Bulls versus Bears

A Wal-Mart employee dies amid early bird special fire sale (Wal-Mart worker dies after shoppers knock him down; AP).

Back up a few steps…

Thanksgiving morning plenty of mentally retarded people line up at Wal-Mart in Nassau because the sale will start in 21 hours…normal people enjoy Thanksgiving dinner while about 2,000 freeze their private parts off and line-up.

Black Friday at about 0500 hours 2,000 storm the doors and ran over the employee who opened the doors. After they were told to back off because they stampede over the man on the floor they continued to step on him with the argument that they have waited in line since Thursday.

One dead, four hospitalized and all for some bargains…ridiculous.

No, shoppers are not the only once to blame as retailers contribute to this menace with an equal portion. Instead to do what was done in ancient Rome to lions, not feed them for days until they are ready to eat dirt and then for entertainment purposes throw a few slaves in the arena and let the lions out, retailers should not wait for this one day to slash prices or better get rid of this idiocy all together.

Maybe it was fun in the past but the death of a person definitely put an end to the fun…don’t you think so Wal-Mart!?

This idiocy was a time bomb waiting to explode and the recent economic problems coupled with an increase in stupidity among shoppers lead to this unfortunate outcome.

…but for many stores there will be little to nothing to cheer about (For stores, the holiday season may already be over; AP).

There may be a lot of traffic to stores but it is not the quantity that matters but rather the quality (Black Friday shoppers out in force, but cautious; AP).

Sure, shoppers will be out in big numbers, it is Christmas chopping season and even though the majority will cut their overall spending they don’t wish to give up the experience.

New York City has strengthened security at its subway system amid warnings of a potential terror threat during the holiday season (Feds warn of terror plotting against NYC subways; AP).

Well, Carl Icahn started his holiday shopping spree early and boosted his Yahoo stake by 6.8 Million shares to 75.6 Million or roughly 5.5% (Carl Icahn raises his stake in Yahoo; AP).

Icahn is not the only one who packed goodies in his bag as the British government took a 60% stake in RBS, the countries second largest bank (RBS to be taken over by British government; AP).

It is clear the Icahn’s Christmas list was focused on assets while the British government loaded up on liabilities…1:0 Icahn.

Chances are that you have missed the best deals for the year…

…and here they are:

China…

China slashed rates for a fourth time in three months and implemented a 4 Trillion Yuan two-year stimulus package in order to spend its way out of the crisis but acknowledged that the crisis has deepened (China says impact of global crisis deepening; AP).


U.S…

The U.S. has suspended the Bolivian trade deal amid a lack of cooperation on the war on drugs (US suspends Bolivian trade deal over drug war; AP).

The Andean Trade Promotion and Drug Eradication Act will end on December 15th and relationships between the U.S. and Bolivia have been deterioration as of late.

Bolivia could care less about the agreement, which termination may jeopardize 20,000 jobs and $150 Million in trade, as it prefers it sovereignty without U.S. involvement in its country.

The real price that needs to be paid for this mixture between business and politics, which is always on a route to fail, remains to be seen.


Canada…

BCE was supposed to be the largest ever leveraged buyout but now may be abandoned amid solvency issues (BCE deal may be in jeopardy due to solvency issues; AP).

$35 Billion, yes Citigroup agreed to back $11 Billion but now hopes for the deal to break apart, was the price tag but chances are the C$42.75 remains an illusion.


The greatest collection of portfolio mismanagement and pathetic investment philosophy…

PIMCO…an icon when it comes to underperformance and a prime example of how not to run a portfolio unless you want to jump of a cliff will delay its November dividend while the December dividend is in danger (PIMCO fund may delay payment of November dividend; AP).

PIMCO is stupid enough to blame the market gyrations for the suspension of its dividend…simply pathetic but it just demonstrates the lack of professionalism at PIMCO.

Traditionally the time to be thankful for the harvest but in today’s time most of us do not have a harvest to thank for, right?

Wrong!

How about you take today to thank for the harvest of your portfolio?

Great, so over 99.8% of all market participants have nothing to be thankful for as there is nothing to be harvested.

Why not?

There are probably many reasons BUT the market performance is 100% NOT to blame!

Who or what is to blame that your portfolio is a dead field and there is little to nothing to harvest?

1. Your own ignorance.

2. Your own strategy.

3. Your own investment philosophy.

4. Your own idiocy and stupidity about mutual funds.

5. Your own illusionary ideology about equity markets.

Just look into the mirror and you see the ONLY reason for your mismanaged portfolio with nothing to harvest!

President-Elect Barack Hussein Obama assembles a Special Economic Advisory Board but unfortunately fails to recruit Smart Money but ends up with a team of Dumb Money representatives which will be able to assist BHO to further deteriorate the economic and fiscal landscape (Obama rounds out economic team; AP).

Paul Volcker will lead the team designed to promote failure (Obama names Volcker to head economic group; CNNMoney.Com). The team is expected to meet once a month in order to discuss further counter-productive measures.

Dumb Money continues to do what Dumb Money can do best…be dumb!

Yesterday the markets received three negative economic news and dumb money held its ground (Stock market doesn’t flinch despite economic data; AP).

Today the markets received four negative economic reports and dumb money is confused (4 new reports reveal battered economy; AP).

At least tomorrow is Thanksgiving and dumb money will digest their mutual fund idiotic ideology and comfort each other.

How stupid do you have to be to look at a loss and claim it is a pretty good loss since the market dropped twice as much?

Well, you have to be as stupid as a mutual fund investor.

The EU announced a potential $256 Billion stimulus package or roughly 1.5% of GDP (EU proposes 2-year $256M bn economic stimulus plan; AP).

(Yeah, $256M bn…or million billion…at least the auditors GED paid off, huh?)

Oh well, maybe after the $256 Billion are sank into the North Sea the EU will work on consistent tax break in order to help the economy but at least there is hope in the EU that after a few missteps at least a few member countries will be able to implement the necessary steps.

Hope is the last thing that will die…

…Two countries…two stimulus plans…two different outcomes.

China, which continues to slowly emerge as the new global power player together with Russia and India, outlined a $1.4 Trillion investment proposal list in order to spend its way out of the crisis (China addresses stimulus doubts with proposal list; AP).

Why will the U.S. stimulus fail while the Chinese stimulus will succeed?

1. China runs a surplus and is able to afford a stimulus.

2. China continues to improve its financial markets in order to be more competitive (while many in the developed world point to different market tools as the problem China understands the great benefits of those tools and implements them into their system while they realize that it is not the fault of the tools but the fault of the market participants who use those tools).

3. China is not ignorant and applies intelligence to problems (when home values rose in the U.S. banks lessened standards in order for more unqualified individuals to obtain liabilities form banks (mortgages) in order to buy liabilities (homes) while China tightened lending standards in order to prevent a negative impact on their system).

4. China consistently works to create an environment which promotes sustainable growth and does throw ultra-short term views at long-term problems.

5. China does not bow down to pressure from ignorant sources but moves in a pace which allows a strong system to be built over time.


Sure, it is easier to build a system from scratch (which is one reason why the U.S. financial system needs to be allowed to fail in order to rebuild a stronger system and why all those short-term patches will just rip the existing system into pieces) but the U.K. has a plan of its own (Darling unveils £20bn fiscal stimulus; FT.Com).

The U.K. plan is far from being good (the 2.5% VAT decrease is just a pathetic joke) but still offers the best developed world approach to the crisis to date.

Here is one example of how not to do it and of course it is offered from BHO and his socialist party (Obama: Economic rescue will trump deficit fight; AP).

When it will be too late even the most ignorant will be able to realize that unite for change meant unite for failure.

…at least over the next decade and more…

…a real recovery that is and not the headline fake which many may be fooled into!

Two more program were unveiled today which will add about $800 Billion to the national debt while the positive impact of this idiocy will remain on a long-term vacation (Feds unveil plan to unfreeze consumer debt market; AP).

This is just what happens when ignorance meets stupidity and historic lessons are refused to be learned from!

