BUY LOW

This photo shows almost the ENTIRETY of Microsoft in 1978.  In 2012, the company had 94,400 employees.  Microsoft was founded in 1975 but didn’t go PUBLIC until 11 years later.  In between, a lot of people had a chance to invest in Microsoft – to buy shares cheaply.  Those who BELIEVED did, but those who didn’t believe, just shrugged and stayed happy with what they had.  They probably thought the company would stay small.  Would you have invested in these young people?  How much of your money would you have risked?  Of course, when you are an insider you can see things a lot more easily.  From the outside, you hardly see anything other than reports.  The insiders saw how much effort the people in charge at Microsoft put into the business.  By the look of things, it was bound to succeed so the insiders had NO EXCUSE for not buying stock in the company.  

BWMG stock

REMEMBER, I am NOT a licensed commodities trader or stock seller or certified financial adviser or anything of the sort. ONLY invest if you can afford to lose every penny you put in the stocks you buy, whether they are Microsoft or BWMG. The stock I have been pushing here (BWMG) is available at a very, very low price. It is so low that almost anyone can afford to buy 500,000 shares.  The price (as of 11:30 this morning EST) is holding steady at .0008 per share.  That's a good thing. Depending on which broker you deal with, 500,000 shares will set you back about $420 dollars. If the price were at 2 cents, it might be too risky for most of you since you would be shelling out $10,000 for the same number of shares (500,000) and that is a very long shot for spur-of-the-moment speculation. Most of you can't shell out $10,000 just for the sheer hell of it. HOWEVER, at .0008, BWMG is still too attractive to pass up, even for the very smallest investor. Good luck. 

How to make more money

Remember, I AM NOT a licensed commodities trader, stock broker, financial adviser or ANYTHING of the sort. 
Yesterday, I posted regarding a penny stock - BWMG; in fact, at this point, this particular stock does not even qualify as a penny stock - it is selling at .0008 per share, which is not even one-tenth of a penny. THAT is a great thing. I pointed out that if you invested $250 to purchase 500,000 (that's right, 500,000) shares of this stock you could make a nice pile of cash if the stock moved to FIFTY CENTS per share. It has previously been at $1.90 per share. It was selling at .0005 yesterday and has gone up 53% already. Ok, what that means is that your $250 investment has already paid you $150, AND you still own all the stock you purchased. If you had chosen to leave your $250 in your favorite bank, the BANK would have paid you ONE PENNY. But, let's be conservative and assume that the stock will move more slowly. Let us assume it can go to .05 (five cents per share) in a month. Your $250 investment will have paid you $25,000 by the end of January, 2013. Another thing: it is FAR easier for an affordable stock like this to move 10000% than any blue chip. In fact, no blue chip has ever moved up 10,000%. Nor have precious metals, diamonds, or mining stocks. If this particular stock moves just another 50% by tomorrow or this afternoon, you will have gotten your 500,000 shares for free!!! Are you with me so far? Good luck. 

Debt and Futures

A couple of guys just won the Nobel for Economics. We still have very high unemployment and these guys don't have a clue how to create jobs. One of them said he would sit on his money for a while. Sitting on money will not create a single job. Spending it will. The problem is two-fold: too much debt and the futures market. Futures are like the gambling aspect of the economy, really meant only for speculators, which means it creates nothing - no products, no services. When losses occur, someone is left holding the bag which then means a debt that goes unpaid and is written off. That takes money out of the economy without giving anything back in return. I'm only guessing, of course. Have a nice day.

Construction business

As you know - I'm sure you do - many businesses sometimes benefit from the urgent needs of others. Doctors do, nurses, paramedics, ambulance services, funeral homes - you get the picture. A business that is sure to be in demand is construction and all construction suppliers. Why? It seems to me that destructive earthquakes and floods are becoming more and more numerous. The more they destroy, the more rebuilding needs to be done. Food suppliers also make extra money after disasters, especially when crops are destroyed. A word to the wise as they say.

Freedom or money?

