Archive for March, 2009
If there is a silver lining to this crisis, it is that most of the investment scams for the past two decades have now been exposed and the search to find solid investment guidance has genuinely become easier. The dirty secret of Wall Street and many commercial investment firms was that their hiring processes were never about hiring the most talented people that truly understood stock markets and macroeconomic trends. Instead, their hiring processes were more about identifying psychological profiles that would produce the best salesmen and saleswomen. The industry’s endless TV and magazine advertisements that revolved around messages of trust and records of operational longevity, in the end, only meant that they were able to perpetuate their scams for several decades longer than the now infamous Bernard Madoff Ponzi scheme. But for the firms that have survived, you can be assured that they will not give up the scams that they’ve perfected for the last several decades. So how can you use this crisis to your advantage Read more …
March 31st, 2009
Forget about the $50 billion Madoff Ponzi scheme. Forget about the $8 billion Stanford Ponzi schemes, forget about the $3.6 billion of bonuses paid to Merrill Lynch executives after the firm’s failure, and forget about the $200+ millions paid out to AIG executives. The biggest stock market scam of the century is now underway, hatched, given the stamp of approval, and about to be executed by Central Banks worldwide. Though this scam will undoubtedly be bigger than all the revelations of previous scams combined, this scam will engender less public anger, less disbelief, and less protest than any one of the recent individual scams, because very few people will understand it.
The Failure Of Special US Federal Reserve Programs
To understand the biggest stock market scam of the century, we must first pause for a moment to understand recent history. The US Federal Reserve, in an attempt to turn the US economy around, first extended hundreds of billions of dollars of credit to US financial institutions through facilities like TALF (Term Asset-Backed Loan Facility), TAF (Term Auction Facility), AMLF (Asset Backed Read more …
March 23rd, 2009
17 March, 2009
In response to US Federal Reserve Chairman Ben Bernanke’s assertion that this global crisis will bottom before year-end, here are 8 reasons why the Obama administration will not pull America and the world with it, out of its current economic throes. For one, every major response of the Obama administration to counter this global crisis to this point has only served to exacerbate the current situation and has accomplished virtually nothing in attacking the root cause of this global crisis – an unsound monetary system. Secondly, it is next to impossible to solve a problem that has been decades in the making by implementing the same plan that created the crisis.
So without further ado, here are 8 reasons why the Obama administration will not end the crisis this year:
(1) Consider that President-elect Obama voted FOR the horrible $700 billion bailout plan that accomplished less than zero in fixing the global economy while only transferring wealth from people that were struggling the most to the unethical financial executives Read more …
March 17th, 2009
March 4, 2009
The Technical Outlook
If we observe the $USD graph for March 2, 2009, we see that the USD has just broken above the resistance level of 88. Will this mark the beginning of a new run higher in the US dollar? Currently the US dollar is benefiting from the propaganda of other countries (i.e. China), political games, intervention of the Exchange Stabilization Fund, and the foolish actions of the Bank of England (BOE) and the European Central Bank (ECB) which have caused Europeans to flee the Euro and the Pound Sterling. However, fleeing the Euro and the Pound Sterling for the US dollar is akin to fleeing the Lusitania for the Titanic. All three currencies are sinking ships and fleeing one sinking ship for another sinking ship is just not intelligent and is destined to end poorly for all involved parties.
Therefore, I believe that this subsequent “breakout” above 88 will be short-lived. While the US dollar may meander higher for a short-time longer above 88 as the US Treasury and the Exchange Stabilization Fund reach deeper into their bag of monetary tricks, I do believe that when it breaks back down below 88 sometime shortly, Read more …
March 4th, 2009
