Happy Thanksgiving to all.

Have a great Thanksgiving, folks. I will be taking the next few days off from blogging. Will be keeping the eyes out for more interesting news to which I will apply my perspective.

 

While it is snowing quite heavily here in the Northeast, it is the time of the year when regardless of political or partisan views, we can all be thankful for what we have been given and be willing to share with those that are less fortunate than us. We don't have to wait for the government or others, we can do things for others within our frame of life. That is where charity is most efficient and direct.

 

I wish you all a very happy Thanksgiving, and I will be back on the blogisphere come Friday. The next few days I will simply relax and enjoy the wonders of nature and the beauty of life.

 

Take care, all.

 

The next shoe to drop is Citibank!

And the beat goes on....

 

Citigroup has now become the next AIG to declare its unfitness to continue as an American institution. It has turned itself over to the US Government for AIG-style treatment including another $20 Billion USD and up to $300 Billion USD in toxic paper (remember its only toxic due to the Government's mark-to-market rule).

 

If I was the Big-3/UAW I would be screaming for fair treatment under the Amendment 14 wording. However, it is probably going to be a big political mess since the members of Congress from MI are going to be yelling, but everyone else is still very cool to the idea of a bail-out for Detroit.

 

This mess is continuing only because the Bush-43 administration WILL NOT cancel the mark-to-market ruling and, oh well, go see my previous post about solutions to this financial crisis. It is not impossible, just a bit of thinking and non-political dealing will solve this problem.

 

I don't know why the Bush-43 SEC/FASB will NOT revoke the mark-to-market rule that is causing most of this problem. Unbelievable, but BHO's ideas are not going to solve the problems either from what we are hearing. He is simply saying he is going to create 2.5 million new jobs (no details), he is going to deal with this financial crisis (no details), and get the economy back on track (no details).

 

He is now the President-elect and has yet to offer much of anything in the way of details of how he will deal with this issue which his group are blaming entirely on the Bush-43 team without any comment about how the Democrats in the 109-110th Congress stopped the oversight of the GSE's (Fannie and Freddie) due to the amount of lobbying money they were receiving from these particular mortgage companies.

 

Democratic assignments for the 111th show left bias!

The Democratic Caucus installed Rep. Henry Waxman as the Chairman of the House Energy and Commerce committee shows where the new Congress is heading. The Republicans that have saying not to worry about how far left this White House and Congress can go had better wake up and see the baby steps that are falling.

 

Rep. Waxman is one of the most rabid environmentalist-nutjobs in the Congress, and to make him the head of the House committee that overseas House legislative initiatives for energy and commerce??? Why are the Democrats putting members in committee chair positions that hate the oversight area they are suppose to regulate and control?

 

Examples:

Rep. Barney Frank, Chairs the House Financial Services committee, is a socialist and rabid anti-capitalist.

 

Rep. Henry Waxman, Chairs the House Energy & Commerce committee, is a environmentalist that believes the US should completely swear-off anything oil-based. (His own words in an interview on MSNBC)

 

Sen. John Kerry, Chairs the Senate Small Business committee, is husband of the hier to the Heinz Food fortune, how small business is this?

 

Sen. Pat Leahy, Chairs the Senate Judiciary committee, is from the state of VT that hands out 3-4 month sentences for child molesters and lets convicted pedophiles to continue their craft while declaring them "rehabilitated."

 

and the list goes on and on...

 

What to see where this 111th Congress is going? Watch the players being placed into key positions of power and prestige. It will not be hard to figure it out.

 

Problems and solutions to Financial Crisis of 2008

Listening to the financial talking heads yell and scream about what is wrong with the economy, should the US Government bail-out the Big-3/UAW folks, should we distribute wealth, should we allow employees to lose the right to a secret ballot, or should everyone be guaranteed a living wage (yes, I heard that proposition being thrown around on MSNBC)?

 

To me, its unbelievable that we don't understand how we got into this problem and how we can get out of it without mortgaging our future. Let me see if I can explain it one more time.

 

First, we got into this problem because of over 30 years (beginning with the CRA of 1977) of government attempting to social engineer the US society. The Great Society was an extension of the FDR "New Deal", and when it didn't move fast enough, liberals figured out that they had to write specific legislation, not blanket conceptual, "feel-good" bills.

 

Second, the Federal Reserve has been willing to use its monetary policies via the FOMC interest rate actions to attempt to stop the capitalistic cycles that this economy goes through instead of helping us to understand that we need to prepare to for "years of lean."

 

Third, legislative welfare from those entities being regulated to get Congress to look the other way has caused the whole financial crisis ball to get rolling.

 

So what are the solutions?

 

1. Revoke the "mark-to-market" ruling and Sarbanes-Oxley Act of 2002 immediately. This was not regulation, but extremely OVER-REGULATION that were prime example of LOUC (law of unintended consequences). Cost: $0

 

2. Backup all US depository accounts with FDIC-type insurance, not just the first $100,000.00. Cost: $0 since insurance paid for by insured institution based on credit rating.

 

3. Demand normalized mortgage underwriting standards of 10-15% down payment, income verification, and load-to-value limits. Cost: $0

 

4. For mortgages already underwater (a negative loan-to-value ratio), extend the mortgage term and stabilize the interest rate in exchange for future equity participation. Cost: $0

 

The problems are not impossible, nor are the solutions if one just stops to think and doesn't panic like the US Government did in October. The Bush-43 administration while it inherited the seeds of this financial crisis, they did everything possible to germinate and grow it into the global mess it is now. All US political parties are to blame as much as greedy corporate managers and incompetent state and local politicians who both couldn't manage their ways out of a wet paper bag.

 

The next stage of human formation is coming

The BHO agenda will make it easier for the USA to become member of the global community which is the long term goals for leftists in the US. The best way to diminish the USA is to ensure that its becomes subject to the will of the global community most likely the UN or what will replace it.

 

The metamorphosis of the UN into a single, global government is in the works. The global financial crisis is the "shoe horn" that will help establish this new entity's reach and credentials by forcing countries to relinquish their financial sovereignty in order to survive. Remember the warnings of imminent global meltdown if we didn't do something? These warnings will continue until most countries are forced to become members of this new financial reorganization.

 

It's coming. Watch for signs. I am not trying to scare, but educate. The flow of events of our times have signs, warnings, and consequences. It makes sense to understand how events work together and prepare the world for the events that must happen for an ending of the era of single countries, nations, and formations into a single world government and justice system.

 

During the Cold War with two major opposing factions controlling the current events, it would have been near impossible for a world government to take control. The UN was simply a puppet for impotent 3rd world countries to feel that they had a voice in the global community. The nuclear powers were still the ones in control with little fear of losing that power.

 

When the USSR (Soviet Union) went out of business in 1989, the USA became the sole superpower and that was dangerous for most liberal-minded people in this country that are more "citizens of the world" than USA citizens. They want to be liked in all the countries they visit for vacations; they don't want the stigma of the "Ugly American" which is funny because they were the cause of most of that epitaph by their throwing around their US money and status. I have seen it first hand.

 

BHO has stated that he is going to shut down Guantanamo Bay prison, stop building/repairing our nuclear weapons stockpile, reduce our military by 25% (Barney Frank), and make the UN a world recognizable, and revered political organization.

 

Do not take my word for it. You have time to watch for these events, but just don't let the small things get lost along way to the bigger horizon. A journey of a thousand miles begins with a single step. The USA will not change overnight, it will take time. This blogger will be here to point out the small steps.

 

 

 

BHO's background is key to his future

BHO education and training under his socialist mentors most notably Saul Alinsky will eventually come out since one's background is not so easily shed in adulthood. Remember the Biblical admonition about a child's training and "departing from it" is not the normal course of adult behavior.

 

BHO has so far been right on target using the Alinksy tactics of "ridicule and agitate" by poking fun at conservative fears over his supposed socialistic ideals. He then releases his supporters behind the scene to allow his deniability. Don't get me wrong, I admire BHO in that he knows how to be political and covert. This is another one of Alinsky's tactics of misdirection to obscure the radical's true socialist beliefs.

 

The real indication of BHO's intentions are coming from the people he is nominating for his key positions. These underlings are going to be foot soldiers in BHO's march towards the left. Yes, he will have be crafty and slow about his agenda, but he will try and loll the public into complacency by dealing with the economy. Behind the scenes he will be working his magic and moving slowing towards two major goals:

• establishment of "economic justice" by using the current economic crisis as cover
• establishment of "legal justice" by appointment of life-term leftist jurists

 

The accomplishment of these goals will have lasting impacts on the USA future and potential.

 

Beginning of the week tidbits and market notes

Taking yesterday off after all the posting over the past few days, I am back with some of the tidbits of news and events that are shaping our world along with my comments and perspective that you may find interesting regardless if you agree with them.

 

The Employee Free Choice Act (denial of secret ballot to employees) is on tap for passage after OD (Obama Day) which is the new calendar accounting process. PO (pre-Obama) before that Jan. 20, 2009 event. Have to go with the crazies, right? If you can't beat them with rights then beat them by removing their rights. The loss of secret ballots for union elections should scare every American. Rights under the BHO and SMDC will begin to erode slowly but surely.

