Interesting article for the NY Times that explains how Fannie eased credit requirements to help homeowners back in 1999:
http://query.nytimes.com/gst/fullpage.html?res=9C0DE7DB153EF933A0575AC0A96F958260&sec=&spon=&pagewanted=1
Economics
What is the proper role of government in our economy? Why do we have a business cycle? Is it really a consequence of freedom and free markets that a business cycle is created or is it the result of government intervention? Should the market decide instead of the government who the winners and losers will be in our economy? This blog attempts to review the relevant financial stories and facts that impact the American economy.
Tuesday, September 30, 2008
Financial Planning in a Market Meltdown
What do y'all think about this type of financial planning?
Actually, if the market is behaving healthily, the DJA will decline to 8000. A normal sine cycle would fluctuate around +/1 2000 on a baseline of 10000. This cycle should continue for at least another 30 years before moving up to a baseline of 18000 wherein it will cycle for another 40 years.
So, if you’re doing your financial planning, here is what to do, because the time is getting close.
1. Convert 90% to cash for the moment. Savings accounts or savings funds are good. Very little interest but it’s a down market and you’re not losing money.
2. When the market hits 8000, convert to equities.
3. The market will fluctuate between 8000 - 10000, and you can surf on the swells. Big bursts of money making surges.
4. When bank stocks start rising, go all in. The market will again go on a 5-6 year surge up to 12000-14000. You can triple or quadruple your money during this phase.
5. At 14000, begin to convert to cash, but there will still be pockets of equity opportunities as the DJA goes down 5-7 years to 8000 again.
6. At 10000 begin to take your profits and convert to cash or tangible assets.
7. At 8000 the cycle will begin again until we reach the year 2040.
Actually, if the market is behaving healthily, the DJA will decline to 8000. A normal sine cycle would fluctuate around +/1 2000 on a baseline of 10000. This cycle should continue for at least another 30 years before moving up to a baseline of 18000 wherein it will cycle for another 40 years.
So, if you’re doing your financial planning, here is what to do, because the time is getting close.
1. Convert 90% to cash for the moment. Savings accounts or savings funds are good. Very little interest but it’s a down market and you’re not losing money.
2. When the market hits 8000, convert to equities.
3. The market will fluctuate between 8000 - 10000, and you can surf on the swells. Big bursts of money making surges.
4. When bank stocks start rising, go all in. The market will again go on a 5-6 year surge up to 12000-14000. You can triple or quadruple your money during this phase.
5. At 14000, begin to convert to cash, but there will still be pockets of equity opportunities as the DJA goes down 5-7 years to 8000 again.
6. At 10000 begin to take your profits and convert to cash or tangible assets.
7. At 8000 the cycle will begin again until we reach the year 2040.
Lies and More Lies from the Democrats
Shocking video that shows Democrats in their own words covering up the Fannie Mae, Freddie Mac scam that caused our economic crisis:
Sunday, September 28, 2008
Friday, September 26, 2008
WaMu becomes biggest bank to fail in US history
This is the largest bank in US history to fail:
http://news.yahoo.com/s/ap/20080926/ap_on_bi_ge/washington_mutual_future
http://news.yahoo.com/s/ap/20080926/ap_on_bi_ge/washington_mutual_future
Financial Meltdown Timeline
Here's another good video that explains what is going on:
http://www.reuters.com/news/video?videoId=91276&videoChannel=5
http://www.reuters.com/news/video?videoId=91276&videoChannel=5
Monday, September 15, 2008
Bank of America Acquires Merrill
No. 2 BoA acquires No. 3 Merrill. Wow! This is an unprecedented level of consolidation. What are your thoughts?
http://money.cnn.com/2008/09/15/news/companies/barr_merrill.fortune/index.htm?cnn=yes
http://money.cnn.com/2008/09/15/news/companies/barr_merrill.fortune/index.htm?cnn=yes
Gas Stamps
What are your thoughts about this latest plan from the Democrats?
http://thehill.com/leading-the-news/democrats-latest-idea-gas-stamps-2008-09-11.html
http://thehill.com/leading-the-news/democrats-latest-idea-gas-stamps-2008-09-11.html
Wall Street on Red Alert
This is another sign that the economy is heading into a depression:
Lehman says it will file for bankruptcy. Fed and 10 strong banks expand lending to weaker players. Plus: Bank of America and Merrill strike a deal.
