techzone12

Should Bernanke Be Reappointed?

No. He was caught sleeping on the wheel!

Why the Oil Market Favors the Deepwater Subsector

I am long PBR. If you want to be rich, jump on the PBR bandwagon.
The oil sector looks shaky right now, with potential for further short term decline. But long term, I think companies like PBR have huge potential. RIG is also a good play. See you in a year or two!

Sucker's Rally Approaching an End

It's called a sucker's rally, because it sucks you in...
What we are witnessing is the transfer of debt from the big banks' balance sheets to the taxpayer. So all of a sudden, the banks are making record "profit"!. Congrats!. It's time to distribute new bonuses!. Enjoy the ride!

The U.S. Banking System's Terrifying Balance Sheet

I wonder what would happen if all these trillions were funneled to the taxpayer instead!!.

On Apr 08 08:54 AM Lilguy wrote:

> ...and, so, remind again: Why is this financial system worth saving
> if it is essentially bankrupt? Why are these banks "too big to fail"
> if, as it appears, they have already? Why are we putting America
> in such deep hock to save these frauds and fools?
>
> I would note that, just last week (3/31), Bloomberg had an article
> detailing all the measures of the US Government to stimulate the
> economy. The programs together total commitments of $12.8 trillion.
> Wall Street's share of that--as reflected in Mr. Durden's article
> & Mr. Salmon's commentary--is some $9.3 trillion. Main Street's
> share--money for the other 300 million of us--is a mere $1.3 trillion
> while the USG has set aside $2.5 trillion to cover the bad bets of
> the GSEs and likely funding needs of the FDIC. (Nothing like covering
> the bad debt of the USG with more debt guaranteed by the "full faith
> and credit" of the USG!)
>
> Does any of that seem as wrong-headed to the rest of you as it does
> to me? What about the 5 million newly unemployed since the recession
> began? What about the 48,000 business failures last year--up from
> 28,000 in 2007--and the projected 62,000 such failures this year?
> What about the projected 1.5 million personal bankruptcies this year?
> ...and that doesn't even touch the massive damage to household wealth
> from decimated house values, depleted 401Ks, and overwhelming debt.
>
>
> What the hell is the Administration (& its predecessor) and the
> US Congress doing??

Is the Populist Mob Right?

To get to the source of the problem, just look at how we elect politicians. Most of the politicians in Washington have ties with special interest groups. It's the traditional "pay to play" scheme. It's what called "lobbying". Does anyone remember Abramoff? How about Madoff (he ran his scheme for 20 years, and he was the head of Nasdaq at some point)?

That's why they are bailing out the banks and not the people. Then they would use scare tactics (anyone one remembers the scare tactics that Bush used to wage war on Iraq!). They will tell the average Joe that he will loose his job, if they don't bailout the banks. They will tell him that the bonuses to the crooks are a necessary evil to get the job done.

That's why I argue that this crisis is more political than being economical. Both republicans and Dems are responsible. So far, the change that Obama has promised did not materialize. Because he has "advisors" telling him that he needs to be careful as to "not rock the boat".

The solution is really simple: "Don't Let the fox guard the henhouse"

Exclusive: Big Banks' Recent Profitability Due to AIG Scam?

As Rahm Emanuel put it down, "a crisis is a terrible thing to waste". Scammers are still out there looking for new "opportunities".
I got news for them. I think they have milked the cow too much. Now the cow is on the brink!

10 Reasons Why We Still Haven't Hit Bottom

I got out of the market at the end of 2007, when the professionals were saying to “stay the course”. I am still on the side line. Yes I have missed the recent 20% rally, and I don't feel bad about it. My philosophy is to never try to hunt for the bottom. Because if it is NOT the true bottom then there is a good chance that I will loose my shirt in the process.

I don't know if this is the bottom. There is one reason however why I think that there is a long way to go yet. That reason is that the government is as corrupt as Wall Street. Special Interest groups are still ruling the country. The "pay to play" is still alive and well. The AIG scandal is a prime example. And yes Geithner turned a blind eye to AIG bonuses.

Why do you think that the government stood still, while Madoff was running his giant Ponze scheme for over 20 years? Is it because of the lack of laws? Or is it maybe because he belongs to a special interest group, which is considered untouchable.

China Wants to Ditch the Dollar

Forget about China, how about the US taxpayer?
Isn't it that once inflation starts to hit, people will become poorer, because the dollar will have less buying power. Which means people will be less likely to spend. Which in turn means that every thing will come to a halt!

The Geithner Plan FAQ

Geithner, who is a "tax evader", is now in charge of the treasury. Way to go poeple. You are in safe hands!!

On Mar 22 09:40 AM the ilster wrote:

> These so called toxic assets will most likely never recover and if
> the did it would be 10-15 years from now. Stop bailing out the fucking
> banks already. Geez!!!!. Let everyone take a loss and lets start
> over. I am getting IRATE!!!!!! We are watching the looting of the
> US Treasury to save a fiat monetary system that is destined to fail.
> Start buying commodities Inflation is on is way. This article in
> Rolling stone is a MUST read.
> www.rollingstone.com/p...

