There is something very troubling to me about the Bernie Madoff scandal. At first, I couldn't quite put my finger on it. Then, after a few days, it started to sink in. The initial reports indicated that the fraud he perpetrated exceeded fifty billion dollars. That's fifty thousand million dollars to you and me. A huge amount of money. Enough to buy all of the big 3 automakers, lock, stock and barrel. We hear big numbers all the time now, so this one should not come as a surprise.
What is surprising is the fact that he was able to swindle the very wealthy using a very base criminal device, a Ponzi scheme. You can wiki Charles Ponzi to get an idea of what happened here. The nutshell version is he told his investors that they would get a big return, and then paid them later with money from newer investors. This could have gone on forever undetected as long as there was an influx of greedy new investors. Ponzi schemes are not new.
What is new, is the use of leverage by a Ponzi scheme. Madoff managed about seventeen billion or so in real dollars, but leveraged them to about 50 billion. Complicated and dangerous, but he had solid credentials. People like to invest in this guy.
What is most troubling to me is that many of his investors are heavy hitters. They are the super wealthy. In addition, many of them had to know that his reported returns were too good to be true. Never a down quarter. Never a monthly loss. Never. Yet these wealthy investors gave him their money anyway. Why? Chances are good that they thought he was insider trading or somehow cooking the books to his clients benefit. So in other words, they were so greedy that they figured a criminal like Madoff would make them more money than an honest broker (as if there is such a thing). And now, already there is talk of a government bailout for these "poor" investors. Do not let this one happen.
Friday, December 19, 2008
Saturday, December 6, 2008
The Tail Of The Tiger
As you have no doubt heard, the "Big 3" are the next industry that has been anointed worthy of being bailed out by the government. On Monday, there should be motions in place for a speedy passage. I expect that the first payments will be virtually immediate to GM.
This is bad business. It reeks of organized corruption. It ensures that the American tax payer will be held liable for future business failures. It is the antithesis of everything democracy and free enterprise are supposed to stand for.
It should be duly noted that the Big 3 are putting this "crisis" clearly on the shoulders of the shattered economy in the USA and around the world. They seem to take no responsibility for their actions over the past decade. The "no one could have predicted this series of catastrophic financial events" excuse just seems a bit too convenient. If you think this is the end of corporate bailouts in this round, I think you may be surprised at what comes next.
Obama is already talking about a "New Deal" style plan that will create millions of jobs building and rebuilding infrastructure. The areas being targeted are roads and bridges (oh how I hate the word bridges), and of course, the ultimate cash grab, the Health Care industry. Expect the hundreds of billions of dollars worth of infrastructure costs will fall squarely on YOUR shoulders. These costs will not be borne by the wealthy, or by corporations. YOU will pay. Your children will pay. Your grandchildren may even get it paid off before the next wave of crisis arrives.
If you go to hunt a tiger, you need to be adequately armed and equipped. If you jump in quickly with out the right gear and preparation, and grab him by the tail, do not be surprised by the tiger's reaction. After all, you knew what he was when you grabbed his tail.
This is bad business. It reeks of organized corruption. It ensures that the American tax payer will be held liable for future business failures. It is the antithesis of everything democracy and free enterprise are supposed to stand for.
It should be duly noted that the Big 3 are putting this "crisis" clearly on the shoulders of the shattered economy in the USA and around the world. They seem to take no responsibility for their actions over the past decade. The "no one could have predicted this series of catastrophic financial events" excuse just seems a bit too convenient. If you think this is the end of corporate bailouts in this round, I think you may be surprised at what comes next.
Obama is already talking about a "New Deal" style plan that will create millions of jobs building and rebuilding infrastructure. The areas being targeted are roads and bridges (oh how I hate the word bridges), and of course, the ultimate cash grab, the Health Care industry. Expect the hundreds of billions of dollars worth of infrastructure costs will fall squarely on YOUR shoulders. These costs will not be borne by the wealthy, or by corporations. YOU will pay. Your children will pay. Your grandchildren may even get it paid off before the next wave of crisis arrives.
If you go to hunt a tiger, you need to be adequately armed and equipped. If you jump in quickly with out the right gear and preparation, and grab him by the tail, do not be surprised by the tiger's reaction. After all, you knew what he was when you grabbed his tail.
Friday, November 28, 2008
Hey Look....Something Shiny!
