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  • The Economy Is Sliding Into a Stagflationary Spiral  [View article]
    Toto compare Bush to Reagan is to reveal your complete lack of understanding of conservative policy and thought. Bush was a liberal light in terms of his domestic agenda. Do you really think Reagan would have proposed and passed something like Medicare part D???
    We really need a Ronald Reagan now more than ever.
    May 18, 2011. 02:17 PM | 1 Like Like |Link to Comment
  • The Economy Is Sliding Into a Stagflationary Spiral  [View article]
    Yes, we do. China is currently funding their entire military budget off of the interest we pay them on the US debt they now hold. As their economy grows, you will see further military expansion from them. We need to remain strong now and in the future.
    However, there is certainly room for cuts. As an example, why are we still posting troops in Europe, Japan, S. Korea and elsewhere? It is time that these nations provide for their own security or pay us for the massive expenditures we make to protect them.
    May 18, 2011. 01:57 PM | 6 Likes Like |Link to Comment
  • Emerging Market ETFs: A New Way to Invest in Commodities  [View article]
    Prior to buying ECH I looked closely at their Government (Democratic Republic) debt to GDP (only 6.2%) Market Freedom (very good), and liabilities to Entitlements (none they took these private and free market). They also have excellent real growth in their economy. All this plus the Copper play made me buy. I feel much less sure about Peru although it is good to hear that they are "right wing". Their debt ratio as I remember was not very good. I would not put money into Russia due to their government or South Africa, again for the same reason.

    Any way this was a great article
    Nov 9, 2010. 02:12 AM | 1 Like Like |Link to Comment
  • Is It Time to Sell in May and Come Back Another Day?  [View article]
    The economy, the deficit and looming inflation, the jobs numbers, what seems to be a new round of foreclosures but this time in non sub prime loans, weak GDP, and just about all economic news has to lead anyone with any experience to believe that the only positive out there, the stock market, is not going to hold up.

    I took my profit in my long positions last week and bought both SDS and QID. Monday hurt but I think we are in for a hard summer for stocks. I want to profit on that even as I profited in this sucker’s rally.

    I may be wrong, but cannot see anything that will take this market much higher.
    May 21, 2009. 12:28 AM | Likes Like |Link to Comment
  • High Yield Bonds Were a Good Bet After All  [View article]
    HYG is not the best thing I have owned over the last 9 months or so but I will take a 24% gain and a 12.7% dividend to boot anytime and most certainly in these times!
    May 21, 2009. 12:20 AM | Likes Like |Link to Comment
  • A Summertime Short Play with SDS  [View article]
    I also took a position in SDS last week and sold off 75% of my long holdings (time to take some profit). You hit on every point that makes me believe we will see much more pain over the next 6 months. Added to what you have said, I think we still have many more foreclosures coming in the non-conforming home loan area and this will be made worse by the employment issue.

    Somehow, I can;t get behind gold but I am not saying you are wrong by any means. The fact that China ia now buying less US debt and instead buying gold might certainly argue for a rise in gold prices, still I keep making that dividend play.
    May 21, 2009. 12:14 AM | Likes Like |Link to Comment
  • Why Obama's Big Spending, Big Taxing Regime Will Cripple the U.S. Economy  [View article]
    Thanks for this article! I must assume from what I have read that you feel we are well on our way to massive inflation. Is that correct?
    Mar 24, 2009. 12:59 AM | Likes Like |Link to Comment
  • Why Obama's Big Spending, Big Taxing Regime Will Cripple the U.S. Economy  [View article]
    Amen Brother! Still what a price to pay for the envy of so many of those who work so hard for all they have. These are the Obama supporters.

    On Mar 23 12:11 PM Socialism cannot compete! wrote:

    > Well, I guess the one silver lining in what the Obama admarxistration
    > is doing is that it will finally kill Keynesian notions for once
    > and for all! After that, assuming we still have a country, we can
    > rebuild under a system that has purged Keynesianism from its economic
    > policies and returned to the idea that peoples' money belongs to
    > them, and that confiscatory taxation of any amount is anathema to
    > Liberty!!
    > fairtax.org
    Mar 24, 2009. 12:56 AM | Likes Like |Link to Comment
  • A More Modest AIG Bonus Proposal  [View article]
    When you wake up, you might want to consider the facts.

    The bonuses paid were based on retention not profit. The profit bonus was NOT paid.

    The contracts were written PRIOR to any Government bail out money being offered.

