BHO and Saul Alinsky, Radical Socialist

For those about to election BHO, here are the ideas that drive his ideology:

Capitalism always was considered the enemy. "America's corporations are a spiritual slum," he wrote, "and their arrogance is the major threat to our future as a free society." Is it surprising that an Alinsky disciple such as Obama can promise so blithely to increase taxes on CEOs?

Obama calls his years as an Alinskyesque community organizer in Chicago "the best education I ever had, and where I learned the true meaning of my Christian faith." But as radicalism expert Richard Lawrence Poe has noted, "Camouflage is key to Alinsky-style organizing. In organizing coalitions of black churches in Chicago, Obama caught flak for not attending church himself. He became an instant churchgoer."

Indeed, Alinsky believed in sacrificing ethics and morals for the great cause. "Ethical standards must be elastic to stretch with the times," Alinsky wrote in his last book, "Rules for Radicals," adding that "all values are relative in a world of political relativity."

Published a year before Alinsky's death in 1972, "Rules for Radicals" includes a dedication in which he gives "an over-the-shoulder acknowledgment to the very first radical . . . who rebelled against the establishment and did it so effectively that he at least won his own kingdom — Lucifer."

Alinsky's writings even explain what often seems like Obama's oversized ego. In New Hampshire in January, for example, the senator told an audience that "a beam of light will come down upon you, you will experience an epiphany . . . and you will suddenly realize that you must go to the polls and vote for Obama."

It was a bizarre spectacle, but consider that Alinsky believed that "anyone who is working against the haves is always facing odds, and in many cases heavy odds. If he or she does not have that complete self-confidence (or call it ego) that he can win, then the battle is lost before it is even begun."

According to Alinsky, "Ego must be so all-pervading that the personality of the organizer is contagious, that it converts the people from despair to defiance, creating a mass ego."

--Courtesy of IBD, 2008, Article on Saul Alinsky and BHO

I don't care if you vote for BHO, but please be honest with yourself that you are voting for a "died in the wool" socialist. I can abide people that aren't honest with themselves. I can understand why BHO, who follows Alinsky's warning for "radicals to disguise their ideology.." until they are in a position of power, lies about his true beliefs, but for those that are being swayed by his speech-making, it's intellectual weakness.

Come Nov. 4th, 2008, the USA will indeed elect their first socialist President, and he will come to power in a way that would make Alinsky smile with satisfaction.

The "real change" BHO represents

BHO's big difference from JFK is that he is a socialist. Come on now, let's not lie about it. BHO's training, up-bringing, education, and early community organization experiences have all been in the venue of making the USA a socialist country.

Why do liberals/Democrats have such a problem with that label? I have more respect for people that don't try and hide their stripes, but are willing to be up front and open about what they believe in. When they try to hide their true beliefs and ideologies, it makes me think that there is something to this need for distraction or obfuscation.

BHO, on the other hand, doesn't see this as a problem. When directly asked, "Do you regret making the statement about spreading the wealth around?" BHO answered directly and defiantly, "No, I don't!" BHO simply can't understand why anyone should be upset with this concept. To him the rich can afford it and should be patriotic enough to allow it, and the poor should embrace it as their right to other people's money. BHO believes these concepts are truisms in a progressive, modern society.

Ask yourself? How would I feel if I had to go to work everyday and work until 11:30 AM every day just so that amount of my income that I personally worked for could be taken by the government and then given to someone else "less fortunate" than I. That is not the American Dream, folks. The American Dream is based on opportunity, not charity.

Give a man a fish, and you feed him "each day and make him dependent on your charity"; teach a man how to fish and you feed him "and the small business employees and customers he creates for processing and canning fish." (my update to the old adage)

What BHO doesn't understand is the impact these concepts will have on the production and creation of wealth in a free society, and there may be "gotcha." Maybe he does understand, sneaky, eh?

The solitude of the ballot booth

This election has so many parallels in past elections it is truly an election of a lifetime.

The 1980 Jimmy Carter vs. Ronald Reagan was called for Carter up until the final debate after which RWR poll numbers just reversed the Peanut-guy (sorry, I truly believe that Carter should be tried for treason due to his comments about the US overseas - disgusting for an ex-President) advantage, and RWR won the 1980 election in a landslide (489 vs 44 EC, 51%-41% popular, 43 - 7 states).

I don't think that this will be the case for McCain assuming that BHO can silence his own internal detractors, but I believe that the only way McCain will win is if in the "solitude of voting booth" those that say they were going to vote for BHO outside or in polls, just can't make themselves pull the lever for the first black President with extreme socialist beliefs.

In the end, I believe that America is so confused and angry that they are willing to take a chance with BHO that they will go for him like my generation took a chance with JFK in 1960; however, the big difference is that JFK represented cultural change not constitutional changes.

I have no problem with BHO being elected President since I can out think and out maneuver any politician when it comes to my income being "shared" that it will not impact me or other smart people, but for those that don't study history, they will repeat the events of Clinton's election in 1992.

Dems talking their way to defeat!

More Democratic speak before the election is trying to accomplish the warning that BHO made at the Al Smith Dinner a week ago:

"We Democrats have the ability to snatch defeat from the jaws of victory..."

Two of most prominent Dems doing just this are Senator Joe Biden, the current Democratic nominee for VP, and Rep. Barney Frank (MA-D).

Both these politicians, not statesmen (look up the definition of both) are running their audio factories at full tilt making BHO's life on the campaign trail nothing more then that of a fire fighter going from one outbreak to another.

First it was Biden's comment about BHO being tested by the international community after his election and to be patient with him since he will probably not make the right decision the first time. This is BHO's running mate???!!!! If I didn't know better, I would think that Biden is actually a Hillary plant trying to sabotage BHO's campaign from the inside so Hillary can run in 2012 instead of waiting for 2016.

Remember, it was Biden that said his own selection by BHO as a VP would have been better if BHO had chosen Hillary. Joe's mouth is a prime candidate for super glue, eh?

Second, Rep. Barney Frank just said yesterday that after the elections, the military spending needs to be cut 25%! WOW! If this isn't the worst time to say that during a period of terrorists thinking of testing his soon-to-be-new boss!!!

Unbelievable. Dems do have a death wish. Just shut up and coast into the election. Send Frank to the Bahamas for vacation and Joe overseas to test the waters. Guys, its not this tough to win big in 10 days. Just keep your internal moronic talking-heads out of the lime light. Let BHO be front and center and he will sweep the EC (electoral college north of 400 votes), and bring in a SMDC.

Geez!

America needs a big BHO win! Whoa!

As in the previous post, I believe that BHO needs to win big in November because American needs a big dose of Democratic/Liberalism legislation and control. America needs to be completely removed from the prominence of the world stage, and reduced to a 3rd world socialistic country that is more interested in being well-liked than being right or standing up for personal freedoms. The world can not move into the next phase of its future with the US still the world's single super power. I know this sounds harsh, but trust me, it has to happen.

The USA has to be taken down, and it can't be taken down externally, so it will be taken down internally. Remember, the Founding Fathers warned us of both enemies, foreign and domestic. BHO and his SMDC will do this quite nicely without a shot being fired. They will do it with hand-outs, give aways, and tax rebates until they bankrupt those that are working to provide these monies, and then the whole structure comes down.

The main reason socialistic-type governments don't last is because they don't understand how human nature impacts the implementation of their basic tenants. When production ceases since there is not reason to produce since the government takes away what you do produce, the produces become out numbered by the consumers and all activity stalled. The government is then forced to move from socialism to totalitarianism in order to get the engines of production at least somewhat working.

Witness what is going on in Europe with the riots in France, 32 hr work weeks in Germany, and 80% tax rates in Denmark and Sweden. What have these countries produced in the last 40 years? Nothing, and the USA is heading that way.

Liberal media lowers bar for future candidates

The liberal media doesn't know what a gift they are giving bloggers like me in their treatment of Gov. Sarah Palin during this 2008 election. When their candidates come up for scrutiny they will be treated to the same barrage of low-ball tactics that they have leveled at Gov. Palin.

They will scream and yell, but that's the nice thing about places like YouTube and computers these days since we can store years and years of media clips and search on them in a heart beat. All the things they said about Palin on shows like "The View", "CNN", "MSNBC", "NBC", and other liberal-biased media outlets are just allowing the future attacks on politicians both men, women, whites, blacks, straights, gays, and the mentally disabled.

The sword of retribution always is two-sided and it will come back to cut the liberal-media backed candidates in the future, and those leveling the attacks will just be able to point to this treatment of Palin. Now don't get me wrong, I am not standing up for Gov. Palin since she has a record that speaks for itself which they can't attack so they attack her personally.

She was factually correct when she said that she has more executive experience than either BHO, Biden or McCain. She is the only one of the 4 running candidates that has had to balance billion dollar budgets, deal with international companies and the only one that has won monies from corporations for the citizens of her state.

None of the other 3 candidates can even come close to her level of executive experience. Now am I pushing for Palin, no, I think she and McCain need to get beat soundly and BHO and his SMDC need to be installed as I believe they will. How many other conservative, personal responsibility advocates bloggers do you know that want the more qualified candidates to lose? I do, and the next post explains why.

The 4 horsemen of the Financial Apocalypse

Today we saw the 4 horsemen of the financial apocalypse were out in full finger-pointing mode today:

They are:

1. Alan Greenspan: the catalyst and "I see no evil" member of that pack

2. Ben Bernanke: the "I came late too the party" to do anything

3. Henry Paulson: the main player in this financial apocalypse

4. Christopher Cox: the only one to admit guilt, but is still employed

These guys are supposedly the smartest financial types on the planet and they all said to the Congress that they didn't see it coming or didn't do enough to stop it if they did see it coming.