A belated happy thanksgiving, and welcome to Black Friday. This will be short, and none too sweet, as it is very early in the day for me, and cup of coffee #2 is just kicking in.
If you have been watching the events in India closely, you probably saw the news about the terror attacks on Wednesday (here). A group of armed militants struck several targets simultaneously, leaving anywhere from 10 to 150 people dead (depending on what and when you read). Initially, it was reported that the attacks came from a little known group in India called Deccan Mujaheddin. Later reports indicate that the attackers are from outside the country. Pakistan, India's long time enemy, has been suggested by more than one news source. There are also indicators that the attackers may be linked to Al Queda.
I urge you to ignore what you are being spoon fed by the media, and instead, look at what infrastructure projects have just been completed, and now are being paid for. In particular, look for references to Cisco and Siemens. There are more I'm sure, but you'll have to dig a bit deeper to see them. Stock values are being deliberately debased to pay for the completions. This is how it gets done. The terror attack is the distraction. It allows the elite to pick the pockets of the middle class, flying way under the news radar.
Watch the stock market in India closely...the names that suffer there this week will be suffering here as well. Use this information and profit.
If you have been watching the events in India closely, you probably saw the news about the terror attacks on Wednesday (here). A group of armed militants struck several targets simultaneously, leaving anywhere from 10 to 150 people dead (depending on what and when you read). Initially, it was reported that the attacks came from a little known group in India called Deccan Mujaheddin. Later reports indicate that the attackers are from outside the country. Pakistan, India's long time enemy, has been suggested by more than one news source. There are also indicators that the attackers may be linked to Al Queda.
I urge you to ignore what you are being spoon fed by the media, and instead, look at what infrastructure projects have just been completed, and now are being paid for. In particular, look for references to Cisco and Siemens. There are more I'm sure, but you'll have to dig a bit deeper to see them. Stock values are being deliberately debased to pay for the completions. This is how it gets done. The terror attack is the distraction. It allows the elite to pick the pockets of the middle class, flying way under the news radar.
Watch the stock market in India closely...the names that suffer there this week will be suffering here as well. Use this information and profit.
Saturday, November 22, 2008
Here There Be Pirates
Many of us have romantic notions about pirates, thanks to the Hollywood depictions we have seen, and the vividly written books of our childhoods. It's all swashbuckling and plank walking, swords and honor among thieves. These preconceived notions are dangerous right now, as piracy has once again made it to the headlines of international news outlets.
Somalia is a tiny sliver of a country on the coast of the African continent. It has been controlled by warlords for a long time, and is home to many of the Muslim faith. Recently, instances of piracy have become much more frequent off their coastline. No longer are pirates after military ships, or the plunder they can find on board cargo vessels. Modern piracy is a confidence game.
Historically, pirates often started as privateers. They carried letters of marque from the king of the country they were loyal to, and had the purpose of disrupting supply routes for military ships. Privateers were entitled to a large share of the spoils on the ship, and the King got another precious ship either taken out of commission, or captured, making his grasp a bit firmer. When wars were settled, many privateers became freelancers, flying their own flags and keeping cargoes and vessels for themselves.
The Somalian pirates are making headlines for their bold attacks on cargo ships. As many as 12 this month alone. These include a Russian shipment of military tanks, and a Saudi shipment of crude oil on a supertanker. Both of these attacks were carried out by approximately 20 men with automatic weapons, using a small fishing boat as transport. They managed to take the ships in a very short period of time. The cargoes of these ships is secondary to the pirates. The goal of these Somalians is ransom. The pirates contact the ships owners and demand ransoms ranging from about $1 million to $25 million dollars. They keep the ship moored in their shoreline and await the money's arrival.
I am a bit skeptical about the whole situation. I have questions. Why are they able to do this? Where is the money going? Why aren't shipments re-routed to avoid this new threat? Why haven't military options been exercised to deal with them?
I don't have the answers, but I think I can guess. The pirates are able to do this, because they have been given permission from their local warlord, who in turn is getting a piece of the action. I also think that a military option has not been exercised, because somebody out there wants the problem to grow larger. It is very expensive and time consuming to re-route ships. And finally, the world needs to have their attention diverted from our real problems, namely a crumbling world economy.
