the Miss Universe, Miss USA, and Miss Teen USA events as much as he can. Next, it was the Apprentice. And now it's wrestling.
If you’ve been following my commentaries, you’ll recall how poorly of a job I feel Obama is doing. Perhaps you realized this on your own. But just in case you have any doubts, you might want to read an article I wrote a few weeks ago. But all looks “great” according to the media. In their eyes President Obama can do no wrong. The media uses the same tactic when they hype up Britney Spears and Paris Hilton.
In case you don’t know who Larry Kudlow is, he’s one of the CNBC hacks who continued to claim the economy was strong though most of 2008. Kudlow epitomizes the word hack. His track record is even worse than Jim Cramer’s. I want you to have a look at his recent article discussing how good the economy looks. Make sure to read Jim Welsh’s comment below the article.
Continuing from Part 1... Perhaps the most obvious sign of weakness, Obama’s healthcare proposal specifically ignores the number one problem with healthcare in America – cost. Providing greater access to medical insurance falls short of fixing the crisis in healthcare. Obama’s proposal is fundamentally no different than Bush’s because in the end, taxpayers subsidize the excessive profits of the industry. Similar to presidents before him, Obama’s remedy can be likened to trying to put out a large fire with a blanket. In the beginning, it will look like the fire has been contained. But soon after, the blanket will only make the problem worse. It’s the same manner by which Obama has dealt with the economy. Soon we will see the effects of these reckless policies. Most likely, the media will continue to praise Obama as they did Greenspan. Later they’ll have to eat their own words, as is often the case.
A couple of weeks ago, I ran across a fantastic article by a physician who sought to understand why there are such large differences between healthcare costs in different cities. It's truly a great article, despite it's length. I highly recommend you read it.
The following brief commentary was from my July 2005 newsletter. As I have been saying for over 4 years now, while we may experience short bull markets, we will most likely not see a sustainable bull period for several more years, perhaps as long as 2012. So if you have not already done so you need to reshift your portfolios to take advantage of the current and future expected weak economic conditions.
This article is from previous newsletter archives to give you an idea what I was saying before this collapse. This one is from March 2006. Once again, we hear the daily economic numbers….the jobs report is good last month and bad this month; inflation is growing one day and the next it is reported to be in check. Forget what you hear from the economics reports, Wall Street, the Fed and the media...they’re all overly optimistic at best, and lying at worst. There has been NO real recovery and the government has twisted and distorted its statistics to make Americans feel that progress has been made.
Look, It’s Erin “Bimbette” As noted by www.my-wild-side(dot)com “Corporate cheerleader from hell: CNBC's Erin Burnett”
Previously, I’ve shown you many tricks used by the broadcast media to brainwash you. Most recently, I have shown you how CNBC and FBN use sex to sell you stocks. And every time you buy or sell a stock with E-Trade, Schwab or from Wall Street brokers, you pay a commission. And part of that commission is sent indirectly to these networks via commercials they pay for. But if you thought this scam existed only in the United States, you’d be wrong. CNBC has virtual casino dealers – “babes & boobs"- worldwide. CNBC’s foreign affiliates feature their own rendition of “babes, boobs and bozos.” Have a look at the babe in this video (at the end of the article).
Even Dr. Phil Gets in on the Action And we can’t forget Dr. Phil; the hick who isn’t even a real doctor. He just plays one on TV. He has a Ph.D. in psychology, not an M.D. in psychiatry.
The media has a special club, similar to boards of directors who serve on each other’s companies. You scratch my back I’ll scratch yours. Oprah had you on her show? Oh well then FOX wants you on and so does ABC, NBC, CNBC and even PBS. And we want to have you on our radio shows too. Forbes says you are an expert so we will call you an expert too. Of course, many of these so-called “experts” are columnists for Forbes and other mainstream media publications, or hack sites connected to Jim Cramer such as thestreet.com and its affiliate, realmoney.com.
“…the U.S. might continue its trend towards inflation merely due to continued high oil prices and weakness of the dollar. And only after some disaster such as a Fannie Mae blowup might deflation appear.
I ran across an interesting story some of you may already know about. Have a look. I find it odd how the United States justice system conveniently uses subjective forms of indirect "evidence" such as "intent" when it serves their agendas for prosecution of what are undoubtedly many innocent people.
In part 1 of this article, I laid out some common sense explanations why gold is best utilized for short-term trading. Furthermore, I emphasized that gold rarely provides a good hedge against inflation. When it does, it’s most often a short-term phenomenon. In Part 2 of this series I’ll demonstrate this. Let’s begin by looking at a gold price chart from 1975 to 2009. Note that gold prices in this chart have NOT been adjusted for inflation. If you bought gold any time between 1980 and 1998 and held it, you lost out—UNLESS you made a short-term trade, or exited after a couple of years. Depending on when you bought it, you had to wait until anywhere from between 2004 and 2008 in order to make money (these periods have been roughly estimated, but you can get the general idea by studying the price chart below).
As of yesterday, Lear Corp., an auto parts supplier for the "Little 3" joined the list of others who have been victimized by the collapse of America’s Ponzi scheme economy.
Today, America’s “New Economy” is based exclusively on services - primarily financial and technology-based services, with a whole slew of attorneys and consultants to support transactions and legal agreements. But there are other service industries as well. Over the past few decades, as America's economy has transitioned from old to new, millions of manufacturing jobs have been sent overseas. Many of these jobs have been replaced with blue collar service jobs like landscaping, valets, nannies, maid services, pet services, massage therapy and fitness trainers. Today, each represents a large and growing industry in America. Others have enrolled in for-profit colleges hoping to transition into another career. Little do they realize, most of these “new job opportunities end up being dead-end jobs. The fact is that economic and career opportunities are shrinking by the day in America; all due to the system of unfair trade advocated by politicians who have been bought off by industry lobbyist groups. Which would you rather have; a manufacturing job with a nice stable salary, healthcare, disability, and retirement benefits? Or a job parking cars for tips.
In my relatively brief years in the real world, I think I have been fortunate enough to have learned how some things work, like the U.S. capitalist and political systems. It’s not a pleasant reality either; that is if you have a conscious. Essentially, money rules. And if you have enough of it you are often placed above the law. And this is rule of law is accentuating the disparity in America between the “haves” and the “have nots.” On Wall Street, I saw this first hand, as the huge producers got away with what would be considered securities fraud if they were caught. Firms generating huge amounts of money are willing to take the risks of being caught because the penalties pale in comparison to the riches secured. But it doesn't end on Wall Street. The same goes for all industries. Take a look at healthcare. As HMOs encourage physicians to push pills over alternative treatments, they too are guilty of robbing Americans of healthcare benefits that have been prepaid. Perhaps it is less excusable in healthcare than other industries due to the “ethics” involved. Unfortunately, these ethics are gradually dissipating. So too are the drug companies guilty of sending drugs to market knowing of the adverse effects.
I don't know if you've heard about the state of California's issuance of numerous IOUs over the past several months as a desperate plea to stay afloat.
Hopefully, after having read Part 1 and Part 2, you now realize that gold certainly isn’t a hedge against inflation; quite the opposite. Accordingly, a buy-and-hold approach is the worst possible investment strategy for the use of gold; that is, unless you happen to get in at during the early stages of a gold bull market. Similar to deflationary periods, major crises are short-term events. In contrast, modest inflation is a universal law. Therefore, gold should only be bought during times of crisis (ideally before). BUT you should NOT hold gold indefinitely. You need to trade it like major financial institutions do. Otherwise you could get crushed (depending upon where along the spike you bought it). Remember, the price of gold is ONLY driven by supply-demand dynamics, which are driven by panic/crises and hype. And yes, it’s also driven by market manipulation, which serves to alter supply-demand dynamics. But this creates an illusion (i.e. extreme overvaluation) that rarely lasts, and eventually comes crashing down. The BEST use for gold is to capture price volatility via short-term trading. Its poorest use is as a long-term hold. Now that the gold bubble has (likely) been established, you need to be very careful about buying gold here, unless you plan to trade it. Otherwise, you face the risk of being stuck with it when the bubble pops. The previous down cycle in gold lasted some 23 years. And some investors are still waiting to break even (after adjusting for inflation).
So you thought you'd heard the end of AIG, huh? Not by a long shot. This useless company, with a very long list of employees belonging in prison, is still demanding the White House approve $450 million in bonuses for 2008 - for those greedy bankers and traders who tied the global financial system into a web of toxic assets, helping to destroy the global economy.
I normally don’t bother myself with reading personal views pumped out throughout the Internet. But I came across one of Peter Schiff’s pitches demonstrating just how off the mark he remains. So I felt compelled to address his misguided opinions; not only because he is wrong, but also because he has been inducted into the deceitful media club. And he has used this venue as a manner by which to sway political and economic opinion. Have a look.
I ran across this ridiculous headline on Yahoo! Finance (which is nothing more than the CNBC of the Internet) and I wanted to make a few comments.
Lesson #5: Extremists are Always Useless and Often Dangerous Certainly, President Obama is not going about things in a manner I would advise. But Peter, you cannot use his extremist approach (or I should say that of Larry Summers and others who are really running the show) to validate your own extremist views of the “dangers” of prudent and accountable regulation; something the United States has not had in decades. It appears as if Mr. Schiff possesses the same flaw as many others who sometimes hit the target after countless years of shooting. In the meantime, they miss out on many years of easy money. What’s worse, once they finally hit the target, they never hit the bulls-eye due to their persistently extreme views which are centered more on sales and marketing than credible analysis. And if you can’t hit the bulls-eye you will seldom win. This also applies to the investment process. Extremists are never good for anyone. In fact, they’re often dangerous, whether they’re from the “no government” or “complete government” intervention camp. As with everything, the real answer lies somewhere in between. Moderation is always the best solution. But being the great salesmen that he is, Mr. Schiff realizes that most people can more easily grasp extreme viewpoints because such arguments are cut and dry, lacking complexity. Unfortunately, they often lack validity.
From what I can tell, the ONLY thing Mr. Schiff understands about healthcare is the poor design of private medical insurance. The current system does not provide real insurance. It’s nothing more than a system of pre-paid medical, operating with the rules of insurance. And this has created a huge source of fraud by private insurers. Assuming we keep the basic structure of private insurance in place, it should be modified to provide assistance under some catastrophic, emergency situation rather than routine care. However, what Schiff fails to recognize is that by placing everyone on a high-deductible medical plan, most people would actually end up underinsuring themselves. This has already happened. According to a study by Harvard researchers, 68% of all medical bankruptcies (50% of all bankruptcies) occur with people who have medical insurance. A system of universal coverage would serve to fill in the gaps catastrophic insurance leaves out. For many years now, Washington’s response to America’s runaway healthcare costs has been the addition of new tax deductions. But we cannot forget that tax deductions do absolutely nothing for those who have lost their jobs. You need income in order to utilize tax deductions. More so than anything else, tax deductions provide yet another tax shelter for the wealthy, while encouraging further cost increases from the healthcare industry, knowing you have no choice but to pay whatever prices insurers stick you with. More important, Schiff fails to understand that people must be provided with basic care instead of waiting for a small problem to progress into a deadly and costly illness. It’s called preventative medicine; an important component missing from America’s healthcare system because the insurance industry doesn’t want to pay for it. I find it mysterious how someone who claims to be an expert in economics is unable to appreciate the fact that taxation of healthcare benefits would create a permanent drag on consumer spending. There is a solution, but Schiff has no idea what it is. As far off from the solution as Obama is, Schiff is light years away. The solution is some combination of universal healthcare, radical policy change, and technology. A system of universal coverage would save hundreds of billions of dollars annually after streamlining the bureaucracy and slashing the huge administrative costs from the private insurers.
Human nature causes most people to attach loyalty and credibility to those who present one issue their audience sides with, while failing to question other issues. This is a dangerous mentality to have. This happens all the time. We see it in politics, medicine, finance, economics and everything else. But nowhere is this mentality more predominant than with the media, because it is the media that serves as the portal by which these individuals suck you in. In the past I have focused on the televised media and their many so-called "experts."
While I do agree with Congressman Ron Paul's position on the Federal Reserve, this by no means should be used as a blanket endorsement of his political and economic views; and certainly not his views on healthcare. The Federal Reserve mafia has been in control of America since inception. This cartel has worked particularly hard over the past two decades to gain control over the global banking system. So, you had better believe they aren't going away, nor is their control. They’re too powerful now, and they won’t allow anyone to get in their way. They control Washington. They control the media. They control economists. They control your lives. As we have recently witnessed, President Obama has been instructed by his puppet masters to grant the Fed even more power. If Bush was still in the White House we would see the same thing. If Clinton was still president we would see the same thing. If McCain were elected we would see the same thing. It does not matter who the president is because the Fed and its allies make many of the big decisions coming from the White House. They always win, regardless whether it’s the democrats who are in charge or the republicans. This is why your vote no longer matters. This is also why Washington will not permit a third political party to compete equally with its two-party mafia. Ron Paul realized this, and that is most likely why he ran as a republican. He hoped to work successfully within the confines of America’s political system in order to bring forth those changes he deemed appropriate.
Today after the bell, Intel's only major competitor AMD reported disappointing earnings, missing by a large mark. This confirms what I discussed in the recent report released to newsletter subscribers. The spin by Wall Street and the media lists AMD's business transition as the source of the earnings miss, but this simply is not true.
According to Paul, healthcare should be run like mobile phone providers! Okay let's see. Mobile phone carriers tie you into legally-binding service contracts with extortionist penalties for breaking the contract even when they fail to render services, etc. In fact, America's healthcare is already run like mobile phone providers. That's one reason why healthcare has become such a problem. See here When the interviewer in the above video (Aaron Task) mentions that most consumers are dissatisfied with their phone carriers, Paul counters with his typical generic reply - "there's too many government regulations on [phone] carriers." Wrong again Congressman. It's been selective government regulations (lobbied for by the big industry leaders) that have created a near-monopoly in the telecommunications industry.
Despite a big boost in shares in after hours trading, Wednesday's (disappointing) earnings for the online auctioneer represent a continuing trend that will not be broken anytime soon. Yes, they beat estimates, but this means nothing. Estimates have been revised downward over and over. Management and Wall Street analysts have placed blame with this floundering company on the economy, but this is simply not the case.
Perhaps you've heard about New Jersey's latest case of corruption. It involves three mayors, five Jewish Rabbis, money laundering, bribes and human organ sales; and not just in Jersey, This drama spans three continents. Sounds like an opening ad line for a Hollywood comedy doesn't it? Apparently, the Rabbis tapped into their networks in Switzerland and Israel to launder money. And at least one Rabbi has been involved with organ sales for many years. What I find particularly disturbing is that this money laundering involves Israel. If the money had been laundered through Palestine, Iran, or some other Islamic nation, those involved would be facing charges of funding terrorism and would likely face 100 years in prison.
Politicians use several means to hide the real problems from voters. One of their biggest partners in this deception is the media, which helps deliver messages they want the public to hear. When critical issues are discovered within the administration, this often leads to replacement of politicians who simply tried to serve the best interests of voters. For these politicians, a forced resignation is the price of loyalty to voters. This was the fate of former Secretary of Treasury Paul O’Neill. But he is not alone, as there have been many others with this same fate throughout U.S. history. These are America’s true heroes because they have tried to serve the best interests of voters.
I was doing some research on gold propaganda and came across some interesting information I wanted to share with readers. It turns out that Euro Pacific Capital (the brokerage firm Peter Schiff heads) holds the exclusive rights to broker certain Perth Mint products in the United States. Therefore, he has a financial interest in promoting physical gold as an investment, as opposed to gold ETFs due to the points I mention in my previous series "Fool's Gold." If you want to read an advertisement for the Perth Mint, you can try reading Crash Proof. But I would not waste your money on this "How to Invest in Doom for Dummies" book.
Last week, a federal judge dismissed an insider trading case made by the SEC against Mark Cuban. I discussed this case several weeks ago. "U.S. District Judge Sidney A. Fitzwater ruled that the SEC could not hold Cuban liable for insider trading because the agency didn't allege the billionaire NBA team owner had agreed not to trade based on confidential information he received about an Internet search engine company, Mamma.com Inc." Let me say that this is a HUGE joke. Think about it. Just because the company did not explicitly get Cuban to promise not to use the information for his gain, that's supposed to mean there was no insider trading? WRONG. Someone has to pay the price for this fraud; if not Cuban than the CEO of Mamma.com. Cuban acted illegally. Shareholders were ripped off.
Would you like a FREE copy of The Wall Street Investment Bible? Well here's your chance to get this very valuable book. Mr. Stathis is offering a free copy of his n...
That's right, I said free. I'll even pay for shipping. All you have to do is help yourself. Okay, so what does that mean?
Fresh off the press, Bank of America basically gets a "get out of jail" free card for securities fraud and criminal indictments by BAC and MER executives by sending a few million dollars to the SEC. http://money.cnn.com/2009/08/03/news/companies/bank_of_america_sec/?postversion=2009080314 I'm curious as to what $33 million will do for thousands of shareholders who lost billions of dollars due to misinformation, lies and deception by BAC and MER. Adding insult to injury, these criminals are getting bonuses using taxpayer dollars.
After helping to destroy Citigroup, former CEO Sallie Krawcheck has taken over the top spot at Bank of America's global investment management division.
Today we have yet another case whereby the SEC has reinforced the precedent of securities fraud. This sickens me to the bone.
The reported news of SEC actions to move towards a ban on flash trading pose nothing more than a smoke screen to fool investors into thinking the SEC is watching out for their best interests. As history shows, this could be no more further from reality. Let me be clear about this. Despite all you may have heard about how flash trading has led to huge profits for the big wirehouse trading firms like Goldman Sachs, this is simply not true. Flash trading is trivial. And it certainly doesn't account for any meaningful proportion of profits from the likes of Goldman.
Despite the strong closing bounce off the new intraday low of around 7400 reached on Friday, it’s likely the Dow has further downside. These lows may not occur for another 12-18 months.
To those of you who say it's impossible to time or forecast the market; to those of you who keep wasting your time reading and watching the clowns positioned as so-called "experts" by the me...
I could go on and on about this piece of news but I'll spare myself days of endless ranting. Instead, I'll just thrown in a few lines.
Continuing from Part 1, I basically handed the ingredients for a Pulitzer to a few reporters from the New York Times and LA Times, but they were too ignorant and arrogant to recognize the full value of my donation. Alternatively, perhaps they were told not to pursue things by their superiors due to the ramifications to the banking cartel and the SEC. Either way, the truth was hidden from you. Let me elaborate a bit. You see, last year, I sent these journalists my 30-page formal report to the SEC which showed clear insider trading in WaMu. As well, I discussed how the banking cartel took WaMu down illegally (and possibly conspired) via naked short sales, knowing that one of the members of this cartel would be able to buy up their assets at pennies on the dollar. I also discussed the role of former SEC Chairman Chris Cox in facilitating this.
Amidst all of the media coverage, instead of real experts, what you see are data collectors (Robert Shiller), perpetual doomers – guys who have been preaching doom for two decades - Roubini, Schiff, Krugman and Faber. And now we see the “hindsight heroes” who are only jumping aboard now that things are obvious (everyone on CNBC, FBN, radio, and various financial websites). Any way you slice it, they’re all extremists. Extremists are largely useless and sometimes dangerous.
I continue where I left off from Part 1 of this piece... It might seem like the guys interviewed by the financial media know what they’re talking about. But if their position is too superficial or too extreme, their guidance could actually prove to be worse than those who listened to Larry Kudlow, or “Mr. Perpetual Bull Market."
I've been working feverishly trying to complete my healthcare book. It's been a very difficult challenge juggling this project off-and-on for three years.
As many of you know, the media black-balled me and continues to today for a very good reason. They are protecting the agendas of their financial sponsors – the financial industry and corporate America, despite the fact that there are not even five individuals who collectively can match my track record. In the future, I will continue to provide examples of just how reckless the media hacks are. It should be a criminal offense for the media to air some of these guys, especially when the media positions them as experts.
I don't know if anyone read the two posts I made on Monday about healthcare and HMOs, but they were lost when the site was hacked since I did not have a backup that recent. Anyway, in case you did not see, what I basically said was that the HMOs and drug stocks would continue to rally until at least September (assuming at least neutral market strength) before more details of the healthcare bill come out.
I was prepping for an interview later today on the real estate market and I ran across a nice piece from Harvard's Joint Center for Housing Studies release a couple of months ago.
As I sat at home on this early Saturday morning doing some research, I ran across an article I wanted to bring to your attention. First, I want you to notice the title. Next, I want you to notice the publication. And finally, I want you to ask yourself if the title/claim lives up to its expectations. The title of this piece is "How to Sell a Stock Short," published in Smart Money. Once again, we have another journalist who most likely has never shorted a stock in her life, yet acting as some experienced pro. The most disturbing thing about this article other than the fact that she didn't show the reader how to short stocks, is the fact that Smart Money is engaging in the facilitation of the stock market casino mentality by even discussing the most risky technique for investors.
In tradition with the previous empty bag delivered by President Bush, President Obama has continued to offer Americans more of less when it comes to ways to ensure a viable retirement. In reality, Obama's announced changes do nothing more than ensure Washington gets financing for its reckless spending habits, while lining the pockets of the largely useless mutual fund industry. You might recall that President Bush increased the limits for retirement savings plans after the dotcom collapse vaporized the retirement accounts of many Americans.
It’s a game Washington plays. And they’ve become quite good at it. In fact, it’s a game where both parties are on the same team. Their opposition? The American people. So what is this game Washington plays so well? The game of deceit and distraction. You see, the fact is that both parties have fooled Americans into thinking they are different so you will believe that one of them holds the solutions to America’s problems. But this is simply untrue. The fact is that both parties are essentially the same. Sure, you will have a few differences here and there – Obama wants to cut taxes on working class Americans while McCain wants to cut taxes for the wealthy, etc. But the fact is that there really isn’t much difference between the two.
This is the reality as I see it: Back in 2001, the US government realized that a full correction from the Internet Bubble would have been devastating since in its early stages alone, it destroyed 50% of the paper wealth. Rather than let the natural economic forces run their full course, the government chose to “toss money out of a helicopter” as the new Fed Chairman likes to say. This was the only way to delay the fallout of the largest asset bubble in the history of the world.
All throughout the post-bubble period, Greenspan and President Bush have been claiming how “solid” and “strong” the recovery has been since the recession of 2001-2002. WRONG. As I have been saying for over a year,the “recovery” has been very weak and the clever use of government statistics has fooled many Americans.But individually, for many Americans their financial condition as much worse (whether they realize it or not). Today, Americans struggle to pay their utilities and gasoline bills, many Americans do not have health insurance and the “job creation” that has occurred has been mainly in Asia with the help of corporate America and President Bush’s Jobs Creation Act. Meanwhile, of the jobs that have been added, most have decreased benefits such as healthcare and companies are no longer offering pension plans but are placing the burden on employees by offering a 401k plan. The chart below shows the current recovery statistics versus other post-war recoveries. And although the numbers are from the government’s own distorted and misleading statistic database, you can see that it still shows how weak the recovery has been.
Below is a marketing piece sent via email by Louis Navallier - one of these newsletter clowns who have no Wall Street experience and who look to make money from your greed.
I decided to include a response I made to a well-known website regarding the Business Week article “Unmasking the Economy: Why Its So Much Better than You Think” Here is the link to the online version of the article:
Yesterday, I discussed the consequences of the proposed bailout of Fannie and Freddie. While Paulson has hinted that there will be no government bailout for Freddie and Fannie, he clearly left the door open to intervention. "It is clear that some institutions, if they fail, can have a systemic impact." However, financial players need to be disciplined in managing risk and not expect the government to fly to their rescue, he added. "For market discipline to effectively constrain risk, financial institutions must be allowed to fail," he said. Let’s take a look at the implications of what he has said. First you need to understand that a “bailout” can be interpreted in many different ways.