By now you should have heard that Citigroup will be bailed out in order to lead a weak financial system towards total failure in the future and of course a lousy excuse has been given as of why good money (well, since the U.S. Dollar is essentially worthless and continues to deteriorate it may not be good money after all) is thrown at bad companies (Bush says Citigroup deal needed to protect system; AP).

It is this mindset which is partially responsible for the crisis and the Citigroup bailout was another counter-productive measure!

$6 Trillion wasted…the Septic Tank and the International Beggar have been allowed to do whatever pops into their retarded little heads and the total cost of all this pathetic fiscal stupidity, ridiculous economic idiocy and hilarious overall ignorance is estimated at $6 Trillion (Treasury, Fed continue extensive bailout efforts; AP).

In roughly ten years even the dumbest socialist will realize that it was one huge mistake to even consider a bailout of anything!

The housing market continues to deteriorate and of course more aid is sought (More housing aid sought as prices sink further; AP) while the auto industry continues to beg to safe their worthless companies (Auto industry planning car pool to Washington; AP).

Don’t worry; the socialist will bail you out while they sacrifice the economy!

The economy contracted even more during the third-quarter than previously expected and while the socialists think they have engineered a plan to safe the economy they fail to realize that this is just the very early start and that all their counter-productive measures will only add to the problem (Economy’s tumble even worse than expected in 3Q; AP).

How can you tell that 99.8% of the market is market belongs to the Dumb Money Camp?

The Citigroup bailout reaction (Dow ends up nearly 400 after bailout of Citigroup; AP) is just one example!

In the meantime banks which are likely to fail continue to increase (U.S. problem banks rise to 171 at end of third quarter: FDIC; Reuters).

Who really cares (Consumer confidence rise in November; AP)?

The socialist have managed to increase hopes among the lower end of the spectrum…100% irrelevant!

Can you afford to be stupid?

President-Elect Barack Hussein Obama has ambitious plans to create 2.5 million jobs (maybe the better description is to not lose an additional 2.5 million) with an increase in contraction activity of roads and bridges, schools and other government and socialist controlled ‘objects and structures’ (Obama economic plan aims for 2.5M new jobs by 2011; AP).

Of course BHO attempts to push his plans through Congress, no questions asked, as soon as possibly (Obama urges Congress to pass costly stimulus bill; AP).

In attempt to ‘lure’ confidence to his side BHO revealed his economic team, which the socialist refer to as a ‘dream team’, but given who appointed the team a dream may be the only thing this team will have…a dream in order to escape reality (Obama names his economic dream team; CNNMoney.Com).

BHO continues to promote his ideas which many believe will turn this country around and it sure will turn this country…from bad to worse (Obama promotes fiscal restraint, big spending; AP).

Sure, is charismatic and delivers speeches which allows those on the lower spectrum to hope but that is all they will receive from BHO…hope…hope and failure.

There has been at least a modest positive development from the BHO camp (Obama’s tax hike for the rich may be delayed; AP).

Those idiots who cheer a tax hike are severely disappointed but this delay offers a small amount of hope and BHO sure developed a strategy to inject hope just too bad that his overall policies which he promotes will not work.

Some good ideas but the execution is below lousy and destined to fail…if BHO could put together a sophisticated team the outlook would be slightly more optimistic.

Nothing really…

…it was another excuse for a few bored individuals armored with ignorance to travel and discuss and take more counter-productive measures in order to inflict harm into the global system.

What follows severe ignorance?

Optimism that their pathetic approach will come to fruition (APEC: Global crisis can be overcome in 18 months; AP).

Some fear to tell the truth especially given the current panic and fear (Investors fear remains deep despite 1-day rally; AP) but the OECD (don’t ask) seems to at the very least launch an attempt to and does not try to sweet talk the global economy (OECD warns of worst recession since early 1980s; AP).

In the meantime some huge deals which were announced months ago are being abandoned (BHP Billiton abandons bid for Rio Tinto; AP).

Well, this is just one example that the deal never made sense to start with and would have been a severe management misstep. On the contrary the deal did not make sense when it was announced but would make sense now.

Why did BHP take the opposite approach?

Because it takes knowledge and sophistication in order to make the right management moves and while most management teams seem to do a decent job during economic expansions it takes economic recessions in order to shed light on those management teams which are able to operate a business with success.

When will you stop to abuse your portfolio?

Prediction call for a roughly 10% drop in holiday retail traffic and the figure may be a bit too optimistic (Holiday retail traffic predicted to decrease 9.9%; CNNMoney.Com).

Retailers are already battered with the so called crisis and are forced to take another hit as many retailers will offer extremely steep discounts in order to sell off inventory. Profit margins are very likely to drop to the 0% level on many items when all costs are added into the merchandise.

Black Friday, the day after Thanksgiving which marks the traditional start to the U.S. holiday shopping season, used to be the time of the year when retailers move from red to black, turn to profitability hence the name Black Friday, but due to the discounts coupled with a decrease in traffic is likely to be a lame duck to the majority of retailers (Black Friday sales intensify in downturn; Reuters).

Not quite sure what the purpose of another obvious statement made by the Fed is but they seem to enjoy feeding the markets with worthless information (Fed officials weigh in on economy’s weakness; AP).

Why is the information worthless?

1. The information is released at least twelve months too late.

2. The source which provided the information is not an expert on the subject

Maybe the only reaction to the crisis to date which has traces of intelligence in it and which will not backfire and hurt the overall system in the long-term is the extension of government unemployment benefits (Bush signs bill providing extra jobless benefits; AP).

Even a blind dog will find a bone…

It seems as no weekend can pass without one bad decision.

Well, this one was just an addition to the slew of terrible economic missteps and of course it has to do with Citigroup (Government unveils bold plan to rescue Citigroup; AP).

In the meantime two more thrifts were shut down by the FDIC in California and one small bank in Georgia was shut down as well (Federal regulators shut 2 California thrifts; AP).

So, just let Citigroup fail!

No, to safe Citigroup will not safe the financial system (It is 30 years too late for that)!

Yes, it will cause more problems in the future IF Citigroup will not be allowed to fail!

Have those retarded sacks of expired wheat not learned anything from AIG!?!?!?

Citigroup has failure written all over the company’s balance sheet and just look at the lousy excuse of a management team who runs Citigroup.

Quit promoting failure if you want to safe the financial system which, by the way, is already irreparable and needs to be rebuilt from scratch…yes from SCRATCH!

When the markets decide that the only option available is failure quit to interfere and allow the free markets to weed out those who don’t deserve to be part of the global economy anymore.

At the same time this pathetic ignorance continues to harm the financial system the FDIC just ensures that it will do what it can to elevate the problems and create future problems (FDIC OKs backing for bank debt, deposits; AP).

Instead to implement policies which will ensure a financial and economic recovery the opposite track has been chosen and current practices load up more problems into the pipeline.

JP Morgan Chase…

JP Morgan slashes 10% of it investment banking staff (JPMorgan cuts investment banking jobs: sources; Reuters).

3,000 gone which means only 26,000 need to be axed before they have trimmed down to an acceptable level. JPM is under pressure as even the biggest idiots in the business understand that the decade long desperate attempt to create an illusion of professionalism busted and the truth starts to surface (JPMorgan shares tumble on bank woes; AP).

Maybe the Septic Tank and the International will construct another fire sale…


AIG…

It does not matter how much money you through at a fire…it will keep on burning…it is just sad that there seems to be a severe lack of any intelligence among those who approach that fire (China fund in talks for stake in AIG unit: report; Reuters).

They seem to think that the more money you throw at the fire the quicker it will be extinct but fail to realize that the money fuels the fire…


GE...

Right, they don’t seek to raise money from sovereign wealth funds a la $15 Billion October Misstep but they do seek partnerships (GE says not seeking sovereign-wealth investment; Reuters).

Maybe GE is too proud right now to admit that they face more severe problems than they want to admit...


GM...

Member of Detroit’s Pathetic Three (Detroit’s Pathetic Three…; The Path to the Pegasus Letter) continues its desperate attempts to decrease their cash-burn rate (GM to extend holiday shutdown, will cut production; AP).

