Bill S. Friend

In an op-ed this weekend, Ben Bernanke worries about leading proposals in the Senate that would strip the Fed of its powers: "These measures are very much out of step with the global consensus on the appropriate role of central banks, and they would seriously impair the prospects for economic and financial stability in the U.S."

It was the "expertise" of the FED who got us to this point. I would respectfully submit that the FEDs relationships with commercial banks has prejudiced monetary policy in this country, and this incestuous behavior still continues, suspiciously enhancing the balances of the very banks who endangered the financial system. Apparently there exists an entire society on Wall Street who wield unrivaled power and insight into financial matters whereby their annual salaries would take anyone else a lifetime to acrue. Paradoxically these same individuals were enriched by obscene amounts in apparent reward of their inability to predict the impending doom of the financial system all the while betting their personal fortunes against the insuring firms. All of this and more smacks of rampant fraud within our financial system and the only conclusion is that the complicity demonstrated needs to be rooted out and brought to light.

With Housing So Affordable, Time to Go Long Homebuilders

Obviously if you short an issue it makes sense to have someone long to buy the trade...

U.S. Economic Recovery and the Housing Sector Mirage

The end has already occurred, and what you see now is the death throes of a once great industrial machine. Corporate greed is the cause of all of this and the ignoramuses in congress enabled them. The dollar will fall until a giant sucking sound of foreign capital purchasing assets at a fraction of their worth, is heard as the money rushes in. It is debateable if their will be enough black ink to cover all the red. Eventually the dollar will regain its footing at a much lower level, and America will have to learn to produce exports again. Hopefully the governmental regulations will be a thing of the past and a new Consitutional government will rise from the ashes. This will take a long time.

NPR's Planet Money spends a day with Barney Frank's Financial Services Committee. "We talked to 13 congresspeople, 12 of whom admitted that they don't understand this at all. And the guy who thought he did really didn't."

Untrusting you are correct, however I am a cynic after working hard for my money. The compensation offered on a public service level is minute compared to the salaries let alone bonuses offered to individuals who set about to game the system. Perhaps some parity is in order between public and private sectors.

In addition, the complexity should be removed from the equation allowing some of the people on the financial services committee a chance to at least understand the beast.

Finally, perhaps CPAs could look over the tax code again and add a few more pages? Are these the same advisors?


On Nov 21 09:21 PM untrusting investor wrote:

> Bill,
> So who do you suggest then, if not CPA's or at least someone who
> has the ability to understand fairly complex financial issues? At
> least professional finance people can understand what the issues
> are.
>
> Ethics, morality, dishonesty, and self-serving behavior are not the
> pervue of one particular group. There is certainly plenty of that
> in virtually any group whether they be politicans, lawyers, CPA's,
> contractors, economists, artists, athletes, or whatever.
>
> Somebody has to make legislation and regulations, so as a point of
> interest, who do you think should be doing that?
>
>

Why Too-big-to-fail = Too-big-to-exist

The author makes excellent points regarding a subject that should have more attention. Unfortunately our news outlets are more concerned with maintaining the status quo rather than revealing the truth.
US corporations practice predation on the consumer at will. There are also many other examples of corporate sectors who take advantage, Insurance, cable television, cell phone providers, all pay no heed to customer service or satisfaction due to their death grip on a captive market.
Mortgage brokers made millions of dollars in compensation which fueled the wholesale lending. To think that the current debacle is not a result of corporate greed is naive.

NPR's Planet Money spends a day with Barney Frank's Financial Services Committee. "We talked to 13 congresspeople, 12 of whom admitted that they don't understand this at all. And the guy who thought he did really didn't."

More legislation formed by people who dont understand the issues. I question the motives of the accountants employed to inform the ignoramuses. There surely wont be any loopholes in this regulatory structure... Perhaps we should burn it and start fresh after reading The Constitution one more time.

Time for the U.S. Economy to Reindustrialize

Thats it!! Devalue the dollar and manufacturing will lead the way. Rail is the ticket when petroleum goes parabolic. Unfortunately the politicians dont dictate the third worlds' labor costs we have to compete with. As commodities rise so will wages even in third world countries as people scurry to feed their families.