With all that’s happened with the real estate and banking crisis, the word “bailout” has been plastered throughout the media with little discussion of exactly what a bailout entails. Supplying money to a distressed company does not by itself represent a bailout. It all depends on where the money is coming from, and whether or not a moral hazard has been created. Bear Stearns vs. LTCM Let’s look at some “bailouts” from the past. Let me just tell you right off the bat - Bear Stearns did not receive a bailout. Forget what you’ve read. They’re all wrong. Why do I say this? A true bailout creates a “free ride” for the recipient via government assistance. In other words, a bailout creates a moral hazard - the tendency to behave irresponsibly and/or take on excessive risk - because the penalty for failure has been removed. Thus a moral hazard causes the bailed out company to act irresponsibly in the future, knowing that failure will be forgiven by taxpayer dollars. Rather than a real bailout, the Bear Stearns deal was a gift to the "kingpin" of the Federal Reserve banking system – JP Morgan - and likely the Fed’s punishment to bear for not participating in the "bailout" of Long Term Capital Management (LTCM) a decade ago. In the case of LTCM, participating banks received a 90% stake in the fund for money THEY CONTRIBUTED. But similar to the Bear Stearns deal, there was no moral hazard created for LTCM because they had to exchange ownership for cash. In the Bear Stearns deal, the Fed handed JP Morgan $30 billion of taxpayer money, while guaranteeing JP Morgan’s potential losses would not exceed $1 billion. Considering Bear's clearing and prime brokerage units are most likely worth $18 billion, plus Bear’s $1 billion Madison Ave. headquarters, plus JP Morgan's ability to keep Bear's best employees (probably valued around $2 billion including revenues from client accounts), minus restructuring and retention charges of say $2 billion - JP Morgan will net somewhere around $18 billion on the deal with virtually no risk. Make no mistake about it - this deal will be recorded as one of the biggest financial heists in U.S. banking history once people truly understand what really happened.
I just ran across this outstanding video presentation explaining the complex process associated with passage of healthcare reform. I highly recommend you have a look.
So many people speak of moral hazards, usually at their own convenience. Most of you have heard the term used when referring to bailouts. Moral hazard basically means that companies or individuals will have an incentive (due to the absence of any penalty) to act irresponsibly. You can define moral hazard in many ways. The bottom line is that it defines the American Way, as long as we are talking about the wealthy and big corporations.
Can you imagine what would happen to the bank, Wall Street, real estate and mortgage executives if they were in China? They wouldn’t be around by now. But this is America, where CEOs commit accounting, shareholder and taxpayer fraud, destroy companies and leave with $200 million while taxpayers, investors, and even consumers end up screwed. It’s happened in the past; not just during the dotcom bubble but over and over for decades. And of course it’s happening now. You better believe it’s going to happen again and again unless you call for the heads of these crooks and vote every single member of Congress out of office, and make sure these issues are addressed adequately by anyone who wants a spot in Washington.
It’s a nice scare tactic to feed to Americans. How does Washington know they are too big to fail? How does Washington know their failure would be worse than the consequences of a government bailout? I can guarantee you that no one in Washington has an idea about what Fannie, Freddie and AIG had on their books. If the proper regulations had been in place – regulations that mandated transparency and disclose, we could make a fair assessment. Instead, Washington uses the scare tactic as a way to generate the biggest bailout in world history. Why would anyone believe Washington’s bogus excuse that these entities were too big to fail when they have been clueless for years?
Understand this. The current structure of free trade only benefits U.S. corporations, their wealthy elite shareholders and the most impoverished segment of developing nations. Anyone who tells you free trade in its current form is a good deal is either from corporate America, Washington or from developing nations. Free trade will only work for everyone if the playing field is level. But that is not the case. How can you have fair trade when America’s trading partners have universal healthcare, government pensions, no OHSA or EPA requirements, and subsidized wages? Of course labor will be cheaper in Asia and Latin America because the government pays for expenses companies in America are stuck with. One might imagine that a weak dollar would actually drive domestic job growth or at the very least reverse the outsourcing trend. As we know, the opposite has happened because a large portion of total labor costs in other nations are absorbed by foreign governments.
You know when an airhead neo-con like Michelle Malkin supports tea parties, they serve as fronts for republican agendas. As she proudly admits on her blog, tea parties are being spearheaded by her "friend Michael Patrick Leahy and his crew."
I ran across an article that might have blown past many of you. This article clearly demonstrates where President Obama's mind is...occupied with BS. Perhaps you tuned into the VMA recently. I certainly didn't. I don't even know who this Kayne or swift people are, nor do I care. Even if I was a fan of these singers, I don't think I'd be watching some music awards unless I was a teen. I could care less about such trash. But that's just my own mindset. In fact, I had no idea what the fuss was all about until I researched it.
As I correctly identified a couple of months ago, the propaganda campaign by the media, Washington and Wall Street has been very strong and continues to grow each day. It's been so effective that it has left all of the doomers in the dust, as they have been warning about a market correction for many months. Meanwhile, subscribers of the AVAIA newsletter have I been positioned to take advantage of the hype, while understanding the downside risk. You see, this is how the game is played. Knowing what SHOULD happen is only partially helpful. It's much more important to know what WILL happen. And if you sit around month after month, year after year dwelling on what SHOULD happen, you will miss out on tremendous gains....kind of like how the gold bugs have been predicting doom for 20 years and missed out on huge market gains.
After meeting yesterday to wrap up the final touches on the Senate Finance committee's healthcare reform bill, Committee Chairman, Senator Max Baucus - a very good friend of the healthcare industry, has announced the bill is ready for a vote as early as next week.
Those who have been following Mike Stathis for some time now realize that he was the first person to have exposed fake news when he uncovered the gold pumping syndicate.
America's media censorship is also the most deadly because the Zionist-controlled media (which plays Americans like puppets) disguises its censorship to actually make you think that Freedon of Speech exists.
I recently ran across a story that I wanted to show you because I wanted to point out a few things. It was written by the Associated Press, so that means it was syndicated in hundreds of newspapers across the U.S. Before you read it, I want you to note a few things. First, they refer to this period as the "Great recession." As I have mentioned many times in the past, this period will be recorded in history books as America's Second Great Depression. But it will only be acknowledged as a depression once they figure out how Washington and the Fed have "kicked the can" forward as a way to mitigate the effects of the fallout. This approach will only make things worse and more lasting.
You might recall a piece I wrote about Martin Weiss back in June. He runs a large newsletter service down in what I call "Scam Alley" or the West Palm Beach region of South Florida.
Have a look at the pump-and-dump scheme of the day. These guys don't ever quit because the SEC is too understaffed to go after them. By the way, have you ever noticed virtually all of these email newsletter scammers have a similar general appearance? They look like crooks!! I suppose there are times when looks AREN'T DECEIVING!
Have a look at the latest piece of trash coming from Alan Zibel, the Associated Press' so-called real estate reporter. First of all, he claims rel estate is in a "four-year slump." The real estate correction began anywhere between late 2006 and early 2007 depending upon what you are looking at. Median prices for single-family homes peaked in late summer-early fall of 2006 but there was still robust although activity until ealy 2007. That makes it a three-year "slump" at best. That's a bit trivial but not for a professional reporter who covers real estate for the largest syndicated newswire in America, whose stories reach thousands of publications around the U.S. and the rest of the world.
Hopefully, you have read my recently released SEC complaint alleging insider trading and illegal naked short sales involving the banking cartel, as well as criminal involvement of former SEC Chairman Cox, FDIC Sheila Bair, officials at the OTS, OCC and others.
In America's Financial Apocalypse (extended 2006 version), I made the case for a trend of declining basic research from core scientific disciplines such as chemistry and physics. I also not...
On October 5th, before premarket trading, we released the most recent AVA Investment Analytics newsletter. Among the other topics covered was an in-depth analysis of previously profiled sec...
I've always felt that the Nodel Peace Prize was a joke, and a disgrace to bear the Nobel name by it. News of the latest winner only confirms this in my opinion.
For years, investors boasted what a great company General Electric was. Even CEOs marveled at the company's ability to consistently deliver strong earnings growth despite its massive size. ...
I ran across this video and it reminded me that I was supposed to write a quick piece about how BAC recently DOUBLED the interest rate on my credit card, despite the fact that it w...
I hate to even direct anyone to a Tech Ticker video since the head of this Internet propaganda venue is headed by none other than Henry Blodget, former Wall Street analyst who pumped the dotcom stocks...
The following assessment is based on my own opinions about the SEC after an external examination. In my opinion, the SEC has been designed intentionally to operate with extreme inefficiency in...
A couple of weeks ago, I wrote a piece discussing allegations of insider trading and illegal naked short selling of Washington Mutual, involving the banking cartel and potentially their hedge fund clients. In that piece, I provided a link to the SEC complaint I submitted on October 7, 2008. You might have noticed the complaint was marked as a “draft.” Some people have asked me of the complaint was ever submitted since it is marked as a draft.
I've been working overtime on my soon-to-be-released healthcare book. The problem is that in the editing process, I keep running across new information that I can't help but to add.
Hopefully by now you realize that Obama is nothing more than a puppet for Zionists who really run America. Most of these Zionists are Jewish.
Would you like to become a virtual expert in healthcare in a few days? You will, if you read my new book, America's Healthcare Solution.
I wanted to see what Larry Kudlow was up to with his latest propaganda so I checked a site he recently began making posts on. Let’s have a look at Kudlow’s healthcare propaganda.
A while back, I wrote a piece discussing why no one won a Pultizer last year for reporting on the biggest financial crisis since the Great Depression. Out of some 65 prizes, not one journalist ...
Although I'm buried in work, I just had to stop and take some time to write a piece demonstrating another example how the forces out there are against you. They are vultures, and they seek
Posting When It Matters I want to thank those of you who've patiently waited during my apparent hiatus. I certainly wasn't on vacation. I don't take vacations. As I've said in the past, I'm not one ...
Everyday, as I think about what has happened to this nation, I feel like I’m living through a nightmare. Washington keeps brainwas...
I wanted to alert all subscribers that I just sent out a Mid-December special report: Profiting from ObamaCare, in which I lay out what I feel will represent a very good chance of some short-term trades feeding off of the recent momentum of the healthcare bill. If you did not receive this report and you are a subscribe, please email us and we will resend it.
Most Americans have been fooled into thinking one party has the solutions to the nation’s problems, when the facts paint a much different picture. You need to understand that both parties are the same. As history shows, you get the same result regardless who resides over the White House and Congress.
But of course Wilson gave his support for a bill signaling great news for physicians, health insurers and the entire medical-industrial complex.
In part 1, I discussed the illusions of America's democracy, and pointed to the media as a key player in the web of deceit that has fooled most Americans to think they live in a democracy. I also discussed the lobbyists' role in healthcare reform.
If America ever expects to fix its broken healthcare system, all of the problems must first be identified. Only then can a solution be engineered.
Many of you are aware of my forecasts about the economy, real estate, the stock market, gold, oil, etc. from my books, articles and newsletter.
I wanted to remind you not to lose sight of the big picture. It’s advisable to try to make money during an illusion only if you know the reality. Remember, consumer confidence and investor sentiment can and often creates illusions that can lead to big gains in stock market. But at some point, reality sets in.
I run across a movie that some of you older folks might remember. I find it quite ironic, and perhaps more relevant today than (although not nearly as good as) the movie version of ...
On many occassions, I have made mention of the fact that, despite popular belief, America's economy really does not operate with free market dynamics. I really focus on this premise in America's Healthcare Solution. In virtually every industry, you see a variety of activities that act to disrupt true free-market forces. Some industries are worse than others. In my opinion, the industries that have the worst free-market dynamics are healthcare, finance, and energy. In contrast, I view the consumer electronics market as the industry with the best free market dynamics. But as you will see, if this industry is the closest America can come to free market dynamics, we have some really big problems.
Some of you may have wondered why I have said nothing about the latest AIG-Geithner connection. Let me give you a hint. The answer is the same as the reason why I did not mention anything about the Ken Lewis drama. You might recall few months ago, the media was buzzing about how Ken Lewis, former CEO of Bank of America, made claims that former U.S. Treasury Secretary Henry Paulson and the Federal Reserve pressured Lewis to buy Merrill Lynch. Of course, I already knew this from day one. Now, the media has seized the latest drama, as an attempt to make you think they are on your side, by clouding the airwaves with the Timothy Geithner/AIG/Goldman scam.
As I have detailed with extensive data and accompanying analysis in America's Financial Apocalypse (2006/expanded and 2007/condensed), America’s once great economy has been gradually transformed into a Ponzi scheme through decades of unfair trade policies that destroyed millions of U.S. jobs. Unlike many other books which discussed the real estate bubble in isolation, this book went well beyond the real estate bubble by presenting a compelling case for a long period of economic depression. I can guarantee you the chapter on the real estate bubble alone (chapter 10) serves as the most detailed and comprehensive analysis presented from any book solely dedicated to this bubble.
The past six trading days has not been kind to the market, despite some rather good earnings reports from AMD, GOOG, and many other companies one might expect to not be faring so well. However, one of...
A few days ago, the liberal radio network, AirAmerica ended all programming and announced that it would soon be filing for chapter 7. Before I continue, I think a little background info might be noteworthy. You see, back when I wrote America's Financial Apocalypse, President Bush was the current puppet in the White House. So I knew that AirAmerica would be the best chance I'd have to warn people about the upcoming depression, expected to commence with the real estate meltdown.
As I was enjoying some college hoops today, I noticed how CBS seized the opportunity to give President Obama some air time after spotting him at the Duke/Georgetown game.
A few months ago, I wrote a brief piece on how Alex Jones has brainwashed so many people. Well, actually, I only discussed a tiny portion of it. I have not had the time to write more about Jones, but I will in the future.
Just a reminder how you can never trust any politcian who represents a fascist dictatorship, whether we are talking about George Bush, Barrack Obama (Barry Soetoro) or the next puppet who will replace Obama (Soetoro).
I have previous written a few posts about the so-called Tea Party Movement, discussing how many Americans have been fooled by this front for the Republican Party. Sure, of all of the Tea Parties across the nation, there were some that did not embrace the right-wing agendas - at least in the beginning.
Over the next several days I'm going to write a piece on the man I feel was the only qualified presidential candidate in more than four decades, Ross Perot Sr.
Continuing where I left off from last time... Rather than huge manufacturing industries reminiscent of America’s “Old Economy,” the “New Economy” is characterized by high-tech firms large and small. Much of America’s formerly world-leading manufacturing industry has either relocated overseas or has been sold to foreigners.
A while back, I published an article discussing allegations made by Larry Sinclair regarding his sexual encounter with President Obama several years ago. Please review this material here. I wanted to provide you with a follow-up on Mr. Sinclair. I think you will find it very interesting as much as you will find it a bit scary. Now, is Mr. Sinclair credible? Is he a crackpot? Maybe is honestly believes what he is saying but is suffering from severe delusions. What do you think? I think everything Mr. Sinclair is saying is absolutely true. That doesn't mean that I think he is completely sane.
The article is of just one more of the thousands that the financial media continues to churn out about what a great investor Warren Buffett is.
I wanted to post a link to a brief article discussing Ahmadinejad's statement regarding the September 11, 2001 attacks on the World Trade Center.
I have discussed the financial industry on numerous occasions. My sentiment has not changed. Those looking for some kind of investment “payday” should stay clear of the banks as an investment. The risk is still very high.
Last week, Forbes published an article discussing cities across the U.S. "where the recession is ending." Let me begin in a tone that many of you have come to expect. The author was intentionally lying as an attempt to drum up consumer confidence, or else it was written by a complete idiot with absolutely no understanding of what is going on; perhaps a combination of the two.
Soon, my latest book, America's Healthcare Solution will be released, allowing those with an interest in the healthcare system to see precisely what is wrong with the healthcare system. And as the title indicates, I also provide a solution; well, really it's a combination of solutions. Since I will get absolutely 0 level of promoting for the book (just as with the case of America's Financial Apocalypse) I will continue to promote it myself. So for those of you who get tired seeing my self-promotion activities, please understand the reason. Of course, much like the case with America's Financial Apocalypse, I also expect to receive no credit for really dissecting down the problems found within the healthcare industry, as well as providing a viable solution. The media is hell bent on making sure I stay out of reach of people, and so too are the guys who are either in the media club, or who aspire to be; namely the bloggers and others.
Here's an article discussing the fact that JP Morgan and Citigroup escalated the collapse of Lehman Brothers by increasing the collateral and altering terms and conditions for lending.
Many of you know how I have been discussing how the Zionist control over America is causing you to lose your liberty, your money, and economic opportunities. Zionist groups such as the American Civil Liberties Union (ACLU), Anti Defamation League (ADL), women’s lib groups, Planned Parenthood and hundreds of others have worked hard to destroy the heritage of the United States, while collapsing the previous strength of the family unit. They have made individuality a sin. All of these things have been done in order to destroy the individuality and unity of the people of the U.S.
This article was originally published on March 19, 2010, but I have decided to repost it because it's getting ready interesting. I encourage you all to ask Mish why he would not want to mention the WaMu fraud I reported in my SEC complaint. As the insider trading case is obvious and I am willing to bet any amount of money to anyone on this. The SEC holds the evidence. I also claimed that WaMu was NOT insolvent. As we now know, according to court testimony from JPMorgan, WaMu was in fact NOT insolvent. So why isn't the seizure and fire sale reversed?
Living in one of the cities less affected by the economic collapse, I'm curious to see how things are where you live. I can tell you that although I'm in Dallas (which was not affected as much by the real estate bubble) the real estate market continues to remain very weak. If anyone has any pictures that YOU HAVE TAKEN, or would like to take showing the roadside "real estate investor special" for sell signs that I see everyday in Dallas, or anything else that shows how bad things are, please send them to us and I will post the pictures, maybe will a few words to comment.
Before I begin, I would like to say that most of you will need to actually study this article. You will need to read it and reread it. You will need to look at your own charts of the Dow...
Today, I'm going to show you some relatively simple techniques that will (hopefully) help you learn how to forecast market direction and timing. And I am going to look at the current market conditions to illustrate these points. Although market forecasting is arguably the single most important skill an investor can possess, it is rarely mentioned. With little surprise, it is perhaps the most difficult skill to master. When market forecasting is mentioned, most analysis emphasize volatility indexes, oscillators and other indicators like put/call ratios, market breadth, Rydex funds, money flow, etc. While these indicators are often helpful, they are insufficient for forecasting market direction and timing.
This is the second part of a 3-part series on market forecasting. Part 1 can be found here. As you recall, the Dow made an all-time high in October 2007. Since then, it has made lower lows and lower highs, typical of a downward trend. But how far and how long will this bear market last? First of all, we need to remember that the previous bullish rally was quite fast, with the lion's share occurring over 6 months (May to October 2007) for around 18% gains. What does that mean? Well, in my opinion, it means the bullish rally was not that valid. Remember, price validity strengthens with time.
This is the final part of a 3-part series on market forecasting. Part 2 can be found here.
This is the second of a 3-part series on market forecasting. Part 1 can be found here. As you recall, the Dow made an all-time high in October 2007. Since then, it has made lower lows and lower highs, typical of a downward trend. But how far and how long will this bear market last?
Do you ever become confused over daily economic data? If not, then you probably aren’t paying close attention. But that’s not necessarily a bad thing. If you don’t pay real close attention and spend a good deal of time analyzing what’s really going on, you’re probably better off not paying any attention to the data at all because it is designed to confuse you; to manipulate the truth.
“If I submit a manuscript to a publishing house, it is again checked first for references to the Jews, and second, to see if its author is on the Jewish blacklist. In this manner, the Jews prevent any gentile writer from reaching the public if he is known to be indifferent or hostile to their goals, if he has refused to become a member of the shabez goi class. Any publication which rejects Jewish censorship is either driven out of business, or taken over by Jewish financial interests. A book which is published by gentiles who are not of the shabez goi class is ignored by the book review departments of mass publications, and bookstores refuse to stock it, for their stocks are reviewed monthly by traveling ADL agents who enter the store incognito, inspect the stock, and if any publication is found which mentions the Jews, the proprietor is threatened with various weapons, lawsuits, government action or financial revenge.” Eustace Mullins, The Biological Jew
With Obama’s healthcare bill ready to sign, democrats are celebrating. Meanwhile, (supposedly) enraged republicans insist payback will come in November. This is part of the typical back-and-forth theatrics staged to galvanize voter support for each party. Please do not allow yourself to be fooled by these games. As the facts show, both parties are essentially the same when it comes to issues that matter most to working-class Americans; free trade and healthcare, as first detailed in America’s Financial Apocalypse. As you shall soon see, President Obama's healthcare reform bill falls way short of what is needed as a part of America’s economic revitalization. In fact, it is likely to create more long-term problems for consumers, all while boosting industry profits. Regardless what you may hear and read from America’s tightly-controlled media monopoly, the healthcare industry will continue its string of excessive profits at the expense of consumers and taxpayers. This is how things have always been ever since the medical-industrial complex took hold of healthcare after the Second World War.
Continuing from Part 1... Back in the 1990s, when President Clinton proposed price caps for health insurers, the industry engineered a massive smear campaign, defusing the plan before it even got off the ground. When you see railroading like that, you know the proposal is favorable to consumers. In contrast, as Obama began his campaign for healthcare reform (as a way to dodge financial reform), the industry didn’t seem to be too worried. That should tell you what’s really going on. The entire industry was cutting deals behind closed doors well over a year ago to ensure the ball stayed in their court.
I can't recall if I have shared my views on global warming with you. I do believe I mentioned it briefly in one of my previous newsletter issues. I want to go on record as saying that I believe these scares of global warming are fraudulent. I have a comprehensive background in the physical and biological sciences, so I would like to think that I have a pretty good understanding of science. While I have not studied global warming in the depth I would like, I feel that I have studied it in sufficient detail for me to conclude that it is a hoax. As you can imagine, I am certainly not the only one to share this view.
As you might imagine, I am currently focused on writing the April AVAIA newsletter. In the past, I have discussed how the financial media deceives and lies to its audience. I have also discussed why it would engage in these tactics. As examples, I have written about Jim Cramer, Larry Kudlow and other hacks on CNBC. Over the next several weeks, I will be posting material here discussing a long list of what I consider to be hacks, followers, clueless individuals and those with financial agendas and bias that serve as their primary impetus for their views. I am going to show you that these individuals are in the media club. And I am going to show you what I consider to be evidence in support of this. Hopefully, by now you understand how dangerous it can be to pay attention to anyone in the media club.
When many people mention the collapse these days, the most common response I've heard is "everyone knew it was coming." Perhaps you've heard the same.
For years, industry hacks and political opportunists have paid off America's media monopoly to ensure its audience remains in the dark as to the realities embedded within America’s broken healthcare system. As you might imagine, most of these bribes have come in the form of soft dollar arrangements, namely through the industry's multi-billion dollar annual ad campaign. But we certainly cannot forget the industry bribes to Washington. When the pharmaceutical industry spends say a few hundred million dollars on ads and commercials with televised networks like NBC, that’s certainly within the limits of the law.
You may have heard about the turkey shoots by U.S. military and mercenary groups (Blackwater) in Iraq. The problem is, a good deal of the turkeys are innocent Iraqi civilians, some of which are women and children. According to various estimates, anywhere between several hundred thousand to 1.2 million people have been killed in Iraq since 2003.
I don't want to waste anymore time on this than I have to. Let me just say that the SEC's latest bogus attempt to prevent another securitized asset blow up is a complete joke. The SEC is expected to recommend that the Wall Street firms underwriting asset-backed securities be required to hold 5 percent of the loans. Asset-backed securities in this case includes mortgages (although they are really mortgage-backed securities), credit card, auto and other loans. Notice the headline - "SEC Seeks Tighter Rules on Asset-Backed Securities." With some "skin in the game," the thinking goes, the firms would be more careful to ensure that borrowers are properly screened.
