simplesimon

Cash for Clunkers May Cost Up to $45,354 Per Vehicle

More negativity from myopic SA contributors. Am I to presume it's okday with everyone that JPM impoverished all shareholders of WaMu?...and then paid out one point five billion in million dollar bonuses? It's okay for these 'too big to fail banks' to borrow at a half percent interest, and lend at 200 times that percent? It isn't JUST the administration that is fleecing the public. And still, business, and individuals cannot catch a break from these lenders. THIS is where the real hemorhaging of our personal finances are taking place.

Are GLD and SLV Legitimate Investment Vehicles?

Thank you for that reality check. This is the kind of information we seek on SA. Objective, truthful analysis. It's all becoming clear hwo 'creative financial instruments' have wreaked havoc on the entire world economy. the staggering revelation here is that these 'instruments and devices' still operate in plain view...like a daring daylight bank robbery...yet it is legal? Astoudning. The history books will reveal all of this in academic courses in world finance one day.
How easy it is to fool most of the people most of the time....and get away with it. Lincoln said that. You know it isn't robbery if you give someone permission to rob you. I said that.

Forget Green Shoots: These Are the Brown Shoots Turning Black

This quote from Huffington Post regarding "fomenting" market fears in order to maximize short sale profits:

{In it, the host of Mad Money says he regularly manipulated the market when he ran his hedge fund. He calls it "a fun game, and it's a lucrative game." He suggests all hedge fund managers do the same. "No one else in the world would ever admit that, but I could care. I am not going to say it on TV," he quips in the video.

He also calls Wall Street Journal reporters "bozos" and says behaving illegally is okay because the SEC doesn't understand it anyway.}

Michael Shulman is a specialist in short selling. It is to his advantage to foment negative market sentiment. It is both illegal and immoral. If you take someone who doesn't care if 20 M retired lose their means of survival...you probably find someone who also believes in evolution-that is to say, this 'highly adapted animal' ( in his own view ) sees "The Weak" as" Prey". Moreover, he feels it his Duty to devour them in order to "advance the species"
( himself ).
I consider this contributor to SA a predator= breaking the law. I will now file a formal complaint to the SEC, using his own fear tactics above in the original article. I will also be looking for others on SA who I feel are in collusion to create market fear/panic, in order to maximize their gains from short sales. Soon, all these 'animals' will be in the bread lines with the now unemployed, and despised Hedge Fund managers. Then, of course, I want to have a discussion with them about survival of the fittest.

Boston Fed: We Don't Understand Foreclosures

If you would, stay on top of this, Tom. A huge number of us have been watching this to see what happens,.. if anything substantive or helpful. I think I'm correct in assuming most of us are confused. Off hand, I only recall that modification of delinquent loans were targeted at those falling behind, and not available for those who are managing to remain current...seems fairly logical that if one is delinquent now, they may well be 6 months after the modification. It does sound good on the surface of it - to reduce the principle and the monthly payment -and thereby free up disposable income...better than foreclosure, and abandoned homes being trashed by vandals. Please...tell us more.

Mid-Year 2009 Recap: What's Ahead

Confronting reality is never pleasant. I thank you for not sugar coating anything. The house I am still living in cost a whopping $18K brand new in 1971. As a working stiff wage earner, I am all to painfully aware that wages did not keep up with the Ponzi bubble you describe above. It was reported by the 'competition' in the campaign that McCain had voted against raising the minimum wage 9 times. Couple that with labor competition from illegal aliens, outsourcing, downsizing, and shows like "Flip This House"...we should have known these 'empty boxcars' were on a collision course with a train wreck. Your last sentence re. those in "The Beltway" being the architects of fraudulent credit issuance, and that which I mention here, is the most relevant concluding remark that could possibly have been made -ever- by anyone on SA. A lot of people will go to jail..."the usual suspects", of course...but not many in Congress will face charges= who set up this 'lose-lose' game to begin with.

