A Lesson in Sheepherding, Compliments of Barron's

  The following piece is a response to SA Editor, Racheal Granby's wrap-up of a recent Barron's article titled "Ten Stocks to Hold Long-Term." Granby writes, "With the Dow off more than 50% from its October 2007 peak, there's rarely been a better time for long-term investors to pick up stocks on the cheap. Barron's put together a list of ten great stocks to hold for five years or longer."    

Don't Bet on Hyperinflation

For several months now, I’ve heard all of this talk of hyperinflation. I’m sure you have too. I’ve seen that word so many times over the past year that I might have even used it without realizing it.    

Free Entertainment in Incheon Airport Part 1

Free Entertainment in Incheon Airport Part 2

Meet Some of Mike's Friends

Another Pubilicity Stunt from the White House

It’s been endless. Ever since Obama has entered office, he has continued to fool Americans by expressing his “outrage” and “shamefulness” of these ridiculous taxpayer-funded banking bonuses. Yet, the fact is that Obama has been playing naïve Americans. It’s all an act designed to convince you he’s mad. Yet, he has done nothing, proving what a puppet he really is. When will this charade end?

Jon Stewart and Jim Cramer's Staged Theatrics

I won’t go into any type colorful description of the “showdown” between Jon Stewart and CNBC’s Kim Cramer. If you’re reading this you already know about it.  What I want to talk about is the fact that this “highly anticipated showdown” was staged. In fact, it was the media that made it “highly anticipated.” It was the Hollywood theatrics used by the producers of both shows that made it a “showdown.” And chances are you feel for it. 

Mark-to-Market Isn't the Problem

It seems as if many have been fooled by those supporting the banks. The general argument that has been made is that mark-to-market accounting has been largely responsible for the banking mess since it creates price transparency for assets held on the books daily.

Bernie Madoff in Perspective

The Savings & Loan Crisis had Michael Milken. The dotcom charade had Bernie Ebbers, Kenneth Lay, and Jeffery Skilling. These men have been selected as the scapegoats to distract the public away from the real criminals that caused each crisis. And now, the world’s largest real estate and banking crisis – much larger than all previous heists combined – has Bernie Madoff. He will serve the same purpose. Michael Milken was certainly involved in the S&L crisis, but he wasn’t the only villain. After only serving a couple of years (for good behavior) at Club Fed, he returned to society a very wealthy man. What other type of behavior besides “good” is possible at Club Fed? Milken was certainly a scapegoat of the S&L crisis, but he certainly was not innocent. Yet, he is like many scapegoats from white collar crimes who manage to get off easy. One reason is because they have big money to buy their way out. But another reason is because white-collar crime is deemed to be relatively benign in America. This mentality must change now. Americans must demand it.

Economists Need to Sit Down and Shut Up

I’m really sick and tired of these economists out there who continue to claim that America will not enter a depression. These are the same bozos that have yet to acknowledge the fact that the U.S. is in a recession and has been for several months now.  In fact, as I have previously mentioned, I can make a very strong case that the U.S. has been in the early stages of a silent, modest depression for at least two years; at the very least a protracted recession masked by credit. After the appropriate adjustments have been made for GDP, the U.S. economy has had no more than 3 to 4 quarters of GDP growth since 2005. Thus far, we have seen drastic emergency interventions by the Federal Reserve and U.S. Treasury – measures not taken since the Great Depression. Thus far, we have seen the failure of the sixth largest U.S. bank – Washington Mutual, representing the largest bank failure in U.S. history.

An Offer the Big 3 Can't Refuse: $50 Million per Mile

NOTE: Mike Stathis predicted the precise details of the financial crisis in his 2006 book, America's Financial Apocalypse. The Jewish Mafia REFUSED to publish this landmark book because it exposed the widespread fraud committed by the Jewish Mafia. Instead, the Jewish Mafia published useless marketing books written by their broken clock tribemens (like Peter Schiff's useless book which was wrong about most things and was written a year AFTER Stathis' book). Stathis also released a book focusing on strategies to profit from the real estate collapse in early 2007. The Jewish media crime bosses prefer to simply ignore those who speak the truth and threaten to expose them as the best way to hide the scams from the public. In contrast, the Jewish media crime bosses continuously promote Jewish con men and clowns who have terrible track records as a way to enrich them all while steering the audience to their sponsors, most of which are Jewish Wall Street and related firms. Figure it out folks. It's not rocket science.   View Mike Stathis' Track Record here, here, here, here, here, here and here.     Membership Resources     __________________________________________________________________________________________________________________ Mike Stathis holds the best investment forecasting track record in the world since 2006. View Mike Stathis' Track Record here, here, here, here, here, here and here.   Check here to download Chapter 12 of Cashing in on the Real Estate Bubble.         So why does the media continue to BAN Stathis?    Why does the media constantly air con men who have lousy track records? These are critical questions to be answered. You need to confront the media with these questions.  Watch the following videos and you will learn the answer to these questions: You Will Lose Your Ass If You Listen To The Media             __________________________________________________________________________________________________________________   This is the chapter that shows where Mike recommended shorting Fannie, Freddie, sub-primes, homebuilders, GM, GE, etc.     Just as I was ready to pass out in my chair last night, I regained full consciousness after hearing a news headline. Can you guess what caught my attention? No, it wasn’t the buyout of AIG’s asset management business by our friends in Dubai. And no, it wasn’t over Citigroup’s purchase of a Spanish construction company using taxpayer funds. In fact, although these deals were recently announced, they didn’t make the headline news. Instead, it was more on the rumor that the Big 3 auto execs plan to drive, possibly via car pool in a Chevy Volt to Washington today. Their purpose of course is to present a “more structured” bailout plan; in other words, a better rehearsed begging session.

GM Lines Up for Its Take

This article was originally written in 2008 as a followup to the material I first wrote about pertaining to US trade policy in my banned 2006 book, America's Financial Apocalypse.  This book was not only the ONLY book in the world to have accuractely forecast nearly every major event related to the blow up of the real estate bubble and stock market, but also detailed numerous wide ranging topics that promised to adversely impact the US if not corrected, including the nation's healthcare system, soaring college costs, pension underfundedness, Social Security and of course, US trade policy.  See Also: Free Trade And The Suicide Of A Superpower (Part 1) Free Trade And The Suicide Of A Superpower (Part 2) Free Trade And The Jewish Mafia Ford As A Crystal Ball For America Ford: Playing Its Last Hand? GM Lines Up for Its Take Washington's War Against America's Middle Class Video: Educating A Libertarian Hack From Harvard 7 Myths About US-China Trade and Investment  The Scam Called Globalization The Dirty Secret about Hedonics & Globalization Thailand, Globalization and Real Estate Economics America. What Went Wrong? (Part 1) America. What Went Wrong? (Part 2) America's Second Great Depression NOTE: Mike Stathis predicted the precise details of the financial crisis in his 2006 book, America's Financial Apocalypse. The Jewish Mafia REFUSED to publish this landmark book because it exposed the widespread fraud committed by the Jewish Mafia. Instead, the Jewish Mafia published useless marketing books written by their broken clock tribemens (like Peter Schiff's useless book which was wrong about most things and was written a year AFTER Stathis' book). Stathis also released a book focusing on strategies to profit from the real estate collapse in early 2007. The Jewish media crime bosses prefer to simply ignore those who speak the truth and threaten to expose them as the best way to hide the scams from the public. In contrast, the Jewish media crime bosses continuously promote Jewish con men and clowns who have terrible track records as a way to enrich them all while steering the audience to their sponsors, most of which are Jewish Wall Street and related firms. Figure it out folks. It's not rocket science.   View Mike Stathis' Track Record here, here, here, here, here, here and here.     Membership Resources     __________________________________________________________________________________________________________________ Mike Stathis holds the best investment forecasting track record in the world since 2006. View Mike Stathis' Track Record here, here, here, here, here, here and here.   Check here to download Chapter 12 of Cashing in on the Real Estate Bubble.         So why does the media continue to BAN Stathis?    Why does the media constantly air con men who have lousy track records? These are critical questions to be answered. You need to confront the media with these questions.  Watch the following videos and you will learn the answer to these questions: You Will Lose Your Ass If You Listen To The Media             __________________________________________________________________________________________________________________

If You Listen to Economists You Will Go Broke

In my last piece, I think I made it clear that the vast majority of economists are not only clueless, but very dangerous to your financial health. Make no mistake. At best they are broadcasters not forecasters. They’re better equipped working with historians to document events after they’ve happened. Yet, the media keeps them in the spotlight when reporting what to expect, even after history has shown they always fail to deliver.