I think that something big is going to happen over the next week or so in Somalia. I don't think that it will be an assault from a military power, but rather, hired security. The Saudi's have already indicated that they do not intend to pay ransom. We'll probably see a company like Dyncorp, a company that has many government contracts, brought in to clean house. There will be plenty of headlines and TV news coverage of this non-event. Make no mistake...if this were a big deal, the powers that be would have dealt with it swiftly and harshly a long time ago. They didn't...because it isn't. They need this diversion and will use it. There may even be patriotic finger pointing letting you know that Somalian Pirates are actually Al-Queda. Don't be fooled by morality plays. Watch the REAL news buried on page 4 and find out what they don't want you to see.
The skull & crossbones on the Jolly Roger look strikingly familiar to the poison label we are taught to avoid as children. Stay away from this whole story. It will lead you nowhere and keep you from seeing what they are trying to hide. Time for my daily ration of grog and off to sleep.
Somalia is a tiny sliver of a country on the coast of the African continent. It has been controlled by warlords for a long time, and is home to many of the Muslim faith. Recently, instances of piracy have become much more frequent off their coastline. No longer are pirates after military ships, or the plunder they can find on board cargo vessels. Modern piracy is a confidence game.
Historically, pirates often started as privateers. They carried letters of marque from the king of the country they were loyal to, and had the purpose of disrupting supply routes for military ships. Privateers were entitled to a large share of the spoils on the ship, and the King got another precious ship either taken out of commission, or captured, making his grasp a bit firmer. When wars were settled, many privateers became freelancers, flying their own flags and keeping cargoes and vessels for themselves.
The Somalian pirates are making headlines for their bold attacks on cargo ships. As many as 12 this month alone. These include a Russian shipment of military tanks, and a Saudi shipment of crude oil on a supertanker. Both of these attacks were carried out by approximately 20 men with automatic weapons, using a small fishing boat as transport. They managed to take the ships in a very short period of time. The cargoes of these ships is secondary to the pirates. The goal of these Somalians is ransom. The pirates contact the ships owners and demand ransoms ranging from about $1 million to $25 million dollars. They keep the ship moored in their shoreline and await the money's arrival.
I am a bit skeptical about the whole situation. I have questions. Why are they able to do this? Where is the money going? Why aren't shipments re-routed to avoid this new threat? Why haven't military options been exercised to deal with them?
I don't have the answers, but I think I can guess. The pirates are able to do this, because they have been given permission from their local warlord, who in turn is getting a piece of the action. I also think that a military option has not been exercised, because somebody out there wants the problem to grow larger. It is very expensive and time consuming to re-route ships. And finally, the world needs to have their attention diverted from our real problems, namely a crumbling world economy.
I think that something big is going to happen over the next week or so in Somalia. I don't think that it will be an assault from a military power, but rather, hired security. The Saudi's have already indicated that they do not intend to pay ransom. We'll probably see a company like Dyncorp, a company that has many government contracts, brought in to clean house. There will be plenty of headlines and TV news coverage of this non-event. Make no mistake...if this were a big deal, the powers that be would have dealt with it swiftly and harshly a long time ago. They didn't...because it isn't. They need this diversion and will use it. There may even be patriotic finger pointing letting you know that Somalian Pirates are actually Al-Queda. Don't be fooled by morality plays. Watch the REAL news buried on page 4 and find out what they don't want you to see.
The skull & crossbones on the Jolly Roger look strikingly familiar to the poison label we are taught to avoid as children. Stay away from this whole story. It will lead you nowhere and keep you from seeing what they are trying to hide. Time for my daily ration of grog and off to sleep.
Thursday, November 20, 2008
Fore Warned Is Fore Armed
I have been out of town for the past few days, taking a brief vacation with a good friend to the gambling Mecca of Las Vegas, NV. During this time, I have had an opportunity to observe some interesting events regionally and globally. I am still a firm believer that if you follow the money, you always end up finding the bad guy(s).
I am a talkative person. I enjoy meeting new people and learning about what motivates them. I also enjoy gambling, especially poker. Las Vegas is a perfect place for a person like me. It's a bit like having your cake and eating it too.
