I can remember sitting in my class at Haas Busyness School at Berkeley and just staring at the word inflation. Ironically, the Haas’s own Levi Jeans (Levi is Moses Father-My birth father’s name is Gene). It took Me a long time to figure out what inflation is. I would be reading the Wall Street Journal and if the job report came out good, this was bad. If the job report came out bad, this was good (counter intuitive). If people are being hired that means they are eating and the economy is doing well. What Alan Greenspan then does is increase interest rates. When interest rates increase the borrowing costs for companies goes up. Therefore they do not borrow money to expand their businesses reducing the job expansion that this cheap money was creating (and people lose jobs). Low interest rates expand the economy; high interest rates contract it. It should not come as a surprise that Mr. Greenspan is a member of the Nazi organization known as the Bohemian club. The Bohemian’s are known as the men of Bavaria. Bavaria Germany is where the Nazi pope Benedict is from.
When interest rates were incredibly low during this most recent housing boom the economy kept expanding. Not only were companies borrowing at these low rates, but new home buyers quickly flooded the market. Many of these individuals bought more than one home with no money down. It is called a Ponzi scheme. This fueled new construction. Cheap cash was flooding the market artificially inflated the prices of homes. That was until the FEDS and Fannie Mae decided to jam up the markets. They stopped making inexpensive money available for new home purchases. Instead of home prices rising as people had become accustomed to, home prices started falling. There was a large supply of homes, but limited demand because cheap money was no longer available. Artificially inflated home prices plummeted…Now the people who had made all of this illusory home equity were saddled with very real debt. People were literally upside down on their homes. They took it in arrears as they say in the mortgage game. What is interesting is that when all of this cheap money was made available to homebuyers, the stock market did not benefit during this period. It was mostly flat which is incredibly confounding when you consider that we were at war during the majority of this period. War is supposed to be good for the economy, but when Bush is leaving office, somehow he is asking the taxpayers to pay hundreds of billions of dollars to bail out the CEO’s of these companies. Where did the hundreds of trillions of dollars go to fund this war? Halliburton, Carlyle group, Apollo group, Blackstone, Exxon Mobil, Shell, Texaco, 76, Boeing, Hughes, Smith and Wesson, etc. are all publically traded companies. Why didn’t the overall stock market reflect these gains? If the American taxpayers spent hundreds of trillions for war than who received this money? Something is not adding up...
They create bubbles-They started back in the seventies with the Savings and Loan crisis when they deregulated the industry. Instead of banks taking in savings and then making loans they deviated from the plan when the government created rampant inflation (through the supposed Oil Crisis). The S and L’s had loans out at fixed rates, but they had to pay their new customers exorbitant interest rates. They were receiving 5-6% interest on their home loans and they were paying bank customers 13% on their new savings accounts. Instead of the S and L’s eating these losses the government deregulated the industry and told the S and L’s that they could now invest in real estate themselves, Junk Bonds, as well as other highly risky investments. This of course led to reckless speculation because they needed to get unrealistic returns that exceeded the 13% rates that they were paying to their savings customers.
All of this funny money artificially inflated the real estate market. After this bubble burst people who thought that they had invested in FDIC insured savings accounts learned that honest Lincoln savings was owned by Charles Keating’s American Continental Corporation. Lincoln Savings operated as a standard bank claiming that it was FDIC insured. The FDIC signs were posted on all of their entrance doors, the salesmen at Lincoln Savings told prospective customers that their investments were secured by the Federal Government. After the S&L collapse, however, Lincoln customers learned that none of their money was secured. The reason the government decided not to insure this money is because Charles Keating and American Continental Corporation (the parent company) were not FDIC insured. Since American Continental was not FDIC insured the government stiffed all of Lincoln’s customers. John McCain and Alan Greenspan worked hard on Keating’s behalf in order to make this heist possible.
Keating had taken several aggressive measures to oppose the FHLBB, including recruiting a study from then-private economist Alan Greenspan saying that direct investments were not harmful.
The result was that countless people lost their lives savings. Senior citizens died penniless because of the S&L crisis.
Doesn’t Lincoln make a Continental? Lincoln was shot at Ford theatre before a Ford car was ever made (maybe the Ford’s had money before they started manufacturing Ford cars). Ford owns Lincoln. Just thinking out loud…
The customers that did purchase CD’s and savings accounts from banks that were in fact FDIC insured got indemnified up to a certain amount, after the American taxpayer came up with the money.