The Plain Truth

I Repeat… I continue to be amazed by so many out there, from the pundits with their agendas to the so-called experts who zoom in on every grain of short-term optimism with an electron microscope while explaining away the reality. Not much has changed since I last wrote. Let me repeat in case you haven’t been following me. We are going to see… - An earnings meltdown - Hundreds of bank failures over the next few years - Hundreds of hedge fund blow ups - Soaring corporate defaults (already beginning) - A huge junk bond market (soon to come) - A large oil correction which will rebound and make new highs down the road (in progress) - Real estate prices collapse by 30% (35% worst case scenario)

Risks of the Proposed Bailout: Part 1

Bailout or Not. Depression is Upon Us McCain, along with Paulson, Bernanke, Bush and others are using scare tactics hoping to rush the approval of this historic banking bailout plan. Threats of a “disaster” and a “severe economic crisis” have been interpreted by the media as a “depression” if the bill is not passed immediately. Politicians continue to scare the public stating that without a bailout, pension and 401(k) plans will be threatened. Are the conditions very serious? Definitely. The point is that they are so serious that a bailout won’t do much at this point other than waste taxpayer money with no real accountability. Finally, as far as I can tell, this bailout really doesn’t do much if anything to help taxpayers. Surely by now, Americans are on to this game. “Drill now or pay more later.” Sound familiar? Just another recent scare tactic to help push off-shore drilling bills through Washington. But the reality is that drilling more won’t solve the energy problem. It’s only a quick fix. “Bailout now or face a severe economic period.” Likewise, a bailout won’t prevent a severe economic period. We certainly have a huge problem, but nothing will prevent the disaster. Leveraging the Inevitable Collapse Pension plans and 401(k)s are in trouble whether the bailout plan passes or not. Nothing will bail America out of the inevitable payback period. Anyone who does not realize this lacks a comprehensive understanding all of the issues. Perhaps you have been watching too much television. As I have stated many times in the past, the current real estate-driven credit crisis is just stage one of the depression. NOTE: Mike Stathis predicted the precise details of the financial crisis in his 2006 book, America's Financial Apocalypse. The Jewish Mafia REFUSED to publish this landmark book because it exposed the widespread fraud committed by the Jewish Mafia. Instead, the Jewish Mafia published useless marketing books written by their broken clock tribemens (like Peter Schiff's useless book which was wrong about most things and was written a year AFTER Stathis' book). Stathis also released a book focusing on strategies to profit from the real estate collapse in early 2007. The Jewish media crime bosses prefer to simply ignore those who speak the truth and threaten to expose them as the best way to hide the scams from the public. In contrast, the Jewish media crime bosses continuously promote Jewish con men and clowns who have terrible track records as a way to enrich them all while steering the audience to their sponsors, most of which are Jewish Wall Street and related firms. Figure it out folks. It's not rocket science.   View Mike Stathis' Track Record here, here, here, here, here, here and here.     Membership Resources     Mike Stathis holds the best investment forecasting track record in the world since 2006. View Mike Stathis' Track Record here, here, here, here, here, here and here.   Check here to download Chapter 12 of Cashing in on the Real Estate Bubble.   So why does the media continue to BAN Stathis?    Why does the media constantly air con men who have lousy track records? These are critical questions to be answered. You need to confront the media with these questions.  Watch the following videos and you will learn the answer to these questions: You Will Lose Your Ass If You Listen To The Media       

Risks of the Proposed Bailout: Part 2

Accountability is a Must Would I support a bailout? Maybe. But that’s a very big maybe. At the very least I would need to see a clear plan with specific guidelines, executed by credible and competent leaders; not one man who appears to be lost. They would all need to be held accountable. And I mean ACCOUNTABLE. But such a plan would need to focus on job creation, not bankers’ salvation. We need a bailout for Americans not bankers. Americans need jobs; good jobs with good benefits. In part, this means free trade must be restructured so that it becomes fair trade. Unfortunately, this is not going to happen anytime soon, if ever because current trade policies only benefit corporate America – you know, the real governing body of this nation. And they have ensured Washington will vote as big business wants via billions of lobbyist dollars that hits the hands of politicians each year. So if you really think your vote counts, think again.  Pushing all of that aside, let’s deal with the plan that will most likely end up passing instead of the plan that will actually benefit the people. It would need to be structured with irrevocable financial limits, clear rules on how much is paid, how assets will be valued, and limits for each bank. The plan would also need to lay out specific guidelines, rules and limitations for selling the assets to private firms.  Finally, the plan should put forth directives that seek to prosecute bank, Wall Street, and mortgage CEOs and other villains responsible for this mess. Not one of these elements is contained in the current bailout proposal. NOTE: Mike Stathis predicted the precise details of the financial crisis in his 2006 book, America's Financial Apocalypse. The Jewish Mafia REFUSED to publish this landmark book because it exposed the widespread fraud committed by the Jewish Mafia. Instead, the Jewish Mafia published useless marketing books written by their broken clock tribemens (like Peter Schiff's useless book which was wrong about most things and was written a year AFTER Stathis' book). Stathis also released a book focusing on strategies to profit from the real estate collapse in early 2007. The Jewish media crime bosses prefer to simply ignore those who speak the truth and threaten to expose them as the best way to hide the scams from the public. In contrast, the Jewish media crime bosses continuously promote Jewish con men and clowns who have terrible track records as a way to enrich them all while steering the audience to their sponsors, most of which are Jewish Wall Street and related firms. Figure it out folks. It's not rocket science.   View Mike Stathis' Track Record here, here, here, here, here, here and here.     Membership Resources   Mike Stathis holds the best investment forecasting track record in the world since 2006. View Mike Stathis' Track Record here, here, here, here, here, here and here.   Check here to download Chapter 12 of Cashing in on the Real Estate Bubble.   So why does the media continue to BAN Stathis?    Why does the media constantly air con men who have lousy track records? These are critical questions to be answered. You need to confront the media with these questions.  Watch the following videos and you will learn the answer to these questions: You Will Lose Your Ass If You Listen To The Media  

Risks of the Proposed Bailout: Part 3

Blind Man’s Bluff Most of us have played Blind Man’s Bluff as children. It’s such a popular game among kids that several versions now exist. In case you don’t remember, here’s the original version. A person is blindfolded and referred to as “it.” Everyone runs around trying to avoid being touched (tagged) by this person (it). If they are tagged they lose the game and become spectators. The game continues until “it” has tagged everyone. In another version, “it” attempts to identify the person tagged by feeling their face. If the person is correctly identified by “it” that person is eliminated from the game. The bailout plan has a striking resemblance to Blind Man’s Bluff, except the game will take a very long time to end while registering an uncertain cost because the Treasury will be running around blind, not knowing what kind of debt they are buying, how to manage it, or how much this junk is worth. Paulson and company has no way to identify the true nature of the banks’ debt. Therefore, they won’t be able to fully assess or manage risk. The banks aren’t even able to do this, yet the Treasury will succeed? Most likely the next Treasury Secretary will be running around for many years blindly throwing taxpayer money at the financial system. And as they dig themselves deeper and deeper into this black hole, they will use more scare tactics to secure even more money from taxpayers. The only winners will be the banks, those who buy bank debt from the Treasury and big investors who invest in banks that have been revitalized by taxpayer money, like Bill Gross and Warren Buffett. NOTE: Mike Stathis predicted the precise details of the financial crisis in his 2006 book, America's Financial Apocalypse. The Jewish Mafia REFUSED to publish this landmark book because it exposed the widespread fraud committed by the Jewish Mafia. Instead, the Jewish Mafia published useless marketing books written by their broken clock tribemens (like Peter Schiff's useless book which was wrong about most things and was written a year AFTER Stathis' book). Stathis also released a book focusing on strategies to profit from the real estate collapse in early 2007. The Jewish media crime bosses prefer to simply ignore those who speak the truth and threaten to expose them as the best way to hide the scams from the public. In contrast, the Jewish media crime bosses continuously promote Jewish con men and clowns who have terrible track records as a way to enrich them all while steering the audience to their sponsors, most of which are Jewish Wall Street and related firms. Figure it out folks. It's not rocket science.   View Mike Stathis' Track Record here, here, here, here, here, here and here.     Membership Resources   Mike Stathis holds the best investment forecasting track record in the world since 2006. View Mike Stathis' Track Record here, here, here, here, here, here and here.   Check here to download Chapter 12 of Cashing in on the Real Estate Bubble.   So why does the media continue to BAN Stathis?    Why does the media constantly air con men who have lousy track records? These are critical questions to be answered. You need to confront the media with these questions.  Watch the following videos and you will learn the answer to these questions: You Will Lose Your Ass If You Listen To The Media     

A New Precedent for America: Financial Irresponsibility Pays

As a desperate attempt to stop the bleeding, banks are stepping up with further efforts to protect delinquent homeowners. To date, this represents the most radical effort to stop the avalanche of foreclosures. It’s thought these ridiculous bailouts will help restore the housing market which will provide more stability to the economy. The problem is that these plans are still insufficient to make any impact. And there is nothing to absorb the massive inventory of housing. If Washington wants to help homeowners make mortgage payments, they need to stop letting corporations send jobs overseas. Similar to the banking bailout, the latest “solution” from Washington will continue to waste taxpayer money. More important, it will reward the wrong people and punish responsible homeowners. It’s been estimated that the banks, FHA and Hope Alliance have already halted over 2 million foreclosures. But you cannot cheat the system. Robbing Peter to pay Paul will eventually lead to more adverse consequences. Unlike the previous programs to bail out homeowners, these newer more aggressive plans establish a new precedent that effectively dissolves what was once a free market economy; an economic system once built on rewarding the winners and punishing the losers. As you know, today we are seeing the exact opposite.