Many of you know where I stand on gold. Despite having forecast gold to rise to very high prices in America's Financial Apocalypse, the fact is the gold bugs have fooled many to believe gold is a hedge against inflation. They have also tried to scare people by insisting the U.S. will undergo hyperinflation as a way to pump gold further. As I have shown in previous articles, these claims are not true. I wanted to show you an example of the kind of propaganda being spread about the gold and silver.
About a month ago, I critiqued an article by Forbes which discussed U.S. cities "where the recession is ending." Forbes remains a very popular publication despite the fact that it's very slanted, and features regular articles by Ken Fisher, who has no idea what he is talking about (check his track record from his Forbes publications alone and you will see he had no idea what was going on in the economy). Of course, Mr. Fisher isn't really a guest contributor due to his investment wisdom. His articles are a form of soft dollar arrangement in exchange for advertising dollars. This is a very common practice used by the media. I consider it fraud (you might also note that Fisher reportedly kept his clients in the stock market the entire time, as all brokerage firms did; you won't ever have a large brokerage firm tell clients to get out of the market). Nonetheless, Forbes generates millions of dollars each year from the sales of its useless magazine, and millions more from advertisement sponsors. Hopefully after reading my analysis, you now realize that a publication does not need to furnish accurate content in order to be a successful venture (I'm speaking of Forbes of course, not AVA Investment Analytics). All it needs to do is create the perception of value. And that is precisely what the media does.
In the previous article I showed pictures of the real estate situation in Rotterdam, Netherlands submitted by a reader. As discussed in that piece, Forbes published an article about a month ago listing the Dallas/Fort Wort area as number 3 in terms of recovery progress. I can tell you that the real estate market in Dallas is worse than a year ago, and keeps getting worse each month. As I have discussed (here or elsewhere) it's not that Texas has been able to avoid the brunt of the economic collapse. It's just that the effects have been delayed in Texas relative to much of the nation. A good part of the reason for this was due to the previous record oil prices, which buoyed the Texas economy. In addition, a weak dollar helped Texas-Mexico trade. As California led the collapse, Texas has lagged. While Texas did not benefit as much as many other states from the real estate bubble, it's not expected to get hit as bad. I made this prediction in 2006. However, it will suffer nonethless. And once California has emerged from this mess, Texas will be unable to mount much of a recovery due to the nature of the local economy. I expect Texas to remain in an economic mailase for many many years. But according to Forbes, the DFW area is number three in terms of the progress it's making in the "recovery." So let's have a look at the Dallas real estate market. Real estate in Dallas is thought by many to be very attractively priced when compared to comparable cities. The pricing is similar to Atlanta. However, what most people fail to realize is that Texas overall has the highest property taxes in the nation. This is of course in contrast to nearby states like OK, LA, and MS which have among the lowest property taxes in the nation, and of course California, which also has very low property taxes. In addition, California assesses taxes based on the original purchase price of the property as opposed to the annual value assessed by the city. The assessed value is really a huge scam. I might discuss that in the future. Still, you can get a lot of home for the money in Dallas, especially when compared to California, NYC, Boston, Seattle and other cities. For instance, I would say that a comparable home in Dallas would cost 4-6 times more in San Francisco, San Diego, NYC and Boston.
On Sunday, Dallas celebrated the destruction of a $300 million property; $300 million of taxpayer money down the drain. I'm talking of course about the demolition of Texas Stadium, former home to the Dallas Cowboys. Have a look at what was once one of the most famous stadiums in America.
Is there any reason why Pfizer shares are down today? Just yesterday, shares were trading at ~ $17.30. Today, with the DJIA up by 0.7%, Pfizer is down by nearly 1%. A clue to this sell-off MIGHT be due to the anticipation by investors of increasing pressure to change the way drugs are prescribed. This could also trigger several lawsuits down the road. Recently, another study was published in the Journal of the American Medical Association discussing elevated suicide risks associated with the use of anticonvulsant drugs. Anticonvulsants have been approved by the FDA for people diagnosed with epilepsy. Of course, this is not the first study showing anticonvulsants raised the risk of suicide. In 2008, the FDA required all anticonvulsant drugs to have a warning label that disclosed a two-fold increased risk of suicide. However, warning labels are rarely effective. They simply enable drug companies to continue to sell what many experts feel to be dangerous drugs, while having the safeguard of a disclaimer.
As some readers might recall, without budget solutions from the Governor and Legislature, the California State Controller was forced to issue IOUs to several State payees last July in order to prevent a $2.8 billion cash shortage. IOUs began printing July 2, and ended September 3 of last year. The California State Treasurer began redeeming the IOUs September 4, 2009, and sent out more than 89,000 letters to remind holders of IOUs of the redemption. Each IOU accrued interest through September 3, 2009, but holders do not earn interest past that date. The letter includes redemption instructions and contact information for any IOU holders who have questions about the redemption process. It is difficult to imagine why anyone holding these IOUs would delay their redemption, given the state’s worsening financial condition. To usher in the New Year, California declared a state of fiscal emergency after facing shortfalls of $6.6 billion for the year. This adds to the previous declarations made in 2009. But that’s by no means the full extent of the state’s deficit. Over the next 16 months, California faces a $20 billion deficit. I expect it to get much worse without radical cuts to the budget. As you might realize, California has been struggling to close its budget gap for well over a year, using job furloughs, cutting healthcare to families in need and many other methods implemented to save the state money. But the furloughs were overturned in court battles. Now state government employees have been told they will face a 5% wage cut across the board. And they will have to pay for more of their retirement plan.
Previously I have discussed how the Tea Party movement has been taken over by the republican party. This and so many other activities have taken place because the vast majority of Americans are FOOLS. Yesterday, the idiot and liar, Sean Hannity, first commissioned by the Bush administration to create propaganda for the war in Iraq, was scheduled to speak before a crowd of 13,000 tea party sheep at the University of Cinncinati. Similar to all of these events, profiteering arrangements had been made in advance, with tea party organizers and Hannity looking to profit from sheeple who have no idea they are being had by the republican party.
A few months ago, I wrote an article discussing how the same incompetent bozo financial reporters who missed EVERYTHING (causing YOU to lose your shirt in the stock market) have since taken book leave.
First of all, we need to look at nations that have or could have nuclear warheads. Is it North Korea? In the past, the U.S. media and Washington have told Americans that North Korea is a potential threat to the U.S. However, that claim is mostly hot air. North Korea isn't able to even feed its population. And it's certainly in to position to pose a threat to the U.S., much less the rest of the world. Anything you have heard in the past about North Korea is simply part of the political bargaining game. What about Iran? Iran is of course the latest nation to be earmarked by Zionist Washington as a threat. However, Iran poses no threat to the U.S. Iran only poses a potential threat to Israel. That is precisely the reason why Washington and the media have created fictional accounts of Iran as a danger to the U.S. Maybe it's China. How about Russia? Wrong and wrong again. I'll give you some hints to this very critical question. The nation posing the biggest threat to the world is the nation that:
Here is the email exchange between myself and Greg Zuckerman, mentioned in a recent article. Mr. Zuckerman, Instead of trying to make Paulson look like some genius, why not try doing some investigative journalism to see why he is paying Greenspan a 7-figure "consulting" salary. It's Greenspan’s cut of the heist. As the facts show, I predicted the details of this collapse in 2 books written in late 2006. Yet, the media has continued to ignore me. Why? because they don't want people to know the about nation's biggest problems: free trade and healthcare, which I detailed in this book. I was discussing healthcare and the entitlements as a cause of this depression and now the Calvary arrives to discuss healthcare. Yet, they have not dared discuss free trade.
I just ran across an article by Zuckerman, discussing the Paulson/Goldman Sachs fraud and had to laugh. If you aren't familiar with the background on Zuckerman, read this recent article I wrote. I didn't even read the WSJ article in its entirety (I don't waste time on deceit) because I already knew what he has up to. I found what I was searching for in the first few sentences.
I want you to read an article by the Associated Press. As you will see, it was very deficient, hardly critical of the SEC and the banking fraud, and left out key issues. This is just another example how the media brainwashes the public. I run across this type of deceit all day every day. The article is in italics. My comments follow in bold. Goldman Case Shows Power of SEC's Bully Pulpit The Securities and Exchange Commission's fraud case against Goldman Sachs signals a new era of toughness for an agency beset by a series of public blunders. This statement is complete bullshit. Show me the executives of the major banks in prison serving 30-year terms with no parole, and then I'll be convinced of "a new era of toughness" for the SEC. Yet as it aims to become a tougher cop, the SEC faces a new obstacle: Banks have grown faster than the penalties the agency typically imposes. The sheer size of Goldman — whose quarterly profit just hit $3.3 billion — means court-approved penalties are likely to be too small to hurt it financially. This is practically the only accurate statement made in the entire article.
Previously, I published an article illustrating how Greg Zuckerman, author of a book that praised Paulson as some investment God, has lost all credibility as a journalist now that the facts have surfaced about how Paulson made his big score. Have a look. Next, I published a piece showing how Zuckerman went into damage control mode, after the SEC released its complaint alledging fraud against Goldman Sachs, while mysteriously absolving Paulson of any wrongdoing. He wrote a piece that still claimed it was a "bet" rather than fraud. Have a look. I wanted to publish an email I sent to a reporter from the Slate, an online “news” site owned by the Washington Post. In the past, I have discussed how many newspapers have started online sites and renamed them, while hiding the fact that they own them. Why have they done this?
Overview Washington, Wall Street and their partners in crime, the media, have continued to spread the myths of an economic recovery since late summer 2009. In response to the propaganda, the stock ...
Okay folks. I've been working on the May newsletter over the past few days and one of the securities submitted for analysis was Monsanto. I've actually meant to do some write-ups on the controversial nature of the company but I haven't had the time. So you can bet I selected it as one of the securities to discuss. Instead of selecting just one security, I decided to discuss a few (but in less detail) because I received so many submissions that I feel should be discussed.
In the Wall Street Investment Bible, I discussed other securities I that had a good chance of bankruptcy down the road (e.g. Blockbuster and Sirius Satellite). Regardless what ultimately happens with these companies, my analysis has thus far been correct. Since analyzing these companies, shares have declined by about 90%. In the most recent newsletter, I discussed some stocks in the past that I was able to determine that the market was wrong about. The reason why I mentioned this was to demonstrate my track record assessing distressed securities and securities facing challanges. Why might it be important to gain confidence from subscribers in my abilities to assess distressed securities? Because this is the best way to make a lot of money. It's also one of the most risky. Hundreds of stocks have been battered by the financial apocalypse. Thus, the ability to determine whether or not to invest in these stocks and when to invest has never been more important. Most recently, Goldman Sachs and British Petroleum have seen big losses in market cap. At some point, investors might begin to question whether they represent tremendous value or tremendous risk. Here, I show a summary of the argument I made for a stock that was seen as very questionable in the past, hoping to provide you will the basic process you need to follow if you want to seperate yourself from the herd. Of course, the following presentation is very simplified and does not include all of my analysis. The company is Merck. You might recall in the fall of 2004, the Vioxx scandel broke. Shares of Merck collapsed from over $50 to around $30. A few weeks later, Mrk fell to the mid 20s. Panic was everywhere.
Rather than a sigh of relief, Greece's bailout signals more to come from Eastern Europe. And rather than a more peaceful Greece, it the EU-IMF bailout is likely to result in major riots and civil unrest due to harsh demands placed on many segments of this nation. The Dow Jones Industrial Average revealed worries by investors, fearing much more to come from Europe (forget the S&P 500, the DJIA is and will always be the key index to watch; if you follow the S&P it's because you have been programmed by the clowns in the media, who follow Wall street hacks like a lost puppy). With the DJIA down by over 225 points (2.02%), by itself, it means nothing.
In the past, I have made mention of Mearsheimer and Walt's book, The Israeli Lobby and U.S. Foreign Policy, although I have not read it (I have no time!). I do know the book's premise from reading articles and watching interviews they have given. Mearsheimer and Walt, both Jewish professors at the University of Chicago and Harvard respectively, received virtually no coverage for what was originally a paper, later turned into a book discussing the control over U.S. foreign policy by Israel. They concluded that without the control over Washington by the Israeli lobby (AIPAC) America would not have invaded Iraq. The virtual media shutout seems quite odd, given that two very well-respected professors discuss a critical topic. It is especially odd to see America's Jewish-controlled media black-ball Jews, which only happens when Jews expose the truth as it pertains to Israel. You should note the striking predominance of so-called experts flooded throughout the media who happen to be Jewish.
Subscribers to the AVA Investment Analytics newsletter will be receiving a special report that discusses forward direction of the market, as well as analysis of selected securities. This report will be delivered no later than Sunday. As I will show, if you happened to time the purchase of one of the securities I have been recommending for many months now, you could have made 150% today; not with leverage or options. If you had bought this security at market bottom today, you would have seen it appreciate by 150% by the close of the market. I will not only be discussing what I see in the market now and going forward, but I will discuss more than 1 dozen securities - technicals and valuations.
If you clicked this article thinking I was serious, then I strongly advise you to take notes as you read through this piece. The title of this article, is, never has been and never will be something I will claim to teach you because as much as I know about business and investments, I can tell you there are no secrets, unless you consider hard work a secret. Rather than the title to my own article, this title is the common theme used by the investment gurus; you know, the marketing clowns plastered all over TV and the Internet, preying on the desperate and broke. In the past, I've discussed cheeseball marketers. These are the guys who lie, deceive and use other tactics to make the sheep think they will lead you to easy riches. /article_details-279.html Note that Donald trump and Robert Kiyosaki wrote a book together a few years ago. Why? because they wanted to team up their cheeseball marketing to suck more sheep into their trash bin, while making themselves wealthy.
After the threat of a continued sell-off in the global capital markets, leaders of the EU, IMF (and most likely members of the White House) arranged an emergency bailout fund to calm the markets. Today, Wall Street is celebrating the news of a proposed $1 trillion bailout for European nations in danger of defaulting on sovereign debt. Do not be fooled. This news should only be taken as a temporary sign of relief. You should use this temporary momentum to extract money from the sheep while you can because the good times aren't going to last.
I wanted to show you an everyday example of the dangers of Yahoo! But you should note that this example applies to all websites. Below is a recent article featured on Yahoo!'s homepage discussing Sandra Bullock's house. It appears to be a valid story (although a waste of content) right? What harm could possibly come from this ad, other than a waste of a few minutes of your life? If you click the link to read the story, you will see the page shown below (by the way, if you haven't noticed the new feature we have added, you can click on any image and it will become enlarged).
In the past, I have addressed the errors made by Peter Schiff's analysis of the economy and healthcare. For those of you who are still behind the curve and actually think Schiff knows what he is talking about, (i.e. being more right than wrong) you should question how a man who has no expertise in healthcare thinks he knows how to fix the problems.
It has recently come to our attention that resellers on Amazon have chosen to exploit the lack of availability of The Wall Street Investment Bible by raising the price of their copies to over $200. First, understand that this has nothing to do with us. We view this as exploitation but there is nothing we can do. If more people knew about Mr. Stathis, he would only allow his books to be sold directly (which would lower costs due to volume).
A couple of weeks ago, I released a report discussing how I was able to get in on Merck for big gains, while virtually everyone else left the company for dead after the Vioxx scandal played out. /article_details-527.html I used that example to give you an idea what you need to do to determine whether a stock should be bought after a catastrophe, and when to buy it (I show several other examples in The Wall Street Investment Bible). Finally, the article illustrates that you need to have an exit strategy in advance. It was a prelude to a report I would be writing for BP. Despite the problems for BP, it is apparent that Wall Street has been unwilling to let the knife fall as much as it should. The support for BP shares (relative to the nature of the oil well leak and the uncertainty involved) has been overwhelming.
You should realize by now that in the U.S., if you have money, you don't go to jail, regardless of the crime. The more money you have, they better your chances to escape the law. Not one single criminal of the thousands responsible for the dotcom collapse were sent to prison; not even Steve Case (AOL); not even the bums at Global Crossing; none of the dotbombs that committed accounting fraud. What about the back-dated options scandal? Today, we have not seen a single criminal indictment by the Department of Justice for the criminal bastards responsible for this global collapse. Every single one of the executives from the major banks should already be rotting in prison. Alan Greenspan too should be in prison.
Here is a quick email I sent to one of the government shills/idiots (I do not know whether this person is lying or just an idiot) regarding a news release reporting how inflation has "faded." The article is here. This is the email I rolled out...
I just ran across this plea from Peter Schiff in my mail box and I had to make a comment. This is a man who took his 5-man brokerage firm and turned it into a staff of over 100 in less than 3 years, compliments of CNBC and the naive individuals who fell for his hot air.
Update: March 2011. After checking into the management, it is clear that most of the board and management are Jewish. Furthuremore, a detailed investigation by me has uncovered some accounting irregularities. It seems that this company is using accounting tricks to make it's growth look promising. I will be notifying the hedge funds I advise to short the hell out of this piece of shit stock in coming weeks. Perhaps you have noticed occasional email issues we have had when sending out notices of reports. Well don't think we haven't been trying to find a way to resolve this because we have. The problem is the email marketing industry is seizing control over the ability of websites such as this one to send out emails. In order to better understand the issue, you need to be familiar with the Internet's CAN-SPAM Act, which requires specific guidelines to be met for emails. Without going into the details, you should also realize that each web host has its own guidelines that are sometimes more stringent. The bottom line is that today it is very difficult to run and grow an Internet-based business without the use of a third-party email service provider; that is if you want to adhere to these guidelines and address a large subscriber base. This website was created with an internal email system, unlike most you see today. It has enabled us to send out alerts when new articles are posted. However, our host limits the number of emails we can send in any one transaction as well as daily limits. As a result, for nearly one year now, I have been searching for a third party email service that has no such limits. One of the companies you may have heard of is Constant Contact. This company floods the radio waves with commercials telling you how great they are and how you can increase your business, etc. Yet, what they fail to mention is that your company may be denied service. They also don't tell you about their gestapo-like mentality. I have read complaints of them acting as detectives, trying to investigate the details about customer email lists. And when dealing with the company myself, they acted so intrusive that I mentioned the Gestapo behavior to the employee. To make a long story short, this company has banned me from using its paid services using what they term their right to deny anyone services. The excuse I was provided with is that they do not offer services to financial firms or sites providing financial information. Yet, Peter Schiff is one of their clients. The excuse I was given was that his firm was "grandfathered" in before this policy. The individual I spoke with stated that sites providing financial information tend to generate spam notifications.
Those who read America's Financial Apocalypse (especially the 2006 expanded edition) know that I covered the problems with Social Security extensively. Combined with the "Retirement Blues" chapter, I challenge anyone to find a book that covers the problems and addresses the solutions in more detail. Yet, we have a publication, US News and World Report, a completely useless publication at that, posting an article on "Ways to Fix Social Security."
A few weeks ago, I discussed the fact that the media has been fabricating signs of recovery in certain cities across America. Close to half of the cities on the road to recovery (according to the media liars) are located in none other than the state of Texas. As you will recall, I set the record straight on this propaganda. I ran across another piece several days later and couldn't resist emailing the hack reporter to set him straight. But I failed to mention a couple of things. For many years, Dallas has had one of America's lowest consumer credit ratings. Furthermore, as the report from Experian discusses, Dallas is second in the nation in consumer credit card debt per person, coming in at a whopping...are you ready? ..... $26,599! That's an average figure per person!
As subscribers to the AVAIA newsletter know, the special report released on May 9 was quite accurate. In short, anyone who had access to the special report could have avoided up to an 8% loss due to the market decline. Alternatively, those who may have not wanted to go to cash could have hedged the downside through the purchase of index puts.
Today, I’m going to show you just how misguided Peter Schiff remains. As expected, Schiff continues to cling onto his one-way investment approach, which is focused on extremes. I am convinced that Peter will go to his death bed proclaiming the same things as he has over several years. As you might appreciate, things change and investments must be managed to account for these changes. However, as any good salesman would do, Schiff sticks to extremes, while never altering his course no matter how bad his “strategies” might look because extremes are what lure in the sheep, who have very little ability to think for themselves.
I wanted to give you an overview of what I see today and explain how you should view things, emphasizing the need to understand your own investment strategy, because I know that those who read this site comprise ST traders, swing traders and long-term investors. For those who read my latest special report, today's market activity should come as no surprise. As you will recall, I mentioned the likelihood of a short-term bounce in the market.
It seems as if the new trend in modern America is to use scare tactics as a way to sell the sheep. It worked for President Bush when he warned of Saddam’s WMDs. It also worked for Paulson when he shoved the unconstitutional banking and auto bailouts (TARP and other taxpayer funds) down the throats of U.S. taxpayers. (1) (2) (3) (4) Today, various individuals, from media clowns to investment pundits are using their own brand of scare tactics in order to get people to buy gold. As you shall see, this article addresses the controversy of these activities. Let me first begin with a reminder about the dangers of America’s media monopoly. Instead of presenting different perspectives in a manner which promotes an open forum of debate and inquiry, the media feeds its audience one-sided views of what they want you to believe, which most often does not represent the reality. This is an inconspicuous form of censorship most are unaware of. Remember, airing one or two pieces that go against the consensus viewpoints promoted by the media does not represent equal representation. And without equal representation, you essentially have slanted views. The media uses many sneaky tactics to hide their manipulative messages. (5)
Those who read investment books (hopefully by now) realize that most are littered with filler material, written (and often edited by ghost writers) in a way that makes you think the book is g...
I've added this question to the website poll to the left, so I want to encourage you to take a stab. Before you place your vote, I will go ahead and tell you the answer is NOT Greece. So you might want to do a little leg work and see if you can find the answer. Also, keep in mind that NET CDS refers to the amount of credit default swap contracts (CDS) that are not offset by opposing contracts, so there is a net effect due to the CDS. The problem with this situation is that CDS contracts were created to function as hedges or insurance contracts. Thus, when any level of net CDS exposure exists, this implies these derivatives are being used for speculative transactions. When this speculation targets sovereign debt, financial institutions have the ability to destroy the economies of entire nations. This is clearly a huge problem that remains unaddressed. If you still don't understand the effects of net derivatives exposure, let me try to explain using an example with options contracts. Let's say you bought 1000 shares of BP and you wanted to extract some income because you have a bearish posture in the short term, so you write (or sell) 10 call contracts.
I don’t make it a habit of analyzing short interest data. However, I always check the data when I initially scan a security because it can help when analyzing the charts. Of course, if I want ...
Hopefully by now you are familiar with all of the campaign promises Obama made prior to winning the 2008 presidential election. Unfortunately, he has broken virtually every single one of his promises. After only a few months in office, it was clear to me that Obama had surpassed Bush's disastrous performance which took him 8 years to establish. This is something I thought would be impossible to achieve over my life time. Here are just a few of Obama's broken promises: (1) Immediate removal of troops from Iraq (2) Restructure free trade policy (3) Provide universal healthcare (this was a lie from the beginning since his plan never included universal healthcare) (4) Those responsible for the financial crisis would be held accountable (5) No signing statements (6) Wall Street reform The list goes on. Not only did Obama not withdrawal troops immediately, or even months later, he sent more. As part of the plan to fool the American sheeple, the global elites awarded Obama with a Nobel Peace Prize shortly after he gave the order to bomb a civilian region, killing hundreds. This is beyond a disgrace. We have a fascist government in America, worse than Nazi Germany. And the clueless masses in America continue to be brainwashed by the media. STOP WATCHING, LISTENING, and READING anything the media monopoly puts out. They are lying like Hell. They are controlling your minds.
Serving as a catalyst for BP's oil spill, Obama recently addressed the need for the U.S. to move forward with an initiative to emphasize utilization of its vast natural gas reserves. This is just another distraction by Obama to cover up from his failed healthcare reform and the soon to be failed Wall Street reform. In the recent past, the switch to natural gas has been argued as a means by which to blaze a path towards cleaner air, less foreign oil dependency and lower energy costs. However, benefits expected from a shift to natural gas are not likely to pan out. First, while natural gas is a cleaner burning fossil fuel than oil, replacing oil with natural gas amounts to little more than replacing landmines with hand grenades. The real solution to clean air is to focus on solar and bioenergy (but not ethanol). In addition, America must erect a public transportation system that will reduce its dependence on autos.