 

The Fairness Doctrine is again being resurrected and groomed to take just Conservative Talk Radio off the air after OD. This is something that many Democrats and extreme liberals are just salivating over since their ideas couldn't compete in the arena of free trade with the failure of Air America, they are going to have the government do it for them. This will be a big thud when it hits the books and BHO will quietly sign it or lose some of agenda support from the rabid leftist in control of Congress (The other 2 of the "unholy 3" as I call them: Pelosi and Reid)

 

BHO continues to flesh-out his team with ex-Clintonites and saying that "well, Lincoln did it!" If you are a student of history you will remember that it was a disaster for Lincoln, and it will be so for BHO. I predict their will be a large fight between the BHO and Clinton factions of his new administration. You can't have two groups in control.

 

Market outlook for the next week will be volatile since retail is going come out with numbers that will shock everyone with "Black Friday" this year being one of the worst in tracking history. I predict that other retails will follow Circuit City in Chapter 7, not Chapter 11 (DYH: do your homework).

 

If the Friday rally fizzles beginning with Sunday evening's future opening at 1800 EST, then next week will most likely be another leg down into new territory of lows. If the rally holds moving back over 800 then next week could be the beginning of the Santa Claus rally which is one of the highest probability patterns in stock market anneals. This says nothing about what happens after the New Year only until the end of the year.

 

 

The slippery slope of redefining marriage

The final issue in framing the gay/lesbian marriage question is whether a redefinition of marriage creates a slippery slope down which the entire concept of legal unions become null and void.

 

Think of it in this manner. If gay/lesbian marriage is allowed to exist under the definition of marriage, then the next step down the slippery slope is the legalization of all kinds of human unions:

 

• Polygamy: one man with many wives, one woman with many husbands
• "Multigamy": multiple men and women in a single union
• Incestual marriages: brother/sisters, father/daughters, mother/sons, etc.
• Marriage invitro: marriage contracts of underage boys/girls to future spouses

 

You say that one does not lead to the other, but that's not true. If gay/lesbian marriages are supported under the changed definition of marriage then it would be wrong to disallow the above forms of human unions simply because they are repugnant or that you don't believe in them.

 

Gays/lesbians would be extremely hypocritical if they opposed any of the above forms of unions. This is why the definition of marriage must remain the union of 1 man and 1 woman. Slippery slopes are usually breached and the LOUCs are then effected.

 

Remember, the gay/lesbian lifestyle is a choice not biology since if it was biological then it would have extinguished itself long ago due to the inability of homosexuality to reproduce. Only lately has medical technology allowed for the insemination of non-heterosexual unions. Before this level of medical progress, homosexuality, if indeed biological as the gay/lesbians like to asset, would have died out due to inability to procreate and continue their gene patterns responsible for their condition.

 

Sorry, can't have it both ways, folks.

 

Will of the people subject to liberal court action

California's Prop 8, the 2nd time the voters on the left coast have affirmed the definition of marriage to be the union between 1 man and 1 woman are in danger of being denied their democratic rights to alter their own government. This is a very dangerous trend because if the gay/lesbian/humanists are successful in overturning the will of the people again, then when it comes time for the federal government to overturn the "Defense of Marriage Act" the same argument could be applied to this process as well. They don't have the authority to do so.

 

This is the main reason that the liberal/left want, desire, demand, and work for the appointment of activist jurist that will overturn the will of the voters. When they can't win at the ballot box, they turn to the courts and their leftist friends on these courts to overturn what was voted on by the people. This is against every democratic principle.

 

If the courts can overturn the will of California voters, then why couldn't the courts overturn the will of the people who elected BHO? Why couldn't a case be brought to a conservative federal court that would nullify the 2008 election and proclaim McCain the President?

 

Sound crazy? Well all crazy occurrences begin with baby steps down the road of insanity. The liberal/left are forgetting one thing: political swords cut both ways, and when they are no longer in power, the sword they used to cut down their opponents is used to cut them down instead.

 

Voters under this BHO administration are going to lose freedoms, rights, and privileges beginning with the overturning of California Prop 8. All human self-determination begins with the ability to throw off governments that are not "of the people, by the people and for the people."

 

That day may be quickly approaching in the USA.

 

Private companies forced to support gay agenda

So another private company was forced to particularly support the gay/lesbian agenda. eHarmony, in face of being threatened with a massive lawsuit, chose to change their website wording and search engine to support same sex couple interests due to 1 person wanting them to do so.

 

This is the tip of the iceberg as the liberal left agenda is gaining momentum as January 20, 2009 draws closer and closer and BHO has to make good on his promises to support full integration of the gay/lesbian lifestyle into mainstream America.

 

Now I don't have any problems with sexual orientation under 2 conditions:

1. Don't use your sexual appetites define who you are
2. Limit within the limitations of your choices

 

Heterosexuals don't walk around throwing their sexuality in everyone's face, so why do homosexuals? It would seem that if you were comfortable in your own skin you would not need to have anyone affirm your lifestyle or even care if anyone agreed with your choices. Thus, it would seem that most homosexuals are just that: uncomfortable and self-conscious needing society to approve and accept their beliefs.

 

I don't care who likes my ideas, or if they even agree with me. I don't need anyone to affirm that I exist or even if they approve of my choices. Only weak-minded people seek this kind of external approval and/or affirmation. Strong-willed, self-confident people seek their own approval and self-affirmation. World-renowned psychological researcher Abraham Maslow in his 1943 ground-breaking paper, "The Theory of Human Motivation", called this level of human motivation as self-actualization.

 

Simply stated: "one who likes himself, needs no other but is complete and can give to others."

 

Sayings & expectations live on and on

We have to act NOW!

If we don't act, the markets will crash!

Too big to fail.

Can't let Wall Street go under.

Have to do something.

We can't let them fail.

We have to help the poor home buyers.

Have to bail-out Detroit.

Obama will save us.

Obama is the new JFK, FDR, and Lincoln.

 

OK you have seen all the above panic and mania statements that have brought us to the point where we are now. All of them are now seen to be totally ridiculous and/or just plain silly.

 

We in the USA have lost our way, and the rest of the world is laughing at us as we become a nation of screaming, teeny-boppers or groupies ("girly-men" as AS put it) chasing one possible solution after another.

 

Remember when Hank Paulson and the Bush-43 White House told us that had to act now, do this now, allocate the $700 Billion USD now or the markets will crash and companies will go out of business. Well guess what? We gave them $700 Billion USD and have promised over $2.5 Trillion USD more, and the markets have crashed and companies have gone out of business.

 

These are supposedly the best and brightest from Yale, Princeton, Harvard, MIT, and Oxford. Am I to be impressed by their results? Am I to be "tingling" with excitement over the election of an inexperienced, untried, untested first term Senator from Illinois?

 

I am saying that the next 4-8 years is going to be a nightmare when all the expectations come home to roust, and BHO has to pay off his supporters from the far-left.

 

The problem with sayings and expectations is that in a world of 7/24 media, they will never be forgotten. They will be back to be thrown in the face of those that said them and a pile of CROW is going to be served up for their enjoyment.

 

BHO picks an almost Clinton dream team cabinet

So the BHO cabinet is finally set and what a gallery of rogues or saviors depending on your perspective. So let's take BHO at his word: "CHANGE"

 

We have almost ALL of the cabinet-levels members from the Clinton White House.

 

• Chief of Staff: Rahm Emanuel
• State: Hillary Clinton
• Treasury: Tim Geithner
• Attorneys General:
• Commerce: Bill Richardson
• Homeland Security: Janet Napolitano
• Health & Human Services: Tom Daschle

 

What does this say about BHO's promise of change? I am guessing that if BHO keeps Gates at DOD, the left wing blogs are going to go nuts! You couldn't have a more Clinton-leaning cabinet than the one that BHO is nominating. Why did Hillary need to win the White House? Her dream team is in there, and do you think that they are going to be loyal to BHO or HC?

 

BHO had better make sure there isn't a "shadow government." Could Bill Clinton be the "shadow president?"

 

BHO's picks show that he isn't very creative or thinks much out of the box. BHO promised change, change, and more change, and he nominated almost a complete roster of ex-Clintonites.

 

However, the people of New York should be very happy, she is out of their hair. Now if they could only get Charlie "Chaplin" Schumer to leave NY as well, but that's too much to hope for, I would guess.

 

So now BHO could probably say, "Change I promised to get elected, but don't really plan to offer."

 

 

When does life begin? The crucial question.

As to the issue of conception while it may seem that it is an impossible task to define this medically, legally or religiously, it really is not from the standpoint of the abortion debate.

 

Medically, there is no evidence that a new life begins at conception or the point of fertilization. I know this hard for anti-abortionists to accept, but its the facts. I am not saying that an ovum (a fertilized egg) is not a potential human, but then an egg or sperm is also a potential human under the right conditions (fertilization).

 

The reason for taking this perspective is that without evidence of when life begins religion of all kinds need to be left at the door since not everyone is a person of faith and trying to force this issue will only create the kind of insurmountable barriers to agreements that have epitomized this social debate. People of faith should apply their beliefs to the education and propagation of their beliefs to potential recipients of abortions. Said another way, it is impossible to legislate morals. It is a political solution that cuts both ways.