The junk bonds that were popularized during the S&L crisis were used to fuel the development of Silicon Valley. Silicon and Silicone are literally the same thing…Fake shit. The junk money created silicone valley and the dot.com boom then arrived. The stock market was the next bubble. A new IPO every day…Amazon goes public with no earnings and people could not purchase enough of this stock. What Amazon did with this artificially inflated currency was take this money and spend it on marketing and purchasing anything that might resemble competition. The rest they stole and put in their pockets. Now that they are the only online superstore that I know of and they are actually making money their stock price has been going down…
People eventually learned that this dot.com craze was all a big hoax. The analysts who were praising these stocks on TV and the WSJ (giving them strong buy ratings) were all claiming these stocks were crap privately. This was revealed when Investment bank internal emails were made public. Not only that, but there were tons of accounting irregularities at all of these companies. It turns out that they were reporting earnings that did not exist. Enron is one example of false earnings. They used George Bush Jr.’s Harken energy technique to falsely inflate earnings.
Aloha Petroleum was sold in a controversial deal in which Harken's equity stake in Aloha was turned into a loan, thereby disguising financial loses. This questionable accounting technique, which can serve to inflate profits, was also used by Enron. It helped result in the infamous 2003 Enron scandal, when the fifth largest corporation in America at the time suddenly collapsed into bankruptcy.
Harken has attracted attention because of the role played in its affairs during the 1980s by George W. Bush, later the President of the United States. While a member of the company's board of directors, Bush sold stock in Harken on the 22nd of June, 1990, shortly before the company announced substantial losses. This transaction resulted in a U.S. Securities and Exchange Commission investigation of probable insider trading
George H.W. Bush’s other son Neil Bush got caught stealing during the Savings and Loan crisis as well. Neil was the head of an S&L bank called El Dorado savings. He was making huge loans to one of his own oil companies in which he was the executive. It was illegal to make loans from your own bank to your own company. That is why Neil did not disclose that he was an executive at the Oil company he was lending the money to. The bank lost a couple hundred million on this bad oil investment. They also lost a billion plus on other bad investments… Neil was found guilty for what he did, fortunately George Sr. went to war with Iraq right around the time Neil was found guilty and the entire matter was swept under the carpet. It is good to be the president’s son (maybe not).
MCI WorldCom and Global Crossing were using capacity swaps. No different than the Harken/Enron Energy scandal. They were booking earnings that did not exist. Mike Milken and Gary Winnick owned these two companies respectively (MCI and Global Crossing). Mike Milken and Gary Winnick were selling junk bonds during the S&L crisis. Milken is widely credited for popularizing the use of the junk bond. Gary was Mike’s salesman at Drexel Burnham and Lambert. Mike is also close friends with Carl Lindner who Charles Keating worked for at American Financial Group. Lindner then backed Keating’s American Continental Corporation. Lindner is a close ally of George W. Bush.
Lindner, a close ally of George W. Bush, secured the use of Great American Ball Park for Bush's re-election campaign on October 31, 2004, two days before the 2004 Presidential Election.
Mike’s junk bonds helped fuel silicone valley’s bio-technology and dot.com craze. Den of Thieves. Mike Milken and Gary Winnick both own large Jewish religious centers next door to one another in Los Angeles. Mike owns the largest Jewish temple in the United States known as Stephen S. Wise Temple. Right next door to that temple is Gary Winnick’s Skirball Jewish Cultural Center.
So the dot.com bubble burst and money went back into real estate. Creating the artificially inflated housing scheme that began this discussion. I do not follow the stock market and I have not seen where the stock markets levels are at for quite some time, but I would guess that it has probably been doing decent over the past two or three years. MCI Worldcom, Global Crossing, and Enron are all good investments compared to the investment I made my senior year at Berkeley. I invested in a company called Loral Space. They were supposed to be making satellites that flew to the moon. It can hardly be surprising I lost a pretty nice sum on this investment since nobody has ever flown a motorized vehicle of any kind to the moon. I remember looking at the cover of their quarterly earnings and there was a picture of a Satellite floating over planet earth on the cover of this report. That is how stupid I was after 21 + years of their finest institutions. I just decided to find out what ever happened to Loral space. They were acquired by MCI Worldcom and have since gone into voluntary bankruptcy. That does not mean anything- You can view their Web site to sea images of them launching space shuttles into space.
http://www.loral.com/
Loral's manufacturing business, Space Systems/ Loral (SS/L), is one of the world's largest designers and manufacturers of satellites and satellite systems for commercial and government users. Since the advent of the space age more than 50 years ago, SS/L has developed state-of-the-art spacecraft for applications that include satellite services, television broadcasting, direct-to-home (DTH) television services, broadband communications, military communications, wireless telephony, digital satellite radio, weather monitoring and air traffic management. SS/L is located in Palo Alto, Calif.