A month ago, Wall Street rushed in to support BP shares. As a result, while shares had lost a good deal, the falling knife had not commenced. With the past two days' plunge in price, shares are now in free-fall. But you shouldn't think institutions are selling as much as they are shorting. In my opinion, most of the institutions unloaded the shares they had planned to sell due to the event a few weeks ago. Now it's the shorts which are causing the stock to collapse. Today, I picked up a (very) small percentage of my total intended position towards the close of the trading session. I did so with the thought that shares will head lower. Why did I buy then?
I'll be concise here. The White House's recent 6-month ban on deep water drilling could send ripples throughout the industry, specifically for oil exploration firms that have a large amount of ultra-deep water drilling operations. Due to their depth, ultra-deep water drilling exploration is the most risky, and could face some severe and and permanant restrictions down the road. So which company is likely to be impacted the most by new regulations in deep and/or ultra-deep water drilling?
Just a quick note. Although I only took a small position in BP recently, based on my most recently analysis, I feel there is a significant chance shares will make new lows soon.
Last week, more than 14,000 nurses from Minnesota hospitals staged a 1-day walk-out as a sign of protest over excessive patient loads. The nurses are right about staffing shortages and overloaded responsibilities. However, their solution – hiring more nurses will add further costs pressures to America’s unsustainable healthcare bubble. Without radical change, this bubble promises to burst, adding yet another dimension to America's healthcare crisis. Most people already know that America spends far more than every other nation on healthcare by every measure, at 18% of GDP, while failing to provide coverage for over 40 million Americans. In contrast, all developed nations in the world spend anywhere from 6.8% to 10% of GDP (France is the lone exception, with 11% of GDP on healthcare) for a system of healthcare that delivers better standards of care and provides coverage to every citizen, regardless of employment status, income or age. Despite the overwhelming myths spread by politicians, pundits and many journalists, the quality of U.S. healthcare is mediocre. In fact, on a per dollar basis, it is the worst healthcare system in (at least) the developed world. Furthermore, the outrageous costs of healthcare in the U.S. have created a unique consequence, unseen elsewhere in the world; that of medical bankruptcies. According to studies by medical researchers at Harvard, medical bankruptcies now account for about 50% of all personal bankruptcies each year in the U.S., at over 1 million. It would be natural to assume that virtually all of those who have fallen victim to medical bankruptcy lack health insurance.
Previously, I discussed the trend of massive healthcare inflation which has not been addressed by healthcare reform. I mentioned that insurance premiums would rise to account for new taxes and other provisions of the law. But rather than employers being left out to dry, I discussed that they would simply pass higher costs onto employees in the form of higher premiums and deductibles and less coverage. This is already happening.
You may have heard of one of the newer (marketing) "innovations" developed by the mutual fund industry called target-date funds. They were launched a few years ago as a way to ensure investors they had developed a better way to manage investment risk after many saw their retirement accounts vaporize during the dotcom collapse. The idea behind target-date funds is simple and seemingly useful. You select funds based on your target retirement year. Based on the year selected, these funds gradually invest in more conservative financial instruments as your retirement date approaches. For instance, if you plan to retire in 2025, the current holdings of a typical fund might hold say 80% equities and 20% bonds. By 2020, the allocation might have gradually shifted to 40% equities and 60% bonds. The rational for the reallocation to bonds is that equities are more volatile, so as your investment horizon (retirement date) draws near, you will want to have a less volatile portfolio so as to have a more predictable income stream.
Portugal, at 5%.
Two weeks ago, I made a brief post stating that I pulled out of BP and was going to stay clear (at least on the long side) because I had some pretty good indicators that told me shares were headed for a new low, below the $29 dollar mark. /article_details-567.html On Friday shares fell just below $27. Other than a possible short-term bounce (which I would not try to play if I were you), I expect shares to continue further.
I wanted to announce some changes expected to be placed in effect in the near future. Without going into details at this time, I just want to alert those of you who might be interested in subscribing the newsletter that due to the severity of the financial impact my being banned by the media and Internet, the cost of the annual subscription is likely to double from the current promotional rate by this time next year, except for subscribers who have (or will lock in the life-time promotional rate).
This weekend during the G-20 summit in Toronto, thousands of protesters lined the streets to voice their anger at the meeting of the global elites. Already more than 600 demonstrators have been arrested. Meanwhile, additional protesters showed up at detention centers protesting the arrest of these demonstrators. What is truly remarkable is that even Canadians, some of the most peaceful, nicest people you will find anywhere; people who are also known to engage in frequent use of marijuana (which induces complacency) - understand what is happening.
Today, the criminal PR arm of Wall Street, CNBC, interviewed Alan Greenspan hoping to draw a big audience of sheep using the "big name" tactic. Forget Greenspan is the single person most responsible for the the collapse of the global economy. Forget the fact that he should be in prison. Forget that he is incompetant. Greenspan, at the very least is a fool. As an attempt to calm investors, Greenspan claimed that the market decline was typical of a "recovery."
I want to expand on a short discussion from the economic section of the July newsletter. And I am making it available I want to expand on a short discussion from the economic section of the July newsletter. And I am making it available for everyone because I want to show you how you are being fooled by the various clowns out there. Over the past several weeks, you may have heard the back and forth debates regarding the possibility of a double-dip recession between the various media hacks and clowns they interview. The overwhelming question has been, “Will the U.S. enter a double-dip recession?” Have you ever stopped to ask yourself exactly what a double-dip recession is? Let me cut to the chase. There is no such thing as a double-dip recession. Even the NBER does not have a clear definition of this term. owns out there.
Some readers have made remarks here and there, like "yes we know the media is full of ****." Well, amazing as it seems (to me) after writing extensively about the topic, many people still don't seem to get the message. The message is not only that the media is filled with liars and idiots, all hand-selected specifically to exploit its audience for the benefit of its financial sponsors, BUT ALSO that you must not allow this to continue. You must fight back. I would have thought people would have done something about it, like contact them non-stop and demand an end to the hacks, liars and clowns, all of which have terrible track records. Obviously, the fewer people who know about this site, the smaller the force to counter the media.
I've been telling you that all of the alternatives to Wall Street, whether it's the online brokers like Charles Schwab or E-Trade, the financial pundits in the media, or the traditional investment newsletter guys - are all sleeping in the same bed together. Why might this be? because the best way to make the most money is to unite! Later on, you might want to refresh your memory how the media acts to screw you, by checking this list of media articles. Today, I provide another eye-opening look at the deep relations that all of the guys in the media club have with each other. First, let's go back a year when I wrote about Martin Weiss.
America’s former greatness was created by the hard work of struggling immigrants, who earned their right to become U.S. citizens. They did not ask for nor receive handouts. And they certainly didn't have the audacity to protest against federal immigration law. They did not cheat the system. Most came to the United States with little money or formal education. Many came without fluency of the English language. But they worked hard to overcome barriers. They fought wars for this nation. They built this nation. They sacrificed many things for the chance that their children could live the American Dream.
A few months ago, I discussed the fact that the U.S. really doesn't have a free market economy, as so many claim. Once you spend some time examining the activities of various industries, this becomes clear. A free market economy provides consumer choice because it fosters an environment for healthy competition.
For more than two years now, many Americans have heard warnings of hyperinflation from the large consensus of misguided individuals, whose agendas serve as the basis for their ridiculous claims. Much of this nonsense has come from the gold bugs and perma-bears, although it is often difficult to distinguish between the two. Sprouting from this group of fear-mongers is a larger number of naïve followers whose mission is to also be inducted into the media club, while they too profit from selling gold ads and other financial arrangements made with gold dealers. Many of these individuals spend their entire day watching CNBC and blogging, so as to feed off of the daily smoke-and-mirrors, because they know that millions of sheep continue to watch this trash, despite the fact that CNBC and other financial media establishments are arguably more responsible for your investment losses than even Wall Street. But it’s important to keep in mind that financial experts don’t spend their days giving television interviews, attending investor conferences and rehashing the daily drama from the financial media. These are marketing activities. Real financial professionals are doing research and servicing their clients. And those in the financial industry don’t spend their day blogging, unless they are starving for business. Regardless of their position along this food chain of deceit, they are all opportunists. They’ve been trying their hardest to pump up the price of gold, while making ludicrous claims of imminent hyperinflation and a Zimbabwean-like currency devaluation for the dollar. Some of them know these myths are nothing more than complete fabrications of deception designed to profit from their sheep audience. Others actually believe their mentors who have attained a celebrity status within the media despite their lack of credibility. But reality does not matter to them. They understand the power of numbers. If something is repeated over and over, most people will believe it. This is one of the most basic tricks used by America’s media monopoly. My advice is to spend less time listening to what you hear and more time researching the full track record of the so-called experts in the media.
Did you get a raise in 2009? CEOs of the nation’s largest health insurers most certainly did; CIGNA, UnitedHealth, Humana and Wellpoint. In fact, as a reward for many years of excessive hikes to insurance premiums executed under his leadership, Edward Hanway, the former CEO of CIGNA was provided with a retirement package worth $110.9 million, paid for by the excessive and unnecessarily high insurance premiums billed to CIGNA’s policy holders. Excessive premium hikes from U.S. health insurers are an industry-wide problem and have been for well over a decade. Rather than real competition, the industry engages in collusion with territorial monopolies and duopolies.
For many years, banks have offered a slew of incentives to get you to shift to online banking. They’ve gone to extremes to transform your records from paper to digital as a way to boost profits, without truly informing you of the security issues. Meanwhile, they assure you that it’s 100% safe and guaranteed to be secure, backed by the bank. Over the years, I’ve probably turned down a few thousand dollars in cash offers from banks that have tried to get me to shift to online banking. No way Jose. Why have I refused to put my banking accounts online?
Subscribers to the AVA Investment Analytics newsletter might recall a few months ago I criticized a nonpartisan think tank for its sudden departure from meaningful discussions related to America's insidious trade policy. Incidentally, abandonment of the organization's position on the detrimental effects of unfair trade coincided with the appointment of its head figure to a top advisory position in Washington. If I had not been sensitive to the issues of trade, and if I had not been following this think tank for some time, I would not have noticed the organization's internal gag order on trade issues since their top man departed for the White House. From this experience I was reminded that you must always remain on-guard with respect to ALL sources you have come to trust in the media (if you can find any), including "think tanks" that claim to be nonpartisan. Nonprofit think tanks are required to be nonpartisan in order to qualify for their tax-exempt status. In reality, I have not been able to identify a single nonpartisan think tank in all of my efforts.
This evening, President Obama delivered a 20-minute address announcing the end of combat in Iraq. Caving into pressure from critics who have continued to criticize Obama's numerous failures since entering the White House, Obama announced the need to focus more on the U.S. economy. Remember, according to the White House, Washington hacks and the Federal Reserve, the economic recovery is still underway. So then, do you really think Obama's announcement is what it really seems? In reality, Washington and the other members of the mafia understand that the recovery is little more than an illusion built on now-expired subsidies and a whopping stimulus package that has done little more than provide a temporary boost to the economy, while adding to the nation's long-term debt.
I've discussed my own views on the SEC on many occasions, dating back to the 2006 original edition of America's Financial Apocalypse. First, I warned that the SEC would not be likely to act in a manner to prevent Fannie and Freddie from continuing massive fraud... “Lack of congressional oversight and transparency with the GSEs has already resulted in mismanagement, fraud, and abuse of power. Only in 2003 did Fannie Mae finally agree to register under the SEC Act of 1934 due to mounting pressure from outside critics. It will now be required to provide annual and quarterly financial filings. But the damage has already been done. Recent investigations have forced Fannie to restate earnings to the tune of nearly $11 billion from 1998 to mid-2004. The SEC has fined them $400 million and the management is now being investigated by the Department of Justice. The SEC has a long track record of acting too little too late, and this could prove to be another example. Thus far, Fannie Mae was found to have misrepresented its risk position, acted irresponsibly, and manipulated earnings so company executives would receive huge bonuses. Figure 10.3 (appendix) shows that Fannie was able to meet earnings goals for all bonuses from 1996 to 2003. No doubt, these bogus numbers would have continued if they were not caught. Box 10-1 (appendix) shows a partial summary of the 311-page special report of the OFHEO’s special investigation of Fannie Mae.” Source: America’s Financial Apocalypse, 2006. Later, I discussed how the SEC permits legalized insider trading by permitting corporations to purchase their own stock, as well as allowing executives to execute stock options even when they know the near-term fate of their companies. “Because companies know better than anyone what their short-term fate will be, they are truly the ultimate insiders. Corporate treasury departments can time the purchase and sale of their stock as long as they abide by certain minimal restrictions mandated by the SEC. Hence, unknowingly, shareholders lose when companies purchase treasury stock. Yet, the SEC has allowed this practice ever since inception. As well, there are very few restrictions for insider purchases of company stock. Don’t you think CEOs and CFOs know their company’s business prospects over the next few years? Of course they do. But the holding period for stock options execution is remarkably short. This legalized insider activity by has accounted for the bilking of billions of dollars from investors. Yet, in most cases, the timely liquidation of stock options is transacted legally, although representing an unfair advantage and what I consider legalized insider trading. Executive management cares only about one thing—earnings growth, because it leads to a higher stock price. This makes their stock options more valuable. But it also makes treasury stock more valuable in a variety of ways, whether through the effects of increased buying power, improved earnings growth, or as a source of collateral for loans. And of course, management stands to benefit from higher bonuses and more stock option awards. Today, CEOs are much too powerful and overcompensated, in large part due to unchecked stock option programs. Oddly enough, they do not share a proportionate decline in compensation when performance lingers. But they stand to profit from overly generous stock option awards when the company performs well on a short-term basis. Thus, it’s greed rather than the fear of underperformance that provides incentive to cook the books. It’s really not a big deal for them because they know they won’t go to jail if they get caught. Enron and WorldCom serve only as rare examples of prosecution due to fraud, but only because these scandals received so much media coverage. Executives in hundreds of other companies weren’t prosecuted after extorting billions of dollars from shareholders by the timely exercise of stock options. Unfortunately, this will continue as long as corporate America controls Washington.” Source: America’s Financial Apocalypse, 2006. Next, I discussed the SEC's poor track record of detecting securities fraud... “And of course we cannot forget the SEC, which focuses most of its efforts on small-time crimes as a way to create the perception that it’s policing the securities markets. Widespread fraud continues at the highest levels on Wall Street and corporate America on a daily basis. In almost every major case of Wall Street and corporate fraud, the SEC has acted only as a reactive investigator after someone else discovered the deceit. This has been true in the accounting scandals with Enron and WorldCom, hundreds of other accounting scandals, stock options backdating, mutual fund and market maker trading fraud, and virtually all other scandals that affect millions of shareholders. Rather than focusing on the major crimes, such as illegal activities of market makers, fund managers and traders, floor traders, Wall Street firms, and corporate insiders, the SEC operates with the mentality of “You might be doing something wrong but don’t let us know about it or we will investigate.” In contrast, the SEC should be constantly probing head figures that influence the capital markets because they’ve been getting away with criminal activities for decades. The passage of the Sarbanes-Oxley Act has had only a minor impact, with much more bark than bite. The fact is that things haven’t changed and they probably never will. It’s still business as usual on Wall Street. As with everything else in America, big money makes and breaks the rules.” Source: America’s Financial Apocalypse, 2006. Finally, I discussed the stock options backdating scandal… “This is the latest scandal that’s been exposed as an aftermath of the Internet bubble. While investigations are just beginning and are expected to take several years, already several experts have estimated that as much as 20 percent of all stock options to top executives from 1996 to 2005 were backdated illegally. In addition, as much as 29.2 percent of stock options were manipulated in some manner during this period. Options backdating has been linked mainly to high-technology firms since most used stock options as a significant source of compensation during a period when such awards were not expensed on financial statements. While options backdating is legal, it must be done with proper and timely disclosure according to SEC rules. However, many financial professionals (including myself) had suspected for some time that stock options to executives were being mishandled. Currently, the SEC has identified nearly 80 companies under investigation for options backdating (figure 12-5). Keep in mind that the SEC didn’t discover these fraudulent activities. These brief examples of corporate fraud are just scratching the surface of a corrupt system whereby executives have become invincible. Some are more powerful than Washington politicians. And you can bet that there will be many more scandals exposed over the next several years. It’s a pattern consistent with America’s capital markets and big industry. Unfortunately, shareholders will never be properly compensated, but the executives, Wall Street brokers, and litigant attorneys will continue to get rich. Perhaps the most troubling aspect of all of this is that investors seem to have very short memories. Most act as if these scandals occurred decades ago, as evidenced by the large amount of speculation in the stock market over the past two years.” Source: America’s Financial Apocalypse, 2006. My thoughts were perhaps best communicated when I reiterated my assessment of the SEC directly to SEC investigators at the end of my formal complaint regarding the illegal and inappropriate seizure of Washington Mutual by the FDIC and Federal Reserve (although the official story line was that the Office of Thrift Supervision seized the savings and loan). “In the future I will be submitting a proposal to the next presidential administration and other agencies regarding my recommendations for needed changes to the SEC. Among these changes, briefly:
You may have heard of plans by a tiny Church in Florida to burn the Qur’an on the ninth anniversary of the World Trade Center attacks. The man in charge of this ridiculous spectacle, Reverend Terry Jones, continues to receive massive media exposure from America’s media monopoly. First, I want you to ask yourself how such a small group (the church has approximately 50 members) was able to obtain worldwide media exposure. Second, ask yourself what could possibly be gained by highlighting this man and his plans to burn the Qur’an. The answer is clear. The media is using Jones’ display of hate and ignorance as a lever of mind control. In order to decipher the methods of mind control utilized by the media, you only need draw upon primitive psychological tactics. Jones' immediate and unwarranted rise to fame is similar to that enjoyed by Octomom, Paris Hilton, Joe the Plumber and countless others.
Early last month, the Commerce Department released the latest GDP data. For Q2 of 2010 the GDP growth came in at 2.4%, missing the consensus estimate of 2.5%. The Commerce Department also released its latest revisions to 2007-2009 GDP data. As I had predicted, the economy shrank more than the previous estimate of 2.6% versus the 2.4% data recorded last year. That made it the largest drop in GDP since 1946. Moreover, the revisions in August indicated 0% economic growth for all of 2008 versus the previous estimate of 0.4%. Finally, in 2007 the economy grew by only 1.9% versus the previous 2.1% figure. Overall, since the recession began in December 2007 through June of 2010, GDP has declined by 4.1% according to the latest revisions by the Commerce Department. Fast-forward to a month later. On August 27, the Commerce Department revised the Q2 2010 GDP data downward. From April to June (Q2) the GDP was revised down to 1.6%, from the initial 2.4% estimate. This latest data has strengthened the growing consensus that the “recovery” is weakening. I have continued to insist that the initial GDP data would be revised down significantly. This is precisely what we are now seeing. By now, you should understand that there is no recovery in progress. The recession is alive and well, now entering its 34th month. This is a fact which no one who is familiar with the economic environment can legitimately refute. Let me be crystal clear.
A few months ago, as the BP drama was in full thrust, momentum was building for natural gas as a primary source of fuel in the U.S. At that time, I wrote an article explaining why a shift to natural gas wouldn't lower energy prices. And as far as providing a safer source of fossil fuels, I stated that a shift to natural gas would actually cause the loss of more human lives. Please have a look at excerpts from this article. "Washington should do all that it can to enable oil companies to harvest oil and gas so as to minimize foreign dependency. This includes a continuation of off-shore drilling. The current oil spill should serve as a valuable lesson. With better safety and emergency response mechanisms in place, deep-oil drilling can be made safe and come will little threat of another disaster.
By now, you are probably familiar with the financial media's ban on me despite my world-leading track record in numerous areas of economics, real estate, market forecasting and so on.
As part of our mission to expose the truth and cut through the smoke and mirrors games played by the media and Internet marketers, we have identified America's best contrarian indicators. This award goes to those who claim to be investment experts whose advice and recommendations are best utilized by doing the opposite of what they say. In determining this award, we examined the track records of all candidates dating back to several years. As you can imagine, with so many clowns out there with such horrendous track records, this was a painstaking process. However, after expensive analysis, we have come to a decision as the best contrarian indicator, and it's an 8-way tie. The co-winners are as follows:
I wanted to direct your attention to the latest trash from Bloomberg; a propaganda piece commissioned by the White House, featuring Warren Buffett's take on the economy. http://finance.yahoo.com/news/Buffett-Rules-Out-DoubleDip-bloomberg-2228875511.html?x=0 First of all, as I previously discussed, there is no such thing as a double-dip unless you are talking about ice cream cones. Please refresh your memory on this analysis here. It should be clear to you that Buffett is either a bold-faced liar or senile, as it's quite obvious to anyone who has examined the data that the recession is alive and well, now in its 34th month. I discussed this fact here. Of course, after losing more than $30 billion in Berkshire Hathaway in 2008, apparently, Buffett doesn't look at too much data these days. But why bother to look at data when you can simply give an interview and suck the sheep into your agenda? Read about the side of Buffett never discussed by the criminal media monopoly here.
It appears that at least 20 states are sueing certain portions of ObamaCare. See here. As the November elections approach, you should hear much more about ObamaCare. As you will recall, after the bill was signed into law in March of this year, I discussed that it was odd that the most sweeping healthcare law passed in decades faded from the media. haven't you wondered why we haven't heard much about it since then? The reason is simple.
Just a quick note, as I head back to some late-night work. I ran across this news story just now discussing another "victory" by a tea party candidate and I wanted to show you how the Associated Press is trying to manipulate people into believing that these candidates are any different than the others. Let's have a look.
Why in America is it only discrimination if it's a white person doing or saying something against another race? Black, Hispanic, Asian and kids of other races are taught that they should be proud to be Black, Hispanic or Asian. But when it comes to Whites being proud to be White, they are labeled as racists. Haven't you had about enough of this hypocracy and social injustice? It doesn't matter what race you are, if you a level-headed fair person, you can see this just isn't right. And if it doesn't end soon, I can guarantee you it's going to erase much of the progress made in U.S. race relations over the past three decades. I don't even want to begin to discuss affirmative action. As those who read America's Financial Apocalypse might recall, I glazed over this controversial issue because i did not want it to be the focus in readers' minds.
Each month, the media lines up to read the results of the S&P/Case-Shiller Home Price Indices. This group of indices are generated and published by Standard & Poor's and Fiserv Inc. Keep in mind that these indices are maintained by the Index Committee members drawn from Standard & Poor's, Fiserv CSW, and so-called “leading industry experts.” The objective of these indices is to measure the growth in value of residential real estate regions across the U.S. The total report includes 23 indices - 20 metropolitan regional indices, two composite indices and a national index. Perhaps the most talked about is the 20-city housing price index. Despite having access to a tremendous amount of data as a primary contributor to these indices, Mr. Shiller seems to be about as lost as Ben Bernanke when it comes to real estate forecasting. Remember, Shiller’s role in the construction of these indices is that of monthly data analysis, not real estate forecasting. Despite this, the media lines up to report what he has to say regarding forward-looking estimates of the housing market; something he has been highly unsuccessful in providing for several years now. As his documented record shows, Shiller has flip-flopped numerous times on his housing forecasts over the past few years. Upon full examination of his track record over the past few years, rather than a forecaster, I would classify Shiller as a broadcaster. Credible forecasts are made over a several-month or several-year period, and they hold. When adjustments are required, they aren’t made each month, but over a several-month period. While monthly data might be helpful to analysts as a source of generating knee-jerk activity, such a short-term outlook does nothing to help potential homebuyers who look for trends instead of monthly swings. Furthermore, monthly forecasts do not provide any value when you alternate between being bearish and bullish. When you see these monthly flip-flops, you should not mistake them as forecasts. They are nothing more than broadcasts. Broadcasts serve no other function than to create confusion within the market place. However, rather than place blame on Shiller, the media is to blame because they have positioned him as a forecaster when in fact he is merely a broadcaster. In America’s Financial Apocalypse (among other things that have materialized) I forecast a median house price decline of 30% to 35% from peak levels reached in mid-2006. The book was released in late 2006. This is close to where we are today (see reference 1 at the end). Since 2007, I have insisted the housing market would get worse in coming years. I stand by my original forecasts made in my 2006 book. As you can imagine, there have been no real improvements to the U.S. housing market in 2010, despite claims made by the establishment (Washington, Wall Street, real estate shills, the media, academic economists and others tied into the system). The national median existing home price for all housing types was $182,600 in July, up 0.7% from a year ago. Distressed home sales accounted for 32% of transactions in July (unchanged from June), versus 31% in July 2009. Now let’s have a look at what the real estate industry’s main cheerleader and clown has to say. Quoting Lawrence Yun, chief economist of the National Association of Realtors (NAR)... “Thanks to the home buyer tax credit, home values have been stable for the past 18 months despite heavy job losses,” Yun said. “Over the short term, high supply in relation to demand clearly favors buyers. However, given that home values are back in line relative to income, and from very low new-home construction, there is not likely to be any measurable change in home prices going forward.” Once again, Yun is dreaming. Over the past few years, Yun has made a name for himself as the “Jim Cramer” of real estate forecasting (see reference 2 at the end). While home prices are back in-sync with incomes in a FEW cities, in the vast majority of cities home pricing remains high relative to median incomes. Incidentally, most of these cities never experienced much of a bubble in housing.