 

There is also no religious evidence or statement of Biblical law that says life begins at conception. The best that the Bible offers is that it clearly states that "life is in the blood...", or that God "breathed the breath of life" into Adam.

 

Now a simple solution is to take an event during the gestation process upon which people of faith and humanism can agree upon that life is definitely present in the fetal process. I believe that this point is the instant of a fetal heart beat. Once a heart beat can be detected, all rights and protection of the political process should be afforded the potential citizen.

 

Due to current medical technologies and services, a woman can determine her pregnancy status well before the 6-8 weeks event horizon of when a fetal heart beat can be detected. So using the event of fetal heart detection can be the point beyond which an abortion is not allowed unless the mother's life is in imminent danger from the continued pregnancy process. In this case, I don't believe that one life, the mother's, is more or less important than the potential human baby. However, the mother's life must be verifiably in jeopardy before an abortion should be considered.

 

I do not believe that abortions should be upon request or for any reason at any time as many of the pro-abortionists believe it should. Remember, in California, people have been convicted of double homicide for murdering a pregnant mother. This should pretty much settle this issue.

 

Abortion vs Right to choose. Which is the right issue?

The abortion controversy is a prime example of how the proponents have tried to win their argument by framing the question as a "women's choice" issue and not the real one of abortion. They do this by getting everyone to focus on the right of women to control their own bodies, to allow a woman to have the right to choose the medical procedures impacting their own bodies, etc. Who could be against these rights when they are framed in this manner.

 

So the begin with, you have to understand that the abortion issue is just that: abortion. It is NOT about a woman's right to choose since a woman's right to choose is if she gets pregnant in the first place.

 

Now before you jump down my throat, let's set aside the red herring that pro-abortionists like to throw out: "what about cases of rape and incest?" OK. Let's take this red herring and put it in the refrigerator for now and we will deal with it once we understand the true issue of abortion. In other words, it is never wise to make policy based on outlying cases. I am not trying to be insensitive, just logical. Rape and incest cases account for less than 1/10 of 1% of the life births in the USA according to the CDC, Atlanta, GA.

 

So the real question is NOT a women's right to choose, but a woman's right to an abortion. The right question to frame the debate is:

 

Do you believe in a woman's right to an abortion?

 

This changes the entire debate from one of a woman's choice to one of a right to an abortion. This is the proper framing of the question since a woman's right to choose is whether to get pregnant in the first place. Discounting rape or incest which I promise we will deal with next, every woman knows who she got pregnant. If she doesn't then she was either raped or the victim of incest. There are not other alternatives. Think about it before you get angry. If a woman doesn't know how one gets pregnant then she is either too young (rape), too mentally-challenged (rape of mentally incapacitated), or she was an incest victim where power and position come into play.

 

In those cases, the issue to conception, pregnancy and birth need different debates, but for the rest of the pregnancies the woman knows that if she has sex, protected or unprotected, she is taking the chance of getting pregnant. That is her choice! The choice to have sex in the first place. Unless one believes in asexual reproduction in humans, a woman can be fairly assured that if she does not have sexual intercourse, she can not get pregnant.

 

We have laws and have prosecuted many man for going beyond a woman's notice of "NO" when it comes to intercourse. Men today know that a woman can say "NO" right up to the point of ejaculation and he has to stop. So let's at least be intellectually honest about a woman's right to choose. It is the right to have sex or not. It is the right to control the access to and/or use of her body that defines the real question.

 

The abortion issue is NOT about choice, but about the right of woman to terminate a life that just happens to be inside her. This then comes down to a point of conception which is dealt with soon. However, don't just accept the debate framed to give the abortionist's an advantage.

 

Framing the debate is half the point

A favorite tactic of those wanting to control the debate on an issue try to form the question in a way that favors their outcome. For example, for those fighting against spousal abuse, a good way to frame the question towards someone suspected of spousal abuse is to ask: "Have you stopped beating your wife?"

 

This is an example of a landlocked debate since the answer of either positive or negative convicts the responder in his/her own words. So to prevent such a trap, one must look at how the question up for debate is formed.

 

To my point, the questions this blog is going to deal with that fall into this attempt by the proponents to shape the debate are:

 

• The abortion issue
• The gay marriage issue
• The auto industry bail-out issue
• The BHO presidency support issue

 

These very important questions have all been shaped by their proponents to paint anyone that opposes the issue into a corner to be either controlling, intolerate, unsympathetic, or racist. The primary way to confront these issues is to ensure that the question is not framed so that if your disagree, your position is already weakened.

 

The next 4 posts will deal with each of the fore mentioned issues and how to respond to proponents of these issues and reframe the questions to a more open, fair perspective that allows both sides to make their points without giving one side an unfair advantage due to the manner in which the debate is presented.

 

Let's begin.

 

How the market discounts future events - like BHO

Someone asked me how I could put all these market actions at the feet of BHO and his SMDC before they have even taken office?

 

Well, the stock market is a discounter of future events, in other words, it does not look back it looks forward and tries to determine where the economy will be 3-12 months from now. People don't invest for the past, they invest for the future so when someone buys a stock (goes long, we say) and then another and then another, we have a surplus of buyers over sellers and the price goes up as more buyers have to "pay up" for the stock to get sellers to give up their stock. It's that simple.

 

So what happens when the market falls? The reverse happens. Investors believe that their investments are going to be worse less tomorrow, next week, next month so they sell their positions ("close") to someone that thinks they are wrong. However, in a market crash like what we are experiencing these days, sellers largely outnumber buyers so the laws of supply and demand take over, and sellers have to lower their asking price (the offer) to get buyers to take a risk that the market will not materially continue down or else they will soon become sellers as well (a bull squeeze or trap).

 

So what does this market crash since BHO's victory 2 weeks ago mean? It's very simple: the market (all the investors rolled into one large, bio-economic mass) are discounting that he is not going to be able to solve the problems of this economy, and in fact, they believe that he is going to make it worse with his hand-outs, bail-outs, tax hikes, and generally socialistic ideas and agenda.

 

Thus, investors are taking their money out of the US markets and putting them in cash so that they get taxed at a lower capital gains rate that BHO promised he would "raise on the rich". Well, who are the only people that have large stock portfolios with lots of recent capital gains to protect? THE RICH!!!!!!

 

The market is simply doing what it has always done is prepare for the future 3-12 month from now. They are saying that its not going to be a pretty picture for investing in the USA so, "Asta la vista, baby!"

 

The market will find support wallow around for the next 6-7 months and then slowly begin to recover. Remember, those that are getting out of the market in droves are not going to be coaxed back into the market until they have assessed the damages and have licked their wounds. The public will take some time before they begin to recommit their retirement money to the market.

 

So, can BHO be responsible for this market crash? Yes, but only because of his talk and promises. If he follows through, its priced into the market, as we say. If he moves to the center (which I don't think he will) given that he is really, really smart (wicked smart) as many think he is, he will understand that by doing what he promised will only produce what Obamamanites are saying, "He is the new FDR", and give us the 2nd Great Depression.

 

Many believe we can't go into a Great Depression, but with all the liquidity being thrown around and interest rates near zero, we could something worse: hyper-deflation followed by hyper-inflation. The worst of all financial whipsaws! The proverbial 1-2 punch back to back.

Today's market action Nov. 20, 2008

The market action today was almost predictable from the crap going on in Washington DC. Is it any clearer that investors are seeing that anyone with a hand out is getting a handout?

 

And when that doesn't work due to the Bush-43 administration still in the White House, like the Big-3 auto makers and its dump cousin, the UAW, say, "OK, we will wait for the BHO administration since we know we will get something then."

 

It is the dawn of a new age in the USA as we pass from the anneals of history as the last remaining superpower into a socialistic, big government, 80% tax rate 3rd world European-style has-been!

 

How was that for a long list of adjectives and adverbs. ;-)

 

Anyway, "let not your heart be troubled..." I believe that things will work out the way they are suppose to work out, just not the way we would like them to do so. Remember, the Creator put laws in place when the Universe was designed, and when we violate those laws, we have to pay the consequences.

 

A great philosopher said once,

 

       "Greed is the mother of want, the father of despair."  (IBNanouk, that's me)

 

We can't do what we did for the last 30 years beginning with the CRA in 1977, the forcing of rules to change proper underwriting, the manipulation of the free-market by the government, the printing of money to monetize the debt, and bail-out everyone who supported our power run to Washington without having to pay the check when it comes due.

 

Today, the waiter brought the check, and boy, did people check out!

 

Arrogance of the Big-3 and UAW

The UAW arrogance in the form of its President, Ron Gettelfinger, said that its not the union and its members fault that the Big-3 are in trouble that they should not have to take wage and salary reductions to get the bail-out from Washington.

 

He even went as far as to say he hoped that the Big-3 could hold out until the BHO administration came to Washington since the Bush-43 administration isn't interested in helping Detroit out of this problem.

 

I CAN'T BELIEVE THE CAHONES OF THESE PEOPLE!!