It is time for GM to fail since they have been allowed to be a drag on the economy far too long…but the socialists which now want to unite behind BHO will do whatever they can to ensure more failure in the future (Obama low key but active in auto rescue talks; AP).

GM deserves to fail as failure is the only cure to the problem…


Delta...

Delta plans to continue to trim down in order to reflect the dwindling demand for domestic as well as international travel (Delta to trim future US, international capacity; AP).

Delta, after years of management missteps, at least attempts to remain ahead of the curve…


Goldman Sachs...

Since it is not a big secret that GS is not what it wants you to believe it is they continue to make obvious statements several months after facts have surfaced (Goldman cuts U.S. growth forecast; Reuters).

Oh well, no intelligent individual pas attention to GS anyways…

Recessions causes professionalism and sophistication to surface and separates success from failure!

Yes, Citigroup tries to play the ‘Too Big Too Fail’ card which is exactly what happens when you allow unqualified individuals manage a company. Some still refer to Citigroup as a financial giant based on the amount of liabilities on their books.

Citigroup attempted to acquire Wachovia with federal help (how pathetic can one management team possibly be?) in order to cement their ‘Too Big Too Fail’ position…but they failed too do that.

There were talks that the lousy excuse of a bank considered to sell a few liabilities and their share price rose pre-market on Friday (Citigroup shares leap on reports of firm’s sale; AP).

After the hopes for a sale Citigroup’s biggest idiot, CEO Pandit, squashed those hopes and said that rumors are at the heart of their problems (Citigroup’s Pandit: We will not sell Smith Barney; CNBC).

Oh really?

So rumors have caused you to mismanage the company…Pandit…you are a retarded piece of shit…just admit that you screwed the company in the ass and quit blaming everyone else…you are the toad fucker who is the CEO and you are responsible for what happens and not some rumors in the markets which were started after it became clear that you are worthless…simply ridiculous!

Finally, Citigroup’s share price approaches fair value (Pressure on Citigroup builds, shares fall below $4; AP).

Only $3 off the share price and the departure of Pandit and his mismanagement team and fair value should be reached.

Are you tired of Citigroup yet?

Citigroup continues down the path management decided to take the company and when even those who clearly lack insight about a company cut their views and estimates you know there are huge problems (Citi shares hit 15-year low as analyst cuts view; AP).

Over the past 52-Weeks Citigroup tumbled over 86% and there could be much more forced selling as the sticky little shit at the bottom of the barrel institutional investors are not allowed to hold shares below $5 (really pathetic but they claim it will reduce risk…they fail to realize that the only risk associated with equity markets is their lack of knowledge).

Citigroup breached the ‘magical’ $5 per share level and should they remain at that level for an extended period of time they could drop another 86% and given the management team, mismanagement team to be exact, shares could tumble another 99% to get to fair value (Citigroup’s Move Below $5 Could Trigger Major Selling; CNBC).

The pity investment by Prince Alwaleed bin Talal, Citi’s largest shareholder, who increased his stake from 4% to 5% is just hilarious (Alwaleed to boost Citigroup stake to 5 percent; Reuters).


Yahoo’s CEO may plan to step down but it could be too late as Microsoft has no interest anymore in Yahoo although it may have an interest in the company’s search engine (Ballmer dismisses Yahoo buyout but open on search; AP).

What will happen?

Yahoo may take anything now as it trades at $9 per share and below…the big question is not ‘what will happen’ but ‘why did it happen’.

Why did Yahoo not get rid of its CEO a long time ago?


Finally the Pathetic Three of Detroit got slapped in their face (International Beggar anyone?) and now have to face the consequences for decade long mismanagement…even the idiocy of the socialists may have turned their back (Dems delay auto bailout vote, seek plan from Big 3; AP).

Can it get any worse?

Sure, a mutual fund will get the job done and display even more ignorance and lack of professionalism.

…and the idiots run into treasuries which guarantee investors (not sure if you can really call those individuals investors) a loss (Stocks tumble for second day, Treasurys surge; AP).

(Yes, the auditor of the AP report spelled Treasuries wrong but maybe they will fix it…that is what you get when you outsource everything to safe a dollar or two…reputational damage)

Those who believe treasuries offer safety are likely those who also believe that mutual funds are sound investment vehicles and managed by professionals who posses knowledge about equity markets.

Well, you get what you deserve from the markets and as a mutual fund investor you deserve absolutely noting which is what you get on a daily base.

Hey, the world (and your partner) does not expect anything at all from you since mutual fund investors are constant underachievers so at least you will not disappoint them with failure.

The International Beggar, still covered with sand that was thrown in his face, continues to believe that intelligent people listen to the cap dripping out of his mouth as he fails to realize that he is sub-human waste at best and worthless feces at worse (Paulson: crisis happens once or twice in 100 years; AP).

Oh really, where did you pick that one up…Equity Markets for Dummies?

The crisis is only a crisis if you have positioned yourself (if you are a mutual fund investor you have since you live in a disconnected world) to be affected by the current events as if there is a crisis.

What happens right now is normal and far from a crisis, there are more opportunities than investors in the markets right now but those who fail to realize those opportunities call it a crisis…so it is not really a crisis but the idiocy of the individual.

You are responsible for your situation so quit blaming everyone and everything for it…look in the mirror as it will be the only place where you see the core of your problem.

Yes, the Septic Tank has been quiet which can only mean one thing:

There is a serious feces overflow and he will drop it in large pieces for the mutual fund industry and any other non professional to catch with their mouth and swallow it lukewarm (Fed sharply lowers forecasts, hints of rate cut; AP).

How late can you be, how ignorant can you be?

This piece of info has been apparent over one year ago and they just now get it…this is another example of the sheer stupidity which surrounds the Fed.


There is good news and there is great news and the Pathetic Three’s potential denial of a bailout is definitely great news and at least a minor victory for free market capitalism (Auto aid plan heads for defeat as Big 3 teeter; AP).

What is needed for the dying dinosaur of the long gone powerful U.S. manufacturing industry?

You already know (Detroit’s Pathetic Three…; The Path to the Pegasus Letter)

Maybe you belong to the majority who simply does not care and does not want a bailout and is smart enough to understand the necessity of a bankruptcy filing by all three dying companies (No Auto Bailout? Investors may Just Say ‘No Problem’; CNBC).

The mismanagement teams try to make it sound like they are the U.S. economy…simply pathetic!

Oh well, The Dow Jones closed below 8,000 for the first time since March 2003 (Dow falls below 8,000, S&P at 5-year low; AP).

What will happen next month?

It is obvious…100% obvious…just listen to the markets, not the noise but the markets and if you don’t know what will happen 100% guaranteed next month…just forget it and waste more money on your mutual funds!

…follow their top idol, the International Beggar, and get down in the preferred position to perform fellatio (Big 3 carmakers beg for $25 billion as aid stalls; AP).

Pathetic, there is no other word to describe what happens with the automotive industry and in the socialist camp.

They have mismanaged their companies and now they get what they deserve…failure and just because they have amassed a huge workforce, in order to meet the ‘Too Big to Fail’ criterion, does not mean they have to keep the economy hostage.

Yes, at least there is some hope that the bailout will fail despite the socialists efforts to buy votes(Democrats seek to lower expectations for bailout; AP).

Change does not happen WITHOUT severe pain which is the reason why BHO will not change a thing!

What needs to happen with the Pathetic Three?

1. Allow them to fail and file for bankruptcy. A few hundred thousand jobs will be lost but each company only needs three factories with full staff and a smaller dealership network.

2. They need to focus on fuel efficient cars and built a small line-up of models consumers ask for and will buy. Additional focus should be on alterative fuel vehicles.

3. Use the $25 Billion, intended for factory upgrades, to support the move to built fuel efficient vehicles tailored to customer needs and ditch the other $25 Billion.

4. Get rid of the UAW which does nothing but harm the industry.

5. Lean executive pay packages tied 98% to performance and decrease legacy costs by 80% but offer performance based incentives to employees.