Now if these guys didn't, couldn't, or wouldn't, what chance do normal investors have in winning the investment game. I am sure that the US investor or 401K participant or IRA owner is going to be very suspect of the Wall Street game from now on, and it is going to take a long time before they begin to put their monies back into the market. Many people now believe that the government and Wall Street are in collusion especially with Hank Paulson, the ex-Chairman of Goldman Sachs, is running the Treasury department.

They have blown their "brand" as they say on Madison Avenue.

The joke that is OPEC

The OPEC meeting in Vienna cut production by 1.5 million barrels a day, and guess what?

OIL STILL WENT DOWN!

This must be jacking the OPEC members to no end. They cut production and oil still goes down to its lowest levels in almost 2 years. Whether we will ever see it in the gas prices is another issue, but it shows that even OPEC is not immune to LOUC.

They quickly left Vienna with their tails between their legs and vowed that they would revisit the question in 20 days at their regularly scheduled meeting. They are truly on the horns of a dilemma:

If they cut production even further, they risk a back lash from the consuming nations as their economies dwindling and turn into recessionary activities.

Also, if they don't cut production, the downhill slide on the price of oil will continue.

What a problem for their advisors, eh? However, you can't help laughing a bit at Chavez (Venezuela) and Putin (Russia) since their power is directly upheld by the price of oil. I am sure this weekend is not going to be very enjoyable for them.

Their revenue has been but almost by 2/3s!

The one decision that ended McCain's campaign

McCain destroyed his campaign with one decision: to support the ESA 2008 and going along with Bush 43 and his very ignorant group of financial advisors (Paulson, Bernanke, and Cox - more on them later).

Had McCain opposed the ESA 2008 and the market tanked as it has, he could have claimed that he warned the Bush 43 and Congress against this action and BHO would have looked like an economic neophyte. This would put McCain up over 10pts in the polls as he would have been the guy right on the economy which is the most important issue for Nov. 4th.

So how does BHO get a pass since he voted for the same bill as McCain?

Simple, BHO is a Democrat and they are party that is better supported by the media and they want the White House, not already in it. Thus, they will get the pass and be elected, and poor McCain will have to look back on his campaign as being totally unhinged by 1 decision.

The insiders are saying that Gov. Palin warned McCain about supporting the ESA 2008. She told him that he should publicly oppose the ESA 2008 for 2 reasons:

1. He would have claimed in hind-sight that the market action proves that the ESA 2008 was the wrong thing to do and he could have been the "right man with the right decisions" on the economy.

2. He could have claimed that he does not go with Bush-43 and the Democratic Congress and he was right.

He did neither and is now not just the underdog, he is the whipped dog that will be sent home. Sorry, Senator, you violated your long-standing maverick status. Should have stayed true to your principles.

Bye bye, now.

PS: Sarah P: you will do more good in Alaska.

Called it right on the nose!

So what I said in "End of day action on the market" before the 15:00 EDT (posted at 14:50 see the Blogger time stamp) did exactly what I proposed.

1. We found support and came back to test the 890 (893.75) right before the end of day, and then it settled down for a close of the SP 500 of 868 and a 312 point loss on the DOW.

2. We didn't BD completely since we didn't get back to the 837 LOY (low of the year), we will probably test it on Monday especially if we get some very bad geopolitical news over the weekend.

3. Today closed the book on McCain's campaign run and it is almost a guarantee that BHO and a SMDC will be elected on Nov. 4th, 2008. McCain blew it with his support of the ESA 2008.

If you would have read the blog today, and you were a trader in the ES, you could packed a ton of profit today.

Take care, folks. I will post more later about poor Senator McCain/Gov. Palin. They will be packed off to their respective corners without media fanfare in just over a week.

End of day action on the market

Well, we got down to 840.25 just 3.25pts off the 837 level I stated we would get to in the post "Likely market action today." I trust you traders out there were listening because if you went LONG there you got quite a nice little pop.

The market found support at that level and bounced all the way back to around 888 on the SP 500 index. So what does this mean, well, the real test is coming around 1500 when the traders decide how they want to spend the weekend: long and worrying about an ASIAN response to the meltdown, or flat which means they have to sell out of all their positions before the end of day (EOD).

If we don't get a big sell-off into the close, we may even get a PTS (profit taking session) which today would be to the upside to test the 890 level before the close at 16:15 EDT.

Watch the markets beginning at 15:00 (that's 3:00 PM for civilians, and big hand is on the 12, and the little hand is on the 3 for public school attendees). If they start to sell-off the panic will spread fast and we could end up around 8000 or lower on the DOW and take out the 837 level on the SP 500.

More after the dust settles.

Likely market action today, October 24, 2008

Here is the likely scenario of what will happen after 09:30 on the NY Stock Exchange and in Chicago at the Globex exchange (where the SP 500 ES mini contract futures are electronically traded):

The ES futures already have a backlog of short positions of over 10,700 contracts that represent about a $500 Million (that's half a billion USD) in short selling pressure that has to be resolved when the markets attempt to reopen. Let me tell what is probably going to happen at 0930:

1. The markets will attempt to open, but there will not be any buyers at the current levels due to the backlog of sell positions, so how do buyers buy? They lower their bidding prices to very low levels to where they think they can find support and make money. Right now that's somewhere near the LOY [837] on the SP 500 futures.

2. If they can't find enough buyers to handle all the sell offers, the price keeps falling (free-fall as we say in the futures markets) until the next circuit breaker comes into play around, well here is a description of what is happening right now:

DJIA futures are down 550 points, S&P Futures are halted at -60 points at 855.20, and NASDAQ at -85 points at 1168.50.  These levels can extend to -10% after the open before circuit breakers come back into play.  The way this works is that the futures can reopen if the bids magically come back and the markets would rise, but otherwise futures are halted until the stock market open.  after -10% is reached in futures there is a 2 minute halt, then the limit is extended to allow for -20% with a halt for 2 minutes, and then the limit is extended to 30% down. (Courtesy of 24/7 Wall Street website)

3. The complete lack of buyers to move the markets back up due to the meltdown in the Asian and European markets overnight, the US markets are going to follow suit. No one wants to commit capital when it might disappear in a few minutes. Remember the Arabs that bought into the financial institutions of the US way back in Feb/Mar of this year? Well, they need better financial advisors since they have all seen their positions cut by as much as 2/3's!! See having money doesn't make you smart. Warren Buffets recent acquisitions and all those that got in with him are now totally in the red and heading down.

4. If the market's find support near their Lows of the Year (837 on the SP 500), then it will bounce and head back up for a sideways move until the 15:00 (3:00 pm hours). Be back then.

As we use to say in the Navy: "Stand by for heavy rolls..."

Black Fridiay 2008 - I told you it was coming!

I don't mean to be a "i told you so...", but I told you so!

I told back on Oct. 4th and 5th (see Like Japan, Here we go and Beginning of the Crash of 2008) that the markets were going implode due to all the government intervention. Now with this situation of the US markets now in LOCKDOWN, the stage is step for the first 1000pt drop in the DOW!

It's too late, folks, if you haven't moved your monies out of stocks they are going to get hammered today and again on Monday. The stock market and futures markets are already in LOCKDOWN and all that does is cause selling pressure to build up behind it. They are stupid actions because they cause the panic they are trying to prevent. Yes, you are right, its a LOUC of the government intervention.

When the markets reopen at 09:30, expect them to go limit down to the next circuit break with the DOW down over 1000pts which at that time the market halts again, panic spreads and then another wave of selling hits the markets while the bureaucrats try and figure out what to do.

Remember, I told you that McCain ended his run for the Presidency when he voted for this ESA 2008. If he would have been the maverick like he has always said he was, he could have been ridding high on his way to the White House!

WOW! Today is going to be fun. Stand by for blow by blow.

Long live BHO and the SMDC. This guarantees his election and the resulting Depression of 2008 due to his parties heavy handed regulation and controls that they will install.

BHO still doesn't understand economics

I just heard BHO talk about "growing the economy from the bottom up." WOW! What school of economics did this guy fail out of?

You can't grow an economy from the bottom up for one simple reason:

THERE IS NO CAPITAL AT THE BOTTOM!!!!!!

In a capitalistic world, the private sector provides the capital from which the economic engine is fueled. In a socialistic world, where the USSA is heading, the capital is controlled by the government and then doled out to those the government thinks are most deserving, but they are usually always wrong.

The proof: show me a socialistic government that is a powerhouse?

I knew you were going to say China. China is not socialistic, it is communistic and that's completely different. Socialism has the smile of capitalism, but the fist of central planning. Communism has both the face and fist of central control.

So, when BHO and his SMDC come into power in January 2009, expect to see the economy go from one that is trying to recover to one that is knocked out flat by the government intervention and control that the new administration will put in place.

This will cause the economy to tailspin, but this is good for them since they will be able install more and more government control to try and deal with the problems they are causing. It's like:

CAUSE THE PROBLEM, then TAKE CONTROL to SOLVE the PROBLEM.

Not bad work if you can get it, eh?