The first, and most obvious event I witnessed happened while I sat at a $1-2 no limit holdem game at Bally's yesterday. They have a cozy poker pit which is conveniently located right next to the beverage station, so a cold drink is literally seconds away if you feel thirsty. The waitresses are, shall I say, a bit more mature than the ladies you'll find at other establishments like the Rio or Caesars Palace, but they are also friendlier and more efficient. They understand the nature of their business and complete it with near ruthless efficiency. As I sat there, folding rag hand after rag hand, my attention was drawn to the large TV screens that were all around the poker room. Most of them had CNBC on, chronicalling one of the largest single day crashes in Dow Jones history.
When you play poker, you get to meet all types of people. Some are nothing more than degenerate gamblers. Most are tourists who fantasize about a career as a pro poker player. The rest are pretty well heeled business types who understand the nature of risk and reward. That's really what poker is all about. These are the players that cause me the most distress.
I had the opportunity to chat with a couple of guys who were in town for a gaming industry convention. They were also watching the ticker drop on TV. The seemed to share the same level of concern that I have about how that impacts our lives, and the future of business in this country. They also indicated that their industry is suffering right now because of slipping gaming revenues. They also indicated that it could be a lot worse...they could be in the automotive industry. Ha ha.
Cabbies can also be a wealth of information about regional economies. The three I rode with at different times all indicated that their fares per day are at less than half what they were a year ago. Tips were getting smaller too. Even Vegas gamblers have a budget to live by now I guess.
Today, the Dow took another huge plunge, and re-tested the lows of October when it dropped below 7882. I can't help but think of what this does to the faith that Americans have in their sacred institutions. GE, Microsoft, all of the major banks took massive wallops today. Decliners lead gainers by a 6 to one margin. Yet in all this carnage, of nearly oblivious company had a GIANT increase today: VeriChip (nasdaq: CHIP).
VeriChip posted about a 15% gain today, at a time when other stocks in their same sector were getting hammered. VeriChip is in the business of RFID chips. They make devices which can be used to track assets for companies and governments all over the world. In addition, they have received Phase 1 approval from the FDA for continued trials on their new implantable glucose monitoring chip for diabetics. They also make a chip that can be linked to your complete medical history. They have just teamed up with Microsoft for a new project that will have implant users keeping their medical information on servers that can be accessed by medical personel in hospitals around the world. If you are a punter that likes to have the best of it, you would be wise to have a look at this company. They are cheap right now, but I have a feeling that they won't be for long. Their implantable tracking chip technology is just what the government ordered for keeping tabs on the peasants.
So I guess todays takeaway is this: buy the company if you like it, but don't buy their message that they are doing humanity a big favor with their tracking tedchnology. Giving up liberty for a bit of security ensures you'll end up with neither....and that's never a good bet.
I am a talkative person. I enjoy meeting new people and learning about what motivates them. I also enjoy gambling, especially poker. Las Vegas is a perfect place for a person like me. It's a bit like having your cake and eating it too.
The first, and most obvious event I witnessed happened while I sat at a $1-2 no limit holdem game at Bally's yesterday. They have a cozy poker pit which is conveniently located right next to the beverage station, so a cold drink is literally seconds away if you feel thirsty. The waitresses are, shall I say, a bit more mature than the ladies you'll find at other establishments like the Rio or Caesars Palace, but they are also friendlier and more efficient. They understand the nature of their business and complete it with near ruthless efficiency. As I sat there, folding rag hand after rag hand, my attention was drawn to the large TV screens that were all around the poker room. Most of them had CNBC on, chronicalling one of the largest single day crashes in Dow Jones history.
When you play poker, you get to meet all types of people. Some are nothing more than degenerate gamblers. Most are tourists who fantasize about a career as a pro poker player. The rest are pretty well heeled business types who understand the nature of risk and reward. That's really what poker is all about. These are the players that cause me the most distress.
I had the opportunity to chat with a couple of guys who were in town for a gaming industry convention. They were also watching the ticker drop on TV. The seemed to share the same level of concern that I have about how that impacts our lives, and the future of business in this country. They also indicated that their industry is suffering right now because of slipping gaming revenues. They also indicated that it could be a lot worse...they could be in the automotive industry. Ha ha.
Cabbies can also be a wealth of information about regional economies. The three I rode with at different times all indicated that their fares per day are at less than half what they were a year ago. Tips were getting smaller too. Even Vegas gamblers have a budget to live by now I guess.
