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Michael Kudrna

 
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  • U.S. budget deficit narrows in July [View news story]
    If inflation takes care of any problem, it leaves other problems behind. It always has, but now the problems are more prevalent as opportunities to make a growing income for those who didn't inherit wealth are significantly less and continuing down that path making matters worse. Problems don't take care of itself. That's not only illogical, but extremely dangerous to believe such a thing.

    Buying power doesn't increase with inflation, the opposite comes true unless you can increase your income. Fewer people are able to increase their income these days. You must outrun inflation (a system of capturing more of the money then the next person if you want your buying power to increase) if you want buying power to increase, which is on a case by case basis, which means there will ultimately be more "losers" than "winners" when it's all said and done. Income inequality becomes a bigger problem this way.

    The weak get weaker and the strong get stronger. More problems are created, not less.

    We should have a surplus by now. If you continue to operate in the red, there will be an end game to it. The only real question is when. Politicians have an innate ability to delay the inevitable just a little bit longer.
    Aug 13 02:08 AM | 1 Like Like |Link to Comment
  • U.S. budget deficit narrows in July [View news story]
    With interest rates as low as they are, no reason Govt Officials shouldn't have us at a surplus by now. Unacceptable. When interest rates return to normal, we'll see what the REAL deficit is.
    Aug 12 03:24 PM | 4 Likes Like |Link to Comment
  • Penny stock trade booms [View news story]
    "I like things below three cents, because of the upside potential, and it limits the downside," says penny stock trader Steve Templeton, who recently used his winnings on unlisted medical marijuana stocks to finance a move to Tennessee from California."

    Quite possibly the dumbest statement possible and very dangerous if novice investors listen to this clown. I rarely get upset, but this is very dangerous to young traders.

    Limit downside? It's called dilution until your holdings are non-existent and/or a shell of a company dies because it never had a chance to begin with. Hopefully he stated all of those risks and SA simply took a small excerpt making SA to blame, but this is an incredibly ignorant statement even with those risks stated upfront.
    May 23 02:44 PM | 8 Likes Like |Link to Comment
  • Obamacare signs up 8M [View news story]
    About 50% or so of Twitter users never posted once or even filled out their profile....are they really Twitter users or is the total number that includes them really useful at all?

    Is that the same standards used for the 8 million?
    Apr 18 10:00 AM | 5 Likes Like |Link to Comment
  • The House passes the Senate's fiscal cliff bill, 257-167. It now heads to the president for signature. (what's in the deal[View news story]
    TVP:

    Unfortunately the economists are claiming they are the Mathematicians and economists are the same as meteorologists. They screw up all the time, one says rain, one says sun, they continue to claim expertise AND still have a job after they screw up.

    They are akin to the stock trader that made one single good call in his career that he will remind you of every single day while not keeping track of the 99% of bad calls he made that are swept under the rug.
    Jan 3 02:17 PM | 1 Like Like |Link to Comment
  • The House passes the Senate's fiscal cliff bill, 257-167. It now heads to the president for signature. (what's in the deal[View news story]
    bbrady:

    If we had a 300 billion dollar deficit....increasing taxes is a very reasonable request. You know that the taxes will be used to fix that small hole. Increasing taxes becomes a very logical solution when the deficit is realistically manageable.

    However, we average a 1.3 to 1.6 trillion dollar deficit which is manipulated lower due to record low interest rates making our interest payments appear lower than they will be in the near future (can't get rates low forever). This requires immediate and strong action to remedy! No business, I REPEAT, not one single business could survive with such fundamentals. Not one single bank would entertain such an idea of loaning money to a financial structure like this...but because we are the Reserve Currency, we found a bank willing to give us money so we can feed the beast more and more. That may not be the case in 10-15 years as other countries would prefer we lose our Reserve status. Just wait until our bond market starts to dictate our grim future because we are NOT ACTING now! Then the real cuts will happen...and those will be unmerciful. All because we did not act like adults right now, take our medicine today, put us in a short-term recession and bounce out of it with a vengeance fixing the path we are on and brightening our future.

    To demand that anyone pay more money on a 1.3 to 1.6 (technically higher) trillion dollar deficit resembles a blind dictatorship. To demand any citizen pay more money into a deficit that is exactly the same as a "black hole" where the money will NOT be useful and will NOT actually fix the deficit is illogical and frankly morally wrong. This comes from someone who is not a Repub, but I lean more and more to that side on this issue as these smoke and mirror discussions happen (tax the rich = save america) are the discussion of lemmings.
    Jan 3 02:07 PM | Likes Like |Link to Comment
  • The House passes the Senate's fiscal cliff bill, 257-167. It now heads to the president for signature. (what's in the deal[View news story]
    Canada has similar issues in 90's. They cut spending $7 to $1 tax increase and grew jobs during the dotcom bust. They are now fiscally responsible and able to take on whatever problems come their way without an already burdened fundamentals.