Acronyms used on the Blog

I have been asked to provide a list of the acronyms that use on this blog. So here they are so you can print them out and have them handy:

DYH: do your homework
USD: United States dollars
COI: conflict of interest
LOUC: law of unintended consequences
CRA: Community Reinvestment Act 1977 (the Peanut Farmer President's hand in the Crisis of 2008)
FOMC: Federal Open Market Committee (arm of the Federal Reserve System that sets STIR)
STIR: short term interest rates (Fed funds and Discount rate)
VIX: Volatility Index (otherwise knows as the fear index based on put option premiums)
PB: pull back (market term for a downturn)
FDR: Franklin D. Roosevelt
BHO: Barack Hussein Obama, soon to be the 44st POTUS
POTUS: President of the United States
SCOTUS: Supreme Court of the United States
SP: Sarah Palin
SMDC: super-majority Democratic Congress
ESA 2008: Economic Stabilization Act of 2008 (formerly the EERA 2008)
USSA: the United Socialist States of America (future country that elected BHO as President in 2008)
GSE: government sponsored entities
CDO: collateralized debt obligations
MBS: mortgage backed securities
SIV: structured investment vehicles
CDS: credit default swaps
FASB: Financial Accounting Standards Board
SEC: Securities & Exchange Commission
GOP: formerly the Republican Party (died Oct. 3, 2008, but is still the walking dead)
DCB: dead cat bounce (a rally off a big PB usually means bottom feeders at work)



I will add more, but that should do it for now.

Nothing going on except more media liberal bias

There is really nothing going on in the political scene except the continued media drubbing of Sarah Palin because she is a conservative. I know have a name for this: SP is being-Bork'd. If you don't remember Robert Bork then DYH (do your homework).

SP is being man-handled by the media and I just wish for once that a Republican/Conservative would just step up and feed it back to them and not just take it on the chin. I thought that SP would do it since she didn't have much to lose; however, I guess the meek and mild handlers of the once-fierce and emotional JMcCain have toned her down to their historical loss and humiliation.

SP could have been this ticket's lioness and gone out and nailed the BHO crowd, but no, McCain is trying to be too nice of a guy and that is why he will loose this election. If he isn't ready to do the hard stuff then he should go back to being just a Senator and SP will go back to being the most popular governor in America. It will be Arizona's and Alaska's gain.

Finally only about 12 days to the socialization of America when the BHO/SMDC take over and turn the USA into the USSA. History will not record it since they will rewrite history just as Stalin did when he came to power. Revisionist history is already being taught in the school in IL about BHO's past and accomplishments, but that is one of the "spoils that go to the victor."

Long live BHO and his SMDC.

The Republican Party the GOP is dead and should be shown a nice funeral while its replacement is being considered; however, I don't think it will happen soon. The dying tend to hang on especially in politics.

How to handle my investments now

Many of you are asking:

So what should a small investor do while all this is playing out?

1. If you have a 401K at work continue to contribute, but ensure that your contributions are going into a solid money market (now that they are FDIC insured) for now.

2. Watch the price of oil as it is now a proxy for the stock market. Under $90 a barrel, oil will track well with the stock market, over $100 a barrel oil will begin to run counter to the stock market as it begins to have a negative impact on the market.

3. As the market slowly begins to deteriorate after the election, you can begin a small reallocation of your monies to buy as the market goes down. Yes, that's right, buy as the market goes down since your equal amount of money (see dollar cost averaging) will buy more stock as the price goes down. This way you don't have to try and time the market and try to pick the bottom.

4. Look into several ETF (exchange traded funds) for such things as the QQQQ (the NASDAQ), the SPY (for the SP 500), and the DIA (for the DOW). These ETFs are ways of playing the entire market without having to pay for mutual fund expenses or "under performing" mutual fund management. It spreads your risk across the entire market without having to time or sector time.

5. Don't panic, yet. Until the full implementation of the socialist agenda (over the next 8 years), you should be able to grow your nest egg unless BHO and his Pelosi/Reid/Frank crew in Congress change the rules too much.

What is up for the markets until Nov. 4th

What is in store for the markets over the next few days/weeks before the election?

First, it is clear that nothing is stabilizing the markets since all the rallies have been used for more selling as hedge funds and private investors continue to withdraw their monies from these investment vehicles in unprecedented amounts requiring selling without regards for fundamentals. These redemptions are what is keeping a cap on the rallies of late.

Second, as it becomes more and more clear that a BHO/SMDC is going to be elected on Nov. 4th, the markets are going to realize 2 things:

1. Taxes of all forms are going to go up on all taxable entities

2. Regulation of all forms is going to be increased on all financial entities

This will cause the markets to take pre-emptive action of selling more stocks while the cap gains rate is still low and the regulations are not as restrictive or invasive.

Third, the Federal Open Market Committee (FOMC) is going to cut the Discount Rate and Fed Funds Rate by 25 bp on their Oct. 29th meeting next week. This will produce a small pop in the markets, but will fizzle on Thursday/Friday before the election.

Fourth, depending on the size of the BHO/SMDC mandate on Nov. 4th, the market will sell-off accordingly; however, due to the fact that the election uncertainty is over, the market may pop on the Nov 5th and then sell-off the 6th and 7th. Watch the futures on the evening of Nov. 4th.

Fifth, if a BHO and SMDC is indeed elected in a landslide expect the markets to begin rebalancing from Nov. 4th to Jan. 20th, 2009 when the SMDC come back to work and begin their new work in earnest. With a SMDC, the counter-balance of an opposition party will be eliminated, and the liberals will be in total control of the government with the ability to enact any type or level of invasive legislation they so desire. It will be 2 years before the American voters will get a chance to undo what they stupidly and impulsively will do on Nov. 4th.

Wow! that's a lot to understand, but keep reading and learning.

What American will get on Jan 20, 2009.

The American electorate is so mad about the financial crisis and how Washington has handled it that they are going to put the Democrats in power in all three branches as a way to try and overcome the pain. However, the only thing that is going to happen is that the BHO White House and SMDC are going to put the economy into a "depression" style tailspin.

Here is why... (its simple economics)

1. The players in Congress are going to balloon the deficit to over a $1 Trillion dollars and blame it on the current administration. The Republicans are going to be the scapegoats for the first BHO term.

2. The SMDC is going to then start the "patriotic" tax increases to "spread the wealth" around so that everyone gets a shot at the American dream.

These tax increases will come in the form of the following format:
A. Remove the income limit cap on FICA (social security taxes) wages effectively putting an additional 6.2% tax hike on small businesses.
B. Increase the capital gains tax rate thereby reducing investment & increasing volatility
C. Increase the corporate tax rate driving capital overseas along with job creation
D. Increase upper tax bracket to 40% reducing incentive to increase production
E. Impose a windfall profits tax on energy producing companies thereby reducing energy alternatives and current production.

3. The BHO/SMDC is going to increase regulation on the financial systems just as FDR did in 1932 driving capital overseas even faster than it did in 1932 since today we have electronic data networks that can move monies around with the speed of light.

4. The BHO/SMDC complex is going to yank the troops out of Iraq in 2009 creating a vacuum into which Al Qaeda and Iran will enter thereby destabilizing the region requiring a bigger, more direct intervention (the dems way of dealing with a depression). This pull-out is going to put large numbers of military back into the job market without opportunities thereby ballooning the unemployment rate to over 10% by BHO 2nd year in office.

5. BHO is going to sponsor huge government employment programs, ala FDR's New Deal, to deal with the rising unemployment to complete the necessary steps.

These steps will push the economy over the edge and no amount of stimulus will bring it back since it is fear and lack of confidence that keeps an economy in recession, and there you have the BHO/SMDC economic plan.

BHO going to be tested as was JFK

One thing Joe Biden understands is that just like JFK's test by Nikita S. Khrushchev's Cuban missile contest to see if the new, very young and untested President would stand up to the pressure. Had Nixon been elected instead of JFK it is likely that the Cuban missile crisis would not have happened since Khrushchev already knew how Nixon would have reacted.

Remember, JFK came away from the Cuban missile crisis a much weaker President.

Biden is probably correct when BHO takes office in Jan 2009 that someone will see if the new man has the "cajones" to take on the world's bad guys especially since he wants to sit down and talk "nicey nicey" with these guys.

Hard to see why we would want to see if someone is going to yank our chain just to see if BHO will stand up to the bully, but since BHO has never stated what he would say to these guys once he sits down with them, it's not hard to see why they want to see if they can push him around.

One question that BHO has never answered, and everyone has let him off the hook on is simply this:

"What you say to Iran's President, Mahmoud Ahmadinejad (mah mood Ah ma din a jod) who has said that he wants to wipe Israel off the face of the earth?"

BHO has never answered that question, and because he can't, and so the test will come.

BHO proposing the New New Deal

BHO is now proposing a work force of 2 million Americans to fix the infrastructure of this country because "if we can spend $10 Billion a month in Iraq, we can spend some of that money here in the US.."

This is exactly what FDR proposed in his 1933 "New Deal" where he put the out-of-work American workers into gangs that worked on public works projects. Now it appears that BHO is walking right down the road that was plowed by FDR.

What many people don't remember, of course not since it's history and we don't teach history in schools today, is that in the late 1920's the US went through a big housing bubble just like we went through over the past 3-5 years.

Google the Florida housing bubble in 1925 for details.

Now we have some protections in place to help prevent a protracted Depression, but if you think that housing which caused this problem (actually it was the government intervention in the lending standards, but we have discussed that already) is not going to be solution, you don't understand economics. Housing will have correct itself before this financial crisis is over, and it will just take time.

BHO wants to help with government employment, additional hand-outs, and welfare tendencies. This is exactly what FDR did to elongate the 1929 stock market crash into the Great Depression.

Another Bail-out LOUC to understand

If the previous post of how your hard-earned money is going to pay Wall Street bonuses to the tune of $70 Billion USD didn't get you mad, how about the monies that the ESA 2008 is paying out to the banks supposedly to fix the credit problem is now going to used without "guard rails."

What this means is that the Treasury decided NOT to tell the recipients of the ESA monies how to spend the money! WHAT!!!!!! That's right, Hank Paulson, current Treasury Secretary and formed Wall Street banker (hard to understand his thinking, eh) says that he would be too tough to restrict how the monies should be used.