 

It sounds like they deserve the money and they need it to pay their non-competitive salaries and benefit packages. Google the auto industry problems coming from the union contracts if you want the details. They are all over the Internet.

 

Capitalism says companies fail because of either two reasons:

       Bad decisions by management

       Bad products and services

 

Public money should not prop up companies that find themselves in these situations. Let them go and let the remains be purchased and utilized by someone that can make it work. It's not impossible as other car companies have shown.

 

"Change we Need" is taking a hit with appointments

Why do people who voted for BHO believe that they got "change we need", "change we can trust", "change we can believe?"

 

BHO continues to nominate ex-Clintonites to his cabinet so much that it the main talk around the beltway. How can BHO profess to be for change when its the same-o-same-o when it comes to his new cabinet and top lieutenants. I have telling liberals/Democrats all during the election that BHO is not change, but just bigger liberalism that is gripping the nation to the point where the markets not happy and capital is high-tailing it out of town ahead of all the taxes that BHO has promised he will "sock it to" the rich.

 

Now Detroit and its unions have arrogantly told Congress that they either pay up or we cause you tons of problems. The Republicans going out of business are standing tight (now they do it) and the Democrats are saying they don't have the votes in the lame duck session, but just wait until after January 20, 2009. Rep. Barney Frank (MA-D) basically told the Big-3 CEOs who flew in on their private jets to beg for public money that after January things will be different.

 

Read this to mean that the SMDC will open the public coffers to pay for their supporters including the unions for the auto industry, educational industry, governmental workers, etc. This means that they will either pay for these bail-out by printing money or raising taxes.

 

The die appears to be cast. BHO is going to send the country into a deeper, longer, and more severe recession with his policies and those of his Congressional henchmen.

 

Stand by, its only going to get worse.

 

When a bail-out is NOT a bail-out!

When is a bail-out not a bail-out? When it called everything else but a bail-out.

 

Washington DC and its friends, I mean those that are coming "hat in hand" for money from the public trough are trying desperately to call this flood of government money, YOUR MONEY, anything but a bail-out. For example:

 

Henry Paulson on September 19, 2008 now refers to the $700 Billion USD bail-out ESA 2008 as a "Troubled Asset Relief Program."

 

Robert Nardelli, CEO of Chrysler, on November 19, 2008 called the $25 Billion USD he and his other two "compadres" from the failed Motor City want from the government a "Working Capital Bridge."

 

These 3 CEOs that flew into Washington, DC on their private jets have threatened law makers that if they are allowed to fail then 3 million jobs will go with them, ancillary industries like parts, and resources will fail as well, but don't touch the union job contracts!

 

What absolute arrogance!

 

Senator Harry Reid (NV-D) will put the vote off until the new SMDC comes into office after Jan. 20, 2009 when they do have the votes. Read this to mean that when we, the SMDC, take over, we can do what ever we want and you Republicans can't do a damn thing to stop us.

 

You think you have seen the markets slide today, wait until the inmates begin to run the asylum after January 20, 2009. I feel a real big ITYO (I told you so) coming in January.

 

 

The Generation of "Bread & Circus" has arrived

The USA is now completely divided without any hope for a reversal due to the split being felt along several fault lines. Unlike schisms in the past, these splits are along both the age, faith, cultural, and self-determination lines.

 

The baby boomers born between 1945 and 1965 were the last generation to be taught somewhat of a work ethic, self-responsibility, and self-determination. The X-generation born from 1965-1988 was the beginning of the entitlement generation where the baby-boomer parents were so busy with their own careers that many of them did not instill a work-ethic or self-discipline into their children. How do I know this? Personal experience.

 

I have been a small business owner for over 20 years, and I have had to hire and fire several youngsters who simply didn't understand that you have to show up for work, do your job and help your company contribute to the bottom line over and above what it costs to pay their salary and benefits.

 

They were never taught this! They think that money grows on trees. They don't understand that a company takes a risk in providing a product or service, hires employees that don't take a risk, and hope that the productivity of the employees is above what it costs to keep them employed. These kids are what I call the "MTV Generation."

 

Doesn't money just come in when you open your doors? Don't customers just come in with all kinds of money to buy your products and services? Don't I deserve more money even though I have no idea if I am helping the company to make a profit? What's profit anyway?

 

This generation has lost its sense of self-worth, self-determination, and self-reliance. They don't know that they are suppose to work hard, save, and increase one's value to their employer. They believe that employers are there to support them regardless if they cost more than they make for the company.

 

It's going to be the generation of "Bread & Circus," and the USA will follow the Roman Republic into the anneals of history as a country that lost its way and become too bloated, too soft, and too weak to survive. The Romans thought that they were invincible, but they forgot about the "enemy within."

 

Ask yourself: "Did I teach my children to be self-reliant, self-disciplined, and self-controlled, or did my kids learn their work philosophy from the public schools and TV?" If it is the former, your kids will be part of the "B&C" crowd, if not, then my hat is off to you.

 

Called the market action on the nose BHO effect

The markets sold off to the 804 on the SP 500 and closed < 8000 (into the 7000) for the first time since 2003. Please see my Nov 15th blog post ("Outlook for the markets this week") for the call last week.

Come back for more sound calls and indications where the market goes next. Remember, when everyone is calling the bottom, it ain't it.

Why are the markets in a rout? I call it the BHO/SMDC effect. As it becomes clear that BHO and his SMDC are going to be able to do anything they want without fear of Republican intervention, the smart capital is pulling their investments from the US equities and moving it into cash and overseas.

This is what happens when you say the magic words: "Share the wealth." Well if it keeps going, there will not be much wealth to share.

CA Supreme Court weighs backlash if it kills Prop 8

As the California mess over Proposition 8 heats up with the radical liberals now saying that they want the California Supreme Court overturn the will of the California people for the 2nd time, but then they risk the fate of former California Supreme Court Chief Justice Bird who in 1986 was impeached and removed for blocking another will of the people proposition on the death penalty in California.

This fate is now lost on the current sitting California Supreme Court Justices. There is nothing more ignominious then to end one's legal and jurist career in a recall/impeachment action; however, I believe that the Justices will again act to overturn the California will of the people due to the rabid pressure being put on them by everyone from the current Governor who is masquerading as a Republican and the current California Attorneys General, former Governor Jerry Brown.

The left coast state is such a juxtaposition of odd liberalities and conservatism. California allows medical marijuana while voting twice to protect the definition of marriage to be between 1 man and 1 woman. Go figure. Should be an interesting fall and spring.

The auto makers bail-out analogy story. Good Read!

Here's the analogy of why the Big-3 auto bail-out is going to backfire; in other words, what are the LOUC (law of unintentional consequences) of this bail-out?

 

The setting is a classroom. The teacher has announced the test tomorrow in math that was scheduled at the beginning of the semester. There are 12 students in the class: 3 are big bullies from old, money families that run the town, 3 are cousins of the Big-3 bullies, and then there is another student that part of their gang now of 6, the proverbial beta-male (look up the pack mentality of wolves to understand the reference), and then there a 5 non-aligned, smaller students from newer families that just moved to the town.

 

The Big-3, their cousins and enabler (that's 7) hear about the test, have heard about the test, but have decided not to worry about studying or getting ready. They are the Big-3, they have clout, they have standing, they have been around for a long time, they have family connections, they don't need to change or study since the teacher would NEVER fail them for fear of the consequences. Remember, she got her job because of their families' help and support. She owes them.

 

The 5 newer students know that they have to study, prepare, and get ready for the test since they don't have connections or family or lineage to fall back on if they don't do well on the test. They have devised ways to study better, be more creative in learning the material, gotten together to form study groups, get home at decent hours all to make sure they do well tomorrow.

 

After the teacher announces the test, the Big-3, their cousins, and enabler come running up to the teacher and complaining that they weren't told about the test, they haven't prepared, they haven't learned the material, and its too late to do anything meaningful to prepare for the test. They therefore tell the teacher that she can't have the test tomorrow or they will fail, they will not get a good grade, they will not be able to get into a good school, the town will have to pay for them to get welfare and extra mentoring. In other words, they have to get special treatment like a free 20pts on the exams tomorrow or the teacher and the town will be trouble.

 

The 5 outside students hear this and listen for the teacher's response which from the teacher's frown is saying that she understands and that she will probably give them the 20pts since she doesn't want them to fail, get a bad grade, and not get into a good school.

 

The 5 outside students then get angry and run up to the teacher and demand the same treatment or they will tell everyone in the town and they have her fired when her contract comes up for renewal. Since the teacher did not get her job by the support of the 5 students' families, she says that she can't do that since she can't give everyone a favor.

 

The test day comes, the Big-3, their cousins and enabler do poorly, the teacher adds 20pts to their test scores and they all pass until the next big test in 2 weeks. The 5 outside students get angry and quit studying, preparing, and finally some fail and are sent back a grade. The Big-3 and their companions are passed up to the next grade, and the outside students, now only 3, leave the town and move to other places where they are fairly treated taking their incomes and allowances with them. The town gets less money, has to raise taxes on those that remain in the town, and finally like Vallejo, CA, the town has to fill for bankruptcy in another year.