The Pathetic Three need to restructure and they need to slash over 90% of their workforce and eliminate all unions.

Maybe SolarWorld’s example with their proposed plan for GM’s Adam Opel division should be evaluated closer and implemented as far as practical once the restructure in bankruptcy court is complete (SolarWorld offers $1.3B for Adam Opel’s assets; AP).

They just have to start over…start over from scratch!

It may be a bit too late…No, it is too late but better late than never (Yahoo’s fate riding on Yang’s successor as CEO; AP).

What took this long amid a serious of management missteps?

Ignorance…pure breed ignorance mixed with an unhealthy serving of greed!

$33 per share was not good enough but now, with a share price of below $10 per share, even $20 looks like a great deal.


In the middle of a plan to leave the country altogether, NYAG Cuomo pleas, urges or suggests Citigroup executives should not receive bonuses (NY AG urges Citigroup execs to forego bonuses; AP).

On the way to the airport to get out of the U.S. Citigroup may or may not consider such ‘drastic’ actions.

Why should they not get paid a bonus?

Well, they should since mismanagement is rewarded with bailout money there is no reason not to reward mismanagers with bonuses…just as BHO and the socialists ask for.

You fail…the government will bail you out…and the mismanagement teams will get a bonus since they have fooled the socialists they are too big to fail. As long as those mismanagers are able to fool the socialists they deserve a bonus.

Stupidity all the way, comrade!

Citigroup may not hold back bonuses from mismanagers but they will slash another 52,000 jobs after the 23,000 job cuts so far this year and chances are plenty more will get booted (Citigroup to slash 52,000 jobs; Reuters).

Way to go ‘C’…stick it to the socialists…they’ll come up with a multi-billion dollar bailout for the unemployed financial sector group.

President-Elect Barack Hussein Obama has not even sniffed at the White House yet but total failure is already the destination of his policies.

Sure, BHO supporters defend his approach and are blinded by the propaganda campaign which surrounded the popularity contest duped as a presidential election and slapped with a history tag to increase entertainment ratings but once the failure simmers through and is apparent it will be too late to act on the consequences.

First thing, or better one of the many first things, is another pathetic and ridiculous bailout, between $300 and $700 Billion (CEOs want at least $300B stimulus from Obama; AP).

Of course they want that. BHO gathered the dumbest socialist supporters and mismanagers and asked them to come up with solutions to the problem THEY have caused…and they just want more money to waste…regardless of the consequences and no questions asked!

Garbage is piled on top of more garbage!


The pathetic excuse of a human being who does not even deserve to be spit on anymore continues to defend his ‘Goldman Sachs Rescue Plan’ (Lawmakers press Paulson on bailout plan changes; AP).

What does BHO, or any other socialist who lives in a dream world, learn from the serious of failed bailouts?

Absolutely nothing…they simply endorse every pile of garbage today in order to buy votes tomorrow. One fails and the next one is already being worked on, endorsed and sold.

TRAP is just one crown jewel of pathetic stupidity, ridiculous idiocy and hilarious ignorance (TARP: A Rescue Plan or Uncertain Scramble; CNBC).

This is what happens when you have the dumbest human beings you could possibly find on this planet to stick their stupid little heads together and work on a solution to a problem they have caused.

You can compare it to gathering 100 severe alcoholics to work on a solution to an alcohol problem. They fail to see that they have a problem and just ask for more alcohol…and round and round it goes.

One really has to feel sorry for the economy which will enjoy continued missteps on its way down…nevertheless it comes with some entertainment value to listen to those who have no idea about what needs to be done talk how they will unite and change the economic landscape while they are ignorant enough to realize they will only contribute towards total failure due to their stubborn idiocy.

Sure, they will unite and change…but not in a positive way!

Out of the U.K….

There may be problems with the U.K. currency, pound sterling, IF the U.K. government does not control borrowing and spending (Senior UK politician warns of run on the pound; AP).

The U.S. government seems to have severe problems to grasp the idea of fiscal control and the importance of a stable currency to the economy as a whole and with the socialists who gained control the problems have yet to start.

The U.K. may be able to avoid fiscal idiocy and escape the problems related with it.


Out of Japan…

Japan decided to bailout its financial system in 1998, just as the U.S. has started (Capitalism sold for $250 Billion; The Path to the Pegasus Letter), and has suffered ever since that fatal economic mistake.

Now Japan fell back into an ‘official recession’ (Japan slides into recession, 1st time since 2001; AP).

In reality, Japan has never recovered from the disastrous mistake which was led by socialistic ideas and pathetic ignorance. Japan, with current interest rate at 0.30%, is one example of what will happen to the U.S. economy.

No lessons learned from history.


Out of China…

China scored yet another global victory but remained their intelligence and did not sell out like pathetic idiots (China gives no sign of bailout help after summit; AP).

China, which some claim offers the most capitalistic business approach, continues to fortify its global position and displays the characteristics of the new global supper power in the making.

China is not quite there yet but implements all the necessary moves to accomplish that task and together with Russia and India works to complete and reshape the global economic power map.

China…well done!

The markets continue to function to perfection despite what the least professional investors and their huge client base want to believe. After a great October, which was rough for those investors who are disconnected from reality and load their portfolios up on the front end as well as the back end with stupidity and ignorance, those who have help on claim they feel more comfortable now…which may end up as a dangerous comfort (Investors coming to terms with market’s gyrations; AP).

Successful portfolios designed to yield consistent returns are not build on hopes and expectations but knowledge and sophistication, two ingredients the mutual fund industry does not possess.

Investors, even as idiotic as mutual fund investors, may slowly realize, a few years too late of course, that the U.S. is in a recession and many months from now they may realize that the tough times are yet to check in at a local economy near them (U.S. in recession, jobless to peak at 7.5 pct: survey; Reuters).

Since it is a survey, you may as well ignore it as the data is simply worthless but by the same token, if you waste your time and money on a worthless mutual fund you may like worthless surveys as well.

Those who realize their stupidity and lack of professionalism have a hard landing…a fatal crash (Brazil trader shoots self on stock trading floor; AP).

This is not the first incident this year and can happen when life throws you back to reality but one question remains:

What type of security is present if a trader can carry a weapon to the trading floor?

Well, weapons on the trading floor is a very bad idea and so is insider trading (Dallas Mavericks owner Cuban charged with insider trading; CNNMOney.Com).

Have you ever wondered how much sophistication knowledge and professionalism is absent in the ‘real-world disconnect mutual fund industry’?

Well, take a look at the Bird-Shit Investment Strategy and if you still don’t get it stick with mutual funds:

1. The Bird-Shit Investment Strategy – Part 1: The Introduction

2. The Bird-Shit Investment Strategy – Part 1: The Preparation

3. The Bird-Shit Investment Strategy – Part 1: The Execution

Ignorance is expensive and chances are that you can’t afford it!

The pathetic and ridiculous $700 Billion bailout was put together in a fire session and it was put together by the least intelligent representatives of the human species and endorsed by those of equal stupidity.

President-Elect Barack Hussein Obama, from the ‘Yes we can make things even worse so let’s unite for failure’ socialist party, will have to deal with the financial overhaul (Financial overhaul added to Obama’s to-do list; AP).

There will be a global overhaul and the G-20 meeting left some small hopes that they will not mess it up as bad as they can with counter-productive over regulation but with another socialist at the table chances increase that they will engineer total failure.

Hope is the last thing that will die but hope sure has been put before the execution squad which is ready to fire.

The International Beggar decided to leave $350 Billion of the Economic Death Sentence to the socialist who are experts on how to waste money (Hill sources: Treasury won’t use full bailout; AP).

In the meantime the two top idiots who sold the bailout, which has been modified several times AFTER it has passed, have to report to the House Financial Service Committee (Top salesman for financial bailout face grilling; AP).

Not only has it been modified but the socialist want to use part of the bailout intended for the financial system to help out auto manufacturers…they sure porked it up over the past few weeks.