Today, the Dow took another huge plunge, and re-tested the lows of October when it dropped below 7882. I can't help but think of what this does to the faith that Americans have in their sacred institutions. GE, Microsoft, all of the major banks took massive wallops today. Decliners lead gainers by a 6 to one margin. Yet in all this carnage, of nearly oblivious company had a GIANT increase today: VeriChip (nasdaq: CHIP).
VeriChip posted about a 15% gain today, at a time when other stocks in their same sector were getting hammered. VeriChip is in the business of RFID chips. They make devices which can be used to track assets for companies and governments all over the world. In addition, they have received Phase 1 approval from the FDA for continued trials on their new implantable glucose monitoring chip for diabetics. They also make a chip that can be linked to your complete medical history. They have just teamed up with Microsoft for a new project that will have implant users keeping their medical information on servers that can be accessed by medical personel in hospitals around the world. If you are a punter that likes to have the best of it, you would be wise to have a look at this company. They are cheap right now, but I have a feeling that they won't be for long. Their implantable tracking chip technology is just what the government ordered for keeping tabs on the peasants.
So I guess todays takeaway is this: buy the company if you like it, but don't buy their message that they are doing humanity a big favor with their tracking tedchnology. Giving up liberty for a bit of security ensures you'll end up with neither....and that's never a good bet.
Saturday, November 15, 2008
Not Enough Space In Space...
I couldn't help but notice that the "space race" is in full swing right now. China, India, the USA all putting missions into the wild blue yonder in the past few months. It is exciting, a bit saddening, and somewhat eerie to me. I'll explain...
The race for dominance in space was always run between the USA and Russia. The USA had far better results to report to the public and the space program became a source of pride for Americans. Budgets for NASA ballooned each year...and have now topped out at about 21 billion dollars per year. The idea that we have the technology to not only put a man on the moon, but to also send probes into the deeper regions of space ignites the passion of exploration in all of us. It is exciting!
It is a bit saddening to me to think that India and China have been able to achieve remarkable results in space travel in such a short period of time. I am sure that in many ways, they were standing on the shoulders of giants that had gone before them. It is a bit of a wake up call too. Space is no longer the exclusive domain of the USA....Globalism has met Universalism.
What is truly eerie to me is the motivations of all three countries I am writing about for wanting to be in space right now. Flexing technological muscle is one possible explanation, but it seems a bit contrived to spend that much money on a talent show. One of the big Drudge headlines today was that the US astronauts will be drinking their own urine today (purified, obviously). I can't help but speculate what the reasons for these trips, so close in timeframe, are for.
There are tons of rumors out there...India scanning for Helium-3 on the lunar surface for fusion based power, Chinese surveillance technology and weapons technology testing...the list goes on...
There are also some interesting stories in the past months that have made the mainstream media regarding the appearance of UFO's. Maybe ET is buzzing us? Who knows.
With the current turmoil in the economies of the world, I hope that the events in space will make the study of science a little more appealing to students, and foster a spirit of cooperation for future exploration.
In the meantime, I'll keep my feet on the ground...and keep reaching for the stars.
The race for dominance in space was always run between the USA and Russia. The USA had far better results to report to the public and the space program became a source of pride for Americans. Budgets for NASA ballooned each year...and have now topped out at about 21 billion dollars per year. The idea that we have the technology to not only put a man on the moon, but to also send probes into the deeper regions of space ignites the passion of exploration in all of us. It is exciting!
It is a bit saddening to me to think that India and China have been able to achieve remarkable results in space travel in such a short period of time. I am sure that in many ways, they were standing on the shoulders of giants that had gone before them. It is a bit of a wake up call too. Space is no longer the exclusive domain of the USA....Globalism has met Universalism.
What is truly eerie to me is the motivations of all three countries I am writing about for wanting to be in space right now. Flexing technological muscle is one possible explanation, but it seems a bit contrived to spend that much money on a talent show. One of the big Drudge headlines today was that the US astronauts will be drinking their own urine today (purified, obviously). I can't help but speculate what the reasons for these trips, so close in timeframe, are for.
There are tons of rumors out there...India scanning for Helium-3 on the lunar surface for fusion based power, Chinese surveillance technology and weapons technology testing...the list goes on...
There are also some interesting stories in the past months that have made the mainstream media regarding the appearance of UFO's. Maybe ET is buzzing us? Who knows.