 

The 20pts only held off the day of reckoning for a year. The results were the same. The town failed, the old families had to go on welfare, and the 3 outside students and their families moved to other places and did much better since the students were more fairly treated.

 

This is the tale of the extra 20pt bail-out of the town called Detroit.

 

GET THE POINT????

 

Why the US Consitution limited the federal government.

Let me see if I can give you a good analogy why these bail-outs are NOT working. Forget that its the government and they can't propose themselves out of a wet paper bag, and should have stuck to the delineated authorities the US Constitution said was their only authority. Do you remember what they are? Here's a civic lesson before we go on.

 

The US Constitution in Article 1, Section 8, details 3 primary functional operations that the federal government was suppose to limit itself towards accomplishing, everything else was to fall into the states' rights as provided in the Bill of Rights, specifically the 10th amendment.

 

Those 3 functional areas are:

1. A national defense: raise & fund a proper military, call up states militia, punish crimes on high seas, declare war
2. Commerce: bankruptcy laws, establish and regulate a money system, weights & measures, postal system, prevent counterfeiting, establish copyright and patent laws
3. Administer seat of government: establish federal courts, administer federal lands

 

The 10th amendment is very clear that everything else is to be adjudicated by the states, not the federal government; however, we the citizens of the USA have let our federal government become what the founding fathers feared:

 

"not a single tyrant 3000 thousand miles away, but 3000 tyrants 1 mile away..."

We have to reign in the federal government with its exploding over $3 Trillion USD budget, or we will go the way of the Roman Republic and the Greek optimum. We will simply implode and either be reduced to an impotent 3rd-world entity or reformed into an authoritarian form of socialism or fascism.

 

Unfortunately with BHO and his now almost certain SMDC, it will probably be the former impotency with the UN as the world's sole superpower.

 

All hail the UN! Break-out the UN blue and accept its mandates. You laugh, but its on its way, folks. I will help you see that as it happens. Remember, American CAN'T BE FIXED! It's simply too late, but you all have ringside seats to its slow demise.

 

Ah, the analogy is in the next post.

Is Detroit "Too Big To Fail?" Nope! It's Time.

In every society it is necessary to "take the medicine" for past mistakes and accept the consequences of our actions or inactions. I have been getting tons of emails, but few comments since it appears that many are afraid of posting to a moderated website, but that's the way it goes.

 

The email has been very negative of my stance of letting the Big-3 auto makers fail, but what the emailers do not seem to understand is that $25, $50, or even $100 Billion USD in bail-out to Detroit is NOT going to solve the problem. It is only going to put off the day of reckoning. The model of Detroit is FAILED. The blame is too numerous to list, but I will try:

 

1. Government for not allowing management and labor to form partnerships. That's right, its the government that prevents organized labor from working with management.
2. Management in that they negotiated labor contracts that added $1000s to each car that they make to where the average hourly rate of Detroit is $75 to the US-based Toyota, NIssan, and other non-Detroit based US car makers' $48 hourly rate. Every car Detroit makes costs them $27/hour. Impossible to maintain such a business model.
3. The UAW (United Auto Workers) union that prevents Detroit from being competitive all in the name of protecting "good US jobs." In the end, it will be the UAW that kills the golden goose.
4. The Big-3 auto maker shareholders that did not DEMAND Detroit reorganize and retool for the smaller, more fuel efficient products.
5. Finally, the consumer that did not DEMAND Detroit make cars they wanted. Buy American, but buy smart American should have been the US consumers' demand of Detroit.

 

So we all have something to shoulder when it comes to Detroit's current morass, but just propping them up with more money is NOT going to solve the problem. We have to take our medicine, and the longer we forestall the day of reckoning, the worse its going to be when it finally happens.

 

Is Detroit "too big to fail" I have heard that for the airlines, the banks, Wall Street, and now the auto makers. It is just a cry of the outdated, the outmoded, the out-maneuvered, and the non-competitive companies called the Big-3 auto makers along with their very unnecessary UAW.

 

Keeping the Big-3 and the UAW alive is a classic case of "Weekend at Bernie's." Rent the movie if you don't understand the reference.

 

 

Reasons why Detroit should be let to fail

Why is letting the Big-3 auto makers go under is the best for the USA? It is the best for the following reasons:

 

1. Productivity: Detroit was financially tooled when Detroit was the only game in town, and its contracts and operations prohibit production improvements
2. Progress: the "buggy whip" industry as the turn of the last century probably had its reasons why it should not be let to go under, but the livery industry had run its course and needed to be replaced. The "old style" auto industry in the US is in the same condition.
3. De-unionization: the US had progressed beyond the need for big unions. Laws now protect the American worker and big union simply drive US companies into non-competitiveness. Name one highly unionized US industry that is competitive and healthy today.
4. Free-market protection: the term "too-big-too-fail" has now replaced innovation and competitiveness. With the ESA 2008 and the bail-out of Wall Street came the socialization of American big business.
5. Protection of manufacturing: in reality the Big-3 auto manufacturers and their unions have stalled manufacturing innovations and could kill it completely. Detroit needs to be re-born, not propped-up.

 

In all failures and bankruptcies, resources of all types move from improper utilization to optimal utilization. That is the fundamental tenant of capitalism. Either we believe in capitalism or we don't. We believe that free-markets solve their problems or we don't. When you mix government intervention with free-markets, you hamstring the markets and everything breaks down.

 

Oh, you mean like now? The markets are breaking down because the government is sticking its fingers into the process, changing the rules, and making decisions that capital should make. Think about it? Would you trust your money to someone that has a vested interest in its growth and application or a disinterested third party driven by political an self-interest?

 

Right, you make the decision, and now you understand why bailing out even the Big-3 auto makers will be only worse for the future of the US auto industry. Now is the time to let them go into history and let smaller, more innovative and competitive replacements take their place.

 

However, with the Democrats in bed with the Big Unions, don't count on it. They will bail them out after January 20, 2009, and more of your tax money will go to buy off union support.

Viagra vs jobs program in Mexico

A lighter side of the news can be found in Mexico City where the Health Minister is going to begin handing out servings of Viagra and its competing work-alike male erection dysfunction remedy drugs to Mexican men over the age of 70.

 

Wow, now that's a real benevolent government, eh?

 

The US Government hands out billions to failed companies, unions, and banks while Mexico is handing out impotency treatment drugs to its over-70 male population. Why would Mexican citizens want to come to the US when they can get free ED drugs and here they only get hassles, raids, and a little work at minimum wage.

 

Goes to show you what the Mexican government thinks is important, and now you understand why we have such an illegal immigration problem in the US.

 

US Senators and Postmaster General sweetheart mortgage deals

More and more Democrats that helped to block the increased scrutiny of the now failed GSE's are coming into the public eye as even the USPS (US Postal Service) is beginning its own internal investigation about its own Postmaster General John Potter supposedly receiving a Dodd-like sweetheart deal from the failed mortgage lender, Countrywide.

 

These follow on the heels of the Democratic-headed Congress' failure to investigate their own in the persons of Senator Chris Dodd (CT-D) and Senator Kent Concord (ND-D) both heading mortgage oversight positions in the US Senate committee structures. The Congress appears does not want to know if these Senators were recipients of such sweetheart deals to keep the heat off Countrywide Financial.

 

Countrywide VIP loan officer, Robert Feinberg, says that it was his job to make sure all his VIP clients were fully aware that they were receiving preferential treatment. This is very interesting since both Dodd and Conrad were/are in positions of oversight for commercial financial institutes and thus receiving sweetheart deals, well, you draw your own conclusions on why the Democratically-held Congress does not want hearings on this matter.

 

Again, here is "Change we need", "Change we can believe in", "Change we can trust" and all that nonsense.

 

Folks, you voted for BHO and now you have to live with the same old politics and corruption. Its just now going to be from the south-side of Chicago. ;-)

 

 

Global warming a SCAM - or at least based on bad data

Global warming took a major credibility hit last weekend when it was shown that the Goddard Institute for Space Studies (that is NASA's main global warming proponent research laboratory) claimed that October 2008 was the warmest on record thereby giving what seemed more weight to the AGW (anthropogenic global warming) debate.

 

It now appears that it was due to a misrepresentation of the data from some temperature readings in Russia. The folks at NASA that put a man on the moon, and ran robots on Mars are saying that they couldn't catch the mistake since they don't have the budget for data quality control. WHAT? This must make all the wanta-be astronauts sit up and take notice.

 

The mistake was a simple repeating of September's temperature data for October thus making October appear to be the warmest in recorded history. Once the anti-AGW watchdog groups took a look at the data, it seems that the Goddard Institute quickly rescinded its announcement and acknowledged the mistake.

 

Christopher Booker of The Daily Telegraph writing on November 16, 2008 said:

 

"...they (the Goddard folks - my reference) made an astonishing discovery. Figures from the previous month had simply been carried over and repeated two months running."

There's the government for you. Can't even get something as easy as temperatures correctly, and people want them to fix the US economy???!