So the financial institutions that are getting the bail-out funds are now heard of using the monies to buy out their competition that didn't get the bail-out funds.

Whoa! That means that the institutions being favored can now put the "whup up" on those that did not get this favored treatment. Forget about easing the credit crunch, let's buy out the competition with taxpayers monies.

Now that's a good idea don't you think? The Government is now an active player in the financial systems by helping to support or kill particular players. So much for free-enterprise, eh, here's come socialism.

Wall Street paying out over $70 Billion in bonuses!

It's now just come to light that from the $700 Billion USD of the ESA 2008, some $70 Billion USD, a full 10%, is going to go to pay Wall Street bonuses!!!!!!

YESSSSSSSSSSSSSSSSS, you heard it here. They have tried to hide this unbelievable action from coming to light, but before the bail-out the Wall Street players were going to have to forego their annual bonuses, but since YOU the US taxpayer has given them over $700 Billion USD, they are now flush with cash and can now pay out these bonuses.

This is the LOUC in prime form. You, the US taxpayer, deserve this since you allowed your Representatives to vote for the ESA 2008 the 2nd time. Hope you like that your hard earned monies taken from you in taxes and paid out to Wall Street types for their bonuses.

Don't make you mad? Oh well, I am glad you like working for the government until June-July now.

Suckers!

BHO political pay-offs explain endorsements

It's fairly simple to conjecture as to why the Clintons are agreeing to campaign for BHO when of all political operatives, the Clintons are the most sophisticated and cagey. What is going on behind the scenes with these two as to why they are so "on board" with the man that stole the nomination from Hillary?

Let's see if we can guess. First, the Clintons are nothing but politicians first and foremost. What does this tell us about their motives? Remember, politicians do what is in their own self-interest, so what is in the best interests of the Clintons if BHO obtains the White House?

1. The current UN Secretary-General, Ban ki-Moon, has talked about not seeking another term which opens the way for the appointment by huge global approval of none other than, yes, Bill Clinton! It has been so secret that he wants to aspire to this position and needs a Democratic, well-like US President to support his appointment in 2010 to begin serving in Jan 2011.  Until that time, I think that Bill will be offered the now vacant US Ambassadorship to the UN to prepare him for the 2010 appointment. Ahhhhh, you say, now it makes sense.

2. Hillary Clinton has been offered either the AG (Attorneys-General) or Secretary of State cabinet position in a BHO White House. This would set her up to take the VP when Biden refuses to run again in 2012 so she can be the assumed nominee in 2016. Ahhhhh, you say, now it makes sense. Also, don't worry about HC moving from the Senate to the Cabinet since the current Democratic Governor of NY will appoint a Democratic replacement until an election can be mounted. This would preserve the SMDC.

3. Colin Powell has been offered the Secretary of Defense position so that he can be the spearhead to withdraw the troops from Iraq just before he has to put them back in when Iran overruns Iraq.

4. Kerry and Edwards will also be given prominent positions in the BHO White House.

So now you can understand why certain people say and do certain things. It's pure politics.

Powell's Endorsement was a political calculation

Upon hearing Secretary Powell's endorsement of BHO I didn't react much since I didn't care much for Powell as either the Chairman of the Joint Chiefs or the Secretary of State. As a veteran myself, I do honor his service to the country, but I don't like his ideas or way in which he handled the Iraqi war intelligence.

That being said, I think that Sec. Powell is endorsing BHO this late in the election cycle to be purely political and to ensure that he chose the winning side since he was straddling both campaigns. I have a real problem with that style of politics. Make up your mind and put your foot in and go hog wild with your choice.

Here's my guess about why he did it. It makes sense that he wanted to wait for the winning party to rise since he wants another cabinet level job, and if he went with the wrong side, he would be outside looking in.

My bigger guess as to why he chose the Democratic side even though he was given his position and stature in the political world by Republicans (another vetting problem for the Bush 43 guys) is that when he was thinking of running for President in 2000, but was snubbed by some conservatives. The manner in which the conservatives nailed him by threatening his wife's medical condition never really left his mind, and he has been bidding his time waiting for a chance to get his revenge.

What better way then to endorse the most liberal, socialistic candidate for President. A candidate that said the Surge was wrong (and he was wrong) and is willing to talk with dictators without pre-conditions just to make the USA more palatable to European-stye socialists. What an endorsement?

A retired general, ex-Sec of State endorsing a man that has no experience in either the military or diplomacy. The endorsement smacks of extreme politics.

Democrats begin showing their hand, or history repeats itself!

It amazes me that Democrats are so confident that they are going to gain the White House and a super-majority Democratic Congress (SMDC) that they are already talking about huge tax hikes on the very rich ($100,000 or more), and forget deficit spending.

WOW! they are not even waiting for the election to be completed, they are coming out with these statements before the voting even begins! Unbelievable.

Congressman Barney Frank (D,MA) has come out and stated "frankly" that he believes that we should forget about deficit fear, and that there are a lot of "very rich people" that we can tax to recover some of this money. They can't even wait until the election puts them in power. They are already showing their hands.

I told you this was going to happen, and if/when the BHO and SMDC are elected in Nov, these spending increases are going to explode and taxes are going to go up in sync.

What will this do to the weak economy already on the ropes? It will do the same thing that FDR did in 1932 when he took over from Herbert Hoover in a stunning turn of events that almost parallel the 2004 to 2008 elections. In 1928, Herbert Hoover won over 444 electoral votes as the "good times rolled" with all but 8 states going Red. Four years later after the financial crisis of 1929-1930, FDR won over 472 electoral votes with all but 6 states going blue. The beginning of the Great Depression was 1933, not 1929 that most people believe it was the stock market crash that caused the GD. Sorry, the stock market has already come back over 60% by the end of 1930; it was the policies of FDR that started and elongated the Great Depression (do your homework).

History is likely to repeat itself in 2008 with BHO winning a huge electoral vote margin and bringing with him a SMDC that will enact this large spending and tax increases. This will do the same thing that FDR did in 1932.

Stand by for a repeating history slide into a much deeper depression as Rep. Frank and Speaker Pelosi get their hands on your pocketbooks.

Analogy for different forms of government

Many people have asked me how is socialism different from capitalism from communism and fascism? Being an ex-professor and teacher, I will use a classroom analogy to help us understand the differences since it will be a major issue on who is elected on Nov. 4, 2008 in the USA.

First, the setting:

a classroom of students and teaching staff

In a capitalistic classroom, the teacher determines what will be studied each day and provides the necessary learning environment for these concepts. The students are not forced to learn, not forced to do their homework, and when tests and grades are given and handed out, each student reaps the consequences of their own work. Students getting good grades have more opportunities and those that did not study or work hard receive poorer grades and their opportunities are more limited. Those that wish additional help to improve their performances are given this additional assistance due to the kindness and charity of the teaching staff. Those that want to goof off are allowed to do so and thus receive their just rewards. In short, you have right to succeed and the opportunity to fail based on your effort.

In a socialistic classroom, the students get together into a collective and tell the teaching staff what they will study. Everyone is encouraged to study and attend class, but when tests and grades are given and received, those that get good grades have to share their good grades (wealth) with those that did not get good grades so everyone feels good about themselves. This causes the hard working students to quit their efforts because it does not generate the benefits they thought. In the end, everyone gets a C and the state via the school determines the students opportunities by allowing some students to go on to further education.

In a communistic classroom, the students are told what to learn, that they must learn, and that they must show up for class every day or they will be sent to work in the factories without education. Students that show promise are removed from the normal classroom and sent to the "Children of Revolution" schools where their particular sensitivities are developed and exploited for the good of the state. Most students get the medium-level of education and then are sent out to work in jobs not of their choosing but for the betterment of society as determined by central planning. Students in the communists classroom drudge through each day with life being dull, boring and spent standing in lines.

In a fascist classroom, only the students that have certain state-determined characteristics are given education (right gender, right eye color, right heritage, you name it) and the rest are sent to work in menial jobs that must be done for the "enlightened few" to produce the real output of society. The state control everything and the state is everything. The elite control the state so they determine how education is handed out. Grades in a fascist classroom are meaningless since you are assumed to a good student if you possess the favored characteristics. Favored students are enthused through parades, speeches and fanfare.

Hopefully this will help you understand the difference between these forms of government.

Security vs Freedom comes in many flavors

When Ben Franklin penned one of his immortal quips about the trade-off of freedom and security (See Wikiquote for the full story) he had physical freedom and security in mind; however, in this coming election, the citizens of the USA are going to make a choice that may impact their freedom of speech: one for dearest rights secured to us by the Founding Fathers as part of our inalienable rights from the Creator.

In November, once the BHO and SMDC are elected, this warning from Dr. Franklin will be tested as one of the first issues to be taken up will be the "Fairness Doctrine" (See Wikipedia on history of the FD). Both Pelosi, and Senator Reid have said that they will revisit the Fairness Doctrine after the 2008 elections. I am sure they are both hoping for the BHO administration and SMDC installation.

After Jan. 20, 2009, with all parts of the government in tight control of the Democrats, the FCC's new Chairman, a political appointment, will quickly move to reinstate the components of the FD without Congressional action, and when the impotent Republicans raise a ruckus, the SMDC will move to codify the FD into Federal Law.

The legal challenges will begin immediately, but the cases will be hear at the lower levels by very liberal District Judges and then appealed to liberal Appeals Court justices. The only saving force may be a SCOTUS (Supreme Court of the United States) hearing with a 5-4 decision; however, that is very tenuous at best.

