1- Foreigners may not be buying treasuries but American investment banks sure are able to saddle the Fed wiht all its bad paper in exchange of squeaky clean Treasuries. I am right on track when people notice that this week alone the Fed has given $70BB plus another $200BB for the powerful to forestall the doomsday... Forget it Ben ! for every dollar of rescue you are not helping the 30:1 leverage those greedy bastards took out in the first place. They are calling asking for money but you don't even know the amount of toxic paper coming down the pipe!
2- Gold is way up there because Ben is trying to be superman. Give it up dude! and gold will plummet.
3- US Financials are still not in OVERSOLD situation and all lows will be retested.
4- India will be a place the place to invest. After losing as much as 22% on my ETF, I have slightly recovered and bailing with a net loss of 11%! I am replacing that with a short on Germany's 5 largest banks! If you think Wall street is sick, the Germans are way worse! As a side bet, I am borrowing euros against American T-bills. Hey how many people do you have to screw over to a get a number at the Special FED discount window?
5- China stock market IPO has imploded but it ain't over jus yet!
So I am only dead wrong on number 4 which I replace with a series of German shorts. 3 and 5 have paid in spades as I shorted Bear at 58!!!!!!!!! and since covered. As for 1 and 2 Ben is doing what all junkies do: borrow money against time until the next fix is in!
WARNING! The next paragraph is a pure RANT on US government. So if you are easily offended, go listen to Oprah's Big Give!
The ILLS of AMERICA
1) Has there been any worse President than George W. Bush? (http://www.thedubyareport.com/about.html)
While he has sponsored great work in Africa (negated by China's manipulative interests in the region... read the Economist), he has been toxic with his defense of loyalty vs capability and his handling of the Sept 11th aftermath. His worse move ever was reappointing the luckiest yet worse Fed chairman of ALL TIME: Alan Greenspan. While Greenie is not responsible for most of America's problems, he allowed a business culture to develop and bankrupt the country as a whole. He did it under cover of Greenspeak. YOU would think he would have learned from the LTCM fiasco? "Leverage KILLS the loser and makes all winners addicts".
The state of the union... (forced marriage)
US deficits are astronomical, middle class is double whammied on housing and inflation protection, more children are considered poor and hungry as food costs are out of control thanks to Ethanol policies and healthcare coverage is inadequate for 44MM Americans. The armed forces are in quagmire conflicts, moral is low, reenlistments are few and the repercusions will be felt by a whole generation.
Shame on US voters who elect unaccountable politicians with half baked policies and inedequate taxation but if they hire hookers , Oh my! Electing politicians that promise lower taxation yet burden you with massive deficits is about as stupid as getting another credit card to pay the other!
2) Ben Bernanke actions confirm him as a communist era fixer.
Ben: Remember the job description "Help financial institutions" NOT take on the most toxic paper ever invented and trade it in for Treasuries which are supported by subsidised taxpayers. ( Subsidies will end eventually...)
3) American CEO compensation plans: America wake up! Clean up the mess of greed on Wall Street. I sure hope the Next ambitious Spitzer type A prosecutor is openly unabashed agnostic over-sexed liberated apolitical mixed race of unknown heritage. The biggest weakness of America is trying to hide greed and corruption behind labels of god fearing seeming do-gooders.
My take on Spitzer: Instead of finger pointing Spitzer, the tabloids should have the top 4 pay candidates at BSC for 2002-2007 on the front page of the New York Post and have their personal section for the next year highlighting their lifestyle. Show their pay packages and their tax returns. Show their houses and jets . The houses in Greenwich and the homes in the Hamptons, Aspen etc. Bring shame to them! Might be little solace to honest hard working stakeholders but it sure beats reading about Britney and Lindsay.
Time to grow up America! Stop reading tabloids, watching reality shows and thinking that you can judge people by their religion and social norms. Start judging them by what value they bring to your great grand children. Today, short sightedness and the love of a winner are probalby the biggest weaknesses of American social, economic and political life.
10 REMEDIES
1) Get out of Iraq and double efforts in Afghanistan... Poppies and Bin Laden are worse than Iraq. Iran should be left to bully Iraqis to get their affairs in order!
2) RAISE TAXES,( USE a VAT & TAX energy AGGRESSIVELY), Balance the budget, feed all kids and give them adequate access to health care
3) Get rid of Ethanol for cars (DUMBEST THING EVER)
4) Phase out SUVs by 2012 by introducing SPECIAL PERMITS
5) Instead of bailing out banks, create jobs by fixing infrastructure, road, bridges and air traffic facilities. Worked for FDR...
6) Streamline Homeland security, lick your wounds and stop thinking you need to maintain the world largest armed forces. Let China and Russia spend their money! Being the bigggest bankrupt bully is not goint to allow you to pay your bills any faster.
7) Increase immigration and embrace it ( like pre Bush!)
8) Fund alternative fuels initiatives, make the USA a world leader in the area.
9) Increase margin requirements for commodity speculators ( being done)
10) Severly curtail ability to use leverage by banks and wealthy institutions
I got 100 more ideas but I got time... I am not sure US taxpayers do though....
In the meantime I will continue offending as many people who deserve it! Free Speech right? Well at least in Canada! ( for now)
Next topic: Lou Dobbs ... a man who deserves a rapid one way transit ticket to oblivion and anonimity
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