 

BHO and Media's honeymoon already cracking

The news from the Obama world is coming in form of criticism by the MSM (main-stream media). This could be the first indication that the BHO-MSM wedding is now entering the post-honeymoon period.

 

The Washington Post yesterday in a column by Howard Kurtz, normally a very avid BHO supporter wrote:

 

"There's nothing wrong with the country pulling together... we seem to have crossed a cultural line into mythmaking."

 

Ya think!

 

This MSM (main-stream media) is making it so easy to write such wonderful, glowing things about your new President BHO. Remember, I am opting out of calling BHO "my President" since I don't believe he has the country's best interests at heart.

 

Hey, you liberal/Democrats did that opting in 2000 when you claimed that Bush-43 stole the election. I am doing it on the basis that BHO deceived the voters. Something I think will become more and more evident once the MSM really gets behind the inevitable "BHO-bashing" that is going to come.

 

Just remember, ITYS (I told you so).

 

 

Quick summary of news items from yesterday

Real quick revamp of news items from yesterday and today:

 

1. Hillary rumored to be offered the Secretary of State position
2. Senator Chris Dodd (CT-D) refuses to release his "sweetheart" mortgage deal papers with the GSEs
3. BHO picks 34 out of 41 positions for his new administration to be filled by "ex-Clintoneers"
4. Michelle Obama emasculates BHO during their first post-election interview
5. Republicans continues to flay and ungulate without direction (yes, like a slug)
6. Lame duck Congress block outright bail-out of Detroit, it will pass after Jan. 20, 2009
7. Henry Paulson continues to act without Congressional approval - market continues to dump

 

And the beat goes on; however, the biggest news item that occurred today was that I finally had to add the word "Obama" to my online dictionary spell checker!

 

WOW, that was really a reality check! We actually elected this inexperienced, south-side Chicago thug as our 44st President. I am only using the terms that even the Chicago papers called him. (Google if you don't believe me on that one).

 

The next four years begins now.

 

Obama watch continues on all channels

Took yesterday off due to a huge snowstorm that hit us in the Northeast and so had to get some things done that prevented me from blogging yesterday, but it seems it was a slow news day anyway.

 

Today its more of the Obama-watch that all the media is engaged in even the conservative talk radio shows are spending all their time on this very idiotic pastime. I am getting a break from having to listen or tune to these shows while this mania is going on across the country.

 

I am now getting more email spam for BHO coins, T-Shirts, murals, etc. than I used to get for penis enhancement, porno-this, porno-that, Viagra and Viagra work-a-likes, and every other thing under the sun. BHO-mania items is eclipsing everything!

 

It means I get to watch some of my favorite TV shows that have been backing up on my largely enhanced TiVo type device that can record over 2500 hours of TV shows from my satellite service. This means that I can record all my shows and not watch them for about 6-9 months. With this device, I have not watched a commercial (probably why I maintained my sanity during the recent election) since I have written a very small Java program (don't worry about it if it sounds techie, it is) that goes through the shows and cuts out the commercials unless I have told it that I am interested in a particular commercial. You can bet the BHO and McCain commercials were dumped before they returned to the "regularly scheduled programming."

 

Anyway, enough of my technical prowess, its the mental processes that took a break yesterday as I had to deal with physical procedures and processes of survival in my neck of the woods. When it snows, no one comes and plows my lanes, no one comes and pays my electrical bill, one comes and pays my mortgage. I have to get out and do those things for myself which is what it should be.

 

More posts on the auto industry bail out of the UAW (united auto workers) union pension and health care, global warming, and other neat little tid-bits of current events.

 

Outlook for the markets this next week

The markets did a huge pull-back (PB) right at the close on Friday, and that usually does not bode well for the opening of the futures on Sunday evening 1800 (6:00PM) EST. If the market continues down as the NZ,AU markets come on line at 1800 and then the Asian markets at 2130 EST followed by the European markets at 0330 EST.

 

If these openings bring the SP 500 down form its levels on Friday afternoon, then the markets are going to sell-off again and this time it could take out the 800 level on the SP 500 and move into the 7000 on the DOW. This will most likely produce the capitulation and the bottoms in the market needed to form the next pattern to the upside.

 

The patterns forming in the market are very atypical for a post-election period. History has shown that most post-election time periods are rallies in the market not dumps to new lows of the year. However, we could still get a rally if the market sells off far enough to bring back the buyers, but only if investors once again gain confidence that the US Government isn't going to continue to play around with the rules.

 

If BHO and his SMDC start re-regulating the markets, increasing taxes on capital, and making changes to how markets operate, it could sell-off even further while those with capital begin removing investments from the US market and moving to where capital is treated with less hostility.

 

This will cause the US Dollar to drop as assets denominated in US Dollars are sold to begin the moving or redenomination of the assets into the new investment locale's monetary standard. This could force another round of US capital market sell-offs.

 

Sorry the news isn't better, but when capital is treated with disrespect, it leaves your country. It's that simple to understand.

 

How history may look at this watershed period

History will most likely look back on the election of 2008 as the watershed election of the 2100st century in that it was the beginning of the end for the USA. It will be studied as the point at which the USA began its slide into mediocrity and 3rd world membership. BHO will get his wish as the USA takes it place in the world as just another has-been like the UK, France, Russia, and Japan.

 

This world can no longer tolerate a USA as the sole superpower so they are applauding how "the one" is going to reduce the power, prominence, and position of the USA to just a "member of the global community" without a strong military, without strong borders, and without a strong sense of national identity. BHO has said that its time the USA took its place amongst its neighbors and this means that the USA must be severely ham-strung.

 

Why do I say all this? It's very simple. The world can not move towards a one world government with the USA remaining as a sole superpower. The vacuum left by the USA's loss of such status will be filled by the UN as all the little countries of the world fear each other and are willing to give up their freedoms and sovereignty to gain what they think will be world peace.

 

This is the future for the world and the USA must take its place and BHO will be the beginning of the move towards that future. My next post will list the things that BHO and his SMDC will do to begin this process of change for the USA.

 

BHO's associations now talking like magpies

Why after the election have all the alleged radical associations begun speaking to the main stream media? Ayers, Wright, Farrakan, Dohrn, and others have all began showing up in public and speaking on shows and in interviews now that BHO has successfully gotten himself elected without the radical associations being fully vetted.

BHO's own potential staff questionnaire asks if these people who want to work for "the one" have an associations that might embarrass "the one." WOW! What a level of hypocrisy? What a "do as I say, not as I do." This is will come back to haunt the Americans that voted for "the one." This will come back to haunt the country which "the one" is going to change forever.

This should not surprise anyone since BHO's own past and education in the world based on the radical writings of Saul Alinsky says that a radical must hide and obfuscate his true nature until he is in a position of power to be able to show his true colors.

BHO is now going to be the 44th POTUS, and this should give him the cover he needs to implement his liberal agenda.

What liberals can expect from conservatives like me

So what can the people that don't consider BHO their President like the liberals did in 2000-2008 when they said over and over that Bush-43 wasn't their President?

 

We can take verbal exceptions with his policies, his legislative agenda, his attempts to socialize the country hoping that he and his SMDC will over reach so that he and his Congress will get spanked like they did in 1994 when the then First Lady, Hillary C, over reached and tried to pass nationalized health care without input from the Republicans (then the minority party) or from the public just what they accused VP Cheney of doing with his aborted energy forum in 2001-2002.

 

See, the Republicans and Democrats are so much alike it stinks. This is why its time to take one out and I would say its the Republicans since they have the least to lose after the trouncing they got in the 2 last elections. The Democrats are still high off their last election of BHO and the SMDC so they are not going to want to change their ways.

 

Does your memory include how the Democrats were considered on the ropes after the 1994 Republican "Contract with America" rout of the leftists? Well, that was 14 years ago, and now its time for the Republicans to be routed by the ones they did. So turn around is fair play and it depends on how the Democrats take their power trip as to how long they will be given power. Since the rout of the Republicans began in 2006, it will probably be a bit longer for the country to tire of the left/liberal shenanigans before they throw them out of office. When that happens and how it happens will depend a lot on how the Republicans have altered their public persona.

 

If the Republicans have changed little from today, then the Democrats are going to be able to retain power for a longer period of time since voters will see little reason for change. If on the other hand, the Republicans or the American Conservative Party (ACP as I call it which should replace the GOP) have a sound traditional, differentiated platform then they may be able to take power from the liberals earlier and more easily.

 

 

Double standard setting up to forgive BHO's mistakes

My pleasure at seeing Alan Colmes, a very liberal Fox News commentary on the Hannity & Colmes show, be somewhat honest in his perspective about the failure of both parties in the creation of this current financial crisis was dashed last night when he began the normal far left/liberal setup for blaming Bush-43 and Republicans for everything that will go wrong with BHO's first term.

 

During Bush-43 first term, Mr. Colmes like most liberals were so bitter that the 2000 (that was a whole year before Bush-43 took office) internet bubble pop and the resulting recession and job loss scenario that took place into 2001 blamed everything on Bush even though it began and blossomed under the last year of Slick Willie's last term.