At least there is some resistance to the calls from the left (Showdown looming in Congress over automaker rescue; AP). The socialist hope to hammer a $25 Billion bailout into Detroit (Auto-aid plan prospects dim in partisan stalemate; AP).

The auto industry faces headwinds from all directions (Experts: Supplier woes put auto industry in danger; AP) but the auto industry is to blame for their problems.

Of course the socialist backed unions blame everyone else but themselves for their misery (UAW leader says blame economy for Detroit 3 woes; AP).

Will the deserved collapse of the auto industry cause hundreds of thousands and even millions of job losses?

Of course it will but that does not mean they should be bailed out…

The U.S. may see a decline in domestic oil production (there is quite a bit of speculation about new undiscovered huge oil reserves but the focus should be to abandon fossil fuels and move to alternatives since the technology does exits for quite some time) but one thing there is plenty of is natural gas.

Now, before you jump up and applaud the gigantic natural gas reserves they do not come without its own set of problems…environmental problems (Natural gas rush stirs environmental concerns; AP).

It is simply not worth it to risk severe environmental damage in order to extract those gas fields. In places where it can be done in a safe ways…go for it but in the meantime there are other options on the table.


Twelve Nigerian military boats were deployed to escort a Filipino vessel which was on its way into open water with 13,400 tons of bunkered crude oil (22 Filipinos arrested in Nigeria over oil theft; AP).

In July 14 Filipinos were arrested for bunkering 168,000 tons of crude oil.

What is bunkering?

Bunkering refers to the practice where ships hook up to well heads and flow stations in order to steal crude oil.

Just another reason to end the dominance of crude oil and switch to a basket of equally weighted energy sources just as it is time to end the dominance of the now worthless U.S. Dollar and switch to a basket of equally weighted currencies in order to keep the system balanced.

…have only one objective in mind:

Failure!

Sure, the G-20 has agreed on a plan (G20 source: leaders to agree on action plan; AP) and attempt to communicate cooperation in order to combat the so called ‘crisis’ (World leaders at economic summit vow to cooperate; AP) but this is completely worthless and will end up once again as another counter productive step.

Why will it be worthless and counter productive?

Simply because not one single individual at the G-20 summit has any knowledge about the subject…not one!

Here is another example:

When you gather 60 corn farmers in one location so they can discuss on how to perform open heart surgery on a patient…

…the patient is guaranteed to die since none of the 60 representative has any knowledge about open heart surgery.

The patient will die (but at least the corn farmers are experts on how to farm corn while the representatives present at the G-20 are experts on nothing valuable).

By the same token, if you gather 60 heart surgeons in one location to discuss on how to farm a corn field…

…the corn field is guaranteed to be dead and nothing will be available for harvest when time is due.

The corn field will be a dead piece of land.

What’s the moral of the story?

Stick within you field of expertise and don’t attempt to make decisions where the only outcome of your decisions will cause great failure or total collapse.

Leave the markets to the professionals, don’t get involved and think you can contribute in a beneficial form to the overall system. Promote less but effective regulation which will promote growth.

The markets work to perfection right now and if it is not broke don’t fix it. The markets or the regulatory structure has not caused the so called crisis but the pathetic and ridiculous market participants have caused it on themselves while those few who have been sophisticated enough have benefited through all of this.

The markets are not to blame…all chances are created equal but the majority fails to realize their own chances mostly do to ignorance which is their own choice.

Just because you don’t understand it does not mean there is a problem!

…for more stupidity!

The bailouts have caused the new fiscal year to start with a new record budget deficit…only eleven months to go and 2009 could be the year where $1 Trillion will be reached (October budget deficit hits record $237.2B; AP).

The Septic Tank was quick to possibly hint another rate cut (Bernanke leaves door open to another rate cut; AP) while his best friend, the International Beggar, already gets down on his knees to beg for more money (Paulson says additional ban capital needed; Reuters).

The FDIC swallows up the crap dropped into their mouth (FDIC says plan could help 1.5 million keep homes; AP).

Oh really?

Key word here is ‘could’ and they should not receive any help to start with since nobody forced them to buy a liability which they could not afford…nice job socialists…that is exactly how you should not do it!

Freddie Mac will follow their idol and assume the preferred BJ position in return for money (Freddie seeks gov’t aid after $25.3B loss; AP) and in a lousy and cheap attempt to get some cash four insurance companies offer to buy thrifts so they could tap into the $250 Billion pool (4 insurers seek to buy thrifts for part of bailout; AP).

Allow the thrifts to go belly up and prevent such lousy business moves…it will be much cheaper to let them fail and prevent those pathetic insurers to get a few quick and easy billion dollars for their multi-million dollar investment.

Come on, for real…how stupid do you have to be to buy into that crap?

Well, as dumb as the Treasury Department which is run by…

…yes, one f the dumbest human beings ever which could possibly be the product of the combination of chromosomes…maybe he did not get the full 26 but had to do with only 24!

110 banks ran for help…110 banks which should be wiped off the business map…110 banks which should have a combined 0 customers…110 banks which are worth a combined $0…110 examples of management teams which executed what they have been educated with to perfection which is total failure (110 banks have asked for $170B under bailout plan; AP).

110 examples of pathetic idiocy and 110 examples of socialism at work…110 examples of unite for change policies!

Initially it seemed as they would really screw the global free market from all sides at the same time (Global leaders to vow action to ease recession; Reuters).

Fortunately, as the G-20 Meeting comes to and end it seems clear that the tough new regulatory changes by a few socialist member nations of the EU, namely Germany and France, will not be implemented which was a welcome defeat of pathetic idiocy and ridiculous stupidity (Bush cites progress at world economic summit; AP).

The Euro-Zone is in its first recession ever since the Euro was implemented (EU: Euro-Zone in recession; AP) and the two extremely socialist members who poison the otherwise global free market call for new tough regulation on a global scale which will further deteriorate the market but their sub-human stage simply prevents them to understand that they are globally counter-productive!

One intelligent call out of France was to end the U.S. Dollar domination as the global economic and financial landscape has changed drastically since the Bretton Woods Agreements of 1944.

The hilariously ignorant socialists try to buy more support for their Detroit bailout plan (Democrats hunt for support for auto bailout; AP) and it seems as they will get a bone (Bush wants $25B in loans released to carmakers; AP) in order to just shut the you know what up and quit their lousy attempts to make everything worse than it will be.

No matter how much money you will pump in their ass it will not prevent failure as and idiotic management team and powerful but worthless and counter-productive unions with support form socialists are the malaise of the auto manufacturers.

In order to get the votes they even offer to reduce the $25 Billion bailout just like an alcoholic who would do anything just to get another shot of whatever (Auto bailout backers offer to cut $25 billion size; AP).

Sure, the earth will continue its orbital path around the sun but be careful about the hopes and expectation of the sticky little shit at the bottom of the barrel investors (Stocks likely to recover no matter who’s president; AP).

Will there be a recovery?

Of course there will be…

…but if you are a mutual fund investor or even worse a mutual fund portfolio manager it simply does not matter to you since failure is the only thing that you deserve and therefore get on a daily base from the markets regardless of the direction!

Not Parshall, North Dakota (Parshall, N.D., may sit on potential oil jackpot; GrandForksHerald.Com)!

The global economy was in an expansion period but Parshall was on the opposite track with high unemployment and no perspective until roughnecks stormed the city amid hopes for a huge undiscovered oil field, the Parshall Oil Field in the Bakken Shale Formation.

400 individuals hold mineral rights and the first $800,000 checks have already been cashed in while an acre is being leased for $500 plus royalties.

Many may have abandoned the oil rush but Parshall, ND just started to cash into their black gold jackpot.

Iran in the meantime calls for more OPEC cuts, 1.5 Million barrels per day to be exact (Iran wants OPEC to cut 1.5 million barrels; AP). Well, the markets are extremely oversupplied with crude oil for an extended period of time.

On top of the production cut Iran decided really quick to divert part of their $120 Billion reserves into gold (Iran converts some foreign reserves to gold; AP).