With the current turmoil in the economies of the world, I hope that the events in space will make the study of science a little more appealing to students, and foster a spirit of cooperation for future exploration.
In the meantime, I'll keep my feet on the ground...and keep reaching for the stars.
Thursday, November 13, 2008
The Last Refuge of Scoundrels
I don't fear very much. I have been able to roll with the punches I have encountered in my life with a pragmatic ease. I think it comes from knowing that everything happens for a reason...cause and effect. The only thing that really scares me is being able to see a picture that is much bigger than most people see, and not being able to communicate the reason for my fear to others.
As you may have noticed, the economy in the USA is a bonafide, first class mess. Watching the stock markets here is currently akin to watching a monkey trying to f%ck a football. Everybody laughs, but no one is really having fun. The wild point swings of 8, 9 and 10% in one day on the DJIA are not only foreign to investors, they can be absolutely horrifying to daytraders. There is money to be made, but only if you're on the right side of the swing.
I guess the reason I started this post was to talk about something that I thought was dead here, but seems to be making a remarkable (and really well timed) comeback. Patriotism.
I have always looked at people who call themselves Patriots as front runners; "America-Love it or Leave it" types who will blindly defend what THEY believe this country stands for to the end. I know some of these "patriots" from my everyday life. Nice people, but don't get them started. I couldn't help but notice how many of them came out hiding after 911. Many more emerged from their slumber when W decided to open a can of whoopass on Iraq. There is no room for a dissenting view with a patriot. It's their way, or the highway. They really believe that patriotism is what makes America great.
I disagree. People caring about each other is what makes America great. Tolerance for viewpoints you may not agree with makes America great. A healthy and vibrant and diverse economy is what makes America great. All of these attributes seem to be declining as quickly as the Dow at 3:55 pm. And we are all left wondering where the bottom will be.
The mainstream media is consistently delivering terrible news that directly affects the economic health of this country, and yet, on some of the worst news, the market shudders a little, then skyrockets. At the end of the business day, the TV analysts pat themselves on the back, and tell us, "See...it really isn't THAT bad out there", then start the REAL manipulation.
What I see happening everyday is a deliberate and calculated diversion strategy. The news networks do everything they can to keep your mind off of how bad things really are for your family. Do any of these ring a bell with you? Proposition 8, Baby Caylee, Pregnant Man Pregnant Again, etc etc. I could go on, but that is not my point. In addition, the media is also making a concerted effort to point out our enemies. Russia, Osama Bin Laden, China, North Korea have all been in the news lately.
The big picture for me is that the powers that be WANT you to be deaf, blind and frightened...really truly scared out of your wits. Only then can they really take control of the peasants. When they get their wish, you'll understand the title of this post.
As you may have noticed, the economy in the USA is a bonafide, first class mess. Watching the stock markets here is currently akin to watching a monkey trying to f%ck a football. Everybody laughs, but no one is really having fun. The wild point swings of 8, 9 and 10% in one day on the DJIA are not only foreign to investors, they can be absolutely horrifying to daytraders. There is money to be made, but only if you're on the right side of the swing.
I guess the reason I started this post was to talk about something that I thought was dead here, but seems to be making a remarkable (and really well timed) comeback. Patriotism.
I have always looked at people who call themselves Patriots as front runners; "America-Love it or Leave it" types who will blindly defend what THEY believe this country stands for to the end. I know some of these "patriots" from my everyday life. Nice people, but don't get them started. I couldn't help but notice how many of them came out hiding after 911. Many more emerged from their slumber when W decided to open a can of whoopass on Iraq. There is no room for a dissenting view with a patriot. It's their way, or the highway. They really believe that patriotism is what makes America great.
I disagree. People caring about each other is what makes America great. Tolerance for viewpoints you may not agree with makes America great. A healthy and vibrant and diverse economy is what makes America great. All of these attributes seem to be declining as quickly as the Dow at 3:55 pm. And we are all left wondering where the bottom will be.
The mainstream media is consistently delivering terrible news that directly affects the economic health of this country, and yet, on some of the worst news, the market shudders a little, then skyrockets. At the end of the business day, the TV analysts pat themselves on the back, and tell us, "See...it really isn't THAT bad out there", then start the REAL manipulation.