Yang + Yahoo! = Yikes!

This is the first time I’ve written anything about the Yahoo-Microsoft deal because I typically don’t allow myself to get distracted by noise. In fact, I’ve been receiving numerous email requests for more articles. My response is that I do not feel the need to pump pieces out on a daily basis because I have no time for soap operas. The fact is that there really isn’t anything new in the economy as far as I am concerned. I’ve said all that needs to be said. Just read my archives.   As trivial as I view the whole Yahoo-Microsoft soap opera, it’s annoying to have seen so many obsess over it. So I wanted to point out a few things. From day one when Microsoft made a bid for Yahoo, investors should have sold Yahoo. This is a basic rule followed by all sophisticated investors. You never wait around to see what happens. Why would you? Take the money and run. Here’s why.

Ford As A Crystal Ball for America

As many of you may know, on March 27, 2008, Ford (F) completed negotiations to sell its Jaguar and Land Rover divisions to Tata Motors (TTM), a division of the Indian conglomerate Tata Group. The deal went for a reported $2.3 billion, despite Ford’s original cost of $5.2 billion for the duo ($2.5 billion for Jaguar in 1989 and $2.7 billion for Land Rover in 2000). However, after Ford pays $600 million into the pension funds of these companies, the deal will only net them $1.7 billion. But with total losses exceeding $15 billion in just the past two years alone, Ford was clearly desperate. It had no choice. It needed cash, and fast. This article was originally written in 2008 as a followup to the material I first wrote about pertaining to US trade policy in my banned 2006 book, America's Financial Apocalypse.  This book was not only the ONLY book in the world to have accuractely forecast nearly every major event related to the blow up of the real estate bubble and stock market, but also detailed numerous wide ranging topics that promised to adversely impact the US if not corrected, including the nation's healthcare system, soaring college costs, pension underfundedness, Social Security and of course, US trade policy.  See Also: Free Trade And The Suicide Of A Superpower (Part 1) Free Trade And The Suicide Of A Superpower (Part 2) Free Trade And The Jewish Mafia Ford: Playing Its Last Hand? GM Lines Up for Its Take Washington's War Against America's Middle Class Video: Educating A Libertarian Hack From Harvard 7 Myths About US-China Trade and Investment  The Scam Called Globalization The Dirty Secret about Hedonics & Globalization Thailand, Globalization and Real Estate Economics America. What Went Wrong? (Part 1) America. What Went Wrong? (Part 2) America's Second Great Depression

Why You Can Beat the Market

What I find remarkable is how the same guys who missed this financial apocalypse continue to follow useless theoretical risk models based on math. Too funny. I suppose they have little choice since they have no other training. In this case, myopia can be disastrous. You can neither measure nor control risk using mathematical equations. The best risk managers have real trading experience. More important, they are leaders in thought. Most Wall Street professionals have been fooled by these highly flawed risk models because they do not have math degrees. So when exposed to the intricate theorems and equations, they become hypnotized into thinking they have found some Holy Grail.

America's Financial Apocalypse: It's Not Going Away Anytime Soon

For many years now we’ve all seen the reckless use of taxpayer funds by Washington. This irresponsible and unaccountable waste of tax dollars has been particularly prominent during President Bush’s tenure - from billions going to blow up bridges, roads and buildings in Iraq, only to rebuild them - to the Department of Homeland Security, which is no more than a joke. Meanwhile, America’s own infrastructure is in badly need of repair, with current estimates anywhere between $1.5 to $3 trillion and growing each day. Has anyone asked where this money is going to come from? I guess it seems like a trivial issue given the current problems. But it’s going to be a big problem in the not-so-distant future. My guess is that Washington’s inability to pay for these repairs will ultimately lead to the privatization of the transportation department, prison system and many more services expected by taxpayers.

Get Ready for the Earnings Meltdown

I’m not talking about the banks or even the retailers. We all know they will continue to slide. I’m talking about everything else. With no real median wage growth since 1999, and soaring inflation for gas, food and healthcare, it’s obvious consumers have had much less to spend. Not only has that hurt savings rates (including retirement contributions) but it’s also affected consumer spending. So don’t expect things to get better by Fall. In fact, I’m expecting the earnings meltdown to begin for much of the remaining sectors in the S&P 500. You Can Run but You Can’t Hide Standard & Poor’s earnings estimates for Q2, Q3, and Q4 of 2008 are -11%, 40%, and 60% respectively. Remember, this the same S&P that rated the mortgage junk AAA. It will also be the same S&P that will end up issuing drastic revisions in earnings once the bottom falls out. But that won’t help investors after the fact. You have to realize what lies ahead and react accordingly. With about 65% of the S&P 500 companies having reported Q2 earnings, the results have not been so bad, with about 70% having beat the 2007 mark.

Subtle Tactics to Downplay America's Debt Problems

I was checking some news late night and I ran across this title about the most indebted nation in the world. Of course it caught my attention because I though the media was finally ready to start informing Americans of the truth. Without surprise, the article identified a nation other than the United States.  Have a look.

Obama's Poor Decisions, a Threat to His Success

Let me be clear about a few things. First, regardless who wins the upcoming presidential election, there will be no real change in America. In order to really understand why you have to know what is goin...

The Housing Mess the Experts Missed

Fair Value is Here, But Watch Out Below

The stock market (the DJIA) is now very close to fair value from a long-term perspective (if that even means anything to an individual investor, which it may not). Those who read America’s Financial Apocalypse (the original expanded version) will recall that at the time (2006) I demonstrated how the fair value was around 6200. But fair value doesn’t mean the market won’t go any lower. What should you do? If you are a long-term investor, you should gradually start buying into the market in small increments. Only the best names, companies with little or no debt and market leadership; companies that pay cash dividends; dividends that are relatively safe (check free cash flows, debt levels for starters). That means buy slowly with small amounts with no rush.  

The Big Secret About Oil

Each day we continue to feel the damaging effects of high oil prices. And while oil has recently corrected down by close to 30% from record highs, it is still very high and is likely to make new records within the next 2 years. Yet, Washington refuses to respond appropriately, and has even denied that inflation has become a problem. As I have discussed in previous articles, Washington has many ways to hide inflation, GDP and employment data. But consumers are starting to realize something is fishy. Apparently, the presidential candidates still think voters are brainless, as they continue their charade of deceit and distractions by proposing useless solutions like gas tax holidays, off-shore drilling, and windfall profits taxes for oil companies – none of which will solve America’s dependence on fossil fuels. In the future, I will address the pitfalls of Mr. Pickens’ proposed wind energy solution. Maybe voters are brainless because they seem to swallow everything they are fed by Washington and the media machine. Fortunately, oil prices are correcting. But remember the effects of high oil prices are delayed in the economy by up to one year. In addition, the longer-term effects may be delayed by up to two years since inflation is a lagging indicator.  

Looking for a Bottom? Look to Wall Street

  Wall Street created this mess and they continue to mislead everyone who bothers to listen. But it will be Wall Street that signals a bottom if you know what to look for. Watch for massive down...

Using Oil to Beat Inflation: Risks of Oil Trusts

In my previous article, I made a compelling case for investment in oil trusts, specifically Canadian trusts. After all, 14% returns are much better than the market’s historical average of around 8%.   So what’s the catch? Well, we obviously need to consider the risks before we make any decisions. In the end, you should understand your risk tolerance and investment horizon. After considering the risks, you will be able to determine a risk-reward profile for these investments. This is the general method to determine suitability for all investments.

Editorial on Barron's

As written in the Barron’s this week (July 26, 2008), Lawrence Strauss interviews Mr. Lee Cooperman, co-founder, chairman and chief executive officer of Omega Advisors, a $5 billion long...

Editorial: Denying the Obvious

It’s shocking to see so many who remain in denial about the economy, specifically the pundits. Until they see two consecutive quarters of negative GDP growth (a ridiculously misleading metric – see my previous article “How Washington is Fooling You With GDP Data”) they refuse to admit we are in a recession.   And the media acts as puppets, repeating these same lines without scrutinizing the data. Who do these people think they’re kidding? If you’re running a show designed to help investors, shouldn’t you be ahead of the curve instead of behind it? Serving as broadcasters for inaccurate data that’s been manipulated to fool the public does nothing to aid an audience looking for real investment guidance.   Apparently, even Washington realizes GDP data is highly inaccurate and makes revisions for up to five years. As of 2004, such revisions have already introduced question as to whether there was a recession in 2001. By 2012, we might see data that indicated we were in a recession in 2008. But that certainly won’t help anyone except historians who document the Bush era, in what will be remembered as the worst recovery attempt in U.S. history.   By now, even the most financially unintelligent consumers realize we’re in a recession. They feel it every time they fill up their gas tank and buy food. They’ve been patiently waiting for real pay increases. Instead, all they’ve gotten are a couple of rebate checks from Washington. What kind of charade is this?  