 

Now that it looks like BHO is going to get the same negative treatment from the economy, Mr. Colmes is saying that it the jobs loss in 2009 will have be laid at the feet of Bush-43 not BHO. So you see, impotent and meek Republicans, you are about to get blamed for everything, and in your "turn the other cheek" mentality of playing by the rules you are going to get politically raped and feed to the sharks.

 

Since the Republican Party has no cahones to fight back we will see BHO and the MSM (main stream media) blame, and blame, and blame the Bush-43 administration for all the ills of the coming recession that BHO will exacerbate with his raise capital gains taxes, raise corporate taxes, and raise the minimum wage, etc. BHO will be given a complete pass and Bush-43 and the Republicans which will take it like a cow to the slaughter without even fighting back.

 

Just letting you know this ahead of time since I still believe the Republican Party needs to die and be buried with a bit of fanfare, but not too much since they killed themselves in a sort of weird form of political suicide.

 

Colmes may be right thinking that he and his far left liberals will get away with blaming it on the Republicans and Bush-43. However, if BHO and his SMDC over reach, they could get slapped hard in 2010, but it all depends on if they do it by "killing me softly..."

 

Economic solutions without costing $3 Trilion USD

So how could the $1.3-2.0 Trillion USD savings spelled out in the previous post on Government savings be spent to stop the recession and begin the recovery?

1. Since banks are hoarding the money given to them under the ESA 2008, the Government should immediately rescind all monies given to financial institutions and put back into place the following financial procedures:
• Re-enact Glass-Steagel Act
• Remove the "mark-to-market" FASB/SEC accounting rules for mortgage operations
• Re-enact the Resolution Trust Corporation
• Rescinding of BHCA of 1956 to allow private equity to purchase GSE assets
• Return to no paid interest on FRS required deposits by banks (reserves)
• Dissolution of GSE's with assets sold to private equity & mortgage operations
2. With the successful implementation of action #1, the Government without any expenditure of taxpayer funds have shown the banks that they will lose there place in the financial system to the Government since now the Government can take over foreclosed properties, auction them to the highest bidders or lease them to qualified investors.
3. Guarantee mortgages to qualified buyers with 10-20% down payment and proper income requirements via the FDIC-RTC operations.
4. Exchange regulation of and listing of all CDS (credit default swaps).
5. Changes in corporation board membership and operation to provide transparency
• The CEO and Chairman of the Board (COB) can not be invested in same person
• Internal auditor function must report directly to COB not CEO/COO/CFO
• Internal auditors' report summary must be made available to shareholders
• The Executive compensation must be annually approved by shareholders
• Option-based pay must be expensed annually as regular compensation
• Executive performance must be "pay for performance" based & implemented
• Golden parachutes must not exceed 3X average last 3 years compensation
6. No bail-outs for private companies. Normal bankruptcy laws must be implemented.
• Failed corporate business models must be left to bankruptcy procedures
• Union contracts must be broken and compassionately renegotiated
• Assets of failed companies sold to entrepreneurs and innovators (capitalism)
• No government ownership of private company equities.

These actions will not have costs the over $2.5-3.0 Trillion USD that the current government operations are now moving towards, left the US as a capitalistic country, and reduced the size of the government largely expanded via the inept actions of the Bush-43 and Republican/Democratic Congresses of the last 3 decades from 1976-2008.

Solutions are simple, but not easy to swallow since most people in the US are not of traditional character, ethics or discipline. They have been swilled a steady diet of governmental hand-outs, welfare, and intervention. The US population is quickly adopting a "bread & circus" mentality which is the beginning of the end of the USA.

US Government savings could prevent recession

So, what can the USA soon to become the USSA do to restore its economy before its becomes entirely a "give-me, give-me..." society that slides into socialism?

 

First, the USA/USSA needs to stop all foreign aid for a savings of about $40 Billion USD for 2008 and beyond.

 

Second, pull all remaining military forces out of Europe and the Middle East, and station 2 US Navy aircraft carriers, 1 off the coast of Israel/Syria, and 1 in the Gulf of Oman. The savings will be about $120 Billion USD per year since we are spending about $120 Billion USD in Afghanistan and Iraqi today, and the cost of maintaining the 2 US Navy aircraft carriers would be only $1 Billion USD per year.

 

The US Navy carriers (Nimitz class) could handle ANYTHING the middle eastern regimes could throw at either Israel or Iraq/Afghanistan.

 

The protection of Europe should be the interests of the EU (European Union) and Russia. When the 1989 demise of the Warsaw Pact occurred, the US should have left NATO since its need was no longer necessary. It would defused the current problem with Russia and Eastern Europe.

 

We could have helped the old-USSR breakaway provinces with economic, trade, and technology programs that would have done more to show Russia that we were not interested in humiliating them which I am sure they believe it happening now.

 

Third, we legislatively prohibit all ear-marks in Congressional spending bills. This alone would save over $40 Billion USD maybe more per year according to the TCS (Taxpayers for Common Sense) 2008 earmarks database.

 

Finally, prevent the remaining ESA 2008 bail-out monies from being spent which would save over $400-500 Billion USD and maybe as much as $1 Trillion USD.

 

All said, the savings could be from $1.3 to 2.0 Trillion USD which could be better spent at home. The next post will specify how to spend the savings to immediately stabilize the economy and get the recovery back on track.

 

Market swings today were breath-taking.

Today's market action was simply awe-inspiring!

 

To see the market do 500pt loop-to-loops not once, but three times was simply something amazing. The market began with a pull-back off yesterday's close that continued down to set new lows around 11:00AM. From there the market rallied over 50pts to set new highs [918] and began a 45 minute dump of over 50pts to set lower lows right before the market closed for the weekend.

 

These moves in the SP 500 translated to over 500 pts swings in the DOW and did it several times. I am sure there were more than a few brokers and hedge funds that were caught on the wrong side of the market and lost a ton.

 

The volatility today was something that does not occur often, but when it does, and you happen to be working the charts correctly, you can make some big bling. However, if you caught on the wrong side, you could have coughed up a bundle. Remember, most markets today require a mark-to-market accounting that means when the day is over you losses are removed from your account, and your winning are added.

 

Futures, options and Single-stock-futures are all Zero-sum games. This means that money is never lost in these markets simply moved around. New money in the form of new accounts or added capital to existing accounts is the only way that money is created or added to these markets. Zero-sum markets means the $1 USD I made on a trade to taken from someone else that was on the other side of the transaction, and vice versa.

 

So when you hear that people lost money today in the markets, that's simply a misunderstanding of the market operation. It would be more accurate to say, I loaned the market $X USD today, and tomorrow the market may loan it back to me. You only lose if you quit or loan all your money to the market.

 

Have a great weekend.

 

To my liberal friends, family & associations

Too all my liberal friends, family, and associations:

 

Don't take it too hard that people are now pounding your BHO. It was going to happen after all since it's the way it goes regardless of the person occupying the White House. Just remember all the fun you had over the last 8 years when Bush-43 was elected (oh, sorry stole the election) in 2000, and then was re-elected (oh, fraudulently won the state of Ohio) in 2004.

 

Your pain is just beginning and its going to last for 4-8 years. So grow some thicker skin, try and get some sleep, take some aspirin when the headaches start, and simply smile knowing your man is in the White House when they stuff like they have done today with the schooling of BHO's kids, the release of the staffers questionnaire, etc.

 

It's only going to get worse since we of the DO (disloyal opposition) have over 8 years of youtube, media clips, online google searches, and other hard proofs of things that the liberals did when dealing with Bush-43, and I for one am going to use everyone of them until you guys realize that its really tough when the shoe gets put on the other foot.

 

Buckle up, my friends/family/associates of the liberal persuasion, its just beginning.

 

 

At least one liberal has it right!

Unbelievable, but yesterday I was finally able to agree with a liberal on a single point. You will not guess what that point was or who the liberal was?

 

It was Alan Colmes when he took on Michael Steele and said:

"Where were all the reformers during the past 10 years when the Republicans were losing their way? Everyone is coming out the woodwork and trashing the GOP now, but where were they when they, as you say, were losing their way?"

So true, Alan. This is the first time I have to agree with you, Alan, on how and where the Republicans lost their way was not just last week, it started in 1995 when Newt Gingrich, then Speaker of the House, did exactly the same thing he took Jim Wright to task about in 1985 about a shady book deal.

 

From there is was scandal after scandal, spending after spending, and nonsense after nonsense. The GOP lost their way a long time ago, and Alan was at least being up front this time when he is usually very liberally accommodating and protective of the hypocritical liberals.

 

At a boy, Alan. Now go get some conservatism ;-)

 

 

BHO potential staffers to fill out invasive questionnaire

I can't even get a break on all the hypocrisy and gaffs coming from the BHO OPE (Office of the President-Elect). Now they are sending out a 7 page questionnaire to all potential staff asking things like:

• Do you or anyone in your family owns a gun?
• Have you done anything that would potentially embarrass the President-Elect?
• Do you have a facebook site, if so, provide posts, links, and emails?
• What are your handles, nicknames, and links used online?
• Have you been associated with Freddie/Fannie? (opps, there goes Rahm!)