They are located right next door to Silicone Valley in Palo Alto. Check out the following article and then tell Me whether you think I made a good investment. Hopefully this helps to illuminate the pure stupidity of investing in the stock market.
http://hdreality.blogspot.com/2010/06/they-say-im-crazy.html
Inflation is an economic lynching of the poor. What inflation does is increase the cost of living. Those who are barely surviving end up suffering even worse. The cost of goods increases, but their minimum wage does not. The wealthy are able to keep up with the pace of inflation because they have savings. Disposable income that has been preserved generation after generation…They invest their money in the stock market. When I invested in the stock market I lost money because I was not cheating and people were intentionally cheating Me. The only people who make big money in the stock market are cheaters. Good people who manage to save a little money are going to find the stock market a bad bet. If you are not cheating when you invest in the stock market than you should be investing in the indexes. It is all total bullshit, but if you invest in those indices you should outpace inflation. The reason being is that the stock market is based on consumer confidence. The only thing that the Dow Jones, Nasdaq, and S&P 500 indices are supposed to do is create the illusion that they are doubling the rate of inflation. If you invest in individual equities you do not have a clue what is going on with these companies. You might invest in Revlon cosmetics with Ron Perlman and Mike Milken who are parking their losses in this particular equity, so they can write it off against gains in other investments. I wanted to sea how they explained what determines the Dow Jones rise and fall and this is the explanation that I found.
Even though it’s called the Dow Jones Industrial AVERAGE, they don’t simply add up the stock prices of the 30 companies and divide by 30. No, the average is price-weighted, meaning each stock influences the Dow in proportion to its share price. In order to account for stock splits (when a company’s existing shares are divided into multiple shares making, for instance, a $100 share worth 2 $50 shares, typically done to make shares seem more affordable when a company’s stock gets too high or higher than that of other companies in the same industry) and stock dividends (dividends made in stock pay out rather than cash), they concoct a Dow divisor by which the sum of the 30 companies prices is divided. That divisor is constantly changing depending on the stocks in the average, the splits and extra shares issued.
This sounds like a pretty advanced program that they have concocted. Remember that Rocket Scientist are supposed to be the best mathematician’s in the world and they have never made anything that works. When they make up a story about going to the Moon they claim that they sent a spacecraft that weighs 15 times the queen Marry at 122 times the speed of light to the Moon. This Dow Jones divisor is complete numbers BS. It is all one big Mirage (also known as a Ponzi Scheme or a House of Cards).
What if this writing were to catch a fire and I told everyone to take their money out of individual equities and start buying Dow Jones Diamonds because it’s returns will double inflation. Let’s sea how they describe these Diamonds:
When most investors talk about blue chip stocks, the companies appearing in the Dow Jones Industrial Average somehow always weave their way into the conversation. But is it possible to really "own the Dow" without spending a lot of money creating your own portfolio of these stocks?
That's exactly where the Dow Diamonds come into play. Basically the Dow Diamonds is an exchange traded fund that attempts to mirror the DJIA. Technically the fund's name is DIAMONDs Trust and its stock ticker is DIA. DIAMONDS Trust trades on the American Stock Exchange.
As previously mentioned, one of the biggest advantages of owning the Dow Diamonds is that you've instantly got a portfolio of stocks like you'd find in a mutual fund or index fund. However, because the Dow Diamonds is an exchange traded fund, you can trade shares in the Diamonds just like you trade shares of common stock.
Furthermore because you're able to buy this pre-packaged bundle of the DJIA, it's a very efficient way to diversify away the risk you'd have by buying stock in just one company. With the Diamonds, you've got the same exact 30 large cap stocks in the same price weighted average you'd find in the DJIA index itself.
Remember that a Diamond is quite literally the Earth’s shit. It is a gas crystal that goes through the Earth’s core until She finally takes a dump in the form of a diamond. What if everyone who invested in the Dow Jones individual securities decided to take their money out and invest in Diamonds? Technically the Dow Jones should remain flat in this scenario. More than likely the Dow index would fall. When people invest in these diamonds they are investing in nothing (or shit). If everyone were to invest in these Dow Jones diamonds this would not increase the Dow Index ticker. If they are purchasing tons of “Diamonds” than the price should skyrocket, but because they are investing in something fake and artificial the price of the Dow Jones will not reflect these purchases. In order to buy something, someone has to be selling. Who would sell something that everyone is buying? The only way that someone would sell in these circumstances is if they got a price that was above asking. The market would not be moving because it is a complete Mirage. One diamond should be purchasing one thirtieth of every stock, but the purchases would not reflect this. That is the reason I would not recommend people investing in Dow Jones Diamonds.