Farewell Indy. Who's Next? (Part 1)

On Friday, IndyMac joined the long and growing list of bankrupt mortgage companies (Accredited Home Lenders, Novastar Financial, Fremont General and dozens of others) that have been taken down by what has already surpassed mortgage and bank losses of the Savings & Loan Crisis. This was all predicted by me and in fact, I recommended investors to SHORT these stocks in 2007. Check here to download Chapter 12 of Cashing in on the Real Estate Bubble. While Indy marks only the sixth bank failure since the official start of the banking-real estate avalanche in February 2007, you can bet this is only the beginning. The last wave of bank failures in the U.S. occurred during the recession of ’90-’91, when 502 banks failed in a 3-year period. Prior to that, more than 1,600 banks insured by the Federal Deposit Insurance Corporation (FDIC) were closed or received FDIC financial assistance between 1980 and 1994 due mainly to the Savings & Loan crisis. Now if you think the collapse of IndyMac doesn’t affect you, think again. The FDIC estimates the takeover will cost between $4 and $8 billion. Given what I know about government estimates, it’s likely to cost much more. Whatever the costs, it’s coming from taxpayers. But there’s more to it. Indy’s insolvency signals that the banking crisis is not only live and well, but only just beginning. Before it’s over, I estimate a total of about $10 trillion in losses as a result of Greenspan’s real estate bubble - $1.5 to $2.0 trillion in direct losses by banks and mortgage companies (much more than Wall Streets ever increasing estimates that are now up to $500 billion), $7 trillion in paper losses due to real estate devaluations, and $1.0 trillion in lost incomes (and decreased consumer spending resulting in income losses for others) due to job losses and lay-offs in the real estate, mortgage, banking and construction industries, as well as non-real estate related job losses due declining economic conditions attributed to the real estate and banking crisis. In total, I would roughly estimate a loss of around 6 million jobs from 2007 to 2011. Already, an estimated 250,000 jobs have been lost in the residential lending sector alone. And as the economy continues to stall, more jobs will be lost from other industries, causing more foreclosures which will only damage the real estate market further, or at best, cause it to lag for several years. The paper losses will come back over time. But for others, a decline in home values can flip you upside down in no time. And if you need to refinance an ARM, you will be out of luck unless you can come up with the difference between the outstanding mortgage balance and the market value of your home - plus any amount required for down payment. This is how many have lost their homes.

The Death of Wall Street. Part 1

Although not yet official, the verdict is on the way. Bear Stearns led the death march a few months ago. Now, Lehman’s bankruptcy filing signals the halfway mark of what will end up being the death of Wall Street. Now Goldman Sachs stands alone as the sole remaining true Wall Street firm.

The Death of Wall Street. Part 2

Searching for Sanity Wall Street’s business model is broken. The high stakes game of Russian roulette which Wall Street never seemed to lose, is taking them down one by one. Commercial banks aren’t in much better shape either. In fact, the business model of the entire financial system is broken. And the pain is only going to get worse. Facing pressure from the Federal Reserve and the SEC, in July the Financial Accounting Standards Board withdrew a newly passed rule requiring banks to book their assets at current market value. Why was this rule rapidly withdrawn? Quite frankly, because it would have made every major bank insolvent.

Fannie & Freddie: Truth or Consequences (Part 1)

Amidst speculation that Freddie and its big brother Fannie are facing insolvency, U.S. Treasury Secretary Paulson said the primary focus was supporting Fannie and Freddie "in their current form as they carry out their important mission."  Well, the fact of the matter is that “carrying out their mission” is what got them into this mess to begin with. Paulson delivered the subtle message that has been interpreted by most that he won’t bail the GSEs out. But if the GSEs aren’t able to raise sufficient capital, it’s going to initiate a printing frenzy by Bernanke, with or without a conservatorship. Before we consider exactly what Paulson’s statement means, have a look at the following excerpts I put into print in 2006. "Because Fannie and Freddie lack sufficient government oversight, they haven’t maintained adequate capital reserves needed to safeguard the security of payments to investors. And due to exemption from the SEC Act of 1933, they aren’t required to reveal their financial position. In fact, they’re the only publicly traded companies in the Fortune 500 exempt from routine SEC disclosures required for adequate transparency and investor accountability. As a result, many feel the GSEs are exposing themselves to excessive risk." "Recent investigations have forced Fannie to restate earnings to the tune of nearly $11 billion from 1998 to mid-2004. The SEC has fined them $400 million and the management is now being investigated by the Department of Justice. Thus far, Fannie Mae was found to have misrepresented its risk position, acted irresponsibly, and manipulated earnings so company executives would receive huge bonuses.”  “The original intended purpose of the GSEs was to focus on affordable housing for the private sector. Yet, dozens of studies have shown that Freddie and Fannie have not been dedicating their resources towards this mission, but have been supplying funds to the overall market. Therefore, the GSEs have been a significant stimulus for the rapid growth of sub-prime loan market that has contributed to the enormous risks we see within the real estate bubble." Source: America’s Financial Apocalypse: How to Profit from the Next Great Depression   Is this the “important mission” of the GSEs Paulson was referring to - Fraud, mismanagement, excessive risk, and abuse by management of a quasi-government agency? NOTE: Mike Stathis predicted the precise details of the financial crisis in his 2006 book, America's Financial Apocalypse. The Jewish Mafia REFUSED to publish this landmark book because it exposed the widespread fraud committed by the Jewish Mafia. Instead, the Jewish Mafia published useless marketing books written by their broken clock tribemens (like Peter Schiff's useless book which was wrong about most things and was written a year AFTER Stathis' book). Stathis also released a book focusing on strategies to profit from the real estate collapse in early 2007. The Jewish media crime bosses prefer to simply ignore those who speak the truth and threaten to expose them as the best way to hide the scams from the public. In contrast, the Jewish media crime bosses continuously promote Jewish con men and clowns who have terrible track records as a way to enrich them all while steering the audience to their sponsors, most of which are Jewish Wall Street and related firms. Figure it out folks. It's not rocket science.   View Mike Stathis' Track Record here, here, here, here, here, here and here.     Membership Resources     __________________________________________________________________________________________________________________ Mike Stathis holds the best investment forecasting track record in the world since 2006. View Mike Stathis' Track Record here, here, here, here, here, here and here.   Check here to download Chapter 12 of Cashing in on the Real Estate Bubble.         So why does the media continue to BAN Stathis?    Why does the media constantly air con men who have lousy track records? These are critical questions to be answered. You need to confront the media with these questions.  Watch the following videos and you will learn the answer to these questions: You Will Lose Your Ass If You Listen To The Media             __________________________________________________________________________________________________________________    

Fannie & Freddie.Truth or Consequences. Part 2

Running Out of Options With the recent collapse in share price, both GSEs are going to have a very difficult time raising capital. You won’t find many buyers of the stock after its recent dive. And issuing debt doesn’t seem to be much of an option. The last thing investors want is to buy debt from companies involved in the mortgage mess. Even if they could find buyers, they would be forced to issue a very high coupon, which would add another drag on cash flows.   For Fannie and Freddie to have any chance at all to raise additional capital, it’s likely they’ll have to issue some type of convertible preferred stock, with very attractive features (warrants, enhanced voting rights, very attractive conversion rate, etc.) The Truth Won’t Always Set You Free All of this aside, we need to remember there’s no real evidence that either GSE is flirting with insolvency. However, we cannot ignore the market sentiment. We must keep in mind that market perception can create a self-fulfilling prophecy. I have seen market panic or even rumors destroy companies many times in the past. The stock gets beaten down, and then rating agencies downgrade the debt, causing higher interest payments to be made due to the increased risk. Finally, the company cannot raise capital since the stock is so low. If the stock remains low over an extended period, rating agencies sometimes downgrade the company and its outstanding debt. Sometimes debt covenants are triggered, forcing immediate payment of debt. There are numerous possibilities. The point is that it is never a good situation – unless you had a short position, which points to incentives to create solvency rumors.   NOTE: Mike Stathis predicted the precise details of the financial crisis in his 2006 book, America's Financial Apocalypse. The Jewish Mafia REFUSED to publish this landmark book because it exposed the widespread fraud committed by the Jewish Mafia. Instead, the Jewish Mafia published useless marketing books written by their broken clock tribemens (like Peter Schiff's useless book which was wrong about most things and was written a year AFTER Stathis' book). Stathis also released a book focusing on strategies to profit from the real estate collapse in early 2007. The Jewish media crime bosses prefer to simply ignore those who speak the truth and threaten to expose them as the best way to hide the scams from the public. In contrast, the Jewish media crime bosses continuously promote Jewish con men and clowns who have terrible track records as a way to enrich them all while steering the audience to their sponsors, most of which are Jewish Wall Street and related firms. Figure it out folks. It's not rocket science.   View Mike Stathis' Track Record here, here, here, here, here, here and here.     Membership Resources     __________________________________________________________________________________________________________________ Mike Stathis holds the best investment forecasting track record in the world since 2006. View Mike Stathis' Track Record here, here, here, here, here, here and here.   Check here to download Chapter 12 of Cashing in on the Real Estate Bubble.         So why does the media continue to BAN Stathis?    Why does the media constantly air con men who have lousy track records? These are critical questions to be answered. You need to confront the media with these questions.  Watch the following videos and you will learn the answer to these questions: You Will Lose Your Ass If You Listen To The Media             __________________________________________________________________________________________________________________    

America's Financial Apocalypse: What Can YOU Do as an American?

