smerritt

California: The Haves and Have-Nots

California is a great microcosm of the rest of the country, perhaps a little skewed regarding the immigrant issue because of geography, but a great example nonetheless. At last report, 40% of all babies born in California are born to "undocumented residents". Read that last sentence again, because it's an absolutely staggering figure. These children then become US citizens and the US government then begins to pay for food stamps, housing, healthcare and other various welfare for the entire family. To ensure the continuance and increase of benefits, the families have increasingly more children and the hispanic population grows at a logarithmic rate. While there is no problem with any race, color or creed growing at a "logarithmic" rate, the problem lies in the fact that our social policies are the driving factor. Further, now that entitlement programs have reached epic proportions in California and the state, after funding massive infrastructure buildouts to service the illegals in the form of schools and hospitals- faces bankruptcy, it astounds me that the liberals (some of whom should be very good at math) refuse to acknowledge the facts of the problem. I'm certainly not mad at the illegals (aside from breaking the law as their first welcome to our country), I'm mad at our government for not enforcing the laws. The problems lie with both the democrats and the republicans. If our country doesn't wake up, the California problem is going to be the US problem. Another reader previously postulated that the illegals add more value to the country than they take... I think those numbers would be extremely hard to support that statement and particularly in light of the large portion of their income that is sent back to family in Mexico and Guatamala.

Forget Green Shoots: These Are the Brown Shoots Turning Black

Larry Boone, from Barclay’s Capital stated, ‘reassuring news’ is an effective antidote for social unrest. As an example, completely absent of economic evidence, the treasury recently reported that ‘green shoots’ of economic activity were beginning to sprout, but could not cite any specific examples that were independent of companies merely spending the stimulus or TARP (or TRAP) money they had received. A few reputable media outlets (there are only a few left) have begun to notice the reports for what they represent. The Financial Times, stated in April, “Talking-up recovery prospects can make sense, economists believe. Expectations of better times ahead, if enough people believe in them, can become self-fulfilling.” Now even the weakest economist should clearly recognize this thinking as “Voodoo Economics”. And if the market relies on nothing but confidence (without actual economic data or progress), then it is a confidence game and the ring leader is a ‘con man’. Green Shoots are a scam and it is very doubtful that this president is remotely interested in fixing the economy until his marxist social agenda is forced through. Caveat Emptor.

Five Leadership Lessons From Obama's Second Month

I can only pray that Shaun Rein becomes an analyst for my competition. I have never in my life seen such weak analysis of the real situation. Having a political love affair can definately cloud the facts as we see in the mainstream media. Very, very disturbing.

Bank of America: Optimism Is Unwarranted

Over the long run, perhaps one of the most useful tools to the enterprising investor is research and thesis development pieces exactly this one, where the stock is trading at $13.30 down from $55/share and the author wants the public to think the company will go substantially lower. One need only go back and look at past reccomendations to bring sobriety back into the thinking process. The majority of investors presume that what goes up, goes up forever and the same is true on the downside (Think $300 Oil and "Qualcomm is going to $1000/share). The best time to buy is when the blood is running in the streets and the time to sell is when people want to mortgage their homes to buy whatever the new things is.