You might recall an article I wrote a few month ago, discussing ridiculous terminology that has been embraced by every sheep on earth; double-dip recession. See here to refresh your memory. As part of my argument that the recession had not ended, I pointed to the fact that the NBER had not yet concluded that the recession had ended. Well, this has changed recently. I'm not going to say much here. The title says it all. Have a look here. It's clear to me that the NBER has given into pressures from the White House to make bogus claims that the recession ended in June 2009. Remember, this is an election year. With just two months remaining before facing voters, democrats are shaking in their pants because there hasn't been a single bit of good news or positive developments since Obama has been in office. Americans should be accustomed to that. Bush didn't do a damn thing for the people as well. For Americans, it doesn't really matter who wins these elections because the Washington mafia always yields the same results that empower corporate America at the expense of the people. Understand that, while I view the NBER as more credible than other economic organizations, the fact is that they still bow down to Washington and the Federal Reserve because it's made up of academic economists, all with strong ties to Washington and the Federal Reserve. Have a look at the list of researchers and see where they are from. If you have a good deal of time on your hands, you might want to research their ties more closely.
I ran across one of these "How to Make Tons of Money With No Money and Minimal Effort" BS propaganda pieces, so I thought I'd show you just how naive people are. The article is another one of those that basically states you can set up a blog and post ads from Google's Adsense, and be on your way to easy money.
UPDATE: article re-edited on September 30, 2010. Apparently, the use of scare tactics works well for a population whose minds have been hijacked by the corporate-controlled media establishment. For instance, a few years ago, President Bush and his neo-con clan used the WMD scare tactic in order to justify the invasion of Iraq. More scare tactics were used to pass the unconstitutional Patriot Act. (1) (2) A few years later, as the financial system got stuck in the game of musical chairs, Henry Paulson and the Federal Reserve bank used the “too big to fail” scare tactic in order to justify the bailout of Fannie Mae and Freddie Mac, which opened the door for the unconstitutional passage of TARP. As we all know, the banking cartel labeled “too big to fail,” is much bigger today, while Fannie and Freddie have no real future in their current form. Meanwhile, financial reform has been a complete joke. (3) (4) Even media celebrities have used scare tactics as a way to convince Main Street that they must own gold, as these hacks land huge endorsement deals. (5) The same approach of using scare tactics has also worked exceptionally well for the healthcare industry. Whenever republicans want to attack proposed changes to America's uncompetitive, mediocre, wasteful and costly healthcare system, they scare Americans with warnings of socialized medicine. However, the facts reveal a much different picture than that painted by politicians and others who have been bought off by the industry. As the data reveals, the vast majority of developed nations with universal healthcare score higher than the U.S. in the most critical measures of medical care. I have discussed these discouraging realities on many occasions. (6) (7) Whenever democrats offer solutions to America's broken healthcare system, they focus on big government. This too favors the industry because it adds more tax dollars for the medical-industrial complex to siphon off. Either way, the fundamental problems found within the U.S. healthcare system are not being addressed. For instance, politicians never mention the need for drug price caps as a manner by which to curtail healthcare inflation, nor do they mention the need to refocus medical delivery on prevention. It is widely known that more than 60% of all healthcare expenditures in the U.S. arise from preventable medical conditions. Finally, politicians certainly would never propose jail time for CEOs whose companies have been found guilty of defrauding Medicare and Medicaid (tax payer fraud). As the dotcom charade and the current economic fiasco have confirmed, the U.S. has become a nation where CEOs are immune from criminal prosecution. (8) (9) (10) Moreover, Washington remains determined to protect the excessive profits of the medical-industrial complex because they have bought off virtually every politician in the nation. We see a similar alliance between Washington and other industries, as expressed by what’s known as free trade. This destructive and highly unfair strategy has resulted in the loss of millions of jobs over the past several years. (11) Regardless of the position held by democrats or republicans, the fact is that the healthcare industry dictates healthcare policy. As a result, the industry has created a path of unsustainable healthcare economics at the expense of tax payers. Yet, as the data shows, tax payers fund the majority of annual healthcare expenditures. Thus, tax dollars account for a large bulk of the profits enjoyed by the medical-industrial complex. (12)
In the past, I've discussed how Americans should be taking notes as they watch Europeans resist the various austerity measures and other forms of control enacted by the oligarchs. Despite the fact that America suffered a much large banking bailout than Europeans, Americans have sat on their lazy asses and done nothing to organize meaningful protests which address the real problems and criminals responsible for the global recession (most likely soon to be a global depression). Meanwhile, Europeans are showing that they won't take the abuse. This is what you do when you have your mind and soul intact. You fight let these SOBs know they serve you, not vice versa. http://news.yahoo.com/s/ap/eu_europe_austerity_protests http://www.usatoday.com/news/world/2010-09-29-europe-austerity-protests_N.htm This is what you do when your mind and soul has been hijacked by the media machine. /article_details-596.html In case you haven't figured it out by now, they won. They beat you. They raped you. America's fascist Establishment comprised of banking, corporate, political and media elites have screwed you so hard and deep, you've lost all touch with reality. Americans need to get off of their asses and TAKE ACTION NOW, before it's too late.
Last month, I followed up on a discussion I began in over a year ago as to why hyperinflation would be a very unlikely scenario in the U.S. In summary, this devastating scenario is a virtual impossibility despite the printing frenzy by the Fed because the banks have held onto most of this newly printed currency, keeping it out of the hands of consumers. (1) I discussed this fact over a year ago when I first debunked the deflation myth. (2)
Those who read America’s Financial Apocalypse might recall I discussed the problem of immigrants failing to integrate into U.S. society. This is just one of hundreds of prophetic conclusions made in this book. This past weekend, German Chancellor Angela Merkel spoke to the Christian Democratic Union about the nation's immigration problem. In short, she said that this idea of multiculturalism has failed and that immigrants need to do more to integrate into German society, starting with learning the German language. "And of course, the approach [to build] a multicultural [society] and to live side-by-side and to enjoy each other... has failed, utterly failed." Turkish President Abdullah Gul urged the Turkish community living in Germany to master German.
If you research many sources, you will see this and similar statements constantly pop up, whether issued recently or many years ago. The more time you spend research things for yourself with an open mind, the more pissed off you are likely to become after realizing that in fact you have been had. The Jewish mafia does indeed control America, and they are raping you day by day. Please have a look at the recent article from the Jerusalem Post.
Just a few thoughts on social media because I don't want to waste much time on such a useless topic. I laugh when I hear these ridiculous estimates of Facebook being worth $10 to $15 billion. It's ridiculous. It's not a real business. It has no competitive advantage. It has no original content. It's merely a fade, and a useless one at that. It's a website. It's complete garbage. The only reason it's been successful is due to the lack of real competitors, as well as a herding effect. You might recall the hype behind Myspace a couple of years ago when it had no real competitors. Twitter is an even bigger joke, as is Linked In.
Some of you my be wondering why I'm writing about multiculturalism and other topics while "currency wars" are taking place, or the effects of "QE2". Seeing these buzz words should tell you the real deal. These things are meaningless. They are non-events. This is just a reminder that you aren't going to see trivial trash here. If I'm not talking about something you are hearing about elsewhere, that means it's noise and you shouldn't waste your time with it. Understand that the media wants to dramatize everything so that you spend much of your day reading and watching their trash. This is how they make money. Advertisements.
I want to warn those of you who have accounts with Charles Schwab to close your accounts immediately. The situation involves errors in order entry for which Schwab refuses to acknowledge or correct.
I want to be crystal clear about things. What I am about to discuss has been stated in bits and pieces in the past in some of my previous articles. Here I want to bring things together so that you understand the big picture. And I want to do this by providing you with hand-selected videos that demonstrate these ideas. This is an article that will take you a couple of hours to finish due to the number of videos I have posted. As you might imagine, I already knew what I wanted to say so virtually all of the time I devoted to this piece was spent selecting the right videos. This took several days. Hopefully, you will understand why I have sacrificed such a large amount of time preparing this piece. I could have spent this time towards income-generating activities, or at the very least for recreational time. Thus, I hope you spend time to watch each video at least once, and use the piece as a catalyst for further research. I hope you will also pass this article to everyone you know. And ask them to examine the facts and address the issues rather than impulsively label you as a racist, as they have been programmed to do. The United States of America is run by a huge crime syndicate, whose center of command includes the Federal Reserve Banking System, Wall Street, corporate America, and the Council on Foreign Relations. It is the Zionist Jewish mafia, and it has been in existence for quite some time. Please have a look at this brief article which discusses the early days of this mafia. Here, I attempt to show you just how powerful and dangerous this mafia has become.
Before you read my commentary, I’d like you to watch the following video because I want you to form your own impressions without my influence. There are many things about the following video that caught my attention. If you are like me, you will be compelled to watch it several times.
I'll be brief here. If you retrace the events over the past two years and you are familiar with the market activity, you will come across one recurring trend; the timeliness of bailouts and other measures orchestrated by the global elites in order to prevent or reverse the collapse of the global stock markets. This occured with the announcement and approval of TARP, it occured with Greece and it now occured with Ireland.
A few months ago, I ran across a typical propaganda piece from America’s corporate media discussing why U.S. corporations aren’t hiring. Frank Ingarra, co-portfolio manager of Hennessy Funds said companies are hesitant to hire because of uncertainty surrounding costs associated with financial regulation and healthcare reform. "Companies are not hiring because they don't know the rules of the game," said. "When you don't know the rules, you pack up and go home." Reference Mr. Ingarra simply doesn’t have a clue what is going on. By now you should understand that the media interviews those who are either naive or else will represent the agenda of their Wall Street and Washington partners.
Today, an article appeared discussing how the SEC has been investigating an "insider trading network." Although the details have not been released, several prominent hedge funds were mentioned as potential alleged violators. http://online.wsj.com/article/SB10001424052748704170404575624831742191288.html?mod=yhoofront I want to be clear that this is merely a smoke screen. Even if charges are brought against these funds, this would represent a drop in a vast ocean of insider trading that has come to characterize all of Wall Street. The SEC remains desperate to try and restore investor confidence after the biggest stock market scam in world history. I'm not talking about Bernie Madoff's Ponzi scheme. You will recall that his scam had nothing to do with the global collapse. In fact, Madoff was a victim of the larger fraud perpetrated by Wall Street. The SEC and the media have used Madoff as the sacrificial lamb in order to shield the much bigger criminals, whose fraudulent actions have affected every person on earth.
This article was taken from a section of the July 2010 AVA Investment Analytics newsletter. While more than five months have passed since the release of this report, it has been published to demonstrate that real forecasts and accurate insight does not change from day-to-day, week-to-week, or month-to-month. The Federal Reserve A few weeks ago the Federal Reserve stated they now feel the so-called “recovery” is occurring at a more rapid rate. As a result of this “progress,” they raised their 2010 GDP estimates. Despite this accelerated “recovery,” they plan to leave rates essentially unchanged most likely through most of 2010. Thus, their statement and their actions contradict each other. Reality is much different than what you hear from Washington and the media. Unemployment is still terrible and the problems in Europe will surely affect the U.S. economy as well as multinational corporations. Investors are just beginning to realize risks that remain. In response, the stock market has sold off by about 14% after topping 11,300 in March of this year. Investors who have followed my guidance have been insulated from these losses. In fact, subscribers to this newsletter rode the market up from the March 2009 lows all the way up to the top and were urged to exit a few months ago. In past issues, I have tried to demonstrate that the global bubble has reflated. There is simply too much currency in circulation; not just the dollar, but all currencies. This further highlights evidence of a global bubble, which not only failed to correct adequately, but has now been reflated. What this means is that the risks have been elevated back to near pre-crisis levels. The main risks are credit, liquidity and sovereign debt. Reflation of the global bubble combined with increasing risks are reasons to focus on risk management. Unlike mutual funds, individual investors are not required to remain in the stock market at all times. Thus, they have a huge advantage. Make sure you utilize it! Throughout this treacherous period, your biggest enemy is likely to be your own greed, impatience, and panic. If you succumb to these emotions, you stand to lose much of what you have. As a result of this vulnerable predicament, at any time, the global markets could implode, although I would expect such an event to occur over several months, and would be catalyzed by a string of economic problems from around the globe.
Mike has been targeted by WikiLeaks because of his highly successful proprietary trading methodologies which have successfully predicted and timed the stock market collapse down to a few hundred points, the collapse and bailout of Fannie and Freddie even before the real estate bubble popped, and many other forecasts that have made his readers a boat load of money.
Back in early 2007, very few pundits gave Obama a chance in the 2008 Democratic presidential race. At the time, Hilary Clinton and others were front runners. But things would soon change. Prior to the 2004 presidential campaign, George Soros & Co. were working to position Obama as a serious contender in 2008. They put together a propaganda book based on some episodes of Obama’s life, filled with the inspiration and glory often seen in fiction novels. Mysteriously, the book, “Barack Obama, Dreams from My Father” was released in the summer of 2004 just a few days after Obama’s speech endorsing Senator John Kerry during the Democratic National Convention in late July 2004. Although this ghost-written book was intended to boost his status as a serious presidential candidate in 2008, the book was a very poor seller up until 2008. Listen to the speech that introduced Obama to American voters and take note of the rhetoric and hypocrisy ever since he entered the White House. It’s truly a disgusting display of betrayal to all Americans.
(Updated on December 14, 2010) I hate to waste time on useless scumbag liars and profiteers. However, if you want to be a great investor, you have to be able to recognize trash in order to avoid it. I want to alert you to the latest scam being led by the biggest opportunities, liars and censoring scumbags in the world today. As a manner by which to boost their own swollen bank accounts, disinfo agents Alex Jones and Max Keiser have been promoting a campaign get sheep across the globe to buy silver with the (ridiculous) intent to crush JP Morgan. Their reasoning is as follows. Since the bank has a large short position in silver, if people buy it in hoards it will drive up the price causing them to sell at a big loss. Furthermore, since JP Morgan's short position is (allegedly) so huge, it would be impossible for the bank to liquidate without massive losses, causing the stock to, as Keiser states "go to 0."
Back in the Spring of 2009, the World Bank forecast that the global economy would contract by 1.7% that year; the first global contraction since the Great Depression (yet another clear indicator we are in a depression). As it turns out, they were quite conservative (as you would expect). Latest numbers from the World Bank show a decline in global GDP by 2.2% for 2009. As I have alluded to on numerous occasions, it has been much of the developing world (China, Brazil and India) that have actually helped curtail the global contraction. Without their help, the global economy would have shrunk by around 3% in 2009, maybe more. In this article, I will present various excerpts from a recent (January 2010) report by the World Bank, while following up with my assessment. Ultimately, I will make a case that the global bubble is well on its way to reflating, if not already there.
I have updated the Max Keiser article to include additional pictures and key videos. /article_details-659.html
“Regarding the Great Depression. You’re right, we did it. We’re very sorry. But thanks to you, we won’t do it again.”  That quote was taken from a speech made by then Board of Governors member Ben Bernanke in 2002 to the Federal Reserve. Unfortunately, Bernanke’s pledge has been broken. As clueless as Bernanke has been, if you follow what he says closely, on occasion you will see his own admission that the U.S. is either in a depression or is certainly headed for one. For instance, on Tuesday November 30, 2010, as Bernanke attempted to defend his recent decision to buy $600 billion of U.S. Treasuries, he made ridiculous claims that this quantitative easing would lead to more jobs. He then used the often used scare tactic to justify this move by saying that a long period of high unemployment could exact a steep social cost. "There are obviously very severe economic and social consequences from this level of unemployment," so getting new jobs, getting unemployment down is of an incredible importance." “The unemployment rate is still going to be high for a while, and that means that a lot of people are going to be under financial stress.” Recently, Bernanke predicted unemployment will remain high for "four or five years."  So what is Bernanke trying to say? Read between the lines for yourself. First, he has said that there will be very severe social and economic consequences from this high level of unemployment. What does “Very severe social and economic consequences” mean? Quite simply, it means a depression. Then, on December 5, 2010, Bernanke stated that unemployment will remain high for four or five years. By now I’m sure you realize any estimate that sides with optimism by the Fed is a severe understatement. What that means is that high unemployment will last much longer. But this by no means provides any useful guidance by Bernanke. It should be obvious to any rational adult that we are in a depression. I detailed the causes and effects of this depression in America’s Financial Apocalypse four years ago. My track record can be found here: /article_details-341.html So who should you be listening to? Ben Shalom Bernanke? The hacks in the media? You can decide for yourself. Now if you’ve decided to listen to me, I’m going to tell you why the unemployment rate is so high and will remain high for many years to come. But you’ll have to wait for Part 2 of this article. First, let’s summarize what has happened. Over the past two years we have seen some of the worlds strongest, oldest, most successful financial institutions file for bankruptcy or participate in forced buy outs to avoid further crisis. First, in early March 2008 Bear Stearns collapsed due to lack of confidence from investors. By the summer, Indy Mac had failed and Fannie Mae and Freddie Mac were insolvent.   Throughout 2007 and 2008, many investors were told by the hacks on TV that the financials represented a “great value.” As a result, the sheep piled in. Thereafter, they watched shares collapse.  By the first week of August 2008, everyone else was fixated on Fannie and Freddie. But I already knew their fate, as I had previously instructed investors to short Fannie and Freddie and many other mortgage and bank stocks in my 2007 book, Cashing in on the Real Estate Bubble. I was already looking ahead. I warned readers we would see an earnings meltdown. I advised investors to sell, and aggressive investors to short the market. "Standard & Poor’s earnings estimates for Q2, Q3, and Q4 of 2008 are -11%, 40%, and 60% respectively. Remember, this the same S&P that rated the mortgage junk AAA. It will also be the same S&P that will end up issuing drastic revisions in earnings once the bottom falls out. But that won’t help investors after the fact." "Sure, it’s possible that we will see the market rally over the next couple of months. If so, you would be wise to sell. More aggressive traders might consider shorting it entirely once it tops out based on the 1-year resistance trend line." Source: /article_details-84.html During the first week of September, Fannie and Freddie were placed into government conservatorship to prevent each from failing. Eight days later, Lehman Brothers filed for bankruptcy protection.   On the same day, Bank of America announced it would purchase Merrill Lynch at a huge premium. Immediately after the deal was announced I discussed that this was one of many bailouts disguised as a buyout arranged by the Federal Reserve and the Treasury Department.  The following day, AIG received a government bailout to the tune of $85 billion. This would be the first of more installments to come. Of course, the only reason AIG was bailed out was because Goldman Sachs stood to lose $20 to $30 billion.  Understand that Bernanke was directly responsible for these deals, and each one was littered with fraud. Less than two weeks later, Washington Mutual was suddenly seized despite having received a clean bill of health through at least the rest of the year by the Office of Thrift Supervision.
“The great majority of the Senate of the United States...somewhere around 80 percent...are completely in support of Israel, anything Israel wants. This has been demonstrated time and again, and this has made it difficult." “The Israelis object to an imposed settlement I don't know what they mean by an imposed settlement. It's quite obvious, without the all out support by the United States in money and weapons and so on the Israelis couldn't do what they've been doing. So we bear a very great share of the responsibility for the continuation of this...of this state of warfare." Senator William J. Fullbright Fulbright made these statements during CBS’s “Face the Nation” in 1973. Since that time, Israel’s control over Washington has grown tremendously, like a malignant cancer. Is this really true you ask? I’ll let you decide for yourself. Let’s begin with something more current. After facing intense pressure to axe his entire economic team due to their strong ties with Wall Street and the Federal Reserve, Obama’s advisers basically opened the door for Larry Summers’ departure. Obama has narrowed down his choices to replace Zionist Jew and Wall Street insider, Larry Summers as the next Director of the National Economic Council. Let’s take a look at Obama’s remaining candidates.
Over the past few months we have heard about a variety of questionable practices from banks looking to seize the homes due to chronic mortgage delinquencies. Each day more drama is added to the picture. It has become the center of focus for many media hacks who want to exploit the frustration and anger they have with Wall Street and Washington. These hacks are the same individuals who hid the realities of the real estate bubble a few years ago. Back then, they ran advertisements for mortgage companies and get-rich-quick real estate schemes. Today, they have positioned themselves as your savior, all while pitching gold and silver. Do not be fooled by these hacks. All the care about is making money selling ads. A few years ago, mortgage and real estate companies were forking over the most money for ads. Today, gold and silver dealers lead the way. While your favorite media hero continues to fool you as a consumer advocate, you need to ask why this individual did not warn you about the economic collapse. Furthermore, you need to ask why the big fraud is not being addressed; real estate securities fraud that resulted in the collapse of the global economy. In my opinion, extensive coverage of this “foreclosure gate,” as it has been termed, is merely a distraction to keep Americans focused on smaller issues. We still have not seen any of the Wall Street banking executives face criminal investigations for securities fraud. This remains as the biggest unresolved issue in the nation today. Yet, no one with real media exposure dares mention this. Even Angelo Mozilo, former CEO of Countrywide recently settled with the SEC to the paltry sum of $67.5 million, much of which will be paid for by Bank of America. From 2002 to 2006, Mozilo landed nearly $400 million in salary and stock compensation, including millions of dollars (in excess of the amount of the SEC settlement) from stock he dumped just prior to the collapse of Countrywide. This bailout by Bank of America shareholders allows Mozilo to escape facing charges of insider trading. This is preposterous, but should come as no surprise if you understand how things work in the U.S.
As those who have been following me for some time know, I place a big focus on reminding readers about the media. So for those of you who are new to this site, I want to warn you about the media because many people have been brainwashed to believe the trash that’s been plastered on TV, the radio and print media. And I will tell you right now that 99% of what you have heard from the media (TV, radio, print and Internet) is complete BS. The simple fact is that the media could care less about supplying its audience with credible and unbiased experts. This is why you see so many extremists claiming hyperinflation is a 100% certainty in the U.S. and other false prophecies. Others claim that the U.S. is already in a deflationary spiral.   On the other end of the spectrum, you see Washington and Wall Street hacks making claims of a strong recovery and so on. The only thing the media cares about is making money, and it does this by selling ads. If you listen to extremists, whether they are perma-bears or perma-bulls, you stand to lose even more money.