Paul Volcker: The Voice in the Wilderness

T.Mark is developing quite a following, and for good reason. Knows history, and speaks plainly..with more than a little whimsey to keep a faint smile twinkling in our minds...meaning fun, and certainly enlightening at the same time.
Lots of us recall Paul Volcker...many of us were lithe and eager youths then...but a little alarmed at his, Volcker's, setting in place a staggering prime interest rate. It was the bullet that shot Pres. Carter in the foot. We also recall what seemed an endless round of hostile takeovers and greenmail mergers following Carter's demise and the 'deregulating GOP's' rise to stardom... the term "hostile" not nearly the melifluous sound of "mergers and acquisitions".
The picture is becoming more clear. Write on, Trader....
( hmm...sounds almost like (shudder ) "Right On"!

Corruption in the Executive Branch?

Re: Chicago politics. "stumbling bumbling liars"...or" look you in the eye and lie with a serious and sincere look of -ahem-compassion for your best interest". I was one of the complainers early on asking, "Why is it we all think lawyers have cornered the market on gifted leadership, and genuine trustworthiness?" I think everyone has forgotten all the shocking lawyer jokes I used to hear almost constantly. I still urge any and all, if they would, please...to plea for a dramatic turn from lawlessness ( Brian Ross' comment that over 100 Ponzi schemes are under investigation ), and a dramatic turn from immorality ( refresh yourself...watch the Maury Povich show a few weeks, until that sinks in, people. ). Any theologue worthy of the name knows there are grave consequences to an entire society for losing its moral compass. Theologians are detested enough as it is, but honestly friends, there are grave consequences. Anyone noticed fires ravaging homes? Floods, Hurricanes? Tornadoes? Earthquakes?...how about a volcano on U.S. soil anyone? One blogger I mentioned this to back during the campaign, said "This is the 2oth century; morality is not important anymore"...to which I replied, "Isn't it sad when cousins marry?"


On Jun 22 10:33 AM fireball wrote:

> chicago politics, actually chicago has just been caught more often.
> a man that can look you in the eye and lie without flinching is destined
> for high political office.
> a phrase the media coined which caught on comes to mind. "character
> isn't an issue?" it has always been the number one issue for me.
> without good character there is no "hope" for honesty, duty, honor
> or integrity.
> as i watched obama stand and lie so smooth and with such an altruistic
> demeanor it was chilling. at least mccain was a stumbling bumbling
> lier. these two were the best our nation could offer? i guess they
> were the best at the slime of politics.

Chart of the Day - Inflation Adjusted Dow

Thanks for the thought provoking chart. I've mentioned this before, but some of us recall a new car going for $2K in 1955. Compare that today with a new car approx $20K. It suggests that the dollar has lost 90% of its value. We all know the materials and the craftsmanship are dramatically of lesser value as well. I shudder to think of the value of the dollar 20 years from now..or even ten. Some of the skeptics above are not incorrect. Looking at long term charts is not a waste of time though for sure. The Book of Judges is a kind of long term chart also, over generations-where both the cause and the consequence of moral laxity is also perhaps the biggest factor -not seen on any chart anywhere but there. I refer to the Sorcerer's Apprentice 'production" of devastating fires, floods, hurricanes, tornadoes, earthquakes, droughts, crop failures...and military defeat. These all affect charts as well. It seems ludicrous to an agnostic, but the return to fair business practices, discouragement of Maury Povich show immorality, the surcease of usury, and wholesale fraud, rapacious real estate 'flipping' practices, etc. could work wonders for a chart. The key , to me, for a return of the bull market, would be the ready availability of 4% mortgages for primary occupancy ( based upon a 25%-30% reduction of 2006 property valuation ) . Perhaps I'm being too 50's mentality, albeit, I am sincere.

Mini Bull Trap - 200 Day Exponential MA Holds Again

I started tuning in to your station, Trader. A little humor helps to soothe the savage breast, and perhaps calm the horses straining at the gate; along with your characteristic bemused tales of the market , panned back for the ( hopefully) big picture. The jury is still out, for me, regarding what is going to happen. I'm playing it very cautiously now.