My advice is to find some people who you trust; those with proven track records, those who are not tied to the television shows. Figure it out. You are only going to be misled by the mainstream media. They will only come clean after it is too late, fooling you into thinking they actually warned you in a timely manner. But as you can see, this is simply not a reflection of reality. That is how the dotcom charade worked and that is how this one if playing out. It’s game that is played. Stop being played and become a player.

A Great Time to Buy?

Buy you ask? Yes. Not stocks, unless you’re talking about oil. And unless you’re the best of the best of traders you’ll probably want to buy the oil trusts, but only if you b...

Greenspan, Get Lost!

Mr. Greenspan, you have been the individual most responsible for the current crisis; a crisis which commenced only a few years after you tried to minimize the dotcom collapse, which of course you also created. By flooding the banks with ridiculously low interest rates you thought this Ponzi scheme economy could run on worthless money forever. But when you saw the end was coming, you quietly made your exit.

Farewell Indy. What's Next? (Part 2)

Those of you who are familiar with my previous publications know my real estate forecasts remain unchanged since first published in 2006.

A Warning to All Investors

It’s that time of year again when the cheeseball marketers and penny stock newsletter bozos gather to pitch their bull to the sheep. The name of one of the biggest of these events is the Money Show, organized by a company called Intershow. Let me be blunt. The speakers at this event (labeled “leading investment experts”) are either morons or they have biased agendas. Of course, that’s just my own opinion. Whether they are complete idiots or not, the fact is that they are all there for one purpose; to promote their agendas.

Where Do We Go From Here?

I failed to post anything about the market rally on this site (since it's still not 100% up and running). But I did make a couple of brief posts elsewhere a couple of days ago. Basically wha...

Why Buffett Doesn't Matter: Lessons in Sheepherding

Without a doubt, Warren Buffet is one of the leading investors in the world. There’s no disputing that. But let’s face it. His skills have been over-exaggerated by the media. Of more detriment, the media continues to deliver the message that what Buffett invests in matters to you. As you will see, he has been made into a god-like figure by the financial media for very precise reasons. Journalists lacking investment expertise often reference Buffett as a way to add credibility by association. Ultimately, they utilize the Buffett “brand name” to make money. An interview with Buffett draws a large audience because the media has convinced the herd that what he says or does actually matters to them. And this translates into huge advertisement opportunities for those who sell this fantasy. You’ve probably seen online ads telling you how you can “get in” on the “next Berkshire Hathaway” by subscribing to a service that discloses what Buffett is buying. Once again, these people are trying to make money from you by leveraging the Buffett name. They understand the marketing power behind investment celebrities. They realize the sheep will be drawn to the Buffett name because the media has brainwashed them to think they can profit by piggybacking onto his investments. Therefore, they’ll be willing to pay for information disclosing what he has invested in. These are the same sheep that are always looking for easy money. They are the same suckers who watch CNBC and FBN. Perhaps you know some of them personally.      

U.S. Treasuries Worse than the Dollar

That’s right. You read it correctly. Now why would I say something that even most “experts” would laugh at?  Because I want to point out once again how so many out there are in the dark, even the so-called experts; you remember, the guys who missed this entire meltdown. Of course, now with so many banks in a dangerous position, I’ve seen many advisers change face and jump on the doom bandwagon. Some have advised investors to remove their money from banks and buy U.S. Treasuries as a safer investment. The rational goes as follows. “U.S. Treasuries are backed by the full faith and credit of the U.S. Government and they have never defaulted.”  The first point I’d like to make is this….there’s always a first time. Prior to the present, the MBS market never blew up either. And it’s obvious to any sophisticated investor that the credit risk for U.S. Treasuries continues to increase. While it could take some time, the fact is that the FDIC will cover all bank deposits that do not exceed the $100,000 limit. After all, the FDIC is a government agency. So can we not say that it too is backed by the full faith and credit of the U.S. government? Sure we can because it’s a fact. So as far as safety of principal, the FDIC is equal to U.S. Treasury securities. Now let’s look at the disadvantages of buying U.S. Treasuries. 

Games Washington Plays. Trick #1: Hedonic Pricing

For all of you out there who listen to economists and think they know what’s going on, hopefully you will begin to realize that the official data you see is nothing but an illusion after you read this multi-part series of articles.

Games Washington Plays: Trick #2, GDP Delusions

I continue where I left off – discussing just a few of the ways Washington tries to fool us by its misuse and manipulation of data. Washington likes to remind critics that Americans enjoy the highest living standard in the world.   As evidence of this, government “experts” discuss statistics such as GDP growth, employment, wealth, income and wage growth, and other economic data without defining exactly what they are referring to or explaining all the assumptions used.   In Part 1 of this series, we saw how hedonics can alter GDP and inflation data. Here we look at some additional problems with GDP. After you read this piece, I hope you will agree that the misuse of GDP data as an indicator of economic strength has been one of the biggest errors made in the field of U.S. economics.   I can make a strong case that over the past three years there has been virtually no GDP growth other than maybe three quarters. After adjusting for hedonics, the use of debt and the other gimmicks, it’s clear the U.S. economy has grown little since 2005.   Sound crazy? Sure it does – but only if you’ve accepted the data from Washington at face value, as the media always does. But this grand illusion cannot remain hidden much longer. Already, we are seeing just some of the effects of Washington’s deception – the real estate meltdown and banking crisis.

Games Washington Plays. Trick #3: Employment Data

The government and related agencies are responsible for reporting the nation’s economic data. Thus, they’re in the driver’s seat to manipulate this data, while dumping so much of it onto consumers that they can’t possibly analyze what’s really going on. Each day, “critical” economic numbers are released by one or more agencies connected to Washington. And consumers look to Wall Street and the media to make heads or tails of this data. Of course, Wall Street is always going to paint a rosier picture for its own benefit. Meanwhile, the mainstream media merely serves as a puppet for Wall Street. The main problem is that by the time this data has been reported it’s already been manipulated. And when Wall Street gets a hold of it they make matters worse, tugging and pulling on the meaning of the numbers as a way to create market volatility. And this generates a lot of trading commissions. The media does its part as well, interviewing analysts, fund managers and pundits to analyze the data. Analysts gain more banking business for companies they tout, while the firm’s market makers and hedge funds take the short side as the dumb money rushes in. Fund managers pump up their number one holdings through praises of “great buying opportunities.” Yet the SEC never investigates whether these funds dump the stock shortly thereafter. And corporations continue to advertise on radio and television networks that maintain a policy of remaining bullish indefinitely. Together, they all feast upon the money created from this propaganda bonanza. Unfortunately, much of this money comes from individual investors who have been fooled by the “experts.” Always keep in mind the manner by which broadcasting networks make money. Then look at who they are interviewing and you will see their agenda.

Games Washington Plays. Trick #4: Off-Balance Financing

Deficits, Debt and Excess Consumption As you may recall, in February 2008 President Bush unveiled a whopping $3.1 trillion budget that boost military spending and reduced health benefits for retirees. This was the first $3 trillion-plus annual budget in world history. Since there is no way Washington can come up with this money, Bush’s will end up creating another huge annual deficit. Of course this will have to be financed by investors – almost exclusively China – adding even more to the national debt. This ridiculous budget is just another force serving to destroy America’s future. But the White House hides the full extent of these deficits by allocating certain items to the off-balance category. Similar to annual deficits, off-balance expenses are added to the national debt each year.  