I continue where I left off from Part one of this report.  Ever since the summer of 2009, economists from both Washington and Wall Street have told us that an economic recovery was in progress, but the data reveals a strikingly different picture. Some even insisted that a recovery began in late spring. You should note the source of these claims, as well as their agendas, so as to determine the underlying motives for disseminating this propaganda. Regardless whether we point to the spring, summer or fall of 2009 or even 2010, the facts remain the same. There has been no real progress made in the economy. In fact, the actions taken by Washington, the U.S. Treasury and the criminal Federal Reserve Bank have assured the effects of this depression will persist for decades. As the data shows, this “recovery” has been the slowest of any previous recession stretching back to the Great Depression. How may we account for this?
I continue where I left off from Part 2 of this report.  In support of their claims of an economic recovery, Washington cheerleaders and Wall Street hacks continue to focus on ancillary metrics like GDP and corporate profits, all while fudging inflation data.   The claim made that a recovery is in place can be easily refuted using simple math. If you don’t have healthy employment, you don’t have a healthy economy. In a nation whereby consumers account for close to 70% of the economy, economic growth is ultimately driven by jobs.  Before we examine the GDP data, I wanted to discuss some of the shortfalls with the use of this metric as an indicator of economic growth. The gross domestic product is a measure of the value of all goods and services produced in the national economy available for consumption. As the single most relied upon metric of economic health, GDP has numerous flaws which I detailed in America’s Financial Apocalypse and elsewhere.
With a good deal of help from traditional media, the social media fad has grown into a worldwide phenomenon for millions who seem to have too much time on their hands. Many claim they use these sites to keep up with friends and relatives. But level-headed individuals use more direct means to keep up with loved ones. Many others are looking for love, or just an easy way to get sex, from whatever form it may come. Others claim to use these sites for “networking.” To those of you who insist these sites help advance your business or job prospects, I say this. Get up off of your ass and make something happen yourself instead of looking for easy ways to succeed, because success has no shortcuts. The social media fad is not much different than its trash TV counterpart, which features episodes from the lives of dysfunctional individuals. Some are faced with the challenges of losing weight. Others are plain idiots who provide you with a look into their superficial, often pathetic and always trivial lives. Either way, many people have become fixated on the lives of others because they are unable to recognize the value in their own lives. I suppose for some, seeing how miserable others are makes one feel better about themselves.
On Sunday, we alerted readers to the fact that one of Mike's favorite stocks soared by some 25% in the first 3 days after the January 2011 newsletter was released. In this issue, he reiterated his bullish sentiment for the stock and stated that it could really take off soon. After the next day of trading, we once again alerted readers that this same stock continued its very strong move. By Monday it had appreciated by 30%. Today, during intraday trading, shares have soared again by nearly 11%, bringing the 6-day increase since the newsletter was released to more than 40%. Subscribers who got in on this have easily paid for the cost of a couple of years of the newsletter subscription fee. Other subscribers who got in on it when we reiterated our bullish sentiment in August, November and December are likely to have made enough money to cover the cost of subscription for many more years.
For a couple of years now, many investors have been bombarded with claims of hyperinflation and a Zimbabwe-like fate for the U.S. dollar. These gold bugs would have you believe that gold has value as a form of currency. They have made these claims hoping that everyone will line up to buy gold, so as to raise the price. The swarm of gold bugs has reached out to cover every crevice of the media, from television and radio networks to print media and the Internet. And their efforts have been quite effective. Today, gold ATMs are being rolled out across the U.S. to take advantage of the hype generated by this misguided and deceptive movement of gold pumpers. As I have discussed many times in the past, predictions of hyperinflation and a Zimbabwe-like fate for the dollar are complete nonsense. In my opinion, anyone who states otherwise is either a fool or else is lying in order to pump up the price of gold.    Others have positioned gold as a hedge against deflation. While this is a valid investment strategy, the problem is that the U.S. is unlikely to face a deflationary period of long duration, but rather intermittent bouts of deflation over the next several years. The reason for this is simple. The Federal Reserve remains committed to printing its way through this economic depression. As you can imagine, this is only going to increase the duration and severity of this dark period. Furthermore, because gold and silver experience bull-bear investment cycles of very long duration similar to other commodities (although I do not consider gold to be a pure commodity), a buy-and-hold strategy for gold and silver is very risky for those who do not have a relatively low cost basis because gold and silver are now in the later stages of their bull market cycle. The lower one’s cost basis, the larger one’s cushion to protect against price corrections, or even a trend reversal signaling the beginning of what promises to be a very long and painful bear market cycle.
Today, the Brazil's central bank is likely to raise its key interest rate, the SELIC as discussed in the January newsletter. Analysts estimate a 50 basis point hike. If this occurs, it will place short-term rates at 11.25%. The global inflation trend is driving this decision, as food and energy costs have hit Brazilian consumers particularly hard over the past several months. On the other hand, raising rates threatens to create another inflationary force through the carry trade as foreign banks and other institutions flood even more capital into the nation to take advantage of these rates. The problem is that foreign capital has been responsible for artificially inflating the Real. As you can imagine, this has not hurt Brazil's very important export trade.
While still working on Wall Street, I began recommending gold in late 2001 to my clients just when the bull market had commenced. As you might imagine, it was very difficult to convince older investors that gold was beginning to enter a bull market after it had done nothing for nearly two decades. By 2006, I felt this bull market was still in the early stages when my gold forecast was officially published in America’s Financial Apocalypse. A good portion of this forecast included the effect of propaganda on the price of gold as the collapse began. Up until the past couple of years there have been some real drivers of the gold bull market. In contrast, over the past couple of years the massive wave of propaganda delivered by an enormous network of gold hacks has been the primary driver of the bull market in gold. Nevertheless, the price of gold has largely remained within a permissible volatility range over that period. However, bubble-like price spikes threaten to end this bull market prematurely. We have already seen a few of these price spikes over the past couple of years.  Fortunately for gold investors with a buy-and-hold strategy, these brief periods of mania and panic have been followed by price corrections. Most of these individuals have failed to recognize importance of these adjustments. Let me explain.
Here Mike exposes one of countless pump-and-dump scams headed by Jim Cramer and the criminal operation CNBC.
As many of you will recall, I recently discussed the ridiculous valuation of Facebook by Goldman Sachs, designed to dump off pumped up shares to naive and greedy investors. Recently, I ran across an article whereby some clown made a ridiculous case for an eventual $100 billion valuation for this social "networking" website. I didn't bother to waste my time tearing apart this article because the claims made by the author accomplish this task sufficiently. I hope you are able to spot the psychology here. Quite simply, the guy wanted to generate a large number of reads by selecting a topic that was already in focus, and making outrageous claims as a way to boost traffic. This is a common tactic used by the media. I want to remind you that you need to avoid these clowns and the sites that publish this kind of material. If you read this trash you are only reinforcing their strategy of delivering trash and delusions.
Recently, I reminded readers of a very lucrative (and what I felt was a very obvious) long-short equity strategy I discussed that would have yielded huge returns to those who opted to take on this risky maneuver. I normally don’t recommend that everyday investors take short positions because it’s extremely risk for many reasons. Most non-professional investors fail to recognize the risks involved with shorting securities because taking a short position is just a mouse click away if you have an online brokerage account. That in itself is an entirely different issue that needs to be addressed by the SEC. Unless you have a good deal of relevant investment experience, you’re not likely to full appreciate the risks involved with shorting. Some unwary investors have learned the hard way after taking a short position, only to watch helplessly as the stock is halted during the trading session prior to the release of a major announcement. While such events can swing either way, more often than not, such an announcement is likely to go against you if you’re short. There are times when I feel very confident about a company’s bleak future. In the past, I have made the bold move to publish a short recommendation in a book. As discussed recently, I made this call when presenting my analysis of Blockbuster in the Wall Street investment Bible. I added that a nice example of an effective long-short strategy would be to take a long position in Netflix and a short position in Blockbuster. As many of you recall, I also made this call for Fannie, Freddie, the banks and homebuilders in Cashing in on the Real Estate Bubble, released in early 2007. In this book my main strategy for making money from the real estate bubble was to short real estate-related securities. I made specific mention of those securities I felt most likely to collapse and provided guidance as to the timing. I even included a brief tutorial for those who were not experienced shorting stocks. First on this list were Fannie, Freddie, Accredited Lender, Novastar, and Fremont General. Next were the banks and homebuilders. I also discussed that General Electric and General Motors were likely to get hit really bad. The downside associated with putting these calls into a book is that I had no way to change my mind if I turned out to be wrong. So if things didn’t turn out as I anticipated, I might have looked silly. But that wouldn’t have been the first time a person made a poor investment call in a book. In fact, I challenge you to see if you can find a book that has ever specifically instructed readers to short a stock. You are unlikely to find a single case because shorting is a short-term strategy that often reverses. The point I want to make is that all investment strategies must always be managed. Even if someone has overwhelming evidence to indicate a company is destined for demise, the fact is that no one has a crystal ball. Things can and often do change over time. Thus, if you ever plan to take a short position you must hedge your position. And you must manage the position throughout its duration. One way to hedge a short position is to purchase call contracts. But you cannot expect to receive a full hedge against the position unless you select in-the-money calls (whereby the strike price is below the price of the underlying stock at the time you short it) to account for slippage, frictional costs, exit premiums and other less obvious costs. Many investors don’t like to pay the added costs involved with hedging, but I can assure you it is well worth the price. Here I want to show you another example of a more recent long-short position. Note that I am not recommending investors take this long-short at this point. There are man better opportunities out there. I merely wanted to point it out to show the irony. As many are aware, a few days ago AOL announced its purchase of Huffington Post for around $315 million. Immediately after the announcement the Internet was buzzing with the news. First , let’s take a brief look at Huffington Post.
I wanted to point out another example of the need to be critical when you come across "news." In the vast majority of cases, news stories are centered on hidden agendas that come from the top of the organization. Often, when the hidden message or twist on facts is meant to assist the agendas of America's fascist government, the orders are sent from a PR official at the White House. When the deceit is meant to help the agendas of the corporate side of America’s fascist government, the orders come from corporate executives themselves. In order to understand this mechanism, you must realize that government and corporate offices maintain very close ties with media producers, editors and top media executives. In some cases, they have direct links with some of the more experienced and tenured journalists, like David Brooks. Brooks represents an obvious example of a journalist who consistently and explicitly serves the agendas of America’s fascist regime. But there are many others like Brooks. Usually, there are no phone calls made to the media to ensure the propaganda hits the American sheeple. Media executives already know how the game is played. This is why they hold high positions. The same can be said of high-ranking government officials and corporate executives. Much like the rest of the world, in America individuals rise to positions of power and money because they do the right things for the wrong people. Early on they become sell-outs to the crime syndicate that runs America’s fascist government. After they have established a reliable track record of their loyalty, they actually become members of this fascist regime. As it stands today, the real terrorists of the American people are not hiding in caves in Afghanistan or in the mountains of Pakistan. The real terrorists of the American people reside in Washington, the Federal Reserve and the CIA. They are top executives of the Fortune 50. They also work in the media. It is quite unfortunate that most Americans are unaware of this horrific reality.
Right now I'm focusing on two central bank decisions remaining for this week. The first and most important in my view is that from Brazil. Last week, discussions centered around a 75bp hike. Recall that Brazil raised rates by 50bp just a few weeks ago.
A couple of weeks ago, I had the pleasure of publishing the only guest piece on this website since it was launched nearly two years ago. It was a brief article discussing the realities behind Charitable Remainder Trusts. If you have not yet read this article, please have a look (unlike me, Mike has an exceptional ability to get to the point without ranting). Today, Mike Wald has submitted another eye-opening article discussing the realities behind a common estate planning technique known as a Family Limited Partnership.
Over the past few weeks, the stock market has corrected a bit due to the various global risks. Notably, the only people who have made money during this time have been traders. But that assumes they have been able to trade through this uncertainty, which isn’t likely. There is one exception though. That’s right. There has been one sector that has performed spectacularly over the past few weeks. So what is it? Healthcare. This should come as no surprise to those who read America’s Healthcare Solution. As many of you know, I have recommended healthcare as one of the top two industries to invest in going back to my recommendations in America's Financial Apocalypse (2006 extended version).
Today the WSJ ran a story discussing AOL's sinking ISP business, all while adding a positive twist to this largely useless company using the commentary of Ross Sandler of RBC capital Markets. Sandler suggests that AOL is not likely to compensate for rapidly declining ISP subscribers, and will eventually have to abandon its strategy of investing in content and opt to sell off the company piece by piece. I agree with him on that. But then Sandler states that these assets combined could fetch $30 per share.
More Signs of Inflation Pressures in the U.S. The PPI rose 1.6% in February, well above the consensus of 0.7%. The bulk of the upside surprise was due to a 3.9% jump in food prices. Notably, the increase in food prices was partly reflected a 48.7% surge in vegetables, which accounts for about 4% of the food index. It should be with little doubt that food prices will continue to increase globally over the next several months.
Jobs Data As in previous months, the private sector accounted for all the job gains in February, with an addition of 222,000 positions, up from a mere 68,000 job additions in January. This represented the largest gain since April 2010. Does this represent a sign of recovery? Once you examine these job additions, you will see that the trend of low-wage, low/no-benefit, dead-end jobs remains firmly intact.  Payrolls in the goods-producing industries saw a weather-related bounce of 70,000, with construction increasing 33,000 after shedding 22,000 jobs in January. Manufacturing, a sector that is powering the “recovery,” added 33,000 jobs. So is manufacturing making a come back in the U.S.? See for yourself.
We have completed the website for the Wall Street Investment Bible. This site contains a good deal of introductory chapter excerpts from this very comprehensive, unique and informative text.
Two years ago, the US Mint announced that it would discontinue production Gold Eagle coins. Perhaps this was due to waning demand, as gold was approaching $1000/ounce. On the other hand, it's not as if enthusiasm for gold was in decline. Finally, the Mint is able to adjust production relative to demand. Thus, we ask why was production of these coins halted? If you ask gold bugs, they're sure to tell you that the Mint simply ran out of gold. In fact, the Mint even pointed to supply issues as the reason for halting production back in late 2008. Of course, this complete hogwash. So then, why did the Mint stop producing Gold Eagle coins? If we examine a chart of the iShares gold ETF, you can see that ever since the Mint stopped producing Gold Eagles, gold has nearly doubled in a span of right around two years. This raises the question... Did the US Mint have good reason to believe the price of gold would trend upward for at least a year? While some might feel that the Mint has no concern whether or not they expect gold to rise or fall when making decisions whether to make gold coins, the fact is that the Mint is run like a business, with certain sales and profit hurdles. If you don't believe that, just add yourself to their email notification list.
As many have noticed, silver has collapsed from a recent multi-year high of more than $48/ounce. In just a few days of trading, silver has dropped by nearly 30%. What has triggered this massive selloff? In my opinion, the rapid selloff in silver has been due primarily to three factors:
Seizing upon his media “celebrity,” (which essentially means you have sheep lining up for your perceived expertise, created solely by being seen on television) Dent formed an ETF in 2009 called the Dent Tactical ETF (DENT). This is one of those actively managed ETFs you may have heard about. View Mike Stathis' Track Record here, here, here, here, here, here and here. Membership Resources __________________________________________________________________________________________________________________ Mike Stathis holds the best investment forecasting track record in the world since 2006. View Mike Stathis' Track Record here, here, here, here, here, here and here. Check here to download Chapter 12 of Cashing in on the Real Estate Bubble. This is the chapter that shows where Mike recommended shorting Fannie, Freddie, sub-primes, homebuilders, GM, GE, etc. So why does the media continue to BAN Stathis? Why does the media constantly air con men who have lousy track records? These are critical questions to be answered. You need to confront the media with these questions. Watch the following videos and you will learn the answer to these questions: You Will Lose Your Ass If You Listen To The Media __________________________________________________________________________________________________________________
I wanted to mention a stock that has a good chance of a large move over the next few weeks, if not sooner. LDK is a China-based solar panel company that took part in the solar energy bubble a few years ago. Since its ~$76 all-time high reached shortly after its public debut, shares collapsed to a low of $3.75 during the market lows in early March 2009.
A week ago, I alerted readers to what I felt was as close to a sure thing as possible when discussing the downside to LDK. Those who decided to call in for trading guidance landed a huge score with gains of about 25%. Let's have a look at a summary of that article. "I wanted to mention a stock that has a good chance of a large move over the next few weeks, if not sooner. But this does not provide the full picture. Even more important, LDK is currently testing a very important (although fairly strong) technical support at around $10. In addition, the stock is down by nearly 4% today. Although the recent trading volume has been low and on the declining side, the volume has been huge since the stock corrected from its February 2011 highs of $15.10. If LDK falls below this support (and the breakdown is confirmed) shares are likely to collapse another 20% before taking a breather. On the other hand, if the stock holds the support, we are likely to see a nice rally as the shorts become squeezed. Either way, the chances of high and increasing volatility for the stock over the next couple of weeks are high." Here is the full article.
From 1991 through 2005, Legg Mason’s Bill Miller was the only mutual fund managerto have beaten the S&P 500 Index each year for that 15-year period. That should have been a warning sign alone. Instead, everyone called him a genius. I suppose no one read When Genius Failed.
We have released a presentation summary of a research briefing published two weeks ago discussing Microsoft's acquisition of Skype. You can access this document by clicking on the "PDF Version" tab below. For a detailed discussion, including valuation and trading analysis of MSFT, please contact us to check for availability and rates for a live call.
While checking our web hosting admin panel, a staff member spotted some hits to our site from Zero Hedge linking to one of the articles I had written about Harry Dent. Of course, the link was posted by one of the commenters, as opposed to Zero Hedge. The last thing the deceptive hacks at Zero Hedge would want to do is make any mention of me or anyone else with credibility they fear would expose their deceit and trickery.
It is by no accident that the Mad Hedge Fund Trader has partnered with the lying scum at Zero Hedge. It is also by no accident that he, like the main figures behind Zero Hedge refuses to tell you his name. That alone should raise some really big red flags. Why would the Mad Hedge Fund Trader refuse to identify himself?
Over the weekend, a group of individuals decided to demonstrate just how bad the Police State has progressed in the U.S. So, they paid a visit to the Jefferson Memorial in Washington DC, and began dancing.
The media continues to utilize countless tactics designed to heighten public perception regarding the critical need to advance America’s war on terror. We see this on a daily basis. Often, the media states bold-faced lies regarding so-called terrorist activities, so as to enrage Americans. Other times the media stages complete fabrications of events so as to portray the message Washington wants to be sent to the American people. Many alert, independent-minded Americans; Americans representing a dying breed - are aware of this. Others suspect it.
Over the past few months I have been discussing my view that Wall Street analysts and economists, and global economic consortiums such as the IMF have been underestimating the impact of the earthquakes, tsunami and nuclear meltdown in Japan, as well the spillover effect throughout the globe. I have been stating that Japan's GDP will come in significantly lower than has been reported. In the June issue of the Intelligent Investor, I reiterated this view. Below are GDP forecasts for Japan from the IMF released just a couple of months ago.
I have discussed the fact that the recession which officially began in December 2007, has not yet ended. Anyone who claims otherwise is either a hack or else has no idea what is going on. As the economic data begins to weaken (as predicted several months ago in the Intelligent Investor), the "double-dip" debate is likely to take center stage. Do not allow yourself to be fooled by this ridiculous drama. Do not waste your time reading or listening to these fools.
How much more will the stock market decline? Should you sell? When should you buy?
To give you an idea of the type of scum aligned with the globalist push to enslave people through further corporatization and policies which empower banks, all while robbing citizens of promised benefits which they have already funded, one need look no further than the International Monetary Fund (IMF). Once you understand how the IMF fits into the grand scheme of things, it should come as no surprise that the head of this organization, Zionist Jew Dominique Strauss-Kahn faces charges related to sexual assault by a hotel maid. See here. Perhaps equally disgusting was the fact that Kahn was staying in a $3000 per-day hotel suite and driving around in a Porsche; this from a man belonging to France’s Socialist Party and thought of as the leading candidate for Presidency. This should tell you what is really going on. Rather than some organization offering emergency aid to nations in financial distress, the IMF is just another element of the global crime syndicate that has taken complete control over the western world. As one might expect, Kahn is being defended by another Zionist Jew who has experience representing other scum and crime gangsters. I would be very surprised if Kahn is found guilty of the charges, or does not face anything other than a suspended sentence. This is the way things work in a world run by elite criminals. Immediately upon being arrested, Kahn and his attorney already stated that it was a set-up as a part of a politically-motivated smear campaign. How does Kahn explain his long history of similar behavior? “It’s not the first time that DSK is involved in this kind of actions at the Sofitel. That’s where he always stayed. It happened several times and for several years. Everyone knew it in the hotel.” See here.
If I were to list the number of websites that have banned me or ignored me for the purpose of distancing themselves from the "good cop," as bad cops always do, the list would be into the thousands.
I'll be short about this because I have better things to do than devote my time to useless companies who boast a basic website as their main asset. For several years now, LinkedIn has blatantly violated ICANN SPAM laws by allowing its members to send subscription invitations to anyone they choose.
I always suspected something just wasn't right about Paul Craig Roberts. After all, he was inducted into the political environment under Reagan, as a junior Treasury staff member. Next, he was a former editor and columnist for the Wall Street Journal.
For nearly two years now, Mike has wanted to write a follow up article on Washington Mutual, pointing to the gross missteps by very naive shareholders.
I have no need to write about what has been stated by the lady in this video. If you can't figure it out after listening to her, I suggest you start using your brain.
I wanted to briefly address this hack, Bob Chapman. I will go into more detail when I get more time. For now, note the following:
I have not had the time to write about the Murdoch/News Corp scandal. However, I don't feel like wasting the time writing about what I have known for many years. Besides, I'm sure you are all getting your daily dose from the media. Furthermore, I don't like to jump on a story when the media harps on it because that would make me a follower of the media when the fact is that I have known that Murdoch and his Zionist Jewish media buddies have controlled the UK, US and other western nations for some time now. It's quite obvious. Thus, the recent events that have unfolded do not surpirse me one bit.
Shortly after the earthquake and tsunami struck Japan, government and Wall Street economists downplayed the impact on Japan’s economic growth as well as that of the rest of the world. Next, the nuclear reactor meltdown began to worsen and still, these same economists minimized the economic impact of these events. In the Intelligent Investor newsletter, I discussed that these estimates had been significantly downplayed. My view was that the combined impact of the catastrophes in Japan would add a significant component to what I had already forecast as a slowdown in the global economy in the second half of the year. I even wrote a follow-up on the site several months later confirming this reality. See here. At the time, there was not even mention by Wall Street or any of the establishment economists (ECB, IMF, etc.) of the possibility of a slowdown in the second half of the year. Thus, once again, the so-called experts confirmed just how useless they really are.
By now, most of you have heard about AT&T's buyout offer of Deutsche Telekom T-Mobile. The deal, totaling $39/$40 billion ($25 billion in cash and about $15 billion in stock, or 8% of AT&T stock) would add nearly 40 million wireless subscribers to AT&T for total of around 129 million, vaulting it past Verizon Wireless' 102 million. The combined company would serve about 43 percent of U.S. cellphones.
Below we have posted the most recent revisions to economic data, including estimates through 2011 (Japan and Spain) and 2012 (U.S. and China). It will be interesting to see when the IMF decides to issue more accurate economic projections that are in-line with reality.