This is how freedoms are eroded, like hone: slow and sweet; however, in the end, the string of the caretakers will be felt. We are moving towards the nanny state. How can anyone be against that?

The Games Begin

Before the Democrats have even won the Nov 2008 election they (Pelosi and Reid) are already talking about reviving the "Fairness Doctrine." On NBC and CNN, the pair were discussing how the airwaves have become increasingly "virulent" code words for "they are saying things against us..."

If you go back to my post, "The USSA Begins Today," and see item #7, you will see that one of the issues that will be taken up by the BHO administration and SMDC (super-majority Democratic Congress) is the reviving of the "Fairness Doctrine." They will ensure that it is put into place to balance the "hate rhetoric" coming from talk radio, Fox, and certain conservative newspapers. It will demand that a government bureaucrat will listen, read, and watch these entities and then tell them how much "balancing content" they have to put on based on his/her determination of the unbalanced conservative content.

This will be too much for most media entities and they will simply choose to change their format to music since they can't make money with liberal content (witness the demise of Air America) and since they will be besieged by liberal community organizations saying that they are not "fair and balanced" (interesting use of FNC's byline) and that their license should not be renewed.

Now what will be the LOUC (law of unintended consequences) of this action? Since the Internet and cable are outside the "Fairness Doctrine" control as it stands since they are effectively private (that may change soon enough), the public airwaves will be abandoned to the liberals and conservatives and anti-governmental content providers will move to these less impacted media modes. The revenues of the liberal media outlets will drop and they will go the way of Air America.

Remember, the sword cuts both ways. However, the big 3 will probably become the big 2 as NBC fails first and is merged into CBS (the strongest). Every action has an equal and opposite reaction. The talk radio will move to Talk Internet due to large amount of bandwidth being made available.

The alternative for the liberals will be to alter the Fairness Doctrine to include all public discourse: the first step towards "socialization of free speech" for the good of society. It is always done in the public good, but lost of freedoms come so wrapped in pretty security packages.

Remember Ben Franklin's warning:

"Those who would give up Essential Liberty to purchase a little Temporary Safety, deserve neither Liberty nor Safety."

So true as the citizens of this country contemplate a radical turn to the left. I am not against this since it is democracy in action, but I just want those that vote for it to be willing to take the responsibility for their actions.

Campaign Financing LOUC, McCain

The LOUC of all laws passed by the US Government is going to help decide this election in the form of the Campaign Finance Reform legislation of McCain-Feingold (Bipartisan Campaign Reform Act 2002) which has done nothing to reform campaigns.

The BCRA 2002 redefined and has allowed huge amounts of money (called soft money) to flow into PACs, and what are called 527 organizations due to the IRA code that regulates them as tax-exempt political organizations. Also, by accepting government money and getting BHO to agree before he disagreed after getting McCain to accept (again showing how McCain shot himself in the foot with the BCRA.

The LOUC in action, McCain. Now you have only 37 million to spend until Nov 4th while BHO has raised over $150 million in a single month showing you the trend on just how large BHO is going to win on Nov. 4th. If the amount of money that BHO is raising doesn't prove you how big he is going to win on Nov. 4th, then just listen to the endorsements he now picking up.

Colin Powell, waiting until the last 15 days before announcing his endorsement, and then using some very lame excuse about "how negative the Republican attack ads are..." to make up his mind. It then comes out that he has been advising the BHO team for months, and BHO has publicly offered him a place in his administration.

Powell's endorsement was purely racial since how many other inexperienced, liberal politicians has he endorsed? Powell like other so-called Republicans will hand BHO this election and rightly so. Don't get me wrong, I am not against what Powell has done, but be man-enough to give us the real reason, not the PC-reason.

So in short, McCain gets hamstrung by his own legislation that BHO said he would support and then went back on his word. That should tell what he thinks about his word being his bond. He will do the same thing on:

Taxing < $250,000
Raising taxes on small business
Raising the capital gains tax
Raising the upper tax brackets to drive capital out of the country
Spreading the wealth is not socialistic, its just being patriotic.

BHO will do the exact same things that caused FDR to extend the 1929 Market Crash past 1932 into the Great Depression. Democrats just don't understand economics.

* If you tax something you prohibit its growth. Pure and simple. It is economics 101.

Long live the LOUC!

Election of BHO will NOT prove USA is tolerant!

Many whites (look at the polls and discussion groups: Google Rasmussen and Yahoo) say that by electing BHO as the first mulatto President, it will prove that USA has atoned for its racist past and we can announce that we are no longer racist.

Ugh! Ding! Thanks for playing!

That's not going to happen. Why? Those that believe that America is racist are not going to let the honkies off the hook that easily. Why give up the advantage once you gain it? As BHO said in a speech to ACORN at their 2007 national convention: "You will be there to help me shape my administration and its issues..." "You will be apart of the discussion that will determine my administration's perspectives..."

Now if you clearly think that BHO has nothing to do with ACORN has his new "sanitized" web site wants you to believe, then all you have to do is listen to his speech-making. He is telling you what he will do once elected to the White House.

BTW (by the way), if blacks can use the "nigger" word (there own words) to describe themselves with impunity, then a white blogger can use the "honky" word under the same conditions, no? YES!

OK, there, we have the discourse on the table. I believe that it is necessary and useful for BHO to be elected to the Presidency. It is the only way that people may, I say may, come alive and get involved as they see the USA taken from a capitalist representative democracy to a socialistic representative democracy.

I still believe that we still be able to "vote" for our representatives, but the government will have become so intrusive and invasive that only left-leaning candidates will rise to the elections.

BHO as President even with a SMDC (super-majority Democratic Congress) doesn't bother me. I believe that events unfold for a purpose and this is what is necessary for the USA at this time. The USA needs to be reduced to a 3rd world, European-style socialistic country for the future of the planet to work out as it should.

BHO continues march towards #44

The race tightens due to BHO's comment about "spreading the wealth," and the new Rasmussen poll about the comments show that there is a class warfare split right along the lines of have and have nots. This is the danger that such statements bring.

BHO is clearly playing to the voters that will put him in power, but these people don't give money to campaigns, so BHO has to keep the ones that give money (those that have the money and are potential targets of the socialistic comments and policies of BHO) happy and giving.

However, once BHO gets into office in Jan 2009, all bets are off. He will move quickly and decisively within the first 100 days (assuming he gets his super-majority Democratic Congress) to enact his "reforms" that will change the USA into the USSA.

During the first 100 days, BHO and his Congress are going to beside the hearings to convict the Bush 43 administration of all kinds of things:

1. Ratify the Kyoto Protocol on AGW (do your homework) that the Clinton administration and Republican Congress did not ratify.

2. He will setup the removal of the Bush tax cuts

3. He will do a 2nd stimulus package going farther into the deficit spending mode

4. Begin the discussions of nationalized health care and retirement

5. Set a time table to remove soldiers from Iraq and and a big increase of violence will erupt forcing him to renege on that promise

6. Begin direct bail-out of low income mortgagors directly behind the scenes by ACORN

These will show some of the socialistic policies that BHO will begin putting into place within his first 100 days. Now remember what the very inexperienced JFK almost got the world into? Don't know and will not do your homework?

Google: Bay of Pigs and Cuban Missile Crisis

We can look forward to a Pakistani Crisis if the inexperienced BHO goes the same way as JFK.

BHO is the new JFK

What happened when my generation elected a young, good-looking, fairly untried and inexperienced Senator from Massachusetts called JFK over the more experienced, older VP, Richard Nixon? It began the 1960 cultural revolution that completely pissed-off my parent's generation (call the Great Generation for winning the WWII), but changed the landscape both politically and culturally forever.

This time it will be the election of young, good-looking, fairly untried and inexperienced Senator from Illinois call BHO that will be catalyst for the changes that will happen over the next 8-10 years. Many people had no idea how the JFK-JBJ Presidencies would change the USA.

Now it will be the BHO and next Democratic President (Hillary, maybe) that will do the changing. The changes will be just a dramatic, shocking, and altering. The USA will not be the same country after the next 10-12 years have taken place.

Here are the changes I believe will take place over the next 10-12 years of BHO and subsequent President:

1. Nationalized health care
2. Nationalized housing
3. Nationalized banking - financial systems
4. Nationalized energy - transportation systems
5. Nationalized education systems
6. Socialized welfare
7. Globalized military under UN control - no national arsenal or weapons

In other words, the USA will be a European-style socialistic country and no longer a world power.

The Bail-Out LOUC already happening!

As I told you in previous posts about the LOUC (law of unintended consequences), it is already beginning to setup with the bail-out implementation.

One of the news channels through which I was flipping was interviewing some people that didn't want to give their names or locations that said since their neighbors were going to get bailed out since they had not been paying their mortgages lately, these people being interviewed said that they stopped paying their mortgages as well since they wanted the same treatment.

These home-owners being interviewed said they were putting the money into accounts under names of their relatives so that when the regulators do the credit checks they will not find the liquid assets. So, what is happening? The LOUC is taking place already before the monies are even being dispersed.

There are going to be tons of LOUC events given the amount of money, the ineffectiveness of the US Government, and the complete control of the government (all 3 branches) by one ideology. See you were forgetting about the judiciary. Most of the judges are liberal/activist-type jurists and they will lock-step with their counterparts in the Executive and Legislative branches to totally change the USA as it is known today.

Many readers said they didn't think that it changes I have been talking about will take place in the amount of time I have suggested. Well, history is the place to find the answers. See the following post for how this will take place.

BHO will be elected in a landslide!