 

This is really going to be a really circus, and the media that was loving him is now doing all the work for us members of the disloyal opposition (DO)! Remember, I told you that the media would get tired of fawning over him and begin the picking the bones. Happened already. Dang, that was fast!

 

Also, if you think about it, it is rather the height of hypocrisy for "the one" to be asking all this personal information of his potential staffers when it was considered "racist" during the campaign to ask these questions of the messiah (as Louis F. called him).

 

Additionally, BHO himself would not even be able to be one of his own staffers; how does that strike your funny bone? I am not making this up! Google the Obama staff questionnaire. It would seem that even BHO can't keep the leaks tight, and he's not even in the White House yet.

 

As I have said before, the next 4 years is setting up to be a conservative blogger's dream.

 

 

 

BHO's children to attend private schools not the DCPS!

As the daily stream of "Change we can Trust" continues, so does the hypocrisy of the BHO team.

 

Now it seems that BHO's 2 young daughters are going to attend they very prestigious, but very private, Stidwell Friends school instead of the ridiculously over-unionized and inefficient Washington DC public schools where 59,000 students of mostly lower to middle class working families are trapped in a veritable cesspool of teacher incompetency, administration wastefulness, and extremely poor student performance.

 

Oh, they are saying that its for security reasons, but other Presidents' children has attended the Washington DC public schools without security problems, and the Secret Service does not limit a President's choice of schools for their children.

 

Look up the stats (last year available 2003) for the DCPS (DC Public Schools) and see how poorly the average students performed regardless of the over $18,500.00 per student per year that is being spent.

 

Now why doesn't BHO send his children to the DCPS?

 

Why doesn't BHO support vouchers to allow trapped inner city children to opt out and go to better schools like he is doing for his children?

 

Hypocrisy is the word, folks, unabased, naked hypocrisy that we come to expect from BHO and liberal/Democrats on topics like free speech (if it is liberal-oriented only), gun ownership, wealth, renewable energy, etc. Liberals practice the height of hypocrisy in almost all aspects of their lives. They can't help it. It's in their nature to live by the principle:

 

DO AS I SAY, NOT AS I DO!

 

Liberal/Democrat hypocrisy will be a main topic of this blog throughout the next 4 years, and BHO is making it so easy to come up with topics and examples.

 

What happened today in the markets?

Well the short covering started today right before Bush-43's speech to the Manhattan Institute. The reason for the big rally was purely technical not fundamental.

 

What does that mean? Well, there are 2 major types of investment analysis in the financial world today. There is the accounting-based analysis called fundamental analysis that tries to tie the price of a financial instrument to the fundamental accounting and business operations of the entity upon which the instrument is based.

 

In other words, fundamental analysis reads and tries to understand financial statements of a company or corporation. The problem with this is that if fundamental analysis was so great then why did we miss the Worldcom, Enron, Tyco, Fannie Mae, Freddie Mac, Bear-Sterns, Lehman Brothers, Merrill Lynch, etc failures?

 

That's the problem: the financial papers are so complex and so ripe for cooking by accountants and lawyers that its almost impossible to be able to look at financial statements and get a clear understanding of just what is going on inside the entity under inspection. Why do analysts disagree on the financial health of a company when they are all reading the same financial statements?

 

I will tell you: its not that clear and that is why fundamental analysis is flawed.

 

The second type of analysis is called technical. It is basically constructed on the simple premise that the only thing that matters for a financial instrument (stock, bond, option, future, etc) is the stream of prices and volume of those transactions. When someone is willing buy and someone is willing to sell at an agreed upon price/volume point, then all the other analysis is done and the resulting tick (transaction of time, price, and volume data) is entered into the exchange data streams.

 

Technical analysis is the purest form of analysis because it doesn't use the financial statements for the reasons mentioned above or the words that are coming out their mouths for the basis of the entities financial instruments. It uses on the three items of the tick: time, price and volume.

 

Analogy: using fundamental analysis is like your doctor diagnosing you medical status and health from only your medical history, test results, and physical inspection. Technical analysis is your doctor using instruments like an EKG, EEC, Pet scan, MRI, CT, and ultrasound to determine what is the real goings on regardless of what you say or what a test says.

 

Hope that helps. Today, the rally was a technical rally since nothing fundamental in the market place has changed. It will be interesting to see if the rally runs out of steam and stays in the 825-1000 range I predicted on this blog back on October 30 when I said... (well you can read it yourself.)

 

BHO is now the modern-day FDR!

Now Time is comparing BHO to FDR on their new cover. This Obamamania is just plain silly. It's like a bunch of "girly men" like Chris Matthews for example getting tingles up their legs when BHO speaks. It is just plain silly.

 

To act like a little school girl over the election of anyone is beyond the creditability for even the Democrat Party. Pictures of women and even men crying in Grant Park on Nov. 4, 2008 when BHO stepped up to take his victory lap are being emailed and shown around the globe. What must the rest of the world think of the once great and proud USA?

 

BHO has been called "the one," "the messiah," "the chosen one," and tons of other superlative epitaphs that I think he is being set up for failure at least from our perspective: the disloyal opposition. We are going to tag him with description as his policies fail and turn this recession into a much longer and deeper one. He will have to bail-out everyone and everything, pay-back the unions, put policies into place that are going to stifle the small business and entrepreneur killing jobs in kind. However, let's make sure that we let everyone know that he is the modern FDR.

 

OK, so he is. Let's just take that for granted for now. What did FDR give us?

 

1. The New Deal which nationalized huge parts of the economy
2. World War II - it began on his watch, like Bush-43, he has to take responsibility for it
3. The Great Depression - again on his watch, his fault
4. The nuclear bomb - created under his signature

 

That sure makes most liberals I know just sit up and cheer. FDR did everything that liberals say they are against are are fighting Bush-43 over today.

 

Interesting when the shoe fits the other foot, eh?

 

Consumers are confused and reducing their spending

Sorry, folks, today has been such a day of unbelievable nonsense from the BHO announcing that it wants to get a stimulus package that includes another huge bail-out for the auto industry and rebate checks to people who don't even pay taxes to the speech that Bush-43 tried to give spinning that "I am a free-market guy..."

 

It was a day where the markets again are gyrating to take out the LOY as discussed and then reverse themselves and run almost 60pts straight up on nothing but speech making while the unemployment picture gets more and more bleak.

 

The consumers are in all areas cutting back, pawning their personal items in unprecedented levels, reducing their spending across the board to where Christmas time could be the worse holiday spending period in decades. People are simply scared, tired, and confused about many things:

1. How Wall Street gets billions while Main Street gets the bill
2. How auto company employees get their fat pensions saved while people without pensions get the bill
3. How banks get saved from bankruptcy while they force some tax payers into bankruptcy by jacking their interest rates
4. How banks get low interest bail-out taxpayer monies while jacking fees and charges to customers
5. How 40% of citizens in the US don't pay taxes, but are going to get their "taxes cut" through rebate checks
6. How small businesses that generate over 85% of the jobs will tax rate hikes

 

Any reason why people are confused and are just going to "hunker down?"

 

 

The passing of the GOP (poem)

The Passing of the GOP

 

A party once given and well attended,

Lived long and lively and oh so brightly,

Until they forgot their roots and lamented

Their fall so loudly and unsightly.

 

The enemies surrounded the once GOP,

Their knives and daggers so bright and bold,

They stabbed and cut so deep you see,

To end the party once proud and old.

 

Do not lament this passing of the standard,

The death of red, the death of reason,

Another will come and take up the lanyard,

To stop the blue and make happy the season.

 

                       -IBNANOUK, 11/12/2008

 

Will BHO govern from the center? When pigs fly!

So many Republican pundits (K. Rove, N. Gingrich, G. Beck, etc) are saying that BHO will have to govern from the central; that the economy will not allow BHO to move left; that if he is going to consolidate his power, he must move to the center.

Well, Bull crap!

I called the election right on the money on Oct. 2, 2008 by saying that BHO would win in a landslide with near 400 electoral votes (he got 370), and he would get an SMDC (super-majority Democratic Congress), and I am telling you right now that BHO will NOT govern from the center. He will be the one that moves left and tries to pull the country with him. He is running on pure power-trip right now and with the Senate races going in favor of the Dems to give them a 58-59 majority, they will not need Lieberman whom they will jettison very quickly by stripping him of his Chairmanship of the very important Homeland Security and Governmental Affairs committee. This committee is central to the war on terror, and this committee chairmanship will be given to a Democrat that supported BHO.

BHO is the most liberal Senator in the US Senate, and he got elected with the help of the most radical leftist organizations in the country: Moveon.org, Media Matters, the Daily Kos, ACORN, and the ACLU. I am not even going to mention the Socialist Democrats of America, and the American Communist party. Throw in all the big unions (AFL-CIO, NEA, Teamsters, GovWorkers, etc), and you have a cauldron of leftist, socialist, and radical supporters that are already demanding payback. Go see each one of this organization's websites and see what they are wanting from BHO and his soon-to-be SMDC.

Govern from the center? Yea right. A tiger doesn't change his stripes that easily. Watch how quickly he implements his agenda using both executive fiat and Congressional legislation.

We will tick them off here as they are implemented.