TeresaE's  Instablog

Back in April/May, when the market started to claw its way back, knowing all the troubles we face and the insanity of valuing bankrupted companies as worth anything started to become apparent, I had a disturbing thought.

In July when the banks released their "profits," it solidified in my mind.

When the CEOs & Chairmen, start to "retire,"  get ready for the next shoe to drop.

The rats are fleeing the ship after stripping it bare.

When insiders sell (and they have been for months), then leaders "retire" from "recovered" companies, you might want to ask yourself what they know that we are missing.

Hang on folks, I fear we ain't see nothing yet.

The only question is which shoe falls first? 

Derivatives?
Commercial property?
Bad debt caused by increased carrying costs and no jobs?
Government regulation and taxation?

Something has to give in this bogus economy, let us hope that it isn't the final nail being pounded in.

So, I don't understand options, nor do I want to today,  as I just don't have the capital anymore to care.

But, I have clicked through and read a couple of Mr. Davis's articles attached to interesting headlines.

In both articles, he had grave misconceptions about some fundamental (and easily provable - if he bothered) truths.

Today, in his article, "Options Trader Outlook for Thursday, Jobs What Jobs" seekingalpha.com/article/158626-options-... , he made a statement concerning social security that I knew was wrong.

He stated that GWB was the one to break open Al Gore's lockbox.

So accessing long idled memory files, I thought, "WTF?"

The "lockbox" was a Bush I term, picked up by the Clinton administration towards the end of term. 

Reagan is the one that both broke open the box, and Clinton took unfunded liabilites (from federal employee pensions to social security and medicaid/care) off the books.  Clinton also changed the rules of reporting little things like inflation, gdp & unemployment.  Changes that GWB did nothing to repeal or fix.  Clinton also, in his lame duck status, voted through the Republicans crap shoot of increasing our expenditures over the next decade (this one) while allowing China to flood us with goods being sold below their production costs to run our small businesses out while gifting our wealth to a handful of multi-nationals.  Again, GWB did nothing to change it.

So, doubting my memory, after all Mr. Davis professes himself some kind of business expert and trading expert, I decided to go and look it up.  Amazing technology the web is.

....It would end the practice of using Social Security surpluses to subsidize other spending.
For over 15 years, surplus money collected by Social Security immediately has been spent to fund other federal programs. In return, Social Security has received special-issue treasury debt that can be cashed in to replace these funds sometime in the future. The lockbox would ensure that Social Security taxes are used either for Social Security or to reduce the amount of federal debt held by the public...

 

So, Mr. Gore and President Clinton and a Republican Congress spent the funds like party animals and then tried to stop the next President from doing the same.  Nice. And the way of the political world.   Just so happened that they did it during a one-second economy that led us to record employment and huge gains in "productivity" that ended as soon as Y2K was "solved" and then, of course, the dotcom bust.

But, this leads me back to Mr. Davis and his articles.  He provides no ability to comment on his articles, unless you go to his site and pay upwards of $250 a month for the priveledge.

His bio notes nothing but creating businesses at the right place and right time and selling them before the next crash.  While that makes him smarter than many, his lack of allowed feedback comes off as either scared of opposing views, or so egotistical to believe that his is the only right view.

Though I am no expert, I love the challenge of being presented new ideas and thoughts.  I don't know everything, there is so much I want to learn and the only way to find out that you are wrong is to allow dissenters to present facts and opinions.

So, any of you know anything about Mr. Davis that I don't?  Am I missing something?

All of a sudden a nothing.

From many articles weekly to nothing.

Anyone know?

I know they have postings at their new blog at zerohedge.com