Federal Rescue: Unthinkable Trillions

Correct viewpoint above; this isn't money distributed so everyone can quit work forever, and just get a free ride. An old saw from the 50's goes, money is like manure-it's just a pile of _ _ _ _ unless it gets spread around. Roosevelt was also accused of being some kind of drunken sailor on shore leave. It all worked. Indeed...the Great Depression was characterized by no social security at all...meaning 75 year old folks had to go find a job! We're not that bad off. It will all surge back-probably too strongly, if anything. One last note...the dollar, compared to Roosevelt's time, is worth less than 5 cents today...divide 20 into 8 trillion, and it puts the drunken spending orgy in proper perspective. Oh yes...the dollar will be worth less than a penny by the next time this happens. We''l have to spend 40 trillion then. " Trillion"?... chump change. ( I'm being facetious ). Truly, though, a fundamental moral change must take place. That I do not see happening. All of us are way too materialistic, vain, self centered, elitist, and insipid. Thus we will all deserve our spiraling, flaming swan dive into bug infested Hell.

The $700 Billion Disconnect: Lost in Translation

I have this contributor on 'save' for his eloquence and acumen re both human behaviour, the political 'act' we all see unfolding - so revealing of congress's lack of real understanding - ("truly frightened by the fact these were the people in charge " ) . I too applaud Ben and Hank for doing the best they know how to do, far more ready with a solution than any of their 'grillers' ever thought about having. ( they're lawyer elitist, for God's sake; what could they possibly understand about macroeconomics? ) . Yes Hank Paulson is not eloquent...not, e.g , like your average, golf buddy, gated community 100K /yr car salesman, or million a year 'top real estate agent'. Thank God, neither of those two types are in charge of anything. Congress...approve the package and step away from these two guys, Hank and Ben; and shut the hell up.

Don't Be Fooled - Short Selling Restrictions Do Work

Excellent article -I'm tempted to say silver lining back lighting some dark clouds. I too was astounded to see such ire re. the temporary ban on short selling...at least long enough to reinstate the uptick rule; and perhaps add a few detectives (at the SEC ) to discover/ uncover collusion. Things are different now with, as one contributor described it, whippersnapper dufusii with a blackberry and a lunch break hitting the panic sell button as he sees his share price slide. We like to pride ourselves on being against the govt. - but they are applying every tool in the box to stop the slide/panic. I remember when the DJIA was below 8,000. Should valuations fall back to that? Would you still blame your current whipping boys, Paulson and Bernanke if that happens, and without any remedy it certainly will.
When will any of us blame ourselves. We're the ones who thought we'd all move to Boardwalk and Parkplace with our Humvees, 50 miles or more from town....with our high maintenance women drooling over the Sex and the City designer outfits, and charging it all on high interest charge cards. Credit cards, by the way that your Congress approved laws that allow them to charge you 30% interest if you are late with another creditor? Or allow GMAC to repo your car for only 30 days arrearage,and sell it to Carmax , on a short sale, and legally be allowed to bill the previous owner the difference, and keep the 'profit' for yourselves?....Isn't this similar to short selling? Isn't this like "I'll borrow your car, without your knowledge, bash it up, then sell it, and keep the difference between its former value and the bashed up value?
Yes...we hear a chorus of short sellers crowing about the valuable service they provide re. "true valuation". But trust me, the vast majority of us see these institutional short sellers as grand theft auto repo kings, snorting and chortling with slobbering greed and utter disregard for any 'weakling' who gets in their way to Boardwalk and Park Place.
Keep boasting of your right to naked short selling, so we can identify you , round you up, and send you to camp......camp penitentiary.

Market Meltdown: We Need Congress to Make This Right

It's nice to hear some rational thinking from someone obviously old enough to be able to put things in perspective. Indeed the field has been plagued by millions of whipppersnappers with a 'blackberry and a lunch break who would panic at the first series of downticks kicked off, like the proverbial dominoes, by perhaps, borrowing ten thousand shares of someone else's position, then sell at a drastically lower, fire sale price, and then 'reap the benefits' of the short sale...and leave the original holder with a devalued portfolio. Isn't that a little like borrowing someone's car, without their knowledge, and then bashing it up, selling it 'as is' and then 'reaping the rewards' of your 'caper' ?
I've heard an awful lot of cynical mockery and anger about the ban on naked short selling...I am making a stab in the dark here- but I am guessing that this outrage is coming from a million or more blackberry whizes who now have to hurry and cover their shorts?
I'm also astounded that there would be so much resistance to the gov't's bailout proposal. I am guessing here also, it is more about congress diverting blame from itself to the current whipping boys, Bernanke and Paulson.
I'd like to hear more from this contributor and others whether the Dow, which has swooned 4,000 points - whether it could fall another 4,000 with what appears to be political wrangling this close to election time? And why not fall to a DJIA of 6,000? My personal view is that we should not abandon ship at this moment in history. Buffet placed his bet on the table, and I encourage others to gird their loins also, and make a show of some modicum of courage-and, make for some gesture of 'this far down, and no farther' bottom. In a word, stop dumping shares out of panic. To quote another whipping boy of late, "Stand up and fight!" Show some hutzpah, goys and shiksas.