Not exactly oil related but still in the energy field, NRG rejected Exelon’s buyout offer (NRG rejects Exelon’s $1.6 Billion buyout offer; AP).

At least in some parts of the economy it is still business as usual…until the socialists will be allowed to poison those parts as well!

…but better late than never!

The Organization of Economic Cooperation and Development, another worthless global institution which provides no value to the system, has finally admitted that there is a global recession in the developed world (OECD says developed world already in recession; Associated Press).

Just a quick reminder:

After an event occurred the dumbest representative of the human species can look back and make a statement about the even which will lack any benefit since it is too late to act on the historic event…TOO LATE!

This is exactly the reason why any such statement are 100% irrelevant just like ratings agencies that make adjustments after the event when it is too late…simply worthless and just an excuse to claim those individuals are employed…just like that good looking female which claims she is an aspiring model which simply means ‘I am hot, unemployed and looking for a sugar daddy in exchange for sex’ (of course there are exceptions to that ‘rule of thumb’).

Well, it seems that someone told GWB that the approach to the crisis, which was caused by stupidity as a direct result of the socialists ‘education for failure policy’, if continued will only lead to more failure until the total collapse of the system which is probably already too late given the latest developments (Bush: Intervention not ‘cure-all’ for crisis; AP).

Ignorance towards the core of the problem simply ensures the collapse of the economy!

Stupidity leads to failure which leads to calls for more regulation which leads to a decrease in competitiveness and efficiency which leads to more stupidity and it starts all over again (Regulators to Approve Derivatives Clearinghouse; CNBC).

What is needed is less regulation BUT effective regulation!

Instead for governments and regulators to increase involvement they need to decrease involvement in the free market capitalistic economy. They need to get rid of all the ineffective regulation and they should create a light but effective regulatory environment which promotes growth and expansion and assist efficiency and competitiveness instead to work as a counter-force to the entire system.

The bailouts which resulted in the idiocy amid the panic caused by the idiocy may not have exactly been what they were intended but those at the forefront of managerial stupidity claim they will use the money as intended (Banks say they’re using bailout money for loans; AP).

They have also claimed that there was no problem on their balance sheet a few months ago…

The once powerful Humvee, the power-horse of the infantry, may soon be history (Pentagon picks 3 teams for Humvee replacements; Associated Press).

One of the reasons for the replacement is that the Humvee is now used for a range of tactical operations for which it was not intended for and therefore does not exactly meet the needs of the armed forces that rely on it.

Three teams will built a fleet of prototypes and of course Boeing once again has lost a contract and is not part of the three teams which the Pentagon chose for the Lightweight Tactical Vehicle.

Since the new American Corporate Culture has metamorphosed from management teams which work to resolve issues and strengthen operations to a culture which blames their own lack of intelligence on the orbital path of the earth around the sun instead of their own stupidity and ineffective management approach Boeing protests once again (Boeing, Textron protest Humvee replacement award; AP).

One has to wonder how many military contract they have to lose before they realize that their products are simple inferior to their competitors.

Staying with the defense theme, the sticky little shit at the bottom of the barrel when it comes to portfolio management which happens to be the cream of the crop when it comes to portfolio mismanagement displays their lack of sophistication once again (Health care, defense poised to weather recession; AP).

They are stupid enough to make investment decisions based on ideas which have never worked unless failure is what you seek.

Yes, you read the headline right. The Pathetic Three of Detroit allowed their sticky little shit at the bottom of the barrel mismanagement teams to take once powerful companies and ruin them to reflect the rest of the economy and…

...it has nothing to do with economic activity at all!

Now they are willing to do whatever sexual favors required to get a few bucks…99cent full service included and the socialist whores just love it (Pelosi supports new help for ailing automakers; AP).

The toad fucker at the Treasury now decided that the $700 Billion will be wasted otherwise (Stocks plunge for third straight session; AP) and the socialists, still in a severe disconnect from reality, want to shove it down Detroit’s throat…the money that is (Dems seek auto aid as treasury shifts rescue focus; AP).

There has been at least one analyst, by some twist of fate, who slapped the right price target on one of the representative on how not to run an auto manufacturer

GM is worth $0 and even that is too much (GM shares down 30 percent after broker downgrades; Reuters).

Who will be next to run down the doors next year to beg for a bailout?

The airline industry may ask for a few hundred billion dollars to buy new planes since almost the entire U.S. fleet is extremely old and capital for new planes is non-existent.

Security concerns will lead the socialists to throw money into the Atlantic and the Pacific…no questions asked.

The $700 Billion financial bailout was set to fail simply because the most pathetic and ridiculous excuses for human beings have worked on it and endorsed it.

After the bailout was passed it still lacks a clear definition which just displays that once again ‘something’ was passed…questions asked later.

Inefficiency on top of severe mental retardation mixed with pathetic stupidity, ridiculous idiocy and hilarious ignorance will result in individuals and policies such as Ben Bernanke at the U.S. Fed and Henry Paulson at the U.S. Treasury.

Nothing will be learned as the new generation of failure enjoys the best education possibly in order to be educated to execute failure to perfection in order to construct more bailout and rescue packages which will backfire.

In the meantime socialists can’t get enough bailout and rescue packages due to their short sighted approach and inability to take a look at the big picture (Critics say new federal mortgage plan not enough; AP).

Do you need more evidence of a worthless bailout gone bad?

The insurance company, yes ‘the’ one, which should no longer be around successfully begged for more money (AIG swings to 3Q loss, bailout restructured; AP).

JP Morgan, either by choice or by force, continues to modify their liabilities (JPMorgan expanding mortgage-modification program; AP).

What benefits will be achieved by this?

None at all, it just delays the unavoidable…

…FAILURE!

Unemployment figures continue to climb (Jobless ranks hit 10 million, most in 25 years; Associated Press) which results in the death of the ‘borrow and spend mentality’ which has haunted the economy for over three decades.

The U.S. economy has been in a recession for several years, a real recession underneath all the crappy definitions and figures used to hide the truth about the economy, but the majority holds on to their idiotic believe that a recession may be avoided (Evidence of a recession piles higher with new data; AP).

What does this ignorance lead to?

Unnecessary portfolio losses…but you always get what you deserve from the markets.

Sophistication and intelligence will be rewarded by the markets while ignorance (Berkshire Hathaway profit tumbles 77 percent; Reuters) and stupidity will be punished (CEO, famous investors hit hard by market plunge; AP).

What happens when stupidity meets ignorance (besides deserved portfolio losses)?

More calls for ineffective and counter-productive regulatory changes!

The recession has arrived a long-time ago once the headlines are plastered across all the entertainment channels and headlines it is too late to position yourself for the recession.

Don’t blame anyone for your portfolio losses or anything else as a matter of fact since you are to blame for your own situation. You are to blame since you were not positioned on the right side of the equation. You are to blame and not the markets.

If you blame the markets for your losses you must be a mutual fund investor!

…as measured by Alexa.

Sure, it may not say anything at all about the quality of The Path to the Pegasus Letter and you should not blog for statistical reasons but when you do accomplish a milestone as a side effect to your blogging endeavors you just naturally feel like you have accomplished something big.

I have been told more than enough that it is very tough to get a ‘Blogspot-Blog’ ranked high anywhere and it may be true which makes this milestone a special one.

Before we start to hyperventilate and set huge goals for the rest of the year it would be nice to maintain a running three month average below 100,000 and improve it over time with an increase in comment activity while a stabilization of the PR Rank would not be bad either since it seems to fluctuate quite a bit as of late.

Periodically we made it to the Top 40,000 so we just have to see where we will go from here.

I want to thank all my visitors who have contributed to the success of The Path to the Pegasus Letter and a special ‘Thank You’ goes out to the EntreCard Community which was a major force to drive the success of this blog.

What is their ‘Red Dragon?

Well, it is a $586 Billion stimulus package (China announces $586 billion stimulus plan; Associated Press).

What is different from China’s stimulus plan which is very likely to be beneficial in comparison to the failed U.S. stimulus plan?