Over the past several weeks, the media has had a field day covering the debt ceiling talks between both political parties. It’s been dominates news headlines for more than a month. Prior to the latest distraction by the media, the focus was Casey Anthony, followed by Congressman Weiner, then Casey Anthony again. I wasn’t even aware how large of a media campaign on this topic was (since I don’t waste time watching TV) until I was visiting some relatives for a few days. During my visit I was exposed to the media circus show that my relatives had been glued to. I have not discussed the debt ceiling talks, other than brief mention in our research publications. The reason why I have not spent time discussing this topic is because it is not really worth mention. In short, it has been a complete fabrication engineered by both parties as a manner by which to muster political power for the 2012 elections. Everywhere you look you see people talking about it. It’s shocking to see how people believe anything the media and Washington keep repeating. I would have thought that at least some Americans learned not to trust Washington or the media after the WMB charade. Yet, everyone else seems to think the issue is critical as discussed by the media. Indeed, it is remarkable to watch American puppets who actually think the debt ceiling issue is relevant. If you have been glued to the TV to hear the debt ceiling drama, you have been wasting your time. In order to keep things grounded, you need to understand that several forces are touting a debt default as a manner by which to exploit people for political and financial gains. For instance, late last year Meredith Whitney discussed her ridiculous predictions of municipal defaults on 60 Minutes. The piece was journalism at its worst, designed to create drama and boost the dwindling ratings 60 Minutes continues to receive. I set the record straight on Whitney. See here >> Deconstructing Meredith Whitney's Default Predictions. Here, I present the realities of the debt ceiling issue. However, I will not spend much time on this topic because I can think of several other ways to spend my time more wisely, such as sleeping. Let me point out a few things so you can fully understand the realities of the debt issue. With about $14.3 trillion in total debt, Washington is looking to do something that has served more as a gesture than anything else. For nearly 50 years, Washington has raised the debt ceiling by more than 70 times. It has been this trend of raises that has enabled fiscal mismanagement by Washington for decades. Does Washington need to rein in spending? Certainly. However, the current debt ceiling drama has been engineered in order to mentally prepare Americans to accept cuts to vital programs, while ignoring Bush's tax cuts for the wealthy and continuing the most costly and unnecessary war in history. As a part of these theatrics, politicians from each side of America's fascist government are using the drama they have created in order to further their own political aspirations. So what is involved in raising the debt ceiling?
Although the global economy has mounted a superficial rebound from the trough hit in 2009, increasing risks remain, both intermediate- and longer-term. The intermediate-term risks are based primarily on faulted economic policies intended to deal with the economic collapse. These actions have resulted in a reflation of the global credit bubble. The longer-term risks are also related to this reflation, in addition to a definite scaling down in public spending for various programs in advanced and certain emerging nations. Despite this superficial economic progress, the “recovery” remains uneven with advanced nations lagging far behind the progress made in emerging nations. Most notably, advanced nations continue to experience persistently high rates of unemployment. Germany remains as the only notable exception in terms of advanced economies that are doing well. However, even Germany will soon be pulled down due to weakness in the EU.
On Friday, Amerigroup (AGP) reported disappointing earnings partly due to an account error. However, after adjusting for this issue, earnings still came in considerably lower than consensus. The combined bad news sent shares tumbling by around 40%. Most HMOs with a good deal of Medicaid exposure also sold off (CNC, WCG, MOH). In addition, even the larger more diversified HMOs showed weakness (UNH, AET, CI, WLP). Weakness in the HMO sector continues today. Despite beating earnings estimates nicely, even Humana (HUM) is showing weakness today.
When determining how to manage a market correction, one of the first things you need to consider is how each of your holdings has performed over the correction period. In order to arrive at this assessment, we examine relative strength. Relative strength measures the performance of a security versus an appropriate index over a given time frame. When we see a security that is performing worse than the given benchmark or index, we say that it is underperforming. When we see a security that is performing better than the given index, we say that it is outperforming. While relative strength is often very useful for trading purposes, its utility diminishes during a stock market collapse. Often during a collapse, most securities that have outperformance eventually lose their performance edge. It was for this reason that I advised readers to look first to sell their winners in the market forecasting section.
Approximately three months weeks ago the U.S. markets began to correct. We warned about this first correction in the May issue of our firms paid research publications.
Over the past several days, I'm sure you've heard your fair share of debate regarding the recent downgrade of U.S. debt by Standard & Poor's. I have personally avoided this noise. However, I inadvertently ran across some comments by some clown on CNBC that I wanted to show you. According to this guy, U.S. debt should be rated as junk bonds. You’ll hear the same ludicrous statement from Peter Schiff, Mark Faber, Jim Rogers, and the rest of the clowns. Before you click the video link below, I want you to notice the commercial before the video. This guy from Schwab reminds me of one of those infomercial scam artists who tell you they can teach you to trade stocks using a computer program.
First, they made huge commissions loaning you money to buy overpriced real estate. They convinced you that real estate “is a great investment,” and “property values never go down.” Of course, both statements are completely inaccurate, as I first detailed in the 2006 release of America’s Financial Apocalypse. Janitors were claiming $200,000 annual incomes in order to get approved for mortgages. And most banks didn’t bother to verify these claims. Illegal aliens were buying homes using false documentation. Mortgage reps encouraged prospective home buyers to lie on their applications, insisting that “everyone does it.” The delusions of easy money to be made from real estate encouraged many Americans to purchase homes they really couldn’t afford because they wanted to maximize their real estate profits.
One of the themes I have been emphasizing over the past few years focuses on the destruction of the U.S. economy and control over the political system by lobbyist groups. As long as lobbyists exist, America will continue to be run by corporations. What does this really mean? It’s quite simple. Control over government by corporate interests is defined as fascism. This is precisely the type of government that has presided over United States for well over three decades. As long as corporate interests control Washington, the United States will never have a government that resembles a democracy, much less a republic. When so-called experts in the media discuss America’s problems and offer solutions, you are not likely to hear mention of the power held by lobbyist groups. On rare occasion when the influence of lobbyists is mentioned, it is only in passing. Never will you hear anyone in the media recommend an end to all lobbyist activities as one component of restoring America’s past greatness.
I'm going to say much about this other than to point to the obvious. First, as I have discussed in the past, virtually every so-called think tank in the U.S. is run and/or funded by Jews and Jewish money. This remains a well-guarded secret hidden from the naive and unsuspicious public eye in the U.S. The relevance of Jewish dominance of think tanks is tremendous because these organizations help determine social and economic policy through their very close ties to Washington, academia and in some cases, corporate America. Here, I show you a chart created by the Economic Policy Institute (EPI), a think tank headquartered in Washington D.C. This chart points to a racial agenda in my view.
The incompetence of Washington was most recently demonstrated by the debt ceiling drama. Now the dog-and-pony show staged by the ECB, EU and IMF has added to waning consumer and investor sentiment across the globe to create a crisis in confidence. The timing of this charade could not have been worse, as this unnecessary turn of events has hit the global economy during a period when it was predetermined to weaken on its own force due to the depletion of stimulus funds. As a result of these seemingly intentional destructive actions, most of the economic gains made as the result of tax subsidies and bailout funds since the financial crisis of 2008 have been erased. Meanwhile, substantial downside risks to global growth remain. Notably, a default of Greek sovereign debt appears imminent. Finally, the risk of significant shocks to Brazil and China has increased. At the very least, Brazil is likely to face more problems in 2012, and possibly thereafter depending on several variables. I have been warning about the risks to emerging economies for some time now.
As the sovereign debt crisis continues to worsen due in large part to incompetent leadership, more attention is being given to France. Similar to the case seen in the U.S., the decline in domestic demand in France accounted for most losses in output during the 2008 financial crisis. In contrast, the decline in net exports accounted for the bulk of output losses in Germany. Thus, the crisis-related damage was entirely demand-driven for Germany. Moreover, while France suffered a more moderate decline in output during the trough of the crisis, its recovery has also been more tepid. Indeed, while both output in Germany and the U.S. had surpassed their pre-crisis levels by 2011 Q1, France still had not by then fully recuperated its output losses associated with the crisis and the recession. The fact that France experienced larger domestic output losses due to the crisis for a more prolonged raises the possibility of more lasting damage to the economy.
We have just released an investment strategy video tutorial for subscribers to Dividend Gems. In this video, Mike discusses some unique perspectives that can be implemented into one's investment strategy, using examples of two securities from the Dividend Gems Recommended Securities List.
In this 23-minute video, Mike discusses ways to play the AT&T/T-Mobile deal, and summarizes the business fundamentals of Sprint, Clearwire, MetroPCS, Leap Wireless, offering actionable investment and trading recommendations for each. This video presentation has been made available at no cost to subscribers of the Intelligent Investor. Others can purchase access to this video for only $49. Please contact for payment instructions.
In the past, I have discussed that Porter Stansberry made numerous false claims in his snake oil video, The End of America. The video is so full of crap that I cannot watch it to remind myself of the details. I do recall that Stansberry claims that his "research" firm is one of the largest in the world and other BS to make himself seem credible. Make no mistake. Stansberry runs a boiler room newsletter service in the same manner as everyone else in that industry. There are no exceptions.
It took quite a long time for Washington to finally concede something that was apparent; the nation’s excessively high unemployment rate would remain elevated for several years. But their admission has come with a twist. Instead of pointing to the true reason for this demoralizing reality, establishment economists have offered some ridiculous excuses to account for America’s persistently high unemployment rate. The purpose of this propaganda campaign is to place blame on unemployed workers, rather than address the misguided economic policies established by America’s fascist government. Why is it important to properly identify the source of persistently high unemployment? Only by properly identifying the real reasons for the elevated and chronic level of unemployment will adequate solutions be possible. It follows that if the true reasons accounting for this worrisome trend are not identified and acknowledged, America stands a good chance to lose much more than a decade. We are talking about the continued and permanent decline in living standards for the middle- and working-class. Let’s look at some facts. • There have been between 5 and 6 unemployed Americans for every job opening since mid-2009, suggesting a shortage of jobs. This ratio is roughly double what it was in the last recession and reflects, in large part, that job openings are one-fourth lower now than they were in the last recovery. • In the first 12 months of this recovery there were 32.0 million job openings, 10.0 million fewer than the first 12 months of the prior recovery, one known for being a jobless recovery. • The shortfall of job openings in this recovery compared to the last one is pervasive: it is evident in nearly every sector including labor intensive service industries such as hospitality, entertainment, and accommodation. Construction is responsible for just 6% of the overall shortfall in openings in this recovery compared to the last one. • Layoffs during the early stages of this recovery are comparable to those in the prior recovery, and cannot explain high unemployment. In attempt to identify the cause of the persistently high unemployment rate, two arguments being debated by America’s highly controlled and delusional opinion-makers, otherwise referred to as establishment economists. Let’s take a look at each of these misguided viewpoints. Establishment economists working for the left-wing contingency of America’s fascist government claim that the high unemployment rate is merely a consequence of cyclical unemployment, which is related to changes in demand that occur through business and economic cycles. During the first two years of the Obama presidency, the cyclical unemployment argument was unanimously accepted. In contrast, establishment economists working for the right-wing contingency of America’s fascist government claim that the persistently high unemployment rate seen in the U.S. is due to structural factors. Thus, according to these hacks, the lack of growth is due to what is known as structural unemployment. More recently, the structural unemployment argument has been disseminated for the sole purpose of increasing the momentum of the Republican Party going into the 2012 elections. As you will see, both arguments are wrong. Each argument has been offered as the only explanation to account for the persistently high unemployment rate in order to distract Americans from the real cause. Without surprise, it turns out that both arguments support the long-term trend of boosting corporate profits at the expense of working-class livelihoods. Thus, both arguments are supportive of America’s fascist government, whether we are talking about democrats or republicans.  The table below represents the official data compiled by economists at the IMF (as well as a large contingency of establishment economists in the U.S.). They have used this data to conclude that most industries are facing unemployment due to structural issues. As you can see, they have concluded that most job losses have been due to structural factors.
Just released for subscribers of the Intelligent Investor is a 30-minute video presentation discussing the risks of an additional housing market correction, as well as the risks posed to the global financial system by a meltdown in UK's banking system.
As time moves forward, while my own forecasts and recommendations continue to serve as a crystal ball, many of those made by Peter Schiff of Europacific Capital continue to form an embarrassing display. Remember, Schiff has been pimping the euro for years discussing how much stronger it is and how the dollar was headed for 0. I actually kind of feel sorry for the guy. On second thought. I don't. After all, he landed a huge amount of money by receiving mass media exposure just because he is Jewish. The worst part is that this money came from the pockets of sheep who feel for his ridiculous views. In the video below, as late as the end of October of 2011, he was still talking about the dollar being worse than the euro. This folks, is simply shocking. While the EMU faces the very real threat of being destroyed completely and permanently, Schiff keeps talking up the euro. Notice how the Jewish media never criticizes this ridiculous forecasts because of course he is Jewish. The same can be said of Faber and the other Jewish marketers. Notice also how Schiff is backing down on his previous hyperinflation mantra. I actually made mention of this change in sentiment in a recent article, but I could not locate the video at the time. Watch the Video With the euro facing complete destruction, the name Europacific Capital doesn't sound so reassuring to me. And when Asian faces its collapse (and I can assure you it will), how will Schiff position his firm..EURO..PACIFIC Capital? I feel sorry for those who have bought into his ridiculous views and horrendous forecasts. I wouldn't be such a critic of Schiff if it weren't for the fact that so many people (due to their lack any reasonable level of intelligence) believe Schiff knows what he is talking about because the media airs him every day. As the facts reveal, Peter Schiff was wrong about much more than he was right about. And he continues to be wrong about much more than he is right about. In fact, the only things he has been right about were obvious to many. Okay Peter many people knew about a real estate bubble and a credit bubble created by the banks. But when it came to issues that distinguish someone as a real expert versus a salesman, Schiff never made the leap from a salesman. Finally, you should note that Schiff has been saying the same thing like a broken record for MANY years, which in itself calls into question even the most obvious of his predictions. Details Peter, it's always about the details. If you cannot nail the fine details on a consistent basis, you will be better off buying the S&P 500 Index and holding it. You see folks, Schiff is a marketer and salesman, so he must stick to his sales pitch. It has nothing to do with going with the best investments. It's all about selling your theme. In Schiff's case, he will cling onto the euro BS until the end. This certainly won't help those who listened to him about the euro. Perhaps Peter should subscribe to our institutional research so he will know what's going on. I'm sure his clients would certainly appreciate such a move because I can guarantee you his clients' portfolios would do much better. On second thought, he doesn't need to perform. All he needs is media exposure. After all, he realizes that there are plenty of idiots who watch TV who will fall for his pitch. This explains why all of these guys bend over backwards for media exposure. If Schiff really knew what the hell was really going on and could translate it into excellent returns, he would be running a hedge fund, not a brokerage firm and not a mutual fund. You can be blatantly wrong and still collect management fees by running a brokerage firm. Ken Fisher serves as a good example. And you can also make a good deal of money running a mutual fund even if the PERFORMANCE SUCKS, like David Tice's Prudent Bear Fund (sold to Federated). But you won't make any money running a hedge fund unless you're right. The financial professionals reading this understand exactly what I'm talking about. Again, you need to ask yourself why you aren't reading or hearing about these realities elsewhere. The answer is simple. Those who know about the things I expose either don't give a damn about Main Street. They're only concerned with lining their pockets. That often means they have to keep their mouths shut, which is one reason why I left Wall Street.
Several months ago, I wrote a short piece discussing what I believed to be illegal business practices used by LinkedIn. In an earlier note, we released a detailed analysis of LinkedIn, focusing in its IPO valuation, business risks, the IPO valuation process and several other topics critical for investors interested in shares of this social media firm and others like it. You will recall that LinkedIn sold about 8% of its total outstanding shares to the public in its IPO debut. In other words, the float was 8%. As of today, seven months later, the number of shares available in the market is approximately 40%. Meanwhile, the share price of LinkedIn has declined by about 22%, or about 12% after adjusting for the decline in the Nasdaq.
Morgan Stanley recently downgraded its forecast for 2012 global growth to 3.5% from 3.8%. Remember in August, Morgan Stanley cut its global forecast for GDP growth down to 3.9% (from 4.2%) and 3.8% (from 4.5%) for 2011 and 2012, respectively. In June, the IMF forecast 2.5% and 2.7% GDP growth in 2011 and 2012, respectively. This latest revision comes closer to the organization’s 2% benchmark for a global recession. Also recall in September the IMF cut U.S. GDP growth forecasts to 1.5% and 1.8% for 2011 and 2012, respectively. The consensus growth estimates for the U.S. in 2011 and 2012 from Wall Street analysts and private economists was also cut in August to 1.5% and 2.2% for 2011 and 2012, respectively. On September 29, Citigroup slashed its global GDP growth forecast to 3% and 2.9% for 2011 and 2012, respectively. This was the bank’s second downward revision in less than a month.
The real estate market continues to show little signs of life. Despite record-low mortgage rates and a collapse in home prices, builders see little demand for new homes due to the record-high overhang of existing homes on the market, including the record-high level of foreclosed properties (4.29% of all active loans) which have continued to gain most attention from buyers due to much lower prices. Even more disturbing is that the fact new foreclosures are outpacing foreclosure sales by a factor of 3 to 1. This means that the existing home inventory due to foreclosures is growing by 3 times the rate of foreclosure sales. But there may be some relief in sight for the rapid flood of foreclosed properties hitting the market. Due to the robo-signing and foreclosure gate scandals, foreclosures are setting new records in with respect to the time it takes for these properties to be processed through the legal system. The average loan in foreclosure has now been delinquent a record 631 days. To some, it would appear that the easiest way to save a good deal of money would be to simply stop paying their mortgage (and property taxes) and live rent free for a couple of years. Economists insist that a healthy housing market is the key to an economic recovery because it creates jobs. After previous recessions, housing accounted for at least 15% of economic growth in the United States. Since the official end of the recession in June 2009, it has contributed only 4%. Economists have pointed to this data to explain why the economy shows no signs of recovery. Economists look closely at new homes sales even though these sales only comprise 20% of the total because new home construction is thought to have a much larger impact on the economy. According to the National Association of Home Builders, each home built creates an average of three jobs for a year and generates about $90,000 in tax revenue. Although we here at AVA Investment Analytics feel this claim is exaggerated, the more important issue is that a healthy real estate market does not lead to a truly healthy economy unless such an economy. A healthy real estate market is a consequence of a healthy economy because homebuyers need good stable jobs to afford a home. Robust creation of good jobs holds the key to a healthy economy.
The Jewish mafia has designed countless ways to steal from gentiles. And they won’t hesitate using these methods on other Jews as long as money is involved.
Careful observers can spot numerous examples of Jewish control, fraud and deceit everywhere they look. These deviant activities are widespread throughout Wall Street, the banking industry, the media, corporate America and the federal government. As influential as these segments of society are, the control held by the Jewish mafia certainly does not end there. Their influence can be found in virtually every aspect of U.S. society. The same applies to Canada and Europe. The Jewish mafia works in a unified manner in order to more easily achieve its objectives. Over the decades, this mafia has caused U.S. society has become weakened and perverted, both economically and morally, all while Jewish-controlled Wall Street, the Federal Reserve, media and government continue to defraud and deceive the people. Perhaps the most tragic aspect of the Jewish mafia is that it has successfully duped the U.S. to fight wars for Israel. This has cost millions of lives, trillions of dollars, and a life time of suffering for the survivors. Without a doubt, America is headed towards complete economic and moral insolvency if something is not done to radically alter the power structure of the Jewish mafia from its reach into Washington. As one delves into each segment of society to identify control by the Jewish mafia, we cannot forget that this vast crime syndicate rarely acts alone. Without the greed and criminality of gentiles, the Jewish mafia would be much less effective. Much of the same can be said about the victims of the Jewish mafia. As long as greedy, dishonest and naive people exist, the Jewish mafia will have plenty of victims. The Jewish mafia continues to gain more power each day, without any challenge whatsoever. In past decades, they were careful to rule from the sidelines so as to avoid any notice by others. With each passing day, this mafia continues to take the spotlight as if to deliver the message that they don’t care if people realize they are in control of things.
One of the faster growing ad firms is called Ad Choices, which is run by Turner Broadcasting. Ad Choices is frequently used on many sites, including Yahoo! for instance.
We will be forced to raise our rates in coming months. These rate increases will continue into indefinately as long as our reach remains completely restrained due to the ban placed on us by the JEWISH MEDIA CRIMINALS.
In the past I have mentioned that 99% of all hedge funds engage in insider trading. I happen to know this for a fact.
Without drawing this out into a long piece, we wanted to remind everyone of a few realities which we will summarize below. If you have someone handling your investments, you had better damn well make sure they are following someone who knows what's going on.
Over the past nine months we have emphasized our view that much more risk lay ahead relative to estimates given by Wall Street, the IMF and others. We have also continued to remind readers that investor’s perception of risk is likely to bounce from region to region over the next few years, similar to the movement of a ball in a pinball machine. Moreover, the possibility of a cascading sequence of adverse economic events is possible at every target this ball strikes. Just prior to the initial market selloff in 2011, we warned subscribers of the Intelligent Investor of a market correction in the May 2011 issue. We also provided warnings a couple of months earlier pointing to a weakening global economy in the second half of 2011. The peak risk during this cycle occurred in early October 2011.