http://money.cnn.com/2008/09/14/news/companies/lehman_brothers/index.htm
Lehman says it will file for bankruptcy. Fed and 10 strong banks expand lending to weaker players. Plus: Bank of America and Merrill strike a deal.
http://money.cnn.com/2008/09/14/news/companies/lehman_brothers/index.htm
Friday, September 12, 2008
Bailouts Will Push US into Depression: Manager
This has been my view for a while now. If the markets can/will not bail out the government, then the dollar may collapse and the US may experience another depression. This may set up the conditions for the government to bring in the Amero and the North American Union which I think has been the plan all along:
http://www.cnbc.com/id/26656750
http://www.cnbc.com/id/26656750
Wednesday, September 10, 2008
Lehman suffers nearly $4 billion loss
Will any investors help out Lehman or will they meet the same fate as Bear Stearns?
http://money.cnn.com/2008/09/10/news/companies/lehman/index.htm?cnn=yes
Here's an email that I received about this situation:
"Lehman Brothers’ shares are crashing. The stock closed at 16.20 on Friday. As we write this alert, it’s trading at $9.80, signaling a major new collapse could be on the immediate horizon. If we’re right, this debacle is going to be several times worse than the Bear Stearns disaster of last March. In a last act of desperation, cash-strapped Lehman was in meetings with the state-owned Korea Development Bank trying to sell its profitable Neuberger asset management unit. But those meetings have now broken down. Its last hope for survival seems to be down the tubes. But Lehman isn’t alone ...Washington Mutual to its CEO: “Pack up your desk. You’re FIRED!” Kerry Killinger, the CEO responsible for nearly bankrupting the bank was canned yesterday. At almost the same time, WaMu took the first step towards failure, filing a memorandum of understanding with the U.S. Office of Thrift Supervision.Unsurprisingly, Washington Mutual stock plunged, bringing its total losses for the year to 70% of its market value.Wachovia admits to bigger woes in its $122 billion options ARMs portfolio. In a shocking revelation, Wachovia announced that 23,600 of its loans are going bad, and a whopping two-thirds of borrowers with options ARMs are opting not to pay the interest and principal due each month."
http://money.cnn.com/2008/09/10/news/companies/lehman/index.htm?cnn=yes
Here's an email that I received about this situation:
"Lehman Brothers’ shares are crashing. The stock closed at 16.20 on Friday. As we write this alert, it’s trading at $9.80, signaling a major new collapse could be on the immediate horizon. If we’re right, this debacle is going to be several times worse than the Bear Stearns disaster of last March. In a last act of desperation, cash-strapped Lehman was in meetings with the state-owned Korea Development Bank trying to sell its profitable Neuberger asset management unit. But those meetings have now broken down. Its last hope for survival seems to be down the tubes. But Lehman isn’t alone ...Washington Mutual to its CEO: “Pack up your desk. You’re FIRED!” Kerry Killinger, the CEO responsible for nearly bankrupting the bank was canned yesterday. At almost the same time, WaMu took the first step towards failure, filing a memorandum of understanding with the U.S. Office of Thrift Supervision.Unsurprisingly, Washington Mutual stock plunged, bringing its total losses for the year to 70% of its market value.Wachovia admits to bigger woes in its $122 billion options ARMs portfolio. In a shocking revelation, Wachovia announced that 23,600 of its loans are going bad, and a whopping two-thirds of borrowers with options ARMs are opting not to pay the interest and principal due each month."
Monday, September 8, 2008
Homestead Strike
I thought that I would add this to this blog for a good history lesson about strikes in America. I didn't realize that management in these industries could be so cold blooded toward the workers back then:
http://en.wikipedia.org/wiki/Homestead_Strike
More history details about yellow dog contracts:
http://en.wikipedia.org/wiki/Yellow-dog_contract
http://en.wikipedia.org/wiki/Homestead_Strike
More history details about yellow dog contracts:
http://en.wikipedia.org/wiki/Yellow-dog_contract
U.S. seizes Fannie and Freddie
What are the implications to the economy as a result of the Feds taking control of Fannie and Freddie?
http://money.cnn.com/2008/09/07/news/companies/fannie_freddie/index.htm?cnn=yes
http://money.cnn.com/2008/09/07/news/companies/fannie_freddie/index.htm?cnn=yes
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