China has over $1 Trillion if financial reserves and they run a huge monthly surplus!

The tremendous financial reserves as well as the monthly surplus makes all the difference and China (together with Russia and India) continues to strengthen its global importance and metamorphoses into the next generation of global superpowers (Murdoch: China, India will reshape the world; AP).

Well said Mr. Murdoch.


The global economy is in the middle of a long overdue power-shift and ignorance towards this power-shift will cause those who are stubbornly ignorant to be left behind and therefore not be a major beneficiary of the new opportunities.

U.K. Prime Minister Gordon Brown, maybe together with the EU in general, seems to display less ignorance and more intelligence towards current developments (Brown expects Saudi financial help; AP).

Well done Mr. PM Brown.


Another country which hopes to have more influence into the new world economic order is Spain who may have gone under the radar but nevertheless established itself among the leaders in the alternative energy sector and may silently fall up the economic ladder (Spanish PM happy to be invited to economic summit; AP).

Just as you thought that there could be an unlikely wave of less stupidity among G-20 officials you got slapped in your face once again which may have brought you back to reality (G-20 says government spending can help ease crisis; AP).

Delivery failed as expected!


OPEC may deliver further cuts in oil production since the demand is on a downhill slope while the market have been extremely oversupplied with crude oil for over one year (OPEC president: Oil cuts likely if no price rally; AP).

Yes, markets were oversupplied even with oil almost at $150 per barrel!


A final word of honesty:

‘Greenspan: US GDP to decline significantly’ (AP)

As always…ignorance is expensive and chances are you can’t afford to pay the bill for your ignorance when it is due.

Yes, the markets have calmed down somewhat for the time being and a trading range has been established.

In the meantime, almost in stealth mode, the FDIC took over two more banks (Regulators shut banks in Texas, California; Associated Press) and the Latvian government had to do the same to its Number Two (Latvian government takes over major bank; AP).

There will be plenty more bank failures…

The only natural response to this is to avoid the core of the problem and to call for regulatory changes. The calls are echoed from the EU all the way to the U.S. (White House: Like EU, US favors financial reform; AP) and emerging markets fare no better (Brazil demands sweeping global financial overhaul; AP).

What is the real purpose of the change in regulation?

1. Market Inefficiency

2. Decrease in Competitiveness

3. Overregulation

Need more bad news?

The next generation of failure is already being educated right now!


First there was an attempted bailout for consumers --> Failed

Second there was an attempted bailout for homeowners --> Failed

Third there was an attempted bailout for the financial system --> Failed


Which sector is in talks for an attempted bailout set for failure?

Three names say it all:

Chrysler (No big sellers in sight to save troubled Chrysler; AP)

Ford (Ford announces $129M 3Q loss, burns $7.7B in cash; AP)

GM (GM reports $2.5B 3Q loss, says running out of cash; AP)

The socialists have already started to build their shaky empire set to collapse on the ruins of capitalism (Democrats want Bush to help ailing automakers; AP).

Stupidity and ignorance reloaded!

…The Positive Life.

Well, to keep it very simple…the title says it all. The blog is dedicated to bring a flair of positive thoughts to what some my experience as troubled times. Regardless if you are a ‘glass-half-full’ personality or a ‘glass-half-empty’ personality you should find the rich database of The Positive Life which is filled with posts to tackle pessimism a good read and it should at the very least provoke a few moments to reflect on how a positive attitude should prevail over a negative attitude.

Those who arrive at The Positive Life with a negative mindset may find the ‘tutorials’ on how to tackle the most common scenarios which may lead to a lack of positive attitude or an excess of negative attitude.

Some may find those tips beneficial and others may find them worthless but nevertheless they are informative and presented in an attractive manner and easy to comprehend.

Different individuals have different reasons as of why they are filled with a negative sentiment but most of the time, if not all of the time, individuals seem to either chose to forget or simply ignore the fact that it is not the fault of the situation which caused them to have a negative attitude towards life but rather their reaction to the situation.

In the end each individual is responsible for their own situation and if they do not try to comprehend the core of the problem the tutorials won’t be beneficial either. In order for the problem to be solved the core needs to be identified and resolved.

So, go and give The Positive Life a few moments of your time even if you don’t need an injection of positive sentiment.

Hey, if nothing else you may enjoy the simple but effective design of the blog which features easy navigation and is extremely user friendly…if you can’t take anything positive home with you after you land on the blog all hope may be gone for you anyway in which case you may want to continue down the ‘mutual fund road’ which has only one destination:

Complete Failure!

Here is Miss Teen South Carolina in an attempt to communicate with an audience:




Here is President-Elect Barack Hussein Obama in an attempt to communicate with an audience:



Both examples clearly display the deep knowledge of both individuals…which leaves ‘U.S.’ with one question:

Why is Miss Teen South Carolina not the Vice President-Elect?

She would be a perfect match for the promised ‘change’…

Here are the details of the X-Mas Contest

The Contests started on Patriot Day and ends Christmas Eve.

Part 3: November 3rd – November 28th

Predict the close of the S&P 500 (^GSPC) at the close of trading on November 28th.

The winner of the contests will receive 1,000 EntreCard Credits and ten additional entries to win the entire X-Mas contest.

What do you need in order to participate?

You need to have an EntreCard account.

How do you participate?

Simply leave your prediction for the S&P 500 at the close of trading on November 28th along with your EC Details.

The closest prediction will win the contests.

All participants will receive one entry to win the X-Mas contest. Sign-Up to the E-Mail Feed and receive two additional entries (send a PM with the e-mail you used to subscribe with; here are the contact details: http://entrecard.com/details/17838). Write a blog post on your blog about the contests and receive five additional entries (send a link to the post so it can be confirmed).

Good luck to all participants!

Congratulations to the winner of Part 2…

…Riyanne from Blogging from Scratch!

Here is a list of all current sponsors and prices for the winner of the X-Mas Contest:

3 Month Web Hosting (Pipe 30 Plan) from Pipe B Webhosting
1 Month Ad Spot + 250 credits from Lost in Love
1Month Ad Spot from Blogging from Scratch
1 Month Ad Spot from Cheapest Airfare
1 Month Text Link from Ragnarok Guide
2 Week Ad Spot + 250 credits from Applecandie
2 Week Ad Spot from Bobbie Dawn
2 Week Ad Spot from Prodinterios
1000 credits from Best Joanne
700 credits from NugrohoaDipratama
500 credits from Communicate Better
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500 credits from Momma Wannabe
500 credits from Gray Hat Zone
500 credits from Chetan
3300 credits from The Path to The Pegasus Letter

Barack Hussein Obama on a campaign trail to ‘buy’ your vote!

This post is a continuation from: Be careful what you vote for – Part 1: The Economy and: Be careful what you vote for – Part 2: Taxes as well as: Be careful what you vote for – Part 3: The Educational System

The security issue can be divided in two sections.

Section 1:

Obama claims an end to the Iraq war. His supporters seem to forget that he will not be a dictator and can’t simply call the troops back as he desires. He may propose several courses of action but lacks the power for any sole military decisions.

Some act that the war will end and troops will be home again on January 21st 2009 which is just pathetic and clearly displays the lack of knowledge by his supporters.

Section 2:

Financial security is often completely ignored. The U.S. is the most dependent country in the G-20 and possibly beyond. Direct foreign investment is the real lifeblood of the U.S. economy. The U.S. is the country with the most debt in history and therefore totally dependent on direct foreign investment.

Sure, on one side Obama has a ‘friendly approach’ but he is friendly on the wrong front and therefore once again counter productive.

Sure, you can disagree with every single point made but fact remain facts and chances are that you will realize that when it is too late.

There is the type of ‘change’ which is in the process right now, far away from the election and by far more important than the election but the real change is totally being ignored and is just one more piece to the puzzle which results in total failure.

This election is not about change but about damage control. Vote for the candidate you feel will do less damage as a positive outcome over the next four to sixteen years is not really in the playbook unless numerous unlikely events will take place.