The Price of Honesty

You might recall a recent article I wrote called "Madoff in Perspective" where I point out that the real Ponzi scheme is being ignored - that orchestrated by the financial industry.  I also make mention of this intentional fraud in America's Financial Apocalypse 2009 Update a few months earlier...    "What Madoff did was nowhere near as fraudulent as what the banking and mortgage executives did. Yet, he has become the latest scapegoat in this cycling pattern of booms and busts orchestrated by the Federal Reserve, Washington and Wall Street. Hopefully by now you're starting to figure out how the media is using every chance they get to deflect blame from the real villains; their Wall Street sponsors. But remember, Madoff's charade had absolutely nothing to do with this crisis. So the question begs to be answered…when will we see Fuld (Lehman Brothers), Thain (Merrill Lynch), Killinger (Washington Mutual), O'Neal (Merrill Lynch), Prince (Citigroup), Cayne (Bear Stearns), Schwartz (Bear Stearns), Dimon (JP Morgan), Blankfein (Goldman Sachs), Thompson (Wachovia), Raines (Fannie Mae), Paulson (former U.S. Treasury), Greenspan (former Fed Chairman), Cox (former SEC Chairman), and hundreds if not thousands of others responsible for this mess in handcuffs? Don't hold your breath. It didn't happen after the S&L Crisis or the dotcom meltdown. And it's not going to happen now. Hopefully, you know how the game is played. They'll pick out a few scapegoats; minor players, as a way to appease naïve Americans. This is the way it works. This is the sad reality of America . It's the American Dream for the rich and powerful, and the American Nightmare for everyone else. If you're a true American, you'll contact your congressmen and demand they be brought to justice. If they get enough calls, they'll feel the pressure to file charges. That's how it works. The media knows this. That's why they've done everything but stir the pot."   Tigers Never Change Their Stripes "Don't forget, these men cleared billions of dollars in bonuses by fudging financial statements while packaging trillions of dollars of fraudulent loans into securities. This was money taken from shareholders who were lied to, and investors who bought these toxic securities. It was a twist on the classic pump-and-dump scheme.

Did You Get a Raise Last Year? CEOs Did.

WASHINGTON (Reuters) - More U.S. chief executives got pay raises than had their pay cut in 2008, a year when billions in taxpayer dollars went to prop up struggling companies and millions of workers...

Tax Day Tea Parties: Americans Fooled Again.

I decided to check out a couple of these so-called tea parties so I could confirm what I already knew.  Let me just say this.  I was disgusted by the naive nature of those in attendence...

How the Media Uses Buffet to Make Money

In the previous part of this article we saw how what Buffett invests in doesn’t matter to you. Let’s look at an example how the media uses the Buffett name to make money. I’d like to direct your attention to a story by Reuters, published on August 22, 2008. “Buffett Sees Weak Economy Until 2009   Surely this is no news. Let’s see now. It’s the end of August, so there are four months left until 2009. A person would have to be a complete fool to think the economy would get better prior to 2009. But the fact is that the investment world consists of a lot of fools who have been brainwashed by the media.

How Buffett Uses the Media to Cash In

Previously, I discussed the fact that what Warren Buffett invests in doesn’t matter to you. Then I followed up by explaining how the media uses Buffett to make money. Here, I complete the lesson by showing you how Buffett uses the media to cash in. Similar to Britney Spears and other “celebrities,” Buffett also benefits from Hollywood antics. You see, Buffett has been made into a financial celebrity, just as Alan Greenspan and many others have. Media exposure is just as good for Britney’s record sales as it is for shares of Berkshire Hathaway. It’s a two-way street of profits. The media creates big name financial celebrities in order to draw a big audience. A big audience drives big ad revenues. And financial celebrities like Buffett benefit because investors will invest in Berkshire.

When Does it All End? The Abuse Continues.

Trillions of dollars for the bailouts haven’t satisfied the banks and automakers. They want more, and they’re spending your dollars to make sure they get it. According to the Associated Press, the top 10 recipients of the TARP spent about $9.5 million on lobbying during the first quarter of 2009.

CNBC, the Bubble Network

While some would consider Cramer a “stock pumper,” others would consider him their savior. I would consider him the “Dr. Phil” of Wall Street because, similar to Phil, he designs shows based on resolving some controversial issue with the intended goal of helping lost souls. I find it of no surprise that Cramer has made appearances on Dr. Phil. Both are in the same line of work – cheeseball marketing.  At the end of each show both Dr. Phil and Cramer emerge as some sort of “Superman.” In short, both of these shows are more about entertainment than anything else and they create an illusion of “value” for their misguided viewers. While this approach isn't really damaging for the Dr. Phil Show, it can be highly damaging for a show based on investments. As a result, Jim Cramer and the rest of CNBC serve as stock pumpers because the financial industry pays the bills there through buying ad time. So the question is whether Cramer is intentionally manipulating stocks. Many people would say yes. I would tend to agree. What we do know is that he likes a stock one day and often hates the same stock a few weeks or even days later. Of course, after a stock he previously told you to buy collapses, he never bothers to remind you how terrible his advice is. This man has no conscious and does not know the meaning of the word “accountable.”  This on-off approach serves a purpose. It forces you to watch the daily drama so you won't miss when he turns sour on a stock you bought based upon his favorable review, which often includes yelling and screaming “Buy! Buy! Buy!” It’s possible that Cramer has more “Buys” than Wall Street. Meanwhile, he mentions so many stocks that it is virtually impossible to keep up with what he says. This too is intentional. It is designed to confuse you; to overwhelm you so you won’t remember how poor his track record is.  Why would anyone with a brain waste their time following this guy other than to research his horrendous track record for a piece like this?

Payback is a BITCH

NOTE: Mike Stathis predicted the precise details of the financial crisis in his 2006 book, America's Financial Apocalypse. The Jewish Mafia REFUSED to publish this landmark book because it exposed the widespread fraud committed by the Jewish Mafia. Instead, the Jewish Mafia published useless marketing books written by their broken clock tribemens (like Peter Schiff's useless book which was wrong about most things and was written a year AFTER Stathis' book). Stathis also released a book focusing on strategies to profit from the real estate collapse in early 2007. The Jewish media crime bosses prefer to simply ignore those who speak the truth and threaten to expose them as the best way to hide the scams from the public. In contrast, the Jewish media crime bosses continuously promote Jewish con men and clowns who have terrible track records as a way to enrich them all while steering the audience to their sponsors, most of which are Jewish Wall Street and related firms. Figure it out folks. It's not rocket science. View Mike Stathis' Track Record here, here, here, here, here, here and here.   __________________________________________________________________________________________________________________ Mike Stathis holds the best investment forecasting track record in the world since 2006. View Mike Stathis' Track Record here, here, here, here, here, here and here. Check here to download Chapter 12 of Cashing in on the Real Estate Bubble.   So why does the media continue to BAN Stathis?  Why does the media constantly air con men who have lousy track records? These are critical questions to be answered. You need to confront the media with these questions.  Watch the following videos and you will learn the answer to these questions: You Will Lose Your Ass If You Listen To The Media __________________________________________________________________________________________________________________   Despite attempts made by Greenspan and Bernanke, there is no way to avert the payback period that has been building for over two decades.  

The Deflation Myth

For some strange reason, economists, and those who actually give credence to what they say seem to think that a single period eighty years ago set a precedent cast in stone for what to expect from this depression. As a result, the masters of propaganda continue to insist that you cannot have a depression without deflation.

Media Crooks

Maybe there's a good reason why CNBC has a show called Fast Money. If you follow the advice of these guys, your money is likely to evaporate very fast. Likewise, I'm beginning to see why Cramer's show is called Mad Money. You're likely to get mad if you follow his advice. Or maybe you have to be a mad man to watch it.

It's Time to Face the Facts (Part 1)

For anyone who believes any positive earnings reports from the banks, you probably also believe there will be a real recovery in the economy. These “earnings” are even less credible than those reported by the banks during the height of their Ponzi scheme in 2007. Earnings? From the banks? It’s laughable. Let me now state what I consider to be facts related to the bigger picture of this economic fiasco. Fact #1. All Major Banks Are Insolvent. This has been true now for over a year. It remains true despite the Treasury and Fed already having pumped in over $13 trillion in the form of loans or guarantees into the financial system; just over the past twelve months alone. But this is still insufficient. Several trillions more will be needed, and much of this will be lost forever.    

It's Time to Face the Facts (Part 2)

Fact #5. Most of the Lost Jobs Will Not Return What no one seems to understand is the fact that these job losses are not temporary. Most of them simply aren’t coming back. I’ll guarantee it. The only jobs that will return are those that no one wants; the low-paying, no benefits, dead-end jobs. It’s the same situation that played out after the dotcom collapse. This is part of the reason why there’s been no real recovery since 2001. As I discussed in America’s Financial Apocalypse, it was all an illusion fueled by a real estate bubble. It was another one of Greenspan’s bubble.  

Learning from Japan

I ran across an interesting story about how Japan is using a somewhat innovative approach to deal with its own symptoms of what will eventually be recorded in history books as the global depression. http://www.nytimes.com/2009/04/23/business/global/23immigrant.html   The Japanese government is paying travel expenses (plus a little extra money), or about $3000 apiece for migrant workers who agree to return back to their homeland. They must agree never to come back to Japan for work.   Critics in Japan have lashed out at the program calling it “inhumane” and “destructive” for the future economy. Maybe the Japanese government realizes just how bad things are going to get.   As bad as things are in the United States, they are even worse in Japan. With expectations of a productivity decline of over 6% for this year alone (more than twice the decline expected in the U.S.), Japanese officials realize that it’s time to take some drastic measures. So they’re willing to help preserve what jobs remain for Japanese citizens. That begs the question…why can’t Washington learn from the Japanese?