How to Know a Bottom When You Don't See One

Why don't we just admit that we don't know.. no one has a crystal ball. Only God Knows what the future holds..
I can guarnatee you one thing. When the market reaches the true bottom, most people will miss it. Most people will be taken by surprise, including me.

I am not ready to take the plung yet however, even though I have been out of the market since november of 2007. I keep my eyes on the macro economic picture. For now, the fact that we still have a lot of uncertainties, make it very risky to invest. We still do not know what the banks are hiding. We also know that the foreclosure crisis is growing. So for now I have decided to continue to stay on the side line, but ready to enter with maybe 10% of cash. I will keep you posted :)

When Unemployment Peaks, The Bottom Should Follow

Past history is not a guarantee of future performance! No one knows when we are going to hit bottom. This is especially true, when you have a lot of uncertainties. I have successfully avoided the carnage by staying away from the market since end of 2007. In my opinion, two things need to happen before we can start seeing recovery:
1. Banks need to come clean 2. We need to bring foreclosures under control.

Is the Market Going Lower? Silly Question!

I agree that "It takes years to build wealth". And If I may add, "it takes seconds to destroy it". If you have money that is not yours, or you don't care about, then may be you can "stay the course"! And in the process, you might get "very rich". But that's not very different from gambling.

I have listened to my own gut and stayed out since November of 2007.
No one can predict the future, but we can at least try to minimize the damage. It is called "risk management". For me the risk of loosing was a lot higher than winning. So simply, I decided to play defense for a while. I will be returning, when the economic climate shifts. Two or three things need to happen (in my opinion): 1. The Banks need to come clean. 2.We need to fix the way politicians get elected, so they would serve the interest of the American People, and not the special interest groups. 3. We need to fix the foreclosure crisis. But that's a tall order!

The New Unwind

The average Joe is not exactly responsible for this crisis. He was basically used. The banks encouraged people to take loans that they could not afford. And who doesn't like easy money? Who doesn't dream about becoming rich one day?
Meanwhile the government (and the politicians) stood by and did nothing. Why? because they can not bite the hand that feeds them. Some people got rich in the process (Madoff anyone!). Meanwhile things went full circle, and the "average Joe" is the one who ended up picking up the bill!

When Warren Buffett Speaks, It's Still Worth Listening

Buffett is someone that I admire. He inspires me, but I don't follow his steps blindly. I have been hearing him saying it's time to buy (for a while now), but I was not convinced. So I stayed out (I stayed completely out since December of 2007).

I know the paradigm is that no body can time the market, but that does not stop me from trying anyway!. I am not trying to perfectly time the market by the way, I am just playing some defense to avoid being slaughtered in this market. It's called risk management.
I believe that the momentum is still pointing downward. But in my opinion, the climate has to shift first, before we can see some sustained growth. To get a remedy, you need to treat the disease (which is foreclosures) and not "just" deal with the symptoms.

How to Fix eBay

I still make money on Ebay, but not like I used to. I had a plan to increase the volume, but the plan got somewhat derailed. I am now not sure if the time I invest in the Ebay thing is actually worth it (I have a full time job). First the higher fees by the ebay/paypal, and then the higher shipping cost by USPS. If you add up the numbers, it does not look very appealing (to put in the effort).


On Feb 10 12:01 PM Patricia013 wrote:

> Great article!! One of the few I totally agree with. I think veteran
> sellers all know most of the points you brought up and in particular
> patching up seller's broken trust. It either has to happen soon or
> Ebay will simply keep declining...it will eventually dwindle down
> into something unrecognizable and will be scooped up by another company.
> Sellers have proved they are not giving up on spreading the word
> of what Ebay has become and it is showing in Ebay's dismal sell-thru
> rate and lack of buyers. Management is so blind that about all one
> can do at his point is replace them. The idea of forcing Ebay to
> look and act like a cheap Amazon clone was a wacky one at best. Everyone
> hates imitation! I believe the staunchest business people knew it
> would never work....and it isn't working and is getting progressively
> worse.
>
> At this point Ebay may never recoop the loss it is suffering from
> the mismanagement of its sellers. It has shown nothing but rudeness
> and arrogance toward sellers. Instead of providing good service for
> them and helping them make sales it has provided a hostile environment
> and a take it or leave it attitude! This is unparalled in the businessworld!!
> NO large business that depends on its customers kicks them around
> the way Ebay does. Ebay is either gonna have to "get it" and get
> it quick or they are rightly and deservedly doomed! This first quarter
> will tell the tale...if they decline again they can no longer hide
> behind the economy...especially if other online sales are up! <br/>
>
> Wonderful article... can I vote for you as the new Ebay CEO ;-)