Look at the Dow Jones/AIG oil futures trading that dictates the price per barrel of oil. The oil company’s claim that they do not determine the price of their barrels, the futures traders do. How can people who do not own the barrels of oil dictate the price of oil? Billions of barrels of oil are traded every day and every single one of these transactions are trading on pure air (or pure BS). Every barrel of oil is owned by the oil companies. Futures traders are literally buying and selling barrels of oil that they do not own. If I were to recommend an investment it would be going long oil. I know this contradicts what I have just said, but if all of the investments are bull shit than this one is the cream of the crap. The price per barrel of oil needs to continually increase in order for inflation to continue (gasoline is inflations lifeblood). The whole world runs on oil and when the price of oil goes up the price of goods naturally increases (shipping and manufacturing costs go up). If the price of oil goes down the price of goods will go down. If the price of oil increases then you make more money on your futures than you pay for the increased cost of consumer goods. Here is the most important reason to invest in these so called oil futures…Every government official of every nation is heavily invested in oil. If the price of oil goes down than the greediest human beings that the world has ever known make less money.
Russia’s gigantic oil monopoly Gazprom is owned by Vladimir Putin. The Saudi Arabian Oil company Aramco is owned by the US oil companies and the Saudi “Royal” Family. The American oil companies now own all the Oil in Iraq and Kuwait. They owned it before we invaded, all of Iraq’s oil was already being drilled by Brown and Root’s Halliburton (Dick Cheney’s company). Saddam Hussein is still alive, he is a 33rd degree FreeMason. Halliburton is also drilling in the Caspian with Vladimir Putin’s Gazprom. Hugo Chavez owns all of the oil in Venezuela. We know who owns the oil in Texas, the Bush’s and the rest of the Rockefeller family. George H.W. Bush was close friends with Enron’s CEO Kenneth Lay. George’s father Prescott Bush helped fund the Nazi war effort through Brown Brothers Harriman. Remember Enron was heavily involved in oil futures trading. This is how the Bush’s and their partners at the major oil companies manipulate the price of oil. They do not leave it to the free markets to dictate the price of their oil. After Enron collapsed all trading and operations were moved over to another Houston based company known as Dynegy:
Dynegy Inc. (NYSE: DYN), based in Houston, Texas, United States, is a large owner and operator of power plants and a player in the natural gas liquids and coal business. The corporate headquarters are in Suite 5800 in the Wells Fargo Plaza at 1000 Louisiana Street in Downtown Houston.
Once known as "The Natural Gas Clearinghouse," Dynegy adopted the "New Economy" branding in 1998, after which the company structured itself in a manner similar to Enron, launching several business ventures, including an online trading platform and broadband communications services, which could be misconstrued of those of its larger rival.
They specialize in online trading and what are they trading? Oil futures…Dynegy is owned by Dyncorp:
DynCorp International[2] is a United States-based private military company (PMC) and aircraft maintenance company. DynCorp receives more than 96 percent of its $2 billion in annual revenues from the federal government.
The corporate headquarters are in Falls Church, Virginia. However, substantially all of the company's contracts are managed out of its office at Alliance Airport in Fort Worth, Texas.
Their headquarters are located next door to the CIA in Church falls Virginia. They keep the majority of their offices next door to their oil. These animals trade more than just oil:
According to whistleblower Ben Johnston, a former aircraft mechanic who worked for the company in Bosnia, Dyncorp employees and supervisors engaged in sex with 12 to 15 year old children, and sold them to each other as slaves. Ben Johnston ended up fired, forcing him into protective custody. According to Johnston, none of the girls were from Bosnia itself, but were imported by Dyncorp from Russia
That is why they are called traders.
If the people reading this went long oil they should not lose. Even if these traders tried to manipulate the barrels and have the price go down, then the price per gallon of oil would need to reflect this depreciation at the pump. Notice that the name of the oil futures trading is called Dow Jones AIG. AIG is an insurance company and most of the companies that are going long oil are hedging/insuring against inflation. What is the cause of inflation? Oil. Federal Express, UPS, trucking and shipping companies, etc. all buy these futures as insurance against the price of oil increasing. The reason going long oil traps Enron/Dynegy is because they cannot manipulate the price per barrel if everyone is going long. If they decide to lower the price per barrel of oil in order to get people to stop investing in oil, then all of the shipping companies that are going long oil will want cheaper gasoline to reflect these decreased per barrel costs. If there is no inflation you don’t have to invest your money and wall streets house of cards would collapse. Plus the greediest people in the world would no longer be making the kind of money they have grown accustomed to.