What I see happening everyday is a deliberate and calculated diversion strategy. The news networks do everything they can to keep your mind off of how bad things really are for your family. Do any of these ring a bell with you? Proposition 8, Baby Caylee, Pregnant Man Pregnant Again, etc etc. I could go on, but that is not my point. In addition, the media is also making a concerted effort to point out our enemies. Russia, Osama Bin Laden, China, North Korea have all been in the news lately.
The big picture for me is that the powers that be WANT you to be deaf, blind and frightened...really truly scared out of your wits. Only then can they really take control of the peasants. When they get their wish, you'll understand the title of this post.
Wednesday, November 12, 2008
There Are None So Blind...
I am constantly amazed. This may be a testament to my childlike sense of wonder, or to my thin shell of cynicism. No matter. In the end, all is made clear I guess.
Like many of you, I am having a mid-life crisis of sorts. I am 45 and work in the automotive retail business. I have a wife and kids and a mortgage. So far sounds pretty nice, right? Well...maybe not so much. As you have probably guessed, the automotive business is not exactly rife with success presently. Sales are down overall across the country about 30 to 40% depending on who you believe. I work in Michigan, where about one out of three jobs depend directly on the vehicle manufacturing industry, which only worsens my situation. The dealership I work for is a well established triple franchise in a city of about 60,000 people. Our sales are currently about 55% of what they were last year...and last year was not so great either.
In addition, I enrolled in our company's 401K retirement program about 3 years ago. I'm really old, and not a great saver, so I have been investing about 13% of my pre-tax income every month. When sales are strong, so is my income. I was starting to see the result of regular saving and felt pretty comfortable about my chances for a decent retirement. That level of comfort has disappeared, along with about 28% of my savings in the stock market crash.
Now, I should preface this with the obvious: I am not a savvy wallstreet investor type. I chose a fairly aggressive fund that was delivering pretty decent 5 year average returns. I have compared my losses with other 401K participants that I work with, and guess what? Even the most timid funds have lost about the same amount as me. In a very real sense, about 1 year of my savings for retirement have been wiped out. I did make one move that may pay off later for me. I came across a link to a website on Google's financial forum. It has change the way I am thinking about my situation, the economy worldwide, and just what makes the world around us tick. The site is www.enterprisecorruption.com
The website is less of an information site about corruption, than it is a puzzle. The mystery man (or woman) behind it identifies themselves only as "Reinhardt". They have created a timeline of corruption episodes (usually referred to as "Enrons") dating back hundreds of years. Reinhardt has also used humor and riddles to lead his flock to knowledge. I like this approach. If someone tells you: "This is a fact", you have more than one choice. You can take it as fact, or you can research the issue and refute it. Reinhardt's approach demands that you do the legwork to figure out his message. What you do with it after that is up to you.
The website is sometimes locked down with a password page. Other times it is wide open. I am sure that there is a degree of paranoia on the part of the writer, as some of the information is anarchistic. I would be lying to you if I said that I "get" all of it, but a larger pattern is beginning to appear out of some of the chaos we are living through right now....and I have one prediction to make: this crisis isn't even close to being over.
I have started this blog to try and open a few eyes to some of the new "realities" that will be coming at us over the next year or so. Most of them will not be pretty. My philosophy is forewarned is forearmed. I will try to stay reasonably objective here, but don't look for anything to lukewarm. I have strong OPINIONS, but they are just that. I only ask that you read mine, then form your own.
Here is today's meat & potatoes: I spoke with a few people at work today about the very current topic of a possible Fed bailout of the Big 3 automakers. The consensus was that the government should bail them out. I asked them why, and was informed that it was not only the "patriotic" thing to do, but that it would save 100's of 1000's of jobs. I was stopped in my tracks for a moment by the sheer stupidity of this answer. How could they not know about the rampant layoffs of Michigan workers in the auto industry over the past 5+ years due to outsourcing? How could they not know about the recent completion (this past week) of the new General Motors plant in Russia, or the proposed acquisition of Wuling Motors in China by Ford? Did they not read the news that GM is on the verge of bankruptcy according to their CEO? I gathered my composure and asked them a simple question: Where does the bailout money come from? The answer I got was: "The government". I then asked my co-workers if they were experiencing any financial difficulties right now, which they all agreed they were. I then inquired if they had asked for a bailout from "the government", at which point they all laughed at my childlike nature. I subtly explained that "the government" that they believe so strongly should bailout the failing companies gets their money from me. They laughed again. And YOU. The laughter ceased shortly after that.
