raising4daughters

Four Reasons We're Headed Even Higher

Nice commentary.

Are we still allowed to say bad things about GE or Immelt? Not sure if that right was recently suspended.


On Aug 29 12:53 PM ArtfulDodger wrote:

> JS and Fellow Investors:
>
> I personally don’t spend five minutes a year trying to figure out
> which way markets are going and don’t really relate to doing it.
> I don’t really care either—for the most part. Crashes such as we
> saw last year are few and far apart; as a rule they simply don’t
> come piling on top of each other.
>
> As I’ve written before on this site, I was once a very foolish boy
> (now I’m a foolish man), and back in the 1980s when the CBOT began
> futures trading on indices, I jumped in thinking I could predict
> the day to day machinations of markets. After only a few days I realized
> my vew was fallacious. I continued to trade for about four years,
> but never again grew the hubris to think I could predict market direction.
>
>
> Therefore, I don’t usually read articles that predict market direction,
> but there are so very many negative articles on this site that I
> decided to read this positive one.
>
> I will say that Mr. Schwarz’s points are valid, especially this one:
> The DOW was around 8400 when Geithner came stumbling out of the blocks
> and Obama was strafing the economy every time he wagged his tongue.
> The DOW dropped 2000 points before Geithner could find his tongue
> and Clinton told Obama to nix the negativity—this was indeed a move
> that had nothing to do with the economy or business. That 2000 point
> move was thus no more a move back to normalcy.
>
> That said, let me also say that at this point the majority of stocks
> I’ve checked out recently do not fit my criteria for buying—but I’m
> a picky, tight son-of-a-batch. So because I can’t find something
> to buy doesn’t mean there’s a crash coming.
>
> I am invested mostly in China and Brazil, with only a few US companies
> in my coop. The problem I see with most businesses in the states
> is too much debt. This came about in my view mainly because of high
> corporate taxes—which
> are not going down.
>
> Some companies are indeed working their debt down. Others, such as
> GE, have added massive amounts of new liability to their books. This
> is why GE’s boss, Jeffrey Immelt, is pushing for a bailout of sorts—urging
> the government to pass the Cap & Trade Bill which will strongly
> benefit GE.
>
> Three of the US companies I own, GD, FWLT, and FLR have stable long-term
> contracts that guarantee them gracious earnings for years out from
> here. Shareholders should be well rewarded, in my view.
>
> The other two, JCOM and GRMN, have pristine balance sheets, keep
> bringing the bacon home to momma year after year, and have products
> and/or services with potential world growth.
>
> I have reasonable profits in all of these, but I’m not selling them,
> shorting them, or putting stops in on them—not matter what anyone
> says, unless there is drastic monetary or fiscal policy change.<br/>
>
> I urge investors (particularly new and young ones) to learn to search
> and find companies of this type, buy them when they’re down (or out
> of favor), and give them a chance to make you some money.
>
> You’ll be much the better off doing this than trying to pick market
> direction.
>
> Thank you for this article, JS, and your work.

Added Debt Won't Rescue the Great American Ponzi Scheme

Eventually? If the gub'mint ran a $100B surplus every year (over and above interest payments) for 100 years, it could pay down a national debt of $10T. Surplus of $100B? Not likely any time soon. 100 years? Our unborn great-grandchildren will still be paying.


On Mar 23 06:47 AM etbob wrote:

> The economy will eventually recover. Growth will be slower than in
> the past, as debt needs to be paid down, by both gov't and individuals.
> This should lead to a sustained, gradual, recovery.

Fannie and Freddie Did Not Cause This Crisis

Cybercorrespondent is correct. Amazingly enough, it's clear that the sheeple are going to elect the man of the two party nominees that can be DIRECTLY tied to financial crisis. Obama and his gestapo of community organizers led by Franklin Raines are going to take over the executive branch.

The media has shamed McCain into running a Dole-style, gentlemanly campaign, referring to Obama as "Senator Obama" and completely failing to link Obama to the Black Liberation movement, reparations for slavery, and the Community Reinvestment Act.

McCain has run the least inspiring, least gutsy campaign since 1996, and he's going to lose and electoral landslide.

3 Key Steps to Fix This Fiasco

This all goes back to the "War on Poverty." In our attempt to help the poor by getting them into homes, we've made a handful of crooks wealthy and the rest of us as poor as the folks we wanted to help.

Fifty years of failed attempts to help blacks has impoverished us for generations and will probably put one of them in the White House. How ironic.

Wall Street, 1792 - 2008?

Every one of those companies was led by a crook that should be frog marched to a federal pen.

Not nearly enough damage has been done to Wall Street. We'll know it was enough when Cramer and the rest of their scum cheerleaders on CNBC are off the air.

How Did We Get to This Point?

My 9th grader could've written this.

Six Situations to Monitor for the Remainder of 2008

It's pretty clear that the 2 Bushes have done more damage to this country's financial system that 19 Arab hijackers. I voted for McCain in the 2000 Republican primary, and I don't think McCain will be W's 3rd term. That said, he's running an uphill battle having to follow an animal act like W.