    The current CEO, a Mr. Liddy, had zero to do with all this, has come out of retirement at the request of the government to oversee AIG, and is PAID ONE DOLLAR A YEAR! I think congress tried to make him a scape goat but it did not work with those of us who are informed.

    On Mar 23 01:27 PM WAKEUP wrote:

    > All you Zackies need to get this understood: Bonuses are paid for
    > SUPERIOR performance. In the case of a financial products company,
    > that means PROFIT. Since AIG LOST money, there is NO REASON FOR ANY
    > AIG bonus-thing was one more whiny, wimpy fratboy/old boy system
    > scheme to get one last drop of blood out of a dying turnip. I'm damned
    > tired of this whole thing. Fire everybody in management at AIG (reason
    > for firing: incompetence, which will hold water in any court), send
    > them on their way, and get ALL that bonus money back. There is no
    > moral or legal obligation to uphold the terms of an illegal contract.
    > In this case the illegality took place when AIG promised bonuses
    > which AIG KNEW it had no money to cover, deliberately leaving the
    > taxpayers holding the bag. And anybody with two brain cells to rub
    > together knows that AIG saw this whole mess coming, before it carved
    > out this B.S. bonus deal.
    Mar 24, 2009. 12:35 AM | 1 Like Like |Link to Comment
  • A More Modest AIG Bonus Proposal  [View article]
    On Mar 23 08:45 PM WayneS wrote:

    > Mediapro - Last year the "Big Three" oil companies combined to make
    > $71 billion. They paid $169 billion in taxes. Where are the subsidies
    > you are talking about? XOM paid $16 billion more in taxes than they
    > made in the US over the past several years.

    Yes, and that does not include the sales taxes paid at the state level, income taxes by their employees, or lease expenses paid. They find it, drill for it, pump it, transport it, refine it, transport the finished products again, and then retail it all for about half of what Government makes for sitting on their congressional ah chairs and doing nothing!
    Mar 24, 2009. 12:27 AM | 2 Likes Like |Link to Comment
  • A More Modest AIG Bonus Proposal  [View article]
    I always opposed the TARP legislation for 2 simple reasons. First, Government has no place in the free markets beyond reasonable laws against unfair practice or fraud. Secondly, Government has a very poor record when it does get involved and most often makes the problems worse rather than better.

    We now have a nation up in arms about bonuses being paid to AIG employees that were under contracts that existed prior to the payment of any Government money to AIG. As a resolution to this outrage, we would now turn hundreds of years on contract law on its head and rescind legal and binding contracts because Congress is unhappy. If that is not possible, we will then use the tax code to punish one group and, in effect, still not honor the contracts. In case some of you might have forgotten what your parents should have taught you, “two wrongs do not make a right” and “the ends do not justify the means”.

    The fact is that we assumed many of the liabilities of AIG when we took an 80% ownership share in the company. Among these were the bonus structures, like it or not. We are stuck with much larger and more expensive things as well that will cost all of us dearly. It is possible, had we simply let AIG go to court and declare chapter 11 bankruptcy, that we could have seen these contracts addressed in a court of law although I think it would be unlikely that the court would have voided these contracts even then. In any case, the money spent would have been that of the stockholders and bondholders and not the US Tax Payers!

    We have been told that AIG was “too big to fail” but I must wonder if it is not too dysfunctional to survive without perhaps trillions of taxpayer dollars to bring AIG back to solvency. In light of that, these bonuses seem pretty small. In light of the actions and changes to our legal system required to get that money back, these payments are truly not worth the damage. If you must have some revenge you might consider having Mr. Dodd and Mr. Obama return the $100,000 plus they both got from AIG executives in 2008 as campaign contributions. That is the thing that you all should really be angry about!
    Mar 24, 2009. 12:23 AM | 1 Like Like |Link to Comment
  • Obama Makes Sense  [View article]
    It seems to me that Obama says so many things that it is hard to figure out exactly what he is saying. I have concluded that most his statements really don’t say anything at all. They are only his excuse for what his next actions will be. We should not read too much into the “Audacity of Platitudes” found in his speeches. This is why, in one speech, he would proclaim the current economic crisis as the “Worst since the Great Depression” thus giving him a reason to pass the single most expensive spending bill in history, the “Stimulus Bill”. In another speech only 5 weeks later, we are told that the economy is “not that bad” and will be much better if we only follow his plan. This is much like Johnson’s light at the end of the tunnel statement when public opinion turned against the war in Viet Nam. Obama will say whatever is required to pacify those who oppose what he is doing and questioning the effectiveness of his actions. Meanwhile he marches on toward his ultimate goal.