Did you hear about the Gallup poll conducted in 165 countries? It asked the people whether they would like to live in another country if they had the chance. 10% of Asians said they would. 38% of Africans said the same thing. The countries of choice were the U.S., Canada, Spain, Saudi Arabia, France, Germany, Australia, and Britain. Were these people thinking about freedom and democracy or just prosperity? It is very normal for people to want to do well and to be given the chance to prosper. One wonders why most political leaders refuse to acknowledge that. For instance, this topless woman just wants to be left alone. She's not really bothering anyone.

Another Wal-Mart

From a Yahoo! News story: “FRANKFURT (AFP) – Sales women paid five Euros (6.6 dollars) an hour, Asian subcontractors with dubious practices, and counters in the shape of swastikas -- in Germany the success of textile discounter Kik has kicked up a storm. In all, 3,500 Kik workers in Germany, of a total 15,000 worldwide, are paid five Euros per hour and receive the strict minimum in state health and pension benefits according to the services trade union Verdi. "Our workers might have to do more than others, but in exchange they have a secure job," the co-founder of Kik, Stefan Heinig, told German media. In nearly 15 years of activity, Kik, which is majority owned by the German distributor Tengelmann, has steadily gained market share and posted sales of 1.4 billion Euros last year. In Germany or in Eastern Europe, where the company is expanding, the group targets families with kids, "thrifty people and socially weak people," according to its Internet site. According to testimony provided by Verdi member Henrike Greven, staff are watched closely, their bags and even their cars are regularly inspected. At suppliers, such as in Bangladesh, clothing sewers must sometimes work seven days a week at jobs that do not pay a living wage and that have been slammed by the "Campaign for clean clothes." Some are said to employ children. Heinig has acknowledged that could not be ruled out. Kik rejects charges by antifascist Internet sites which call it "a Nazi store." In 2007, clients were shocked to find counters were shaped like swastikas, a symbol used by Nazis and which could be seen in Frankfurt. "It is a completely normal presentation in retail," a spokeswoman said. She said the chain has never been condemned by a court and stressed Kik's commitment "against racism."
Well, well – like they say, there’s no such thing as bad publicity. I had never heard of this Kik thing until today. People, as usual, will always have their priorities in this order: Commerce, Country, and finally, Church. Who cares if the products are sewn by little children? They are cheap and – to the customer - that’s all that matters. Like Clinton said, we’re not about to let a matter like human rights get in the way of our trade negotiations with the Chinese.

What's up?

From a Yahoo! News story: “NEW YORK (Reuters) – Stocks climbed on Tuesday, driving the S&P 500 to its best month since October 2002. Upbeat news from Europe set the tone for financials, helping them recover much of Monday's losses and continue a recent robust rally after British bank Barclays (BARC.L) declined to take part in a government asset-protection plan. Even as the broad S&P 500 rose 8.5 percent in March for its best one-month percentage gain since October 2002, uncertainty about the struggling economy left the benchmark U.S. stock index down 11.7 percent for the first quarter.” I think this is rather dumb. Doesn’t anyone adjust for the change in the average? 8.5 percent sounds like a lot but 8.5 percent of 1,000 is a lot less than 8.5 percent of 10,000. There is no reason to smile. Please.

China again

From a Yahoo! News story: “BEIJING – China is calling for a new global currency to replace the dominant dollar, showing a growing assertiveness on revamping the world economy ahead of next week's London summit on the financial crisis. The surprise proposal by Beijing's central bank governor reflects unease about its vast holdings of U.S. government bonds and adds to Chinese pressure to overhaul a global financial system dominated by the dollar and Western governments. The world economic crisis shows the "inherent vulnerabilities and systemic risks in the existing international monetary system," Gov. Zhou Xiaochuan said in an essay released Monday by the bank. He recommended creating a currency made up a basket of global currencies and controlled by the International Monetary Fund and said it would help "to achieve the objective of safeguarding global economic and financial stability." Zhou did not mention the dollar by name. But in an unusual step, the essay was published in both Chinese and English, making clear it was meant for a foreign audience.” I told you so.

