LTNs and MTNs

Even though only five or six people will read this, it's worth mentioning. One never knows. Coincidence is one of the secrets of life so, if just by pure dumb chance, the right person were to stumble across this blog post, we could end up with something worthwhile to do. Be that as it may, I have a buyer ready to purchase LTNs (which MUST be on Euroclear) or MTNs. Of course, I am just the intermediary but you cannot get to the buyer without me. Thank you so much. Enjoy the rest of your Sunday. 

Treasure in Santa Fe New Mexico

Nobody has said that they have found the Fenn Treasure in New Mexico so I guess there's still time for me to formulate a theory about where it is and go look for it. I just might be right. What have I got to lose? This is NOT breaking news so don't get excited. 

Dubai

I AM NOT a financial planner, or financial consultant, or registered commodities trader, or licensed stock broker, or anything of the kind. I can tell you though, that buying low and selling high always works in your favor. I read that BWMG is going to Dubai. The stock is still selling at .0005. If you buy 2,000,000 shares, it will set you back $1,000 plus whatever you pay in commissions. If you wait until the stock goes into real money, you will never be able to afford those shares. Even at ONE CENT, you will need $20,000 to purchase 2,000,000 shares.  Do I heed my own advice? You bet. Good luck to you. 

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.  

Future Value

In 1977, the third wheel in Apple Computer, sold his stake in the company for $2,300.  He thought the business would fail.  However, by 1980, sales were already at $117 million dollars.  By the end of 2012, his share would have been worth $58 BILLION.  The man now lives a quiet life in Nevada and has stated he made the best decision he could with the information available at the time.  That is an excuse for his monumental mistake.  The truth is he simply didn't BELIEVE in the enterprise.  Jobs and Wozniak had to stick it out – it was their company.  If you don’t believe in your own work and your own words, find something else to believe in.  

Stocks

From the 10/25/09 news: “NEW YORK (AP) -- Wall Street may be roaring again and manufacturers may see a bright future selling their wares in Asia, but for many Americans, it's still a downturn until the jobs come back. This week, earnings from several companies with deep ties to corporate payrolls, consumer demand and the labor market will show whether employers are hiring, firing or holding off on filling vacancies. Here's a closer look at the companies reporting and what their results can tell us about the job market: Monster Worldwide Inc. (job search); WellPoint Inc. and Aetna Inc. (health benefits); Apollo Group Inc. and DeVry Inc. (job training-education); International Paper Co. (product containers.)” This is good to know, even for this beautiful topless woman.

Charity from Venezuela

From a Yahoo! News story: CARACAS, Venezuela — “The Venezuelan government reversed course on Wednesday, announcing that its U.S. oil subsidiary (Citgo) will continue to provide free home heating oil to poor Americans. Critics of President Hugo Chavez had pummeled him for suspending the program. Among the beneficiaries of the 100 gallons of heating oil were 65 Indian tribes, including those in Alaska, Montana and South Dakota.” Perhaps Russia should do the same. The U.S. is not so proud that it would not accept foreign aid from them also. I’m sure of it.

Crystal Balls

From Business Week (the magazine): Some of the worst financial predictions for 2008 and you can see why: “1. "A very powerful and durable rally is in the works. But it may need another couple of days to lift off. Hold the fort and keep the faith!" — Richard Band, editor, Profitable Investing Letter, Mar. 27, 2008. 2. AIG "could have huge gains in the second quarter." — Bijan Moazami, analyst, Friedman, Billings, Ramsey, May 9, 2008. 3. "Freddie Mac and Fannie Mae are fundamentally sound.... I think they are in good shape going forward." — Barney Frank (D-Mass.), House Financial Services Committee Chairman, July 14, 2008. 4. "I