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Friday, January 29, 2010

Great Numbers, Ungreat Reaction, AIG Used to Facilitate Thievery

Well, the bloom is off the rose.

Today's financial numbers appeared spectacular. GDP was huge, unemployment was stabilizing, and interestingly enough, the dollar keeps creeping up. Earnings reports were good.

So with all those great numbers, you'd think the market would be up. Wrong. It was down. Why? Because people who are knowledgeable and who are paid to make sound investment and well timed decisions know the best news is already baked into this market. Its time for strong hands to transfer stock to weak hands.

For months, I've said this market was overbought and that there is simply no place to put your money and make any kind of return on it. So the stock market became the investment of default. Gold is overpriced. Many commodities are overpriced. Real estate is still overpriced and far from stable. Banks still aren't lending or paying anything. Bonds are scary as hell.

And we still have real unemployment a helluva lot closer to 20% than 10%- despite the bullshit figures the government continues to spew out.

What's next? Well if we are done trying to artificially stimulate the economy and running up the greatest debt in US history, like Obama says, then either deflation or inflation are coming to a theater near you. I actually think we could still have a brief period of deflation say 6 mo. to a year, followed by rapid inflation. It's kind of fun to watch- because there is very little left for us to do but wait. And this scenario is unprecedented. They have just about fired every bullet they have at this mess. And one day, we all run out of bullets. And you will come begging for more taxes to pay for your blunders. The taxpayers say no more. We will vote every one of you miscreants out of office which just might happen in November. And all we'll have to show for this economic mess is a huge deficit and a tax bill that will make our eyes water. In fact, you'll need to sell stock to pay taxes but don't expect a lot of buyers. They are selling now.

And now the secret about AIG is out. The counter party claims, a helluva a lot more than anyone knew, went to pay Goldman Sachs and their cronies. And there was that big bald headed Paulson, former CEO, lying about what he knew to the Senate on TV Wednesday. Never has commented on how much dough he had tied up in Goldman and stood to lose if they went under.

When is a Federal Prosecutor going to grow some balls? When is the SEC going to investigate Geithner and Paulson? The greatest ripoff of my life occurred in the fall of 2008. Are you waiting until the statute of limitations passes? Shrug your shoulders? Or do you spineless bastards just focus your efforts on nameless, defenseless drug dealers and ninnies? Maybe some poor colored folks?

Maybe the oath of office you swore to uphold only stated that you promise to uphold the laws of this country as long as the target/bad guy was an easy one. No political clout.

Don't ever swear or take an oath that your cowardly asses can't possibly comply with.

The SEC report.

America is pissed off. We grow weary of your lies and thievery. Real Americans are patriots. Most of you don't know what that means. Look up the word "patriot." Elected and appointed folks. Gather your belongings and collect some boxes. It's election year. And by the time this year winds down, a lot of you greedy self serving cowards are gonna have to pack up your offices and return to your homes. Not soon enough for me. It's going to be fun to watch.

Wednesday, January 27, 2010

Internet Bullshit

A couple of updates...

I received this crazy email circulating on the internet that states Senate bill 2099 is a bill that requires all gun owners to declare what firearms they own and state so on an IRS tax return. It subjects us to a 50 dollar tax. It claims implementation in 2009.

I don't know how garbage like this begins- but it circulates and people actually start believing it. Raising fear and unrest. I went to the Senate site and clipped this;

Ya' know I try to research stuff, to be as accurate as possible. Getting burned more than once gets a little embarrassing.

So this morning I watched Geithner and Paulson tiptoe thru the "rigorous" questioning they were getting from the committee investigating the bailout of AIG. Hank looked like he was scared shitless throughout the whole ordeal. I waited for just one Senator to ask him just one question. But of course it never came. A simple one.

If Goldman Sachs failed, Hank's old firm where he was CEO and took the Treasury gig, would his millions in options become worthless? Or did he in fact- have a personal and financial interest in Goldman's survival?

And of course, amidst tossing the usual softballs and running their mouths non stop, I did not hear this question. But in all fairness, I didn't see the end of the evasive testiphony Hank was uttering. Saying he wasn't involved in the execution of third party claims from AIG to banks like his old firm. It made me wanna upchuck. See most recent post on counter party claims.

Ever since reading the allegation that Paulson had millions tied up in options with Goldman, I have tried to fact check or find information proving or disproving that theory. Would have loved for someone to just pop the question today and save all that search time.

I guess I'll just have to run that info down one way or the other. Or hell Hank, climb aboard- the comment box is yours.

Tuesday, January 26, 2010

Econ 101 in 2010

Tomorrow two fascinating dog and pony shows will take place.

The first will be Treasury Secretary Geithner defending the 100% bailout of big
banking interests by funneling 170 billion thru AIG. Of course Geithner, et. al., could
have negotiated a 75 or 50% payment on behalf of taxpayers. But you see, it's simple.
They don't give a shit about you. What's better yet, they are never held accountable. They
simply leave office with you holding a giant tax bill that spans decades. They know that.

Just listening to Geithner pisses me off. I don't know what it is about that guy. Maybe he doesn't have the full blown BS lingo polish of Obama or Bernanke down yet. Which leads me to...

The second dog and pony show which will occur when President Transparency gives his state of the union address. We will undoubtedly hear more bluster and bullshit, vague plans about this or that, littered with his hope message. Just once I'd like to hear Obama tell the truth. "I don't have a fucking clue what I am doing." That would be sweet. Give us a baseline.

Ok, so Geithner, like his crooked predecessor, Hank Paulson will survive. So will Obama and his pet dog, Bernanke. Doing tricks for his boss. So what does that mean for you? What does 2010 hold in store?

Zero real growth. Interest rates that must rise. And that ain't the best environment for stocks. I still think gold is over bought at these levels only because I am starting to see signs of deflation even after Bernanke littered the countryside with manufactured dollars. If China puts the brakes on their overheated and inflationary environment, things will grind to a halt. I see fuel and commodity prices dropping. But most importantly, I have noticed the rise of the dollar. A sneaky rise.

Yes, after months and years of getting its ass kicked, I think the dollar is about to rise from the dead. Deflation. Get long the dollar in the short term and I think you can safely short everything else. Really. Get ready for round deux of the grand recession. All the pieces have been carefully put in place and are being manipulating by an administration that can't balance its own checkbook. A leaderless group.

I don't know about you, but I can't wait to hear tomorrows speech. It's oh-so-predictable.