The boss

From a Yahoo! News story: “BEIJING – China's premier didn't say it in so many words, but the implied warning to Washington was blunt: Don't devalue the dollar through reckless spending. Premier Wen Jiabao's message is unlikely to be misunderstood at the White House. It is counting on Beijing to help pay for its stimulus package by buying U.S. bonds. China already is Washington's biggest foreign creditor, with an estimated $1 trillion in U.S. government debt. A weaker dollar would erode the value of those assets. "Of course we are concerned about the safety of our assets. To be honest, I'm a little bit worried," Wen said at a news conference Friday after the closing of China's annual legislative session. "I would like to call on the United States to honor its words, stay a credible nation and ensure the safety of Chinese assets." I told you so.

Madoff again

From a Yahoo! News story: “Madoff pleaded guilty Thursday to 11 charges, including fraud, perjury and money laundering, in what could be the biggest swindle in Wall Street history. He faces a maximum sentence of 150 years in prison, and the judge immediately jailed him. In arguing for his release, Madoff's lawyers say they would have a difficult time preparing for his sentencing without the ability to see him frequently to review his finances. They say they expect Madoff will be kept in solitary confinement, with limited contact with his lawyers, at the Metropolitan Correctional Center in Manhattan. They point out that Madoff did not flee after his December arrest, even though he "was always cognizant of the fact that he would die in prison." All of this was avoidable. Why does a swindler swindle anyway? Because it's so much fun? A game, perhaps?

Responsible

From an investment newsletter (Daily Wealth) by Dr. Steve Sjuggerud: “Government policy shouldn't be this hard or this disastrous. Most of the time, the right answers for government come if you just think about it as if it were your family or your own business. For example, if it were your own money, would you take a private plane 365 times in two years to commute to work? Or would you take all of your family's money and borrow as much money as humanly possible from other family members to buy a fleet of brand new Hummers – destined to fall in value? Whenever you get confused about what the government is up to, here's a little secret for you... Just take it back to the basics. Simply ask yourself this: If this were my family, or my business, would I spend my money this way? Why can't governments from the smallest municipality all the way to the new administration abide by that simple standard?” This is something to think about, no?

USOIL

More grim news from Yahoo! News: “U.S. crude stocks have risen by 27 million barrels over the past month and on Wednesday, analysts expect that the government will report that trend has continued. Crude inventories could grow by as much as 3.4 million barrels, according to the average of estimates in a survey of analysts by Platts, the energy information arm of McGraw-Hill Cos. That has not led to savings at the gas pump for many motorists, however. Refiners have cut production because of falling demand, and retail gas prices have been rising. On Tuesday, the average national retail price for a gallon of gasoline rose less than a penny to $1.92. That's 13.6 cents more per gallon than a month ago even though crude prices have fallen more than $6 per barrel in the same time.” How annoying. Crude prices drop by a lot but the price at the pump goes up. That’s manipulation. Since refiners have to keep making nice profits, they will not pass any savings along to consumers so (just like OPEC) they cut production in order to affect the supply side of the equation: LESS SUPPLY EQUALS HIGHER PRICE since the demand is still there, relatively unchanged. When they cut production, guess what happens: PEOPLE LOSE JOBS. Essentially, gasoline prices are maintained on the backs of people who need their jobs. There’s a morality lesson there somewhere if only I could find it. The U.S. government needs to buy as much oil as possible right now and put it in reserves. 27 million barrels is really not that much. In fact, compared to consumption, it’s nothing. It is time to NATIONALIZE the oil industry. We are almost there. PLEASE.