Trump's Trade Plan Guarantees More Outsourcing of American Jobs

If you really think Trump intends to "bring jobs back to America" you aren't paying attention to his actions. He's actually doing the opposite. 

Meet Stephan James, Typical YouTube Liar and Con Man

YouTube is filled with thousands of con artists like James who play the "fake it till ya make it" game. This practice has morphed into a disgusting epidemic of epic proportions largely as a result of social media and YouTube, where these scammers feel they can get away with deception and lies without...

Opening Statement from the December 2019 CCPM Forecaster 

Opening Statement from the December 2019 CCPM Forecaster  Originally published on December 1, 2019

Finally, the Truth on Housing

You’ve all probably seen or heard about the recently released Harvard Housing study. Among other things, the report discusses the fact that the median wage-earner is unable to afford the...

Industries to Avoid. Industries to Buy

While some of the recommendations in this commentary may seem like no-brainers, its real purpose is to illustrate how investment themes relate to the bigger picture.

Out of Reach, Out of Touch. Two Losers Unite.

I just wanted to go on record with something that should be obvious for sophisticated investors; the merger of Sears and Kmart is a terrible deal and will not last. Even if it does, it is certainly no...

How to Spot a Wall Street Hack

I'll make this short and sweet so you will never forget it.  ALWAYS check the bio of every person you listen to or read articles from. If they have a past writing for realmoney.com, Thestreet.com or any other publications affiliated with Jim Cramer, run away as fast as you can.  There are a lot of these guys out there and they usually like to mention it somewhere along the way, either in an article or their bio because they think it's some symbol of credibility. Nothing could be further from the truth.  These guys should never be trusted.  Similar to getting on CNBC, almost everyone in the financial industry will bend over backwards to become involved with these publications because they know they're great marketing venues since there are so many sheep out there who have no idea they're being fooled. There's nothing wrong with trying to increase your business via marketing (man I hate marketing). The problem arises when you lack ethics. You will compromise integrity in exchange for the chance to make big money by developing a big following.  These are usually the same guys who spend the majority of their time on marketing activities; you know, like some of these guys who are on TV all the time, yet claim to be "investment strategists" or "researchers."  I won't mention any names.  This is how it works. It's time to wake up. Your livelihood depends on it. Quite simply, the education we provide is priceless. Those who do not receive it are certain to lose a good part if not all of their life savings by falling for the countless con men that seek to win your trust and make up stories. The current gold/doomsday scam is just one example of this. You can be sure that there will be many more scams to come. So you had better ask yourself the following question…are you able to spot scam artists? If not, you had better patch into our Encyclopedia of Bozos, Hacks, Snake Oil Salesmen and Faux Heroes.  How often do you hear someone spend so much time at work fighting to get the truth out when they should be focusing on sales? With the exception of Mike’s efforts, it NEVER happens. Many have been fooled by snake oil salesmen to think they are on your side, when they are really looking to hook you into their sales pitch. Mike could focus on producing videos that always highlight his amazing track record in order to generate sales, but he doesn’t. Instead, he spends a great deal of time exposing the liars and con men out there who are duping millions of people with their gold-pumping, doomsday delusions, even though these efforts are costing Mike a great deal of lost sales. Just remember this down the road once you look back at this period as a huge fraud perpetrated not only by Wall Street, but also by thousands of doomsday, gold-pumping charlatans. If you do not already realize they are scam artists, you will eventually if you take their advice. That is a guarantee. Mike Stathis remains the lone voice of reason and wisdom for Main Street.       Special Promotion For New Members And Membership Renewals          

Sirius Satellite: Designed to Fail

I just wanted to make something clear with all this talk about satellite radio...

Satellite Radio Faces Enormous Challenges

It is not my intention to get anyone to buy or sell Sirius Satellite Radio (SIRI) or XM Satellite Radio (XMSR). It is only my intention to help investors understand the full picture regarding the risks to satellite radio. Up to this point, I feel Wall Street has presented the only positive picture. In response, I have offered what I feel to be the missing piece to the puzzle. After considering both sides, it is up to you to determine what to do. Those who get upset and make personal attacks are only confirming the insecurities underlying their investment decisions. Typically, when a person has few investment ideas or capital, they tend to focus on the noise surrounding one or two investments they hope will make them rich, wasting several years of their lives to no avail, while better opportunities pass them by. As it turns out, the big picture has not changed much since 2005. The major change is that the economy is in much worse shape. In addition, this doesn’t stand to benefit SIRI, XMSR or the possible merged entity. I have mentioned many times that investment in distressed securities is one of the most risky and difficult challenges that an investor can undertake. In my opinion, it should be restricted to only the most experienced investors who are able to withstand complete losses. Although I consider SIRI and XMSR to be only moderately distressed, after assessing the business dynamics and competitive threats, I can see no solid reasons to take a position in either SIRI or XMSR. Bottom line: this is not the type of market that investors should be taking excessive risks. Preservation of capital is the most prudent choice during economic contractions. Understand the Industry Dynamics Having a subscription to Sirius and “loving it” does not mean you have a good understanding of the growth potential or risks to the company. Following the daily rumor mill doesn’t either. In addition, taking a large position in a relatively distressed security only causes one to become emotionally attached. In order to understand my prognosis for the satellite radio industry, you need to consider basic industry dynamics. This will allow you to estimate the probabilities of earnings growth and the ability of...

Go Woke, Go Broke: The Gap, Inc.

Sirius Satellite: Seriously Down, and Going Lower

It’s a bit funny to see that the SIRI stock pumpers are still at it, despite facing nothing but absolute humiliation after making ridiculous claims and clinging onto their delusions of grandeur as the stock collapsed by over 95% after merger with XM. In the end, the stock price says it all. Since the dotcom bubble collapsed, reality has set in. SIRI has done nothing but fall; with good reason. The company has been very poorly run. It’s had a terrible strategy, ridiculous payouts for content and unbelievably ridiculous payouts to executives. The management has been horrendous from day one and remains so. As you will recall, these pumpers (and their brainwashed cheerleaders who happened to be stuck in the stock) were thinking the merger would be great and the price would soar.  I suggest two things to the sheep that have clung onto the propaganda. First, beef up your memory so you can recall what these guys were saying before. You might want to read their archives. Second, check the track record of every person before you bother to listen (or read) to what they have to say. I won’t waste anyone’s time (including my own) making a case for why SIRI is one of the worst managed companies I have seen in many years. Instead, I will point you to a couple of pieces I wrote on SIRI while back so you can be reminded of the truth. See here and here. 

Swine Flu Panic: Trading the Hype

I wanted to discuss this whole swine flu hype that’s been blown out of proportion to illustrate how the media creates illusions from what would seem to be valid information. This also relates to the investment world because today, virtually everything that hits newswires is spun further by the financial media. This of course is done intentionally.   In the end, most who jump aboard the hype - whether it’s the stem cell hype, the ethanol hype or the swine flu hype – end up losing while the ones who understand what’s going on take your money.   As you might know, I do not watch CNBC or FBN. I don’t even have cable because I don’t have time for trash (although I realize there are a few good channels). But I’m willing to bet the bubble networks have been all over the swine flu panic as a way to create trading blurbs.   Understand this. You should always stay away from this trash unless you are a dedicated day trader. Then again, I don’t recommend anyone try to become a day trader because they eventually all get blown out.

Obama: Worse than Bush? (Part 1)

In just over three months, President Obama has equaled the destruction created by President Bush’s eight years in the White House. Given what lies ahead, I have no doubt he will surpass Bush’s record as the nation’s most disastrous president. I never thought I’d live to see a president exceed Bush’s record. Perhaps this is one of America’s new trends. It’s unlikely the polls will confirm this inevitable reality because the media will continue to blame Bush for everything that goes wrong, while giving Obama full credit for anything that might go well. But you shouldn’t expect much to go well. All we’re likely to see are illusions, false claims, denials and cover-ups.   A note to readers; this piece certainly isn’t about democrats or republicans. If you think there’s a real difference between the two parties, you’ve been fooled. If you fall into that category, I suggest you get up to speed real fast. As a part of this educational process, you need to stop watching television and listening to the talking heads on radio because they preach lies, while refusing to air anyone who opposes their misguided and inaccurate views. It’s the way they control your thoughts.   It’s a cleverly disguised form of censorship.    If you listen to the propaganda from America’s mainstream media, most likely you’ve already been brainwashed.  