On Nov 15 10:51 AM Gary A wrote:

> Well if the dollar is devalued enough we can have factories move
> here. Is that the plan? Problem is that assets are rising too fast
> if that happens, and it will still be too expensive to do business
> with 6 dollar gas. Maybe rail will be the only transport and maybe
> that is why Buffett decided to buy his big railroad.
>
> If the plan is 6 dollar gas and a work force willing to work for
> minimum wage in a factory, the politicians who allow it will all
> be gone and continually voted out.

JP Morgan Invents New U.S. Employment Numbers

The economy hit the wall from November to March. By printing excessive money the FED is relying on brand loyalty to the dollar to carry the day. Fraud is rampant from ratings agencies to investment firms. Fudged numbers are the norm. There is no accountability. The biggest lie was from Hank Paulson who was able to rush a 2000 page bill through congress granting him trillions of dollars to spend how he saw fit.
The biggest telltale was Bernankes response to the question, "Is the US economy a ponzi scheme?" whereby he immediately looked straight down and answered it wasnt. Bald faced lie.
This disaster has revealed to me that it is, and always has been based upon lies.
I would reccommend that Americans regardless of their views take step to ensure their future in any eventuality.

The Myth of the Strong U.S. Dollar

It is the job of the FED and treasury to talk strong dollar despite their actual intentions. They have to monetize the huge wad of debt America has ingested. The value of the dollar has fallen by 97% since nixon took it completely off the gold standard in 1971.
Exports will have to lead us out of this disaster. Inequities in exchange rates make American products more attractive, as the value of the dollar drops. Railroads will skyrocket, and farms will also become increasingly profitable as our food products become sought after by the rest of the world. Buffet is aware of this certainty. This process will take years to work out.

The Importance of Economic Discipline

In Brazils case, huge fertile lands that have never seen a plow along with a moderate climate lends itself well to prosperity. Brazil is also rich in natural resources, a boon in this current commodity favored atomosphere. Perhaps the people wresting control away from years of corrupt governmental regimes, should provide an example for Americans who suffer at the hands of a pretentious, ignorant congress who has long since lost sight of the framework formed by our founding fathers known as The Constitution of the United States of America.

Silver 'Misbehaves' in Recent Rally: Time to Buy

Very lively discussion! I would agree that holding the physical metal is the only way to go. I have about 20 years before I retire and I dont trust the government to provide a stable investment climate (as is one of their primary responsibilities). I have been burned in equities and real estate and simply seek a dependable store of wealth for my golden years. I think a one ounce American (silver) Eagle should maintain at least some of its value. A big dog is still the best deterrent for thieves. Long physical silver, guns, and ammo.

Priceline.com Flying High on Strong Earnings

I can only offer my experience here. Pricelines tactics leave alot to be desired. They tend to take alot of liberties with credit card information. They will fight cancelled charges with precision. I would hate to see the litigation they are involved in. They could potentially have their bottom line harmed if consumer protection laws are passed. Personally I have a hard time believing their recent earnings, and have stopped watching any Star Trek.

Dethroning Google: Competition for the King

Murdoch is a pompous ass. I have computer experience dating back 30 years and until Google made a search engine I was pulling my hair out. I dont need Murdoch murdering so many trees to exhibit his opinion! Does anyone remember what a msn search was like? Thank goodness there is some competition. I can think of a few more industries who could use a run for their money.

Q3 GDP: Obviously Fictional

Its obvious the numbers have been tweaked.
There are other sources of GDP. In south Florida the tourists are increasingly foreign, and a few are picking up real estate. Some South Americans have to visit periodically either for business or healthcare treatment. The favorable exchange rates make everything American even more attractive. The dollar index has fallen 10% since elections last year and I trust the market more than government statisticians.

Gold Transforming into a Completely Demonetized Wealth Asset

Yes, gold is an effective means to get out of a fiat currency dictated by a corrupt regime. Buffet said that his purchase of BNI railroad was an "all in" bet on America. He got his money out of the USD and bet on the dollar falling, henceforth, commodities rising. He is also long in agriculture. The lesson here is to get your money out of dollar denominated assets.