    In the final analyses then, we can best judge Obama by his overall Vision for America. It is a controlled economy in which the government will redistribute the wealth through taxation and programs that benefit only the lowest of wage earners. The stability of the markets will be insured by increased regulation, taxation, and laws designed to force business to do the bidding of the administration. While Clinton was viewed as a “Liberal President” he proved to be pretty pragmatic in his approach to economic problems and often used the Republican Congress as the scapegoat for legislation that he actually favored. The Welfare Reform law is an excellent example of this.

    Obama is a whole different animal. He is driven by his dogma and is interested only in actions that get him closer to his Vision of America even if they do not work. As an example, consider his stance on increasing the Capital Gains Taxes during the election and his response to a question about how this would not actually increase revenue,


    After you work your way thru the Platitude, you find that it does not matter if the increase in taxes would actually increase revenue. The idea of “fairness” trumps the practical intention of the act. It is Ideology over Reality with Obama, pure and simple.

    So, in the end, we would all do better to look at the Obama agenda rather than wait upon his every word. Understand, he his goal is to move toward a mixed sort of National Socialist economy even if it does not work because he sees it as a moral imperative greater than this financial crisis, the constitution, and certainly the preservation of Capitalism that he completely opposes.

    Mar 14, 2009. 11:03 PM | 8 Likes Like |Link to Comment
  • Household Debt: The 'Prisoner's Dilemma'  [View article]
    Excellent article and it only confirms what I knew to be true. Many of the people I know are flat out tapped out and in massive debt! It would seem to me that the best way out is to find ways for the consumer (citizens) to pay down their debt and reduce their leverage. It is only then that they will start spending again and get the economy moving!

    The Stimulus offered thus far is not only not going to do that but it even works against that goal! The best thing our government could have done was not to spend like OC wives on a shopping spree but instead to have extended MAJOR tax cuts to EVERYONE. I am not talking about $13 a month as we got (except me, I get $0). I am talking about reducing the taxes on everyone by 30 to 40% for all of 2009 and 15 to 20% for all of 2010. The fear in Congress was that we would use the money “improperly”, that is, we would not spend it all. Sen. Shummer went so far as to say that we might use the money to “pay off debt, save the money, or invest it in stocks, even stocks in foreign countries” and that would not do. Yet, this article reveals that this is exactly what we needed to do to get the economy moving and the consumer buying again.

    In addition, the government should have cut spending as much as possible except where it directly helped get us out of this economic crisis. Instead we got a massive Stimulus or pork bill, at least another 2 Trillion going to TARP, an 8.8% increase in Government spending with 9,000 earmarks in the Omnibus spending bill, and plans for a Nationalized Health Care System! In other words, spending that is out of control and will most certainly devalue our currency.

    Sooner or later, this deficit spending will have to stop and the debt will have to be paid. This means higher taxes for all Americans and not just those in the top 2% of wage earners. This, of course, reduces the ability of the consumer to pay down debt, invest, or buy stuff. It seems to me that the Stimulus Bill only gives us a short jolt with a very bad let down. A Tax Cut would allow people to put their financial houses in order, make them more likely to hold on to their homes, more likely to save and create Capital for investment, and when they are finally out from under debt, begin consuming to grow our economy.

    I think Obama got this all-wrong and it may be too late to turn it around. I see the US in a “Lost Decade” as people try to work their way out of personal debt, pay down government debt through higher and more taxes, and, very little if any growth in GDP as a result.

    Mar 13, 2009. 09:30 PM | 2 Likes Like |Link to Comment
  • Four Horsemen of the Bear Market  [View article]
    Excellent article that makes much sense to me.
    Mar 13, 2009. 04:08 PM | Likes Like |Link to Comment
  • Four Horsemen of the Bear Market  [View article]
    Well, let's see. He predicted inflation in the near future, right? Seems to me that commodities and commonity driven companies would be a good place to start. Then there is the ultimate commodity, Gold. You could also find a more stable currency and bet it against the dollar. As an example, the Canadian dollar is very commodity driven and has been weak against the dollar. There would be a play. Now, I am not saying you should do any of this but if this article seems to make sense to you, there would be some plays to consider. You see, not everyone is going to connect all the dots for you unless you want to pay them to do that.

    On Mar 13 12:04 PM Alex Filonov wrote:

    > We can rant all we want, sure. How do I make money from this article?
    Mar 13, 2009. 04:08 PM | Likes Like |Link to Comment