OK, its official at least for me. BHO will be elected in a landslide along with a supermajority Democratic Senate and veto proof House. The Republican Congress people can simply stay home since they will be totally ignored by Commandant Pelosi and Comrade Reid. The GOP will be completely decimated in the coming election due to their total lack of ethics, character, and conservative leanings. The biggest of these buffoons is the current Republican President Bush 43.

Bush 43 has done more to wreck, ruin, destroy, and/or otherwise reduce to irrelevance the Republican Party. It will be a very long time if at all before the GOP will come back to have any hand in operation of the US Government.

Now what does this mean? Well, given the fact that it was Republican administration and Congress that moved us into this condition where a few Democrats could force them to allow the 1990-2004 government intervention via the CRA, support for ACORN, Fannie Mae, Freddie Mac non-supervision to push this financial crisis upon us.

So do I think that the Republicans should be allowed to remain in power? Hell, no! They have shown that they can't and don't understand fiscal responsibility, ethics, nor how to govern correctly. They squandered their huge power take-over beginning in 1994 by becoming as bad or worse than the liberal/Democrats to the point where you don't have 2 parties in this country -- you have only 1 large moderate, very stupid, very ineffectual political class.

The response to this financial crisis will be complete rout of the Republican Party in the Fall 2008 election. I am guessing that it will be hard, bloody, and ugly. BHO will not even have to worry about ACORN's fraudulent registrations in battle ground states since he will handily capture PA, OH, MI, FL, NV, and MO. I am guessing that unless BHO does something very stupid which I think if highly unlikely since he is a very smooth, smart politician, BHO will care the election in very heavy numbers (53-47 or worse) while carrying along a very smartly Democratic Congress.

As a fiscal conservative, personal responsibility advocate, I really don't care who wins in November, I just want those that are stupid to be spanked (the Republicans) and the voters to get what they deserve: BHO and his Democratic Congress and all that brings.

I will have a lot of fun after Nov 4, 2008 once BHO makes his real agenda evident along with the Congress to allow him to implement it. It will be FDR, LBJ, and Jimmy Carter all rolled into one.

We will the New Great Deal Society with hyper-inflation and elongated depressive economics which will allow the BHO government to power grab even more in the name of saving us all from ourselves.

Wow! It should be a great 8 years.

Why an Moderated Comments Blog?

I have asked several times why I require that comments to this blog be moderated. Its very simple:

1. The Blog spammers have gotten very sophisticated and their "unrelated, irrelevant" comments take away from the idea of a blog.

2. This is my blog, not yours, not theirs, not the governments (yet).

Make your comments, and as long as the language is appropriate, the facts are checked, your comments regardless of the perspective will be published. I don't care about your opinion or beliefs, I do care that you substantiate your comments with facts or at least some attempt at fact-basing.

Comment all you want; just get a google account since they are supporting this fine exercise in free-speech, I should at least support them that way.

Take care,

Nanouk

My Bias in this Election

I have been asked for my bias in this election, others have slammed me for hammering BHO, while still others have said I am too hard on McCain/Palin. Well there you have it. People read what they see through their own "colored glasses." All these emails have, I assume, been reading the same blog.

Anyway, I have no preference as to the winner of the election since I am and have been apolitical. I simply believe in 3 things when it comes to politics and government:

1. All politicians act in their own self interest

2. Government intervention always comes with the price of the law of unintended consequences

3. Governments and politicians can not force self-reliance or self-responsibility of its citizenry

Now these 3 items explain why I blast both sides since we have reached a point in this country where it is on the down hill slide. No representative democracy has lasted as long as the USA has, and the component parts that has made the country strong, resilient, and innovative are not being taught to the younger generations. The NEA, UUP, and other very liberal educational unions are making sure that children are taught non-essentials to become "low maintenance" citizens. They are ensuring that strong teachers are eliminated from the system and that teachers today are weak, liberal-minded baby sitters.

Gone are the days where students were required to do homework, learn science, math, and hard sciences. Now the schools are only teaching so that the students can pass the "NCLB - no child left behind" standards. This is a prime example of the LOUC of the NCLB that was passed by, yes, a Republican President that we wish would all just drift from memory. OK, its was Bush 43 in alliance with Sen. Ted Kennedy.

What do I care about?

I care about character;
I care about work-ethic;
I care about discipline;
I care about self-responsibility;
I care about self-reliance.

Sadly, none of these are being taught by the school system or by most parents, and parents that do are being branded as "intolerant" of others. This is why --

AMERICA CAN'T BE FIXED!

You can't fix something where the basic components are not there any longer. Children today want to have it given to them, no work-ethic, or if they do work its to only get what they can by scamming the system. Witness the financial meltdown on Wall Street. Most of this was orchestrated by young lawyers, MBAs, etc that only want their windfall now so they can retire and live the "good-life." What happens to the rest of America is not important. They are citizens of the world.

Well, didn't mean to go off that far, but there it is. The USA is doomed simply because we, for the most part, have not taught our children how to hold the gift of freedom scared. Therefore, during the next 8 years of BHO's tenure we will pay the high price of the loss of many of those freedoms.

BHO announces "Spread the Wealth!"

Now if you didn't believe me before, you can now understand how BHO and his Democratic Congress after Nov. 4th is going to act. He blatantly stated during the Oct. 15, 2008 Presidential Debate on Long Island that he thought that the "wealth should be spread around."

If that is not code speak for income redistribution: a primary tenant of socialism, I don't know what is. All freedom loving Americans should hear that and understand what it means to have a BHO Presidency especially one with a super-majority Democratic Congress.

You may be saying that it can't happen here in the USA, but I am sure they said that in Germany before Hitler took over, in Russia before Stalin took power, and in China before Mao took over the respective governments. In all those examples, there were different circumstances, different conditions, and different political goals. However, in all cases, the results were the same - the complete elimination of personal freedom in favor of the state.

Folks it is coming to the USA as the election draws nigh. One of the first things that will happen will be the imposition of the "Fairness Doctrine" that will be used to shut down blogging sites like this since no one will be able to determine a "fair mixture" of thoughts. Next it will be the talk radio shows and media outlets that don't have enough "liberal" bias on board. Finally, it will be deemed "intolerant" to have anything that criticises anyone or anything since that is passing judgment, and that we can't have in an enlightened society.

It will be done all nice and neat in a very acceptable manner so that no one can object, but mark my word, folks, its coming, and its coming fast.

The liberals are going to support it at first until the same guns are turned on them, and then it will be too late. It happened such in Nazi Germany, Socialist Russia, and Communist China. Once the silly thinking liberals have served their purpose, their voices will be silenced along with the dissidents they so loudly condemned at first.

"Spread the wealth around..." and so the USA's destruction comes quietly and softly, but none less surely.

Death of the 14th Amendment!

With the McCain proposal to use $300 Billion USD of the ESA 2008 to bail out mortgagors directly is proof that the USA has moved from a capitalistic, free-market formation to a socialistic, risk-coverage formation. As I mentioned in "Socialism takes away my right to fail," the big problem with the way the USA is going is that capitalism has two sides to it full implementation:

The right to succeed, and the right to fail.

One is not possible without the other. This is the most important thing that voters must understand about the results of the Nov election. With the election of BHO and a big Democratic sided Congress, the USA will become the USSA by the time BHO's 8 years tick by. It may not be possible to undue the damage that will be done to the formation structure of the USA. This will all be predicated on the legal use of the 14th Amendment.

Fairly soon some smart lawyer is going to realize that the US Government is violating the 14th Amendment's "Equal treatment under the law..." clause when it bails out some companies and let's others fail. If I was Lehman Brother's stock holder, I would be looking to sue the Government big time. The basis for this concept is that the 14th Amendment's "equal protection" clause has been used to restrict/enforce all kinds of anti-bias, anti-civil legislation from collegiate women's sports to civil rights to the ADA (Americans with Disabilities Act - if you couldn't ferret that one out). Why not assume that the 14th could be used to prove the Government is not providing "equal protection" of default when it chooses which companies to bail out and which not. I see a flood of lawsuits a coming ;-) .

Now, since this is a democracy, the majority will determine the manner in which the USA is operated, but I believe that since the younger generation has never been taught discipline, character-building, or work-ethic (unless to know my children) this fact will slip by as they elect the most liberal and likely first socialist President of the USA: BHO.

In my next post I talk about his slip in last night's Presidential debate when he exposed his real purpose in becoming President: "spread the wealth around" (his words). I can imagine that his handlers just about cried when he said that since it is now in the open that BHO is a socialist. Those words, to "spread the wealth around" is the key socialistic keyword for income redistribution.

Make no mistake folks, if you vote for BHO, you are voting to have your wealth taken from you and redistributed to others under the most benign of circumstances, of course. Remember, the $250,000 income level is just the beginning... Does anyone remember when the 13th Amendment installed the first US income tax at what beginning rate?

Oil < $70, gas still over $3.20/gallon

I usually don't like to talk about unscrupulous companies since I believe the market place takes care of them eventually, but I think its time for everyone to question their suppliers of oil, gas, propane, and electricity. It is the only way to ensure that they know they are being watched.

Oil has now dropped over 55% from the $147 high in July, but gas prices on average have come down only about 25%. They are very quick to rise, but oh so slow to come down. Soooo....

Question you gas supplier. Tell them that you are going to take your business elsewhere unless they begin to start "getting with the program" and lowering their prices. If enough people do this, then the free-markets take over and the prices will come down.

Call you electricity and propane suppliers. Hint that you are going to start shopping around for other suppliers if they don't begin to get back inline with current oil prices.

I believe that the free-market works, you just have to be willing to use your consuming power to get it done. Start a phone campaign just amongst your friends. Get them involved. I know that this works since I have done it in my neck of the woods, and we have seen prices come down a lot faster.