Trust has left the building

From Yahoo! News: “After Geithner's announcement, stock prices fell further and the dollar extended losses while prices for U.S. Treasury debt securities extended gains. James Ellman, President of Seacliff Capital in San Francisco, said: "Investors want clarity, simplicity, and resolution. This plan is seen as convoluted, obfuscating, and clouded." Geithner acknowledged deep skepticism has developed over the fairness and efficiency of a $700-billion bank bailout program approved by Congress in October. He said leaders of some financial institutions that have received money had squandered the good faith that is needed to make the bank rescue effective. "The spectacle of huge amounts of taxpayer money being provided to the same institutions that helped cause the crisis, with limited transparency and oversight, added to public distrust," Geithner said. The revamped approach to the government's financial rescue war chest would use $100 billion to cover risks the Fed would take in expanding a $200 billion program supporting consumer and small business lending to a $1 trillion program that also supports an array of mortgage-related assets. Markets appeared caught off balance by some of the measures that Geithner offered.”
I guess the psychology is now something like what the financial debacle brought to light: If it’s too complex to understand, don’t buy it. One cannot put too high a price on trust, confidence, and honesty. Perhaps those values are the true backbone of the economy? Who really knows? Is there anyone out there who has some credibility with the big investors? PLEASE.

Nonsense

Does anyone really know the stock market? Of course not. Nearly 600,000 jobs were lost in January and the market went up by more than 200 points. If someone with an invisible hypodermic needle went around injecting investors with a good dose of optimism, the market would go up no matter what. That's what happened this Friday, no?

Riots in Paris

I'm sure you noticed that a few Parisians rioted yesterday because they thought they were not getting a fair shake in their government's plans to easy the economic downturn in France - they thought the banks were getting all the benefits and they were getting nothing but a debt burden. The guys who created this mess were getting taken care of nicely and they were being ignored. I would not know. New Yorkers will not riot like that, unless, of course, they start running out of things to eat. This topless woman does not care either way - she lives in Rio.

DEBT

From a prescient newsletter: By Porter Stansberry: "This is how America ends – with the lie that we all can live at the expense of our neighbor and borrow endlessly. Rather than simply face a downturn in the economy, we plan to borrow trillions of dollars our children and grandchildren will be forced to repay. Rather than let all those people and institutions that took on too much debt (like GM) be liquidated and restructured, we plan to risk a hyperinflation. Rather than insist homeowners who can't afford their mortgages lose their homes, we would jeopardize the credit rating of the country. It is all madness. None of the government's bailout plans will solve any of the problems. The government can only shift the burden of the failures. Instead of bondholders and shareholders being wiped out, taxpayers are put on the hook. These actions will temporarily resuscitate the economy – but cause a permanent decline in the value of the dollar." If the first and second lienholders foreclose on the U.S. Treasury, we can all go wash dishes in China and Russia and Quatar and other foreign places in order to work off the debt to them. No problem.

The few

There is some sort of pattern about this. Cortez conquered more than 300,000 Aztecs with 400 Spaniards and a few thousand Indian mercenaries. Enron was brought low by the actions of fewer than a dozen men. President Nixon resigned and caused a crisis after the Watergate mess planned by a few men. Bernie Madoff caused the collapse of several financial entities by paying out much more than he was taking in, losing 30 billion in the process. Now, Wall Street has collapsed and many banks are insolvent due to the actions of a handful of men. The national economy is in dire straits because a few men thought there was no end to the flow of good money available for bad investments. What next? Will crops fail, too? Are the farms in the hands of a few? Pictures at 11:00.

China

There's this story on the net about a statement by the new Secretary of the Treasury having to do with China's manipulation of its currency so that their exports have an unfair advantage over domestic products. It's been like that for quite some time. However, this is not a good time to be making statements like that. The old rule still holds true: never negotiate from a position of weakness. "The statement, which is certain to anger the Chinese government, comes at a particularly sensitive time, with economies in both the United States and China weakening and tensions already rising around the globe over trade. The United States, moreover, is increasingly dependent on China to finance its ballooning deficit." So said the New York Times. It will get interesting, to say the least.

Adsense

From the news wires: “Google Inc. (GOOG) said yesterday (Tuesday) that it would end its Print Ads program on February 28, Reuters reported. The program was intended to create a new revenue stream for newspapers, but was not having the desired impact and fell by the wayside as Google retrenched amid the current global downturn.” This is good news for those of us who depend on Adsense to earn enough to keep our heads above water, no? Of course, if you read the blog but don’t click on an ad, it doesn’t do anyone any good. This woman appears skeptical – for no good reason.