Nobody is going to bail you out if you make bad choices. Bad businesses should be allowed to fail. There are plenty of better companies out there to pull up the slack. That is how capitalism is supposed to work, but capitalism is broken, and all of the repair people have been outsourced to China.
Like many of you, I am having a mid-life crisis of sorts. I am 45 and work in the automotive retail business. I have a wife and kids and a mortgage. So far sounds pretty nice, right? Well...maybe not so much. As you have probably guessed, the automotive business is not exactly rife with success presently. Sales are down overall across the country about 30 to 40% depending on who you believe. I work in Michigan, where about one out of three jobs depend directly on the vehicle manufacturing industry, which only worsens my situation. The dealership I work for is a well established triple franchise in a city of about 60,000 people. Our sales are currently about 55% of what they were last year...and last year was not so great either.
In addition, I enrolled in our company's 401K retirement program about 3 years ago. I'm really old, and not a great saver, so I have been investing about 13% of my pre-tax income every month. When sales are strong, so is my income. I was starting to see the result of regular saving and felt pretty comfortable about my chances for a decent retirement. That level of comfort has disappeared, along with about 28% of my savings in the stock market crash.
Now, I should preface this with the obvious: I am not a savvy wallstreet investor type. I chose a fairly aggressive fund that was delivering pretty decent 5 year average returns. I have compared my losses with other 401K participants that I work with, and guess what? Even the most timid funds have lost about the same amount as me. In a very real sense, about 1 year of my savings for retirement have been wiped out. I did make one move that may pay off later for me. I came across a link to a website on Google's financial forum. It has change the way I am thinking about my situation, the economy worldwide, and just what makes the world around us tick. The site is www.enterprisecorruption.com
The website is less of an information site about corruption, than it is a puzzle. The mystery man (or woman) behind it identifies themselves only as "Reinhardt". They have created a timeline of corruption episodes (usually referred to as "Enrons") dating back hundreds of years. Reinhardt has also used humor and riddles to lead his flock to knowledge. I like this approach. If someone tells you: "This is a fact", you have more than one choice. You can take it as fact, or you can research the issue and refute it. Reinhardt's approach demands that you do the legwork to figure out his message. What you do with it after that is up to you.
The website is sometimes locked down with a password page. Other times it is wide open. I am sure that there is a degree of paranoia on the part of the writer, as some of the information is anarchistic. I would be lying to you if I said that I "get" all of it, but a larger pattern is beginning to appear out of some of the chaos we are living through right now....and I have one prediction to make: this crisis isn't even close to being over.
I have started this blog to try and open a few eyes to some of the new "realities" that will be coming at us over the next year or so. Most of them will not be pretty. My philosophy is forewarned is forearmed. I will try to stay reasonably objective here, but don't look for anything to lukewarm. I have strong OPINIONS, but they are just that. I only ask that you read mine, then form your own.
Here is today's meat & potatoes: I spoke with a few people at work today about the very current topic of a possible Fed bailout of the Big 3 automakers. The consensus was that the government should bail them out. I asked them why, and was informed that it was not only the "patriotic" thing to do, but that it would save 100's of 1000's of jobs. I was stopped in my tracks for a moment by the sheer stupidity of this answer. How could they not know about the rampant layoffs of Michigan workers in the auto industry over the past 5+ years due to outsourcing? How could they not know about the recent completion (this past week) of the new General Motors plant in Russia, or the proposed acquisition of Wuling Motors in China by Ford? Did they not read the news that GM is on the verge of bankruptcy according to their CEO? I gathered my composure and asked them a simple question: Where does the bailout money come from? The answer I got was: "The government". I then asked my co-workers if they were experiencing any financial difficulties right now, which they all agreed they were. I then inquired if they had asked for a bailout from "the government", at which point they all laughed at my childlike nature. I subtly explained that "the government" that they believe so strongly should bailout the failing companies gets their money from me. They laughed again. And YOU. The laughter ceased shortly after that.
Nobody is going to bail you out if you make bad choices. Bad businesses should be allowed to fail. There are plenty of better companies out there to pull up the slack. That is how capitalism is supposed to work, but capitalism is broken, and all of the repair people have been outsourced to China.
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