Get a web site and start posting prices of current suppliers on the web site. Have people take on one or two suppliers and get their daily prices and then email you so you can update the prices. It doesn't have to be national in scope, just in your own neighborhood.

Free-markets are wonderful, powerful mechanisms, and the Internet can make it even easier to make them work correctly. Players that want to take advantage of the market inefficiencies can only do so if their actions are NOT made transparent, and this is where the Internet comes in.

Exercise some consumer power.

Racism label already being thrown at non-BHO voters

It has already started as I said it would. Voters in Western Pennsylvania have been warned that they are racist and not voting for BHO will confirm it. This warning comes from Congressman John Murtha. As the election gets closer into the final days, the liberals/dems are going to use every trick in their toolkit to get their man BHO elected to the Presidency.

Now don't get me wrong, I think its necessary that BHO gets elected along with a heavily populated Democratic Congress so that everything from now on can be blamed on their action or inaction. They will try and blame it on the Bush 43 administration since they "started it all." They will be supported by the liberal media who will try and hide the problems just as they tried to highlight for the past 8 years how bad things were even though we went through a very big economic expansion.

By the way (BTW), for white America don't think that electing BHO is going to erase the "racist" epitaph since that would reduce the power of the liberals over conservatives. If America doesn't elect BHO stand by for the world being told that it proves that the USA is still racist, but even if he is elected, USA will still be called racist since everyone didn't vote for him. Watch Nov 5 for the the labels to fly.

Juan Williams on FBN can't even see the issue. He made a big deal about how 20% of white voters in a poll said that they would not vote for a black man, but he did not say anything about the same poll (AP-Yahoo News) said that 87% of blacks were going to vote for BHO because he was black.

Now how can one perspective be racist and the other not? Can blacks not be racist? In fact, in my world dealings, I have been labeled a "honky" by blacks on airplanes, airports, hotels, etc just because I have chosen to confront blacks on these issues.

Racism knows no race, color, or creed, but lets understand what racism is:

From Webster: racism is a belief that race is the primary determinant of human traits and capacities and that racial differences produce an inherent superiority of a particular race

Now even the United Nations doesn't define racism, only racial discrimination. So using the UN as an example racism is not the problem, racial discrimination is meaning that what a person is does not matter, it is only when those beliefs are put into action is where the offense occurs.

This is the basis for all Western Common Law until the advent of the very stupid "hate-based crimes." We are going to begin analyzing people's thoughts after BHO is elected President since this will be the only way that some people can be "outed" since what they think and do are separate activities.

My next post will discuss this march to the "thought police."

Hypocrisy of the Liberals & Media

Listening to Bob Beckel on FBN that rant and rave about everything is against the Obama's and he has nothing to say about the vicious attacks on Gov. Palin and her family. Now what Mr. Beckel is not realizing by supporting all this brutal verbiage about the Republicans is he setting the ground level for future nasty comments about his people because his comments will be brought back to be thrown into his face.

This country has become, as Atty. Philip K. Howard said in his excellent book "The Death of Common Sense", a "nation of enemies." We don't want to listen or even talk with people that don't agree with us. We want to expel huge amounts of virulence at anyone that we think doesn't think or believe like we do.

The big difference is that the liberals are the quickest to cry foul whenever anyone speaks out about their people, programs, or profiles, but remain mute when their side does exactly the same to those they don't like. All I can say is that this sword is going to cut both ways after BHO and the hugely Democratic Congress is elected in November which I truly hope happens. Conservatives are less likely to get in your face which is why they will lose in November, and lose big.

You may say, Whoa! Nanouk wants BHO and a Democratic Congress elected in spades? By all means! I want the US Government to be so liberal/democratic that they can not blame anyone for the mess they are going to create with their programs. When they destroy this country over the next 8 years, when the USA becomes the USSA (United Socialist States of America) under the BHO administration, when the government becomes the single most controlling entity in your lives, the only way that this country will be saved with be another revolution.

Yes, I believe that another revolution is coming and it will probably take the form of a civil war between the blue and red states when the blue states subvert the rights of the red states through liberal judicial activism, socialistic programs and controls, income redistribution, etc.

All of this will take place under the guise of "helping the poor, the under-represented, the disenfranchised." What the BHO/Dems don't understand is the following:

1. I was never given a job by a poor person

2. I was never given a credit card by a poor person

3. I was never given a hand-out (transfer payment) by a poor person

So when you take from those that produce to ensure that those who don't are on an equal footing, those that used to produce become those that don't and will need the government to take over the entire process of production and organizing and, wha la, you have the USSA!

It's coming and you had better prepare for it. American Can't Be Fixed Now! Whoa, where did I hear that?

Boy were the talking heads wrong!

Since I don't watch live TV any longer (sorry, Madison Avenue, I haven't watch a commercial in over 6 years), I was watching the back episodes of some of the talking heads and I am almost laughing myself into a coma. Everyone on Monday were saying: "Yea, the bull is back," "here we go!" "get on board!"

Then we have Bill O'Reilly saying he was going to put some money back into the market after the big rally and then I can't wait to see what he says on Tuesday and Wednesday. ;-) What a dupe! That's the problem with most rich people: long on dollars (good for him), but short on intelligence when it comes to investing.

When you already have money, the first rule of thumb to stay wealthy is:

"Protect the piggy bank!"

Bill, a multi-millionaire, should have been holding high interest rate bonds so that when the interest rates went down, his bonds would have exploded in value. Remember, bond values are inversely proportional to interest rates. If you have high interest rate bonds, and interest rates go down, your bonds are worth more.

When interest rates bottomed out at 1%, Bill should have sold every bond he owned and put his money into high interest rate foreign bonds since the dollar's fall would have helped him and the rising interest rates would have eroded his bond value.

Oh well, Bill, I am sure you are going to swearing tonight if the Presidential Debate didn't pre-empt you.

It's really funny how many people go "buy", "sell", "buy", "sell", "die!" ;-)

Damn! The sucker's rally played out!

The sucker's rally fully played out today as the DOW tanked over 730pts today, along with yesterday's loss of about 200pts almost point for point completely erased Monday big sucker's rally that ran over all the people that thought the bottom had been reached with the SP 500 reaching 837 on Friday.

Well, what did you learn here? I told you on Saturday that there would be a sucker's rally to around 1050, and we got to 1067 (missed by 17pts), and so we dumped back to 903 and once the talking heads play this out on TV tonight, most of the people that didn't get out on Friday, held through the sucker's rally on Monday hoping they had weathered the worst.

I told you that you should be selling into the rally on Sunday so if you didn't then you got caught twice! We are going to head lower now that the rally didn't hold and the true capitulation is going to set in tonight and tomorrow's opening with a push down towards the 837 and below over the next 2 day. We could very well end up on Friday around SP 500 800, and at or below DOW 8000!

Remember, everyone can't call the bottom or it wouldn't be the bottom, duh!

OK. Remember where you heard about it and tell your friends to read along with you. The market's are completely confused and disillusioned with all the crap that the government intervention. It is going to take some time before investors get the nerve to rejoin the market since Main Street now firmly believes that the markets are rigged. This is bad for Wall Street.

More later after I have a time to analyze what happened today, but hold on to you shorts, we could go lower.

Financial talking heads spinning the dump

It will be interesting to listen to the financial talking heads on CNBC, CNN, and FBN spin this 300pts dump in the markets ;-) The explanations should be very robust and involves lots of hand waving. I will report back to you tomorrow what they all try to say that its only a 1 day pull back.

The Dow would be down over 500 pts if the Dow financial stocks were not being bolstered up by the Fed/Treasury action of buying equity positions in the banks and directly adding liquidity to their balance sheets. Something the government was surely empowered to do by the Constitution (satire, folks, satire).

I believe that both Hamilton and Jefferson would agree on this government action - pure crap!

Paulson and Bush just spoke on the Treasury $250 Billion USD direct infusion of monies and the market did a little pop, but the volume is very light. If it lasts it will be thin.

Bush 43 said, "It will be a very short term proposal, only 3-4 years." Well by then, the government intervention will be so normal that it will be considered the typical governmental purpose. So now the Constitution is violated via the soothing refrain of, "Trust us, it will only be for a short time."

The LOUC of Treasury Action

The LOUC (law of unintended consequences) is really based in science. According to Sir Isaac Newton:

"Every action produces an equal, but opposite reaction."

This means that every time the US Government does something to the US financial markets, there is a equal, but opposite reaction set up like the shock waves of an explosion. While I am sure the politicians and financial types believe that they are doing what is right, no scratch that... they give a d*mn! Never mind.

Just understand that the LOUC in this case is going to be big, but largely hidden until its too late just as the imposition of the CRA in 1977 by then President Carter (a whole other kettle of fish) produced this financial crisis along with help from Bush 41, Clinton, Bush 43 and both Republican and Democrat Congresses.

What will the LOUC be by this large governmental intervention:

1. By buying equities of 9 of the largest banks, an unlevel playing field is created by giving these companies an unfair advantage over those institutions not allowed to participate. If you had a choice between a bank that was getting Federal support (implied backup and support) or a regional/small bank without it, most may choose the supported bank. This creates a diminutive effect on small, local banks to where you may have a rash of regional/small bank failures.

2. The taxpayer will never see a dime of their equity position may, I say may, bring since the monies will flow to the Treasury and used for more governmental spending done in your name, of course. The profits, it there are any, will be touted to support more and more governmental interventions which will move the country into the arms of socialism.

3. Other capital may not want to compete with the US Government since they will not be on a level-playing field like when competing with Warren Buffet since he is able to get much more preferential treatment thereby angering private capital. This could produce the opposite effect of the government intervention by driving out private capital forcing more and more government intervention to maintain their initial stake.