Obama: Worse than Bush? (Part 2)

Here I continue from Part 1. Let me give you a brief example how the media has brainwashed the American public. In early April, the results of Obama’s approval poll were released. The results were as follows:   Obama’s approval rating: 66% (a new high and higher than Clinton and Bush)   Americans who think America is headed in the right direction: 36%   Americans who approve of Obama’s proposals for the banking industry: 33%   Americans who approve of Obama’s proposals for the auto industry: 47%   The fact is that most Americans do not approve of Obama’s job as president. They’re certainly against the bailouts and lack of accountability for the banking crooks. So then, ask yourself how his approval rating is so high while Americans are clearly dissatisfied with the policies he has taken. Is this not a direct reflection of his leadership? Perhaps the media has redefined how Americans think about “likeability” and leadership.   So how could this be? 

Swine Flu: A Follow-up on Trading the Hype

Last week I released a piece that no other (qualified) financial professional was willing to expose because (in my opinion) they don’t want the masses to know how event-driven media-hyped trading works. If everyone knew how the game is played, they wouldn’t be able to make the easy money.

Signs of a Continued Rally?

Finding the Bottom in Financials

I've read and heard countless investors who have been thinking the banks were a "good deal" since the first big market sell off in January 2008. Since then many are down another 60% - some even more. Every month I see new investors looking to pick up a "bargain" in the financials without realizing the only bargains have been short positions. Most investors have been programmed by the financial media to always buy stocks when they go down because "in the long-term they are a great value."

The Stress Test Scam (Part 1)

I haven't made any comments about these so-called stress tests for the banks because it was obvious (to me anyway) it was just the latest PR scam devised by Larry Summers (carried out by his puppet, Geithner) to exaggerate the financial health of the banking system. While I was confident the results of these “tests” would be ludicrous, I wanted to hold off until they were released so I could deliver the knockout punch. In short, it's clear these "stress tests" weren't so stressful, as I had suspected.    Before examining the results, let’s begin by looking at some of the brainwashing journalism involved in this PR campaign.

The Stress Test Scam (Part 2)

Printing more money won't solve America’s problems; quite the opposite. It's going to damage the economy further. And these effects will be lasting. You will see them soon. At the very least, we...

Internships & Employment

Beware of the Vultures

The economy is bad and getting worse. And it certainly isn't going to improve by much for a long time. Sure, the government will fool many with it's bogus data. But at the end of the day, millions will realize they just can't make ends meet. Some will adjust their spending behavior.  Others will look for new opportunities. Among these opportunities, millions will look to the infomercial gurus, who promise to teach you how to become rich if you buy their course or book.  And of course we also have the "free" seminars; the guys who tour the nation with get-rich-quick scams.  You've seen them. They advertise on TV, the Internet; everywhere.  This group includes the government grant guys, the real estate gurus, and of course Donald Trump (who is not in attendence) and Robert Kiyosaki.

America's Financial Apocalypse: A Crystal Ball for the Next Decade?

I'm getting quite bored watching the latest economic headlines surface. Bored you say?  Yes BORED.

More Jewish Media Tricks - "New York City rich and poor — the inequality crisis"

Take a look at this "documentary" created by the German public broadcasting company DW. Of course it's run by Jews as you can imagine. Notice how they lure you in by the title which claims it's about income inequality. As you watch the film you can clearly see it's really about "racial inequality." 

How to Move the Market Using Hacks and Morons

I just ran across a news headline by CNBC so I knew it would provide a learning point. Have a look First of all, don't be fooled by the seemingly neutral tone of the article. While there are statements that one could conclude are cautious, if you read it from a neutral position, you will come away with a bullish stance. This is a lesson in psychology more than anything. First, notice the title. In itself sets the tone of the piece as far as I am concerned. Why couldn't the title be "Will the S&P sell off to retest new lows?"  Remember, the intermediate to long term trend is what matters. And that trend is still down.  To focus on the short-term plays into the hands of Wall Street and online brokers, who will make more money when investors are focused on short-term trading. If you still don't see my point, just look at the bullish versus bearish comments:  

Who REALLY Runs the Show?

If you think President Obama runs America, think again. Like many U.S. presidents before him, Obama is merely a puppet.  Larry Summers is making most of the decisions.  He's pulling Ob...

"Watch TV, Make Money!" Who's REALLY Making Money? (Part 1)

You may have read an article I wrote on Jim Cramer and the "bubble" network, CNBC.  In this piece, I plan to really get into the details of how the media ser...

Cheaters Never Win: The Case Against Ethanol

I find it ridiculous that Washington has led America into another trap by supporting ethanol. By now, we all know how expensive it is to produce ethanol from agricultural sources. This is especially true for U.S.-based ethanol producers since conversion into ethanol from corn is highly inefficient. When you are running low on one natural resource, you cannot try to substitute it with another and not expect problems. That is exactly what has happened with ethanol.   So why haven’t gas prices dropped?

More Stupidity from Doomers

I wanted to show you another example of the media continues to run to the so-called experts who have no idea what they are talking about.  U.S. Inflation to Approach Zimbabwe Level, Faber Says  “I am 100 percent sure that the U.S. will go into hyperinflation,” Faber said.

Cuban's Shame

You might have heard about Dallas Mavericks owner, media owner, and dotcom lotto winner Mark Cuban's alleged case of insider trading by the SEC.  If not, I made reference to in a recent pie...

"Watch TV, Make Money!" Who's REALLY Making Money? (Part 2)

You might be wondering why a leading investment strategist would harp on the media so much. Well, friends, the fact is that understanding the tricks and motives of the media is the single most important step towards becoming a great investor. I hope you see that by now. Whether you do or not, I’m going to beat it into your head. So allow me to continue where I left off from Part I of this series.  Kudlow has my book, as does Cramer and several other useless clowns and shills in both print and broadcast media. And they’ve had it for two years, giving them more than ample time to realize what to expect. Why is this important? Because the book predicted everything in detail unlike no one else.

Being Rewarded for Screwing You: Compliments of Comcast

I  happened to have the TV  on the other day while eating dinner. I  wasn't  paying attention,  but when I heard this distinctively nasal,  monotone annoying voice, I  knew who it was.  So I wanted to see what this clown was up to. Apparently, Ben Stein did a commercial with Shaq for Comcast.  In it, Stein is identified as an economist. 

"Watch TV, Make Money!" Who's REALLY Making Money? (Part 3)

As I continue my breakdown of the inner workings of the media, I first wanted to emphasize that all of the players within this propaganda machine cooperate with each other. They all air the same content because this creates a perception of validation. What they air becomes your perception of reality, whether it’s about North Korea, Iraq, Palestine or the stock market and the economy. If you’re told the same thing over and over again, eventually you’ll believe it; especially when different people – people you trust, say it. This is how most Americans have been convinced we are fighting a war on terror, yet the Mexican border remains open for “terrorists” from the Middle East to easily pass if they so choose. This is also how Americans were convinced Iraq had WMDs. In reality, much different motives were behind these illusions created by the media. Hopefully, you are beginning to understand why the media machine is the most dangerous force in America today.

Don't Be Fooled

The SEC has formally charged Angelo Mozilo, former CEO of Countrywide Financial, with fraud related to the mortgage debacle. 

More Email Scams

By now, surely everyone knows about the infamous Nigerian email scams. But were you aware that these scams have cleared hundreds of millions of dollars (if not more) in just a few years time?  The reason so many scammers exist is because there are too many ignorant and desperate people out there who make them rich. The same could be said about the "popularity" of CNBC and FBN.  As the economy continues its gradual permanant decline, you will see more and more scammers appear, taking advantage of the desperation of millions looking to restore their previous living standards.

Market Update

Just a note about my postings. Some of you may be wondering why I have been making so many posts about the media, while ignoring the market and economy.  The reason is two-fold. First of all, understanding how the media deceives and controls your mind is the single-biggest step you can take towards becoming a sophisticated investor.  But the main reason is because I don't dramatize the economy and market on a daily basis like everyone else.

Mike Stathis Exposes the Jewish Media Scam that's Fleecing the World

Patrick Byrne's Deep Capture Blog Promotes Gold Pumpers and Fake News

The following serves as a small sample of some of the BS that's come from Patrick Byrne and his blog, Deep Capture. Credibility and accuracy don't seem to matter much to Patrick Byrne, as he allows his paid stooge Mark Mitchell to promote the fake news, gold pumping, conspiracy blog Zero Hedge.

Forbes: Creating Future Sheep

I ran across a link to an article from Forbes and I got so upset I wanted to share it with you so you could see how low the financial media stoops to brainwash people, creating a new generation of sheep, while promoting their financial sponsors.    The reason why I became so upset at this advertisement (disguised as an article) is because it targets kids and brainwashes parents to think that kids should be spending their online time "more wisely" by learning about investments.    "Your children already spend way too much time on the Web. Why not start them on some fund Web sites that teach them sound investment principals."    Yea! Great idea!  NOT.   What a manipulative, dirty, filthy ad. The "author" is such a HACK.