    The US on the other hand, does not balance the budget and instead has a fiscal cliff deal of over $43 in tax increases to every $1 in spending cuts.

    Logical....very logical.
    Jan 2 02:06 AM | 6 Likes Like |Link to Comment
  • Gastar Exploration Provides Update on Results of 2012 Operations [View article]
    Very positive news, but lawsuit against GST will continue to be a significant overhang on the stock for many months to come without updates towards a dismissal.

    If lawsuit is dismissed, stock could double very fast. That is a big "if" though and not something I make gambles on.
    Dec 19 01:36 PM | Likes Like |Link to Comment
  • A new White House report warns that massive across-the-board spending cuts at the start of the new year would be "deeply destructive" to core government responsibilities and especially the military. But Pres. Obama's own defense budget calls for big cuts, and Bob Woodward's new book suggests the Administration instigated the idea of sequestration to gain political ground[View news story]
    Massive cuts? What genius confused "Massive" with "Negligible"?
    Sep 15 10:44 AM | 1 Like Like |Link to Comment
  • Beware the false rally coming soon, says world-renowned bear Marc Faber. He says catalysts are currently in place that could trigger an advance. "We could go to 1450 or even 1500," Faber says. However, he warns that “we’re in the late stage of a mature market and not a new bull.” [View news story]
    Actually, the 20 year sold off between Nov 2011 and March 2012 which coincides with the market rising.

    Why are they lower now? Many bond traders still argue over that. Do you think many are rushing to buy our debt at low yields?

    Bonds are a terrible investment and not just because how risky our debt is. Inflation is higher than what bonds are paying out therefore you would not be keeping your wealth, you'd be losing it by holding them.
    Aug 16 10:43 PM | 1 Like Like |Link to Comment
  • Beware the false rally coming soon, says world-renowned bear Marc Faber. He says catalysts are currently in place that could trigger an advance. "We could go to 1450 or even 1500," Faber says. However, he warns that “we’re in the late stage of a mature market and not a new bull.” [View news story]
    Actually, he publicly stated he was bullish in Nov 2011 stating that bonds are not safe therefore he expects the equities to rise as bondholders realize this. The market rose significantly since then.

    The media loves to hype up when he's negative on something, but they rarely cover when he's bullish on something. Usually he's bearish on something and bullish on something else....but you'd never know it by what the media covers.
    Aug 16 09:40 PM | 2 Likes Like |Link to Comment
  • McDonald's (MCD) reports that global comparable sales were flat for July, with sales in the U.S. down 0.1% after estimates called for a 2.2% gain. Similar sluggishness was seen in Europe and Asia, suggesting a broad loss of market share could be in play. Shares of MCD -3.1% premarket. [View news story]
    Being in the industry, I'd associate most of the early domestic July sales weakness to the HEAT WAVE that kept people inside. I saw my sales decrease significantly in that time when it was over 100 degrees for over a week in the midwest and have since rebounded.

    To verify my theory, looking at food places with stable delivery options, see if their results show sales increases in July. If not, then it could very well be the recession.
    Aug 8 11:52 AM | 1 Like Like |Link to Comment
  • NFIB Small Business Optimism Index: -3.0 to 91.4, vs. consensus of 92.0, 94.4 in May. The report is a clear indication of slow growth. 23% of owners cites weak sales as one of the most important business problem.  [View news story]
    Try to get an SBA loan....that's your best bet then. 9% is too high if you are cash flowing for years with great credit, but if you're not one of the perfect candidates, 9% is better than no loan if you decide you can make the payments work within your business model.

    That's the best I could tell you based on not knowing all those particulars briefly noted above.
    Jul 10 12:49 PM | Likes Like |Link to Comment
  • NFIB Small Business Optimism Index: -3.0 to 91.4, vs. consensus of 92.0, 94.4 in May. The report is a clear indication of slow growth. 23% of owners cites weak sales as one of the most important business problem.  [View news story]
    It's moreso the banks won't lend to "start-ups" or any small businesses that are in the high risk industry (construction, restaurant, etc...) unless they are making so much money that they don't need the money....then banks will hunt them down to try and convince them to take out a loan at low rates.

    Banks are in full protection mode still. Everytime I read an article how Chase is giving out small business loans, I think that article must be a paid article for PR. Every accountant I know that deals with small businesses has told me it only has gotten worse over the years for their clients to obtain financing. Banks are tightening up more.

    Banks should never have been bailed out....a more workable idea should have been to give each American 20-30k or whatever the calculation is instead to pay off their own debt which would ultimately help banks AND Americans.

    Rant over
    Jul 10 11:10 AM | Likes Like |Link to Comment
  • 2 Stock Setups To Ride The Market Momentum [View article]
    This was posted last night on MichaelKudrna.com, unfortunately SA didn't publish the article until this afternoon, so apologies for those who were unable to jump on the KEG trade as detailed, nice run today.
    Feb 22 03:21 PM | Likes Like |Link to Comment
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