Housing: Bigger Isn't Always Better

By Jove, I think you've got it. You may or may not believe the community wide resistance to new developments. This town in particular grew from 5,000 ( I was born here ) to over 100,000. There are no expressways, or beltways to handle the traffic. That seemed to be the last consideration. There are many reasons-e.g. a sustained drought w/mandatory water restrictions, and it seems virtually all the developments 'boast' of "Lots starting int he low $200,000" Natives like me think "That's low? How long have I been asleep?" My home was $18k 37 years ago; and I'm still in the same house. This is just mind numbing. Add to that it seems there has to be a golf course, God forbid there's no gold course, which requires 40,000 gallons of water a day to maintain. Naturally all the lending institutions just adored all this filthy lucre flowing like a deluge into their coffers. Salesman became millionaires themselves with those prodigious commissions. So they all maxed out their lines of credit, as the bubble just grew and grew without end...almost a generation. Now, with no equity to draw on, no proceeds from equities; and sales , legal fees, and every ancillary home product provider you can think of contracting, and letting staff go. And here I am, never having felt the need to one up my 'associates", or my neighbors, or my fellow churchmen,...am sitting safe, sound and secure. Yes, it's a tiny house , yes I am a lowly blue collar worker ( shudder ! ); and own three cars, one 12 years old, one 37 years old, and one 57 years old, and a wooden boat I had the time and money to build. I highly recommend living modestly. Now if we can only encourage everyone else to offload the need to impress with conspicuous consumption...( fat chance!) . But it would be nice. Don't you think?

Boeing Strike Seems More Like Corporate Terrorism

The "engineer" said it most plainly and clearly. I would encourage the strikers to take a look at Ford and GM share prices. These once great American companies have been unioned to death. Most of the U.S. out here have never had good wages or benefits of any kind. We all have the right, and the obligation actually, to invest in a company and own a piece of it. An awful lot of Americans are dying and being maimed in war right now, so that we can share in the success of a company. We keep hearing about 'big oil' 'plotting and scheming to bleed us poor proletarians to death; but we don't hear much about the $200,000 a day it takes to operate one offshore rig. It's the same for Boeing. It is no small feat to take on the world's most complex projects and turn a profit. Yes, parts of the Dreamliner were outsourced...owing to the repeated strikes! This was your fault!

This all by itself is enough to drag BA down into the penny stock class, ultimately to disappear from America altogether. Then where will you go with 'hat in hand' looking for work?...To Ford? they've already been striked to death. How about Snappy Hamburger Palace?

This nation is in an economic death spiral. To strike Boeing now is egregiously unAmerican.
To quote Abraham Lincoln: "Congressmen who willfully take actions during wartime that damage morale and undermine the military are saboteurs, and should be arrested, exiled, or hanged"
BA has military contracts in the offing-the nation is going down like the Titanic...and machinists are sabotaging the company, and wanting more comfortable deck chairs. Trust me...most of the nation despises these striking machinists. You want to help this nation? Or are you only interested in your self interest? Then you are absolutely no different from the money lenders who wrecked the economy. You strikers are doing precisely the same thing. Say to your union bosses, "This is NOT the time to strike. We recognize this nation is at war, Americans are bleeding everyday and night...this is wrong. WE want to go back to Work." I assure you the nation will honor you like you would not believe. But you insist on this sabotage...you will forever be the jackasses you are making of yourselves...for all the world to see, and in all the history books for generations to come., when the young students ask, "What happened to the once great America?"....Yes by all means...you will deserve the ignominy . We would love to see you all 'let go'. We have no respect for you whatsoever. If you don't like this opinion, you can call 1-800-Crybaby.