Vote either way as in roughly 30 months you are very likely to regret your decision but at that time it will be too late.

Barack Hussein Obama on a campaign trail to ‘buy’ your vote!

This post is a continuation from: Be careful what you vote for – Part 1: The Economy and: Be careful what you vote for – Part 2: Taxes

Despite the fact that the socialists will further lead the country’s economy towards total failure the majority of Obama supporters strongly believe their hero is the right person to turn the economy around.

What can you contribute this phenomenon or anomaly to?

The majority prides themselves with the fact that they are educated very well which is exactly the source of the problem:

The socialists control the educational system!

The next generation of failure is already being educated and with this practice the socialists ensure an ample supply of reasons to lure voters to the left.

Socialists enjoy the current economic problems as this gives their agenda more support. They have caused the education of mismanagers who were allowed to deplete resources until the socialist gathered enough support for their agenda. Obama’s, along with all other socialist, Robin Hood mentality leads to no new wealth creation but solely to the distribution of available wealth which depletes rather fast.

Each time you cut a piece of bread a few crumbs will be lost in the process and after a certain time there will be nothing left to distribute.

Barack Hussein Obama on a campaign trail to ‘buy’ your vote!

This post is a continuation from: Be careful what you vote for – Part 1: The Economy

Obama has a plan to increase taxes for 5% of the country and offer tax cuts for 95% of the country.

Obama’s Robin Hood Tax Mentality will backfire just like his Robin Hood Economic Mentality!

Before we go even further, the sole reason why there are taxes to start with is because the poor and middle classes voted for taxes.

Any government which seeks to increase tax revenues needs to lower taxes. An increase in the tax rate will decrease tax revenues. Unfortunately the socialist do not understand this simple principle.

Obama stated that he has no problem to increase the capital gains tax, which many attribute to only wealthy individuals, from 15% upwards to 35%. Socialists and their voters cheer as this is a perfect fit for their Robin Hood Tax Mentality.

Caution! Your lousy excuse of a retirement plan, usually a 401(k), Roth IRA or equivalent, is subject to the capital gains tax or in other words the tax increase the majority cheers and asks for will hurt them and only them.

Super simplified example:

A company had capital gains of $100 Million and pays $15 Million in capital gains tax (current 15%).

The socialist do simple math: hike taxes to 35% and earn $35 Million on the $100 Million.

Wrong!

The company experienced a capital gain of $100 Million because the management team is not stupid. The tax increase will ‘force’ the company to relocate outside the U.S. and now will pay 35% on $0…$15 Million in taxes wiped out.

It is not patriotic to pay taxes like VP candidate Biden tries to sell the idea of higher taxes!

Don’t think companies will relocate?

Sarbanes-Oxley forced several thousand companies to expatriate and the current meltdown, thanks to the socialist controlled educational system, started another wave of expatriates who leave the country and take their taxes with them.

The only reason why Obama would require higher tax revenues is due to his pathetic social programs which would not be required if he would simply slash taxes across the board.

The socialist idea equates to the following:

Gives us 5% more in taxes and we will give you 2% tax brakes (again, very simplified) or give us $80 more in taxes a month so we can give you $20 in incentives.

It simply does not work!

The economy will be shot dead, the labor market will collapse and investments will dry up and then what?

Will he hire 4,000,000 people to cut the lawn at the White House or give them other non-sense jobs so he can give employment to all?

Besides communism that should ring the alarm bells of an extremely dark spot in human history not that long ago…

Rather than to eliminate the need for individuals to require government assistance the socialists prefer to promote practices which will cause individuals to rely on the government.

Barack Hussein Obama on a campaign trail to ‘buy’ your vote!

One day before the polls open it should not be a great secret to anyone that there has been an Obama craze which almost has the country in totalitarian control. Some may compare it to the rise of leaders from a rather dark side of human history (before you send your hate-mails this does not compare Obama to those leaders but solely compares the rise of Obama to those leaders).

Distressed times result in the election of individuals which are later regretted!

Just to make one thing clear:

This Four Part series is not an endorsement for either candidate. In the end it is completely irrelevant who will win the election as in four years the country will be off worse than today.

Why?

The reason is the ignorance towards the global power shift and the core of the real problems which neither candidate has yet to even mention probably because they are not aware of them.

Obama’s Robin Hood Economic Mentality will not only continue to decrease competitiveness of U.S. based companies on the global economic front but lead to a new wave of contraction.

Obama is not alone in that camp as socialists are all based on the same values which are destined for failure as showcased multiple times through history.

Sure, you may point at this ‘What could have been a small recession but thanks to some of the biggest idiots which were created by two human beings from the opposite sex through sexual intercourse it will be a multi-year economic drag from which the country will never regain it’s long-gone power’ and claim that the economic policies failed but let’s face it:

This recession would have been caused regardless of who would have been in the White House. Recessions are necessary for the long-term economic health, depression can be avoided and financial meltdowns prevented but thanks to the socialists who are in control of the educational system the next generation of total failure is already being educated.

Socialists don’t understand the economy and live in an illusionary world disconnected from reality.

Yes, you read that right! October 2008 has been one of the best months for equity markets in history!

Of course the pathetically idiotic, ridiculously stupid and hilariously ignorant mutual fund industry, which is made up of the worst professional investors and the best portfolio mismanagers, created the false ideology that only a bull market is a good market and that profits can be generated only when equity prices increase in value.

There is a reason why they are the worst…they simply lack the knowledge required to be called a sophisticated outlet!

All of those who are in the ‘October was the worst month in two decades’ camp will never be able to enjoy the benefits of equity markets but will be fooled to believe they participate in the action.

They will be fooled by headline positive returns in their portfolios which are actually losses and are given all the wrong information by completely worthless outlets.

Some may think they have a reason to cheer this past week as all week has been slapped with a bullish bias and Thursday (World markets rally, led by Latam, Asia; Associated Press) as well as Friday (Stocks advance to add to week’s large gains; AP) rounded up a strong advance.

Too bad that you either exited the markets in sheer panic and stupidity and that you will not even be able to reap the benefits of this bear market rally due to the simple fact that you trust your assets into the hands of an entire industry which follows a pathetic investment philosophy.

You and your portfolio are screwed either way!

Maybe you were scared a little more when you read that the economy contracted in the third-quarter (Economy shrinks in 3Q, signaling recession; AP) and that the backbone of the economy, consumer spending, has evaporated (Consumer cut in spending the most since 1980; AP).

Many still wait for the second consecutive quarter of economic contraction in order to call it a recession which is another example of bottomless idiocy. Consumer spending has been ‘sponsored’ by debt which in real life translates into no real consumer activity. The economy has been driven to fail for several years and all the artificially hyped up activity was destined to fail and collapse.

Don’t worry; the next generation of failure is already being educated!

Those of you who have been the least responsible may get undeserved help from an unlikely source, your creditors. They want to push the new socialist/communist form of government, which was rang in after free market capitalism was sold for $250 Billion (Capitalism sold for $250 Billion; The Path to the Pegasus Letter) to forgive you up to 40% of your debt but you can keep the crap you bought with the money you did not have (Banks asking for credit card debt forgiveness; AP).

What is one natural reaction when you destruct capitalism (Just throw Capitalism out with the bathwater; The Path to the Pegasus Letter)?

Banks will borrow money from the Fed for no good reason (Banks borrow record amount from Fed; CNNMoney.Com).

What if banks want to hoard even more cash?

They will just take tax payers money in order to finance their acquisitions and growth plans (Column: Banks using government money for deals; AP).

What in the world did the collection of sub-human waste think would happen when you throw tax money at banks?

The ridiculous stimulus package backfired at a cost of roughly $160 Billion and the economic death sentence will backfire at a cost of roughly $700 Billion and more when you calculate the negative ripple effect.

Good job communists!

Anything else crap eaters could swallow?

Sure, the Septic Tanks leaks again (Bernanke says GSE debt backing must be maintained; Reuters).

November will be another great month for equity markets but don’t bother you are sidelined for life unless you decide to apply some intelligence and sophistication to your portfolio.