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Train Wreck

Most of you have known me for quite some time. You know that I am not going to chase higher stock prices when I see a train wreck coming. I flat out will not buy and you know that. Just like I never bought a single internet stock in the late 90’s (although I shorted many).

I have covered a number of topics in detail to spell out the crisis the United States remains in. I say remains in. The crisis is not over even though Wall Street and the financial press are trying to convince you that it was swept away. Just ask yourself why the Federal Reserve has interest rates at 0? That is an emergency rate, right? They have had it there for how long now? And is there any sign of that changing? Absolutely not! You don’t fix the damage from the biggest bubble in history in 12 short months! 

As promised in my last email I am going to try to further explain the ongoing bailout of the “too big to fail” banks. Many people think that TARP was the total bailout of the large banks. No, No, No and No! There is an ongoing bailout at the expense of taxpayers and savers. It is in the form of FASB 157 and the banksters ability to borrow from the Fed for nothing. Read More...

Imagine… I have a different point of view from that of the consensus!

I am going to hold off on my comments from Fred Hickey’s April report. They are in the letter I just mailed to managed accounts. When you read the letter, keep one thing in mind; Fred was the most accurate investor I know of over the last decade, and I followed my share of great investors over the last decade. Read More...

There are two types of financial press that are misleading. One type are the inept reports that go on the basis that if General Motors sells 2 more cars this month than last month the recession is over or if Mary Joe What’s-her-face has a cousin in Demoines who is thinking of buying a house the recession is over. The other type is the type that is all-out wrong. In other words, a bald-face lie. I’m just going to give recent examples here from David Rosenberg and Barry Ritholtz. Read More...