The following text and descriptive images comprise the prelude to the Encyclopedia of Bozos, Hacks, Snake Oil Salesmen & Faux Heroes. The full report includes hundreds of pages of text, hundreds of annotated images and dozens of videos detailing a very large number of the plethora of con artists, idiots and fakes largely from within the financial and financial publishing industries. In 2017 we added a new resource portal to the Encyclopedia focused on displaying thousands of annotated images exposing the various con artists and shills from the financial media. This portal is called the "AVAIA Image Library" and can be accessed by logging into your Member or Client account and clicking on the blue box to the left of the Home Page directly under the top image carousel. "It's easier to fool people than to convince them that they have been fooled." Mark Twain Typical media is manufactured PR designed to sell you products and ideas paid for by those who pony up the bucks. Let it be known that Mike Stathis has been banned by all media (mainstream and alternative) and all websites. You need to ask yourself why the leading investment analyst in the world has been banned by ALL media. Spend some time on our website and you will learn why. Mike has also been banned by Google Adsense (within the first month of using it, which really enabled us to see how fraudulent the media is). Even email marketing services like Constant Contact and iContact, which charge fees for use have banned Stathis from being a paid customer (Mike had the last laugh though because he called hedge funds he knows and instructed them to short Constant Contact, sending the stock plummeting by 50% over the next several months). There is not a single website that will publish Mike's content except for PressTV. However, now that PressTV is in partnership with Veterans Today (a disinfo site that removed Mike's articles and banned him because the site is for complete disinfo, run by Jews). Did you know it was Mike Stathis who was responsible for getting PressTV banned from Europe? That's right. Here is the article that achieved that. The Rape of Greece by the Jewish Bankers It looks like the Jewish Mafia is running scared of Stathis. Publication of this article also led to other actions taken by the Jewish Mafia against PressTV, including removal of is Adsense account on You Tube. The Death of America It is indeed a shame that PressTV does not realize that it is working with several Jewish disinfo agents. The fact is that REAL sources of credibility who side with the people get banned. They are not celebrated by any media as saviors, mainstream or alternative. Whenever you see someone being positioned as on the side of the people to a large audience, you can bet they are either disinfo or controlled opposition. Here is a tiny list of the many examples: Alex Jones, Ron Paul, David Stockman, Paul Craig Roberts, Michael Lewis, Matt Taibbi, Nomi Prins, Michael Moore, etc. It is time to wake up. This massive publication is designed to achieve that critical objective. As we entered the Information Age people started to believe that everyone could now be successful investors because we all had access to the same information. This couldn’t be further from the truth. First, everyone still does not have access to the same information. Second, information alone was never valuable. Unless you are able to know what information is good or bad, reliable or shaky, you may as well shut yourself out of the information loop because more so than ever, information is being manipulated by a multitude of ways. It’s been about access to information, but rather the interpretation of information. If you don’t know how to decipher deceptive or inaccurate information from reasonable information, you’re going to lose your ass in the stock and bond markets. That is an absolute guarantee. I will also guarantee you this. You have about a 0.1% chance of deciphering information correctly on your own. If you are unwilling to accept this reality, chances are that you do not have what it takes to do well investing because a good part of success in investing mandates understanding your limitations and working within these boundaries. Those who either fail to understand their limitations or else delves into areas for which they are not competent nearly always fail, often times in a very big way. The simple fact of the matter is that if you want to learn how to make money from the investment process, you must first learn who and what sources to avoid, otherwise you will get blasted. The ENCYCLOPEDIA focuses on this aspect of the investment process. The second thing you must do is align yourself with a proven expert; an expert who has demonstrated an excellent track record. Finally, if you want to optimize your learning experience and become the best investor you can be, you must be able to learn from great investors. Those investors must be willing to share with you their insights on how to improve your skills. This requirement is often related to the second. Forget the thinking that you will be able to read books by so-called "great investors" and obtain valuable insight. That just isn't going to happen, EVER. How do we know this? Because we have searched the financial/investment publishing world extensively. The confusing or misleading thing for many investors is that they might THINK a book has provided them with some valuable or unique insight when in reality, such investors know so little that the hurdle for satisfying their thirst for investment knowledge is quite low. Our chief investment strategist Mike Stathis satisfies all three of these critical steps. He exposes the clowns, has an outstanding track record, and provides his clients with unique insights that help them become better investors. In part, we specifically sought to address this issue by identifying various hacks and charlatans. The result was Encyclopedia of Bozos, Hacks, Snake Oil Salesmen and Faux Heroes. But we aimed further. Our ultimate goal was to present this material in a way that would help readers spot these charlatans on their own. This ENCYCLOPEDIA is no doubt the single most valuable resource for investors and consumers alike because it addresses rule number one; avoid liars, con men and morons. If you follow any such individuals, you are destined to fall into the gutter. Only by learning who you cannot trust will you begin to understand who you can trust. This publication contains descriptions of individuals and websites that should be avoided at all cost because they provide false information so as to manipulate the naive. The individuals in the list are marketers, snake oil salesmen, idiots and/or complete con artists. Many have used basic psychological techniques to position themselves as spokesmen and even “saviors” or “heroes” of the common man, so as to get their sheep followers to open their wallets, similar to the tactics used by televangelists. Virtually every single individual discussed in this ENCYCLOPEDIA is also an extremist. This too is part of the tactic used to lure the masses because the typical person (who is not that bright) can more easily grasp extremes. In this massive and rapidly expanding ENCYCLOPEDIA, we present the means and methods of these charlatans so that the reader can become skilled in spotting others who work in the same manner. The number new con games are being created faster than we can keep up with. However, when it comes to exposing the doomsday con men, notice how they all say the same things and deliver the same messages: “The U.S. is broke and the dollar is headed to 0.” “The U.S. stock market is set to collapse to 1000 to 3000.” “The U.S. is going to hit hyperinflation and gold is the only way to protect your wealth” “Gold is headed to the moon.” “We can save you from the apocalypse for a small price.” Of course, only an idiot or crook would make these ridiculous claims. These clowns lure their unsophisticated sheep into their vortex of illusion and deceit using statements like “the Federal Reserve currency printing is out of control.” Then they twist and exaggerate facts while adding a crock of shit to the mix, all of which leads to fear and anxiety for those who are stupid enough to buy into this pitch. The genesis of this deceptive method was arguably first used by Kevin Trudeau on a large scale. Next, the method was adapted by Alex Jones. Jones refined this technique a good deal, making him one of the biggest bullshit artists alive today. More recently, we saw this method applied to the investment world, first by Peter Schiff, then by Porter Stansberry, Zero Hedge, Max Keiser and others. Now it is being used by Chris Martenson, Doug Casey and others. Even before Schiff got into the game of issuing delusional scare tactics, Martin Weiss was pulling off even more ridiculous pitches when Schiff graduated college more than 20 years ago. This ENCYCLOPEDIA has been in development for several years under the investigative lead of Mike Stathis. We continue to find out new information about these charlatans. We also continue to add new charlatans to this list. It is constantly being updated and reedited, so check back periodically. While the list is focused on investment-related charlatans, we expect to gradually expand it to include internet scam artists, such as internet marketers, gurus, MLM scammers, and many others who seek to exploit the desperation of the huge and growing population of individuals who are in a situation of financial vulnerability. These are the individuals targeted by these scam artists. This encyclopedia is GUARANTEED to provide the most insightful awakening of its kind, all while saving the would-be victims who without reading and studying this report, would be subject to potentially losing at minimum, tens of thousands of dollars due to poor investment advice and in some cases, complete scams. Now if you think this huge pool of idiots, liars and con men are restricted to the Internet and so-called alternative media, think again. Every single mainstream media firm is also involved in pumping the delusional, misleading and inaccurate statements, predictions, comments and forecasts of these clowns. This is a fact. Don't believe me? Well, all that means is that you are not a careful observer of the media. Don't worry though because those who are patched into our research and other publications develop the skills needed to be able to spot things that previous flew past them undetected. And if you ever want a chance to be a good investor, you must have this ability as a basic part of your skill set. Okay so let me give you a very brief example of just one of the pieces of evidence confirming that the biggest media firms are also involved in pumping con men, idiots and losers, all with miserable track records. Like most major media firms which have a large financial division, each year Reuters holds what calls its “Reuters Investment Outlook Summit” in New York. Bloomberg has several of its own, as does Dow Jones, the Wall Street Journal, Barron’s, CNBC and so forth. Okay so let me give you a very brief example of just one of the pieces of evidence confirming that the biggest media firms are also involved in pumping con men, idiots and losers, all with miserable track records. We all know what kind of dog-and-pony show such events sponsored by CNBC would be, but surely Reuters’ event must be legit, right? After all, Reuters claims to be an unbiased newswire. As you are going to discover, the summits Reuters’ holds are bogus, and filled with media clowns. Here's how they define their summits: "Reuters Summits are your direct link to top business leaders, investors and regulators. Our journalists interview heavyweights in a particular industry, spin out hard-hitting breaking news and sharp analysis that can often move markets. If you want to understand what the insiders are thinking, look for Reuters Summits." So who are some of the clowns selected as these "heavyweights" by Reuters? Jim Cramer, Robert Prechter, Nouriel Roubini, to name a few. As you can imagine, virtually every major clown is on one or more of these summits hosted by the criminal media. The disturbing thing is that Reuters basically endorses its participants indirectly by claiming its summit has credibility. Bloomberg, the Wall Street Journal, Barron’s, Investor’s Business Daily, CNBC, FOX, and so on run the same kinds of bullshit scams featuring clowns, knowing that most people are sheep and actually think the media is legit. Sadly, neither Reuters nor any media firm can be held legally responsible for endorsing the chumps it endorses. However, I feel this is completely illegal given the fact that Reuters receives ad revenues from these clowns. But we must not forget who runs the media, who runs the legal system, who runs virtually all major law firms, and who most of the big judges are. They are all part of the Jewish Mafia. And take a guess who runs the SEC. This also explains why none of the Wall Street crooks have gone to prison. Are you beginning to see a pattern here? As a professional analyst, I just report the facts and provide an objective assessment based on the facts. There is no fiction or extrapolation here folks. Make no mistake. Virtually every single one of the clowns in the media dubbed as an economic or financial "expert" is always Jewish, represents a Jewish-run firm and/or spends lots of money advertising. Oh and by the way, for those of you who have been unfortunate enough to throw away your money on publications from the so-called "financial newsletter industry," you might now realize why the price of subscription to their trash is so high...much of the cost is going to those who advertise for them…the media. So, in effect, you are paying the media to promote these con men, all while you lose your ass in the stock market. That, folks is fraud. And they get away with it because they are the Jewish Mafia. If this is your first time reading this, you are going to be overwhelmed and shocked because chances are extremely high that one if not all of the sources you thought you could trust for financial and economic information will be discredited here. It was pretty shocking to learn that after many years of investigation, virtually eveyone out there is a con man looking to exploit you. Are people inherently good? After reading this, you just might have a different take on humanity. The text and descriptive images you have just examined comprise the prelude to the Encyclopedia of Bozos, Hacks, Snake Oil Salesmen & Faux Heroes. The full report includes hundreds of pages of text, hundreds of annotated images and dozens of videos detailing a very large number of the plethora of con artists, idiots and fakes largely from within the financial and financial publishing industries. You can gain access to the full contents of this massive educational library exposing the names and tactics of the various financial charlatans by signing up as a Member or Client. Check here for Client and Member Benefits. Check here for Member Resources. In 2017 we added a new resource portal to the Encyclopedia focused on displaying thousands of annotated images exposing the various con artists and shills from the financial media. This portal is called the "AVAIA Image Library" and can be accessed by logging into your Member or Client account and clicking on the blue box to the left of the Home Page directly under the top image carousel. Sign into your account to enter the ENCYCLOPEDIA. Special Promotion For New Members And Membership Renewals
At AVA Investment Analytics, we cover a very large number of securities; many more securities than the 65 or so that we provide trading guidance for in our newsletters. The key to our success is knowing several companies well enough to know when to buy and well to sell. We also determine the probability of each security to hit/miss/beat earnings estimates. Finally, we utilize our stock market forecast to determine a scenario analysis for each security in order to generate a relative risk profile. Despite the fact that we are very limited in our abilities to provide subscribers to our newsletters with frequent trading opportunities, we have managed to blow away the indices each year (a precise determination of the outperformance level is impossible because we provide a scenario analysis for each security in these publications, so each investor will have different results. And we lack the man power to determine the results for each scenario for each security each month).
Taken from the opening section from the March 2012 issue of Dividend Gems In late January the Federal Reserve Bank announced that it intended to keep short-term interest rates at current levels until at least late 2014. This announcement has several ramifications. First, it implies that fixed income yields will remain low for some time. This bodes well for the U.S. stock market. Second, it increases the chance of a sudden and large rise in interest rates beyond 2015. Third, it further increases the possibility of further quantitative easing, which is also likely to boost the stock market. While the Fed has indicated that it did not envision another phase of easing, its actions speak louder than their words, as Fed officials have already discussed a modified form of easing. Last month we discussed that the S&P 500 Index was in the process of closing in on the very important gap at 1360. As of March 13 (intraday), the S&P 500 is trading at 1383, and has thus confirmed the bullish sentiment. Again, this is a very positive development that we feel was catalyzed by the interest rate announcement by the Federal Reserve in late January. Furthermore, the S&P 500 Index has also blown past its short-term gap at 1372. Although it is still too soon to technically confirm a continuation of the short-term bullish trend, based on other variables and in absence of significant material events, we feel this bullish move will continue. Last month, we compared the two most recent periods of economic and market risk (summer 2010 versus fall 2011). In this analysis, we noted the striking level of pattern symmetry, adding support for a continuation of the bullish move in the U.S. equities markets. We must also take note of the much higher level of price volatility from the more recent period of ascent from the trough (fall 2011).
This discussion was taken from the Global Economics section from the February 2012 issue of the Intelligent Investor newsletter. While the problems in Europe are far from over, this is news that everyone is aware of. If you want to do really well as an investor you must remain ahead of the curve. So instead of telling you that Portugal is in trouble, or guessing which nation will be after Greece...which by the way is really a useless discussion unless you happen to live in one of those nations or you hold teh soverign debt...I am going to look a few steps ahead so you can begin preparing for the next tidal wave. For several months now, I have been discussing the risk to developing and emerging economies; a risk created by financial institutions from advanced economies. Although there has not yet been a clear-cut collapse of developing Asia or the emerging economies, we have seen some select episodes of this inescapable consequence.
In past issues of this publication we have discussed numerous variables we look at when forecasting the market. Our work in market forecasting is but one component of the design and implementation of a prudent investment strategy.
A couple of months ago, we briefly discussed negative implications of GDP revisions. Here, we examine these revisions in more detail. We close this piece with an overview of global risks, as well as the solution to the problems in Europe. U.S. GDP data revisions released on July 29, 2011 indicate that the depth of the (officially stated) 2007–2009 recession was deeper than formerly thought. In addition, the subsequent period designated as an “expansion” was not as strong as previously reported. For instance, previously published estimates reported an annual decrease in GDP of 2.8% between Q4, 2007 and Q2, 2009. However, the revised reports state that real GDP decreased at an average annual rate of 3.5%. This revised data show that the cumulative decrease over the six quarters of contraction is now estimated at 5.1%, compared with 4.1% in the previously published estimates. This constitutes the largest slide in GDP since the Great Depression (or since the beginning of BEA’s quarterly real GDP estimates which began in 1947). The revised estimates also show larger decreases for Q4, 2008 (-8.9% vs. -6.8%) and for Q1, 2009 (-6.7% vs. -4.9%).
Originally Published on March 13, 2012, Dividend Gems Opening Statement In late January the Federal Reserve Bank announced that it intended to keep short-term interest rates at current levels until at least late 2014. This announcement has several ramifications. First, it implies that fixed income yields will remain low for some time. This bodes well for the U.S. stock market. Second, it increases the chance of a sudden and large rise in interest rates beyond 2015. This does not bode well for the stock market. Third, it further increases the possibility of further quantitative easing, which is also likely to boost the stock market. While the Fed has indicated that it did not envision another phase of easing, its actions speak louder than their words, as Fed officials have already discussed a modified form of easing. Last month we discussed that the S&P 500 Index was in the process of closing in on the very important gap at 1360. As of March 13 (intraday), the S&P 500 is trading at 1383, and has thus confirmed the bullish sentiment. Again, this is a very positive development that we feel was catalyzed by the interest rate announcement by the Federal Reserve in late January (chart 1).
Originally Published on March 13, 2012 Taken from March 2012 Dividend Gems Most dividend investors make the mistake of using a buy-and-hold approach. Rather than being concerned about their total account value, they focus on their stream of income from cash dividends. As a result, most dividend investors remain fully invested. This is the wrong approach. While it is certainly important to focus on the dividend income, it is perhaps more important to focus on risk. This mandates that investors understand many variables that allow them to forecast the stock market. But there is no specific formula that can be consistently utilized to understand and measure risk. By having reasonable estimates of market forecasting, valuation analysis and other variables, investors can make prudent asset allocation decisions in accord with their risk tolerance, investment objectives and skill level. This means that there will be times when investors will be majority invested in to the stock market and times when they have a good deal of cash.
In this report, we analyze Canada's economic health, its long-term fiscal challenges and examine whether the nation is experiencing a real estate bubble. In this part of the discussion, we dissect the inner workings of the Canadian real estate finance sector, pointing to striking differences and similarities with the U.S. Finally, we discuss the risks of an economic slowdown that could pose as a challenge for Canada, independent of shocks to the euro zone, as well as from a slowdown in the commodities sector.
After nearly four years of harsh economic consequences, we have seen little if any progress by the criminal puppets in Washington. Despite the continuous lies from a variety of partisan sources, there has been no real job creation. We have only heard delusions, excuses and lame duck proposals. Without surprise, not one single individual from the economic, academic or media circle has called for the criminal prosecution of countless Wall Street executives for their role in securities fraud that wrecked the global economy. Despite claims from the Obama Administration and its supporting institutions, there has been no Wall Street reform, no healthcare reform and no trade policy reform. Yet, Americans continue to be distracted and fooled by the media establishment, which continues provide an amble supply of talking head puppets supportive of the fascist establishment known as “democracy and free markets.” Establishment economists and Wall Street shysters have played a prominent role in the propaganda campaign as well. While the denials and distractions continue, no one has addressed the real problems.
Taken from the January 2012 Intelligent Investor Overview Home ownership has been a vital component of Washington’s economic strategy for decades. The marketing end of this strategy has positioned home ownership as a key element of the so-called “American Dream.” For millions of Americans who are under water with their mortgage, facing foreclosure or in one of many stages of default, home ownership has become an “American Nightmare,” riddled with a variety of caveats ranging from millions of foreclosures, the poor effect and other undesirable consequences. The Real Estate Bubble chapter in America's Financial Apocalypse* opened with a discussion illustrating why home ownership is usually not a prudent investment choice. Let’s take a look at a small portion of the discussion presented in this book… "A few decades ago, the real estate and mortgage industries devised a marketing campaign to increase business. They began preaching a myth to Americans that home ownership is always a great investment with no risk, because “home prices always go up.” As a matter of fact, these industries have even made claims that real estate is a better investment than the stock market and has led to more millionaires. These statements are simply not true as historical data indicates. As a result of this propaganda, most Americans have the misconception that they can buy a home and it will always go up in price. But this is not necessarily true, especially when buying during the last stages of a real estate bubble. Even without the effects of a bubble, in many cases the annual expenses associated with home ownership wipe out most of the gains in appreciation, yielding relatively modest returns. For the average American, the fact is that residential real estate typically provides about the same rate of return over a twenty- to thirty-year period as a money market mutual fund after you deduct the total costs of property ownership. However, unlike a money market fund, owners of real estate have significant liquidity risk as well as other risks specific to this asset class. Of course, there are several variables that can deviate from these results, such as obtaining a low-interest fixed mortgage, buying a home in an area that becomes rejuvenated, and so forth. But these are not typical conditions and therefore cannot be relied upon with much certainty. Regardless, widespread speculation continues to fuel perhaps the biggest real estate bubble ever seen in America. And the consequences are going to be devastating for millions." Source: America’s Financial Apocalypse, 2006 (expanded edition, chapter 10) Today, you hear several individuals preaching what this book proved prior to the collapse in real estate. I would like to remind you that it’s easy to warn of a fire once the fire is ablaze. Such individuals are always late to the party.**
Taken from the January 2012 Intelligent Investor Boosting home ownership rates has been a goal shared by all previous U.S. Administrations. With the housing market still vulnerable, the Obama Administration has been pointing more towards sustainable home ownership. As a part of the ongoing debate on fiscal consolidation, some have raised the question of whether the U.S. should reconsider its role in housing finance. The United States has a complex housing finance system with numerous measures that explicitly target home ownership. Most of these measures are indirect/off balance sheet in nature such as providing tax expenditure policies and offering federal credit, insurance and guarantee programs. These programs are also very expensive, and primarily benefit middle- and high-income households.
In the past, I have written some pieces on Obama, Alex Jones and Ron Paul. Because I cover so many things, from investment and economic analysis, to healthcare and politics, my time continues to become more limited. That is the result when you have been cut off from the world by the Internet and the media, and this censorship is being done as a way to starve our operations financially. Therefore, in effort to save some time I have identified several videos that say much of what I would otherwise spend time writing. While I do not necessarily agree with everything in each of these videos, I do agree with their overall message and tone. I want to also encourage you to check the free videos posted in the library (click here) because in the future these videos will be restricted to members and subscribers of our newsletters. We have already spent the time to locate and download more than 500 critical videos that are not yet posted. We continue to add to this database and will post more in the future. The first video focuses primarily on the Rothschild-Illuminati-Free Masonry connection. Before you watch it, I wanted to make a few points.
Taken from the January 2012 Intelligent Investor This is a continuation from Part 1 of this 3-part series. Click here to read Part 1. Historical Examination of Home Ownership Rates The home ownership rate was fairly stable prior to WWII, ranging from about 43% to 48%. During the Great Depression, Washington created numerous subsidies in order to boost demand (e.g. government-insured loans from the VA). By the late 1960s, home ownership soared to nearly 64% where it would largely remain for several decades, buttressed by several additional subsidies and a transformation in housing finance. The baby boom effect also led to the surge in home ownership. Since most first-time homebuyers are between 25-40 years of age, most baby boomers bought their first home in the 1970s. After experiencing a large drop in home ownership rates in the 1980s (the reasons are mixed; some say inflation, others say tax rate cuts, others say reduced affordability), the 1990s was the period of the housing boom.
Compared to the U.S., housing finance in Canada is less subsidized by the government. In fact, the Canadian government’s housing finance policies do not explicitly favor home ownership unlike the case seen in the U.S. This is likely to come as a surprise to many, given the stereotype that the Canadian economy is largely socialist.
We have just released twenty (20) videos, each covering the fundamental and technical analysis of a select list of securities. The theme of this research focus is stocks trading over $100.
Originally Published on May 11, 2012 (May 2012 Dividend Gems) As we enter a new cycle of global macroeconomic risk, the U.S. stock market continues to resist being pulled into the euro zone vortex. Despite having recently declined to a low of 12,689, the Dow Jones Industrial Average has since rallied past 13,350, only to face another retracement. It is now poised to experience a more sizable retracement. While the S&P 500 has faced a similar series of volatile movements, it maintains a technically weaker outlook in coming days/weeks. All things considered, thus far the U.S. market has remained fairly bullish due to continued earnings strength. However, earnings momentum is fading. During the early part of earnings season about 80% of companies beat consensus estimates. As of May 10, that figure is down to 66.16% with 458 of 500 of the firms in the S&P 500 having reported. Despite the relatively strong performance seen in Consumer Staples in recent months, Procter & Gamble missed earnings by a large margin. Meanwhile, AT&T, Coca-Cola, Kimberly-Clark and Kraft continue to shine. At the other end of the spectrum, oil-related securities continue to show considerable weakness. Notably, Chevron has thus far held up considering the retracement in crude pricing. Although Cisco beat consensus earnings estimates, shares plunged after managed lowered full-year 2012 earnings. Many analysts are now beginning to question whether the Information Technology sector will maintain its outstanding earnings growth through 2012. Corporate profit margins for firms in the S&P 500 continue to remain high. Combined with record-low interest rates, the U.S. stock market remains positioned for continued upside, albeit after the current risk cycle has passed. Another concern related to future earnings (and thus market valuation) is the issue of corporate profit margins. Despite concerns of an approaching contraction in profit margins, we do not believe this is likely for another two years or more due to a variety of reasons.
In The November 2010 issue of the Intelligent Investor, we listed 25 stocks with high short interest that we felt were of interest. These stocks were not necessarily those with the highest short interest, rather they stood out as potential candidates for big moves in coming months for a variety of reasons. We noted that the presentation should be viewed as an educational segment because our analysis was very superficial. Nevertheless, we provided a brief fundamental and technical analysis of each of these stocks in order to point to what we felt would result in some very substantial moves (up or down) in coming months. The following passage was taken from the November 2010 issue to describe the purpose and best use of this material: “Below I have listed some securities with high short interest ratios that I found interesting. Remember, a high short interest ratio increases the chances of a large upward or downward move in shares, depending on material events such as earnings, upgrades/downgrades, etc. After each security I have listed some brief notes. However, this should by no means be taken to imply a full assessment. Each assessment involved about a 20-second glance at the basic numbers. Using my economic forecasts and estimates for different industries, I made these notes. In many cases, the notes do not consider specific fundamental issues. The bottom line is that this should be taken only as a very crude starting point.” In the April 2011 issue we conducted a more in-depth analysis of the same securities and discussed their price trend since November. “In this section I provide an update from November when I listed some stocks that could offer trading opportunities due to a large short interest held by investors in most (but not all) of the following securities. As I previously discussed, one cannot and should not look at the short interest as the only gauge of investor sentiment. You must also examine the short interest ratio, fundamentals, valuation, contingent liabilities, and other risks. Finally, it is often very important to factor in your forecast of the overall stock market. I typically do not advise non-professional investors to ever short securities because it is the most risky investment move one can make. One of the most reliable indicators for gauging a bearish price performance of securities with a large short interest is the formation of a trend of increasing short interest over the course of a year. If you make the decision to short securities in the future, you should always wait for critical technical support levels to break down rather than taking a short position due only to a large short interest. The reason for this is two-fold. First, you are charged monthly interest to hold a short position and these fees can add up over time. More important, you could get caught in a short squeeze. Therefore, it is best for most who decide to short a security to pile in once the price decline has been established as confirmed by the technical data.” Here, we are going to show you an update of these securities since we last mentioned them a year ago. You will notice that the comments we provided were generally bearish in nature (overvalued, poor fundamentals, forward challenges, etc.). This implies that we were pretty much bearish on most of these securities to the extent that we would have felt fairly comfortable holding short positions over an extended period, but ONLY if the fundamentals did not change. In some cases the fundamentals did change. This caused a short squeeze. As you will see in some of the charts, there were a few of the stocks that soared as a result of a short squeeze. If you were to have covered your short positions in these stocks once they began to squeeze, your total return for the entire short portfolio would have been very, very high. While we did offer an updated analysis to clients who scheduled a conference call, we did not provide a follow-up analysis for subscribers Okay, so let’s begin. For each group of 5 securities we will first provide the linear plot followed by the log plot.
For investment funds and financial institutions seeking to improve their performance