Keep an eye out, folks, there may be many more unintended consequences that we may not see for years, but that's the LOUC for you. It took over 30 years for the CRA to reach this level of impact.

May you live in interesting times!

Having watched how the US Government has moved quickly from bail-out to take-over of private financial institutions, I can see that we are indeed living the purported (but unverified) Chinese proverb:

"May you live in interesting times!"

What most people don't realize is that is maintained that this saying, while not really verified to be from the Chinese, was a much a curse as it was a proverbial blessing. I think we can determine which it is in this case.

With wild swings in the market of over 100pts per day, most people are simply bewildered. Many of the "talking heads" are confused, and many, like Bill O'Reilly, are mad because they believe the markets are rigged. Funny, rigged? Interesting point, Bill, but highly unlikely since the total future contract activity of just the ES market yesterday represented over $250 Billion USD in asset value. Now even Mr. Buffet would have a hard time impacting that amount of activity, but Mr. O'Reilly is welcome to his opinion even if its a bit, shall we say, uninformed.

The markets are reacting to the uncertainty that government intervention has brought. Market's dumped when the government said it was going to become a big player, and when they said they were going to directly inject hundreds of billion dollars of taxpayer money into the banks by taking an equity position, the markets rallied. The US Treasury, on authority granted it by the EERA 2008 (HR 1424) passed a week ago last Friday, is going to make the US taxpayer an equity owner in several of the 9 largest banks.

Can you spell LOUC (law of unintended consequences)?

BHO tax plan in real language

Remember, BHO is still going to be the 44st President, and he is going to raise taxes on everyone via the payroll and corporate tax hikes. Also, if you have read my previous posts, you will know that corporations DON'T pay taxes! They just pass them on to the consumers, so for BHO to say he is not going to raise taxes, but then raise taxes on anyone making > $250,000 (read that to be small businesses) and corporations, he IS going to raise taxes on everyone!

He is also going to raise the capital gains tax since it mostly hits the rich people (so Dems say), and he is going to raise the cap on Social Security to UNLIMITED! For you small biz people that should scare the sh*t out of you! Think about it, a tax that goes up to 1,2 or even 5 million dollars that equal to 12.4%, but...

"It's your patriotic duty to pay taxes!" (J. Biden, US Senator, during one of his famous brain farts)

WOW!,it's my patriotic duty to pay taxes, I wonder what the founding fathers would say if they heard that one. Well, it doesn't matter since the USA is becoming the USSA it will be your duty to pay higher taxes and, "Ja Voll, you will like it!"

Where is this country headed? You know where...

Finally, how do you know a politician is lying? "His/her lips are moving"

Everyone is being told to sell this rally!

I have been listening to several money managers that are telling their clients to "sell this rally, sell this rally!"

Now since most people are wrong, this could sustain itself for another 75pts to 1050 tomorrow and then sell-off after everyone sold into it and watch it keep going today and tomorrow. Remember, nothing has changed in the economy over this last weekend except that some people think the market was over sold and so we are getting a return to sanity.

Listen to all the financial talking heads tell us that the market is coming back and we are going to get the "good ole days" back soon.

Let's all sing "Kum bai Ya!"

OK, back to your regularly scheduled personal insanity.

It's over for McCain, Long Live BHO!

As I have posted before, I am predicting that due to this economic crises and the Palin "Troopergate" scandal, the McCain ticket is fatally faulted with even some pundits saying that McCain should "re-start" his campaign. If that alone is such an indication that McCain is done I don't know what is?

How does you re-start a Presidential campaign just 3 weeks before the election? It really shows that you are weak, and one thing that America hates is weak candidates. They love a winner, and right now, the winner is BHO. He has the polls the momentum and now has the Palin Troopergate scandal to use to bludgeon the Republican VP nomination over the head.

I still believe t hat Gov. Palin should publicly resign her nomination and allow McCain to pick someone like Huckabee. That would energize the conservative base of the Republican party and may get him close to even with BHO, but even that will not be enough.

The only thing that can stop BHO now is a complete implosion during the last debate (unlikely) or some hard evidence about his beliefs about education, health care, financial markets, in other words, something that would have his fingerprints on it that shows him to be a socialist.

Why do you think the Democrats don't want his Harvard years being investigated and do everything they can to block it? It is really unheard of for a Presidential candidate to prevent his law school writing from being made public. If they were, in his own hand writing, his socialistic beliefs would be substantiated.

It will only be after he is elected the 44st President of the USA that all this will come to light, but it will be too late to stop the USA from sliding into the USSA.

McCain is done, long live BHO!

What is a sucker's rally?

A sucker's rally, otherwise known as a DCB (dead cat bounce) is a pattern that usually begins with a very large oversold condition (see Friday's action) and then you get "bottom feeders" quickly come into the market to buy what they believe are values that have been thrown away like the remains of dead fish on which the bottom feeders exist. This lasts for a few days and when those that trade have their fill, the buying ends because those that can provide a sustainable rally (the public) have been recently burned, and they aren't going to put their money in after just taking a licking.

When this sucker's rally will run out of steam is anyone's guess, but I predict that it may get back to around 1050 on the SP 500 index before finding out the emperor has no clothes. Then its back down to get near the previous LOY (837) before finding some support, but this time everyone is throwing in the towel since the sucker's rally did not continue.

This will be the true bottom when the professionals don't even want to catch the falling knife this time. It is all in the market psychology that has played out many times before this dump in the market.

The only thing that can change it is if the government continues to intervene which shocks the rules (no short selling, government taking equity positions in financial stocks, bail-out funds being delayed, the election of BHO who will really change the rules if he gets a very Democrats Congress) and doesn't let players get time to get used to the new ones before the Government tries something else entirely.

Everytime Gov opens mouth, market tank

It seems that now every time some from the US Government opens their mouth, the US futures tank. I was watching the futures when Mr. Kashkari, the new US Financial Markets Stability Czar, speak about what is needed, and the futures began a 10pts pull back. Amazing.

The propensity for the US Government to try everything and often is becoming more a joke then something that is calming the markets. All the markets hear is more regulation, more intervention, and that is not playing well with the players in the financial systems.

Well, what do you expect? You cried, "Save us, Save us!" and now that the Government is coming to your rescue, and says,

"OK, but the price for this rescue is going to be Government ownership and heavy intervention!"

The markets are going, "Wait a minute! We wanted rescue not take over!"

As I have said before, "Be careful what you scream for..."

You may get it in spades and its not always in the form that you would want to take it in. Medicine can be bitter, and boy, is this pill going to be bitter for the markets.

If history is any judge, the bear market is going to be lengthened, the financial crisis exacerbated, and the recession deeper. It is always the way of things when "control by group political think" (my definition of government) is imposed on a free acting mechanism like the once capitalistic free-markets in the US.

Socialism takes away my right to fail

I have discussed why socialism is coming to the USA, but I now have to tell you why socialism is so insidious as a socio-economic organization structure:

Socialism takes away my right to fail!

I know that it may sound crazy, but think about it. How does socialism come to be the political formation of choice?

First, people are shocked out of their lethargy due to either a geophysical, geopolitical, or geofinancial crisis. They are told that they suffering by those in charge and that they need to allow the government to take care of them. Sound familiar? Sound current?

Second, the government offers to solve the current crisis and thus elevate their suffering, but they will have put up with an increased amount of government intervention/regulation/oversight in order to make sure the crisis will never happen again. Ah, again, sound familiar?

Third, once the government has gained control and the crisis has run its course, the now more powerful government and politico-class now bloated with new bureaucrats and underlings, the now newly-socialized are told that they must accept the new government intervention since doing otherwise would return them to the chaos of the recently-solved (or so they say it was solved by governmental action) crisis.

Finally, socialism becomes the "comfy slippers" while it does not allow for the ability of its governed to excel, it also does its best to prevent anyone from failing since failing points out that "we are not all created equal." The government helps those in trouble with their mortgages, bank deposits, jobs, housing...

Beginning to get the idea here?

Socialism takes away my right to fail and this is bad since we humans learn so much more from failure than we do by living in mediocrity which is the hallmark of a socialistic country. Don't believe me? Look around the world at the socialized countries: they are all 3rd world countries that many used to thriving, democracies.

I want my right to fail!

Market Capitulation and the Sucker's Rally

Counting the number of financial talking heads this weekend saying that we have "hit bottom" would take a statistician of formidable skills. One thing I have found in living through more than my share of market turmoils (6 that I can remember) is that very few "smart people" call the bear market right when the reversal takes place. Bear markets usually reverse when everyone is so bearish that they only think they can see if "the sky is falling, the sky is falling."

Since everyone is talking about this being the bottom, I think we are likely going to get a "sucker's rally" to take the market back to the Dow 10,000 level and then it will move back down to lower levels we are at right now, Dow 8300. During the sucker's rally, everyone will be talking about how the bear is over and we can all get back into the market with assurance that we will all make money. When the earnings and fundamentals don't pan out due to the fact the the public has stopped consuming, the market tanks and moves back down to the same or lower level that previous pullback occurred.

Be aware that there are some things that are very different with this financial turmoil:

1. It is global in nature since the USA exported much of the toxic paper to other countries

2. The global Internet allows rich people to move money between locales with the touch of a button, this is what I call the "monetary speed of relocalization". This concept has never been easier or faster.

3. It is real estate based and financial turmoils based on real estate devaluation problems usually take much longer to resolve themselves: see 1929-1336. Non-real estate devaluation crashes such as 1969, 1973, and 1980 all corrected with 12-18 months.

This correction is asset-valuation based and so could take longer to pull out. So be careful.