The previous investment scenario at first made cents to Me. But the more I analyze the situation the more I realize that it is all one gigantic illusion. I learn as I teach…On Friday June 18th oil closed trading at $77.00 a barrel. There are 42 gallons of gasoline per barrel. The average price per gallon of gasoline at the pump today is $3.00. If you multiplied $3.00 X 42 gallons it equals $126.00. The average American consumer is paying a $49.00 premium per barrel. American’s are paying $3.00 a gallon and the average governmental corporation is paying $1.83 per gallon…If truckers pay at the pump the oil companies credit back the difference to the shipping companies. If you are not a member of their big Nazi Fascist Bohemian club, you are going to get punished investing in their markets. Remember that Oil is natural and it is the earth’s lifeblood. The poison that they add to the oil creates gasoline and pollution. Consider how large their margins really are…People should email this article to others and try to have the “government” explain why We are paying a $49.00 premium at the pump.
To give you some perspective on how greedy these oil companies are- they all decided to go public. If you owned a business where the large majority of all of your expenses are paid for by the American taxpayer…Think about the war in Iraq that the US taxpayer covered the costs for…And the product that they are selling is perceived as invaluable to our way of life. People are completely addicted to oil and our entire economy runs on it. Why would the greediest people in the world take on new investors? The reason these companies go public is because they are the greediest people in the world. They want to sell worthless stock certificates to their customers so that they can steel more money from the unsuspecting chumps. These oil companies list themselves on every single stock exchange all over the world. What do they care, they do not pay their investors anything. When the stock market first began, investors were supposed to receive a piece of the earnings. It was called a dividend. Now that people have become so blinded by skuuul, television, and the business periodicals they are reading- now they just purchase worthless pieces of paper.
It amazes Me when I consider the stupidity of money and wall-street. It is one gigantic hustle. I would like to sea one instance where a major shareholder unloaded shares before their companies earnings report and the company surpassed analysts expectations...People are buying AAA bonds from Bank of America and Bank of America. USA AAA bonds are the same as Bank of America bonds (get it). There is no separation between government and corporate America. Think about what you know regarding the Bush’s and their connections to oil and big business. Dick Cheney was the vice president of Brown and Root/Halliburton. George Bush Sr. was the head of the CIA for an undisclosed period of time until he became vice president under Ronald Reagan for eight years. He went on to be president for another four years. When he stepped down his two sons were governors of the most vital ports in America (Florida and Texas) while Clinton was president for eight years. Then his son George Bush jr. became president for eight years. Jon Rockefeller III is a US congressman. Separation between business and government- PLEASE!
America’s deficit is larger than the amount of paper currency in existence worldwide. If America had to repay its debt in cash there would be no more trees left in the world. Yet this Country with the world’s largest debt has a AAA rating…What is a junk bond? Bank of America is billions in debt losing a billion a quarter and they also have a AAA debt rating. How is Bank of America billions in debt in the first place? They are holding over a trillion dollars that they pay no interest on. Everyone I know has money in banking, checking, and savings account in which they receive little to no interest. Bank of America then takes this money and lends it at 6% +. This is to say nothing for the 20 + percent returns they receive on their credit cards. The reason they are allowed to charge rates that are two times what would be considered usury rates by our government is because they are the government. If Bank of America has not figured out how to not lose billions a year, then they probably have some pretty stupid people running that company. They are as dumb as they are greedy (yikes).
What if I asked a Bank of America shareholder why their stock had a good day and its share price went up. If they are well educated (to me this means poorly educated) they might tell me that the job report came out bad (meaning lots of people lost their jobs) and this is good. The reason they believe this is good is because the FED is now going to cut interest rates…But why would this be good for Bank of America?
B of A is holding countless amounts of money in different banking accounts that they pay no interest on…When rates increase they make more money when they lend this money. Even if they were borrowing money from the FED- when rates increase the margins on their spreads increase also improving their returns. Too many people have received too much skuuuling. The world needs to stop buying what wall street is selling. What wall street sells today is the same thing it sold when it first start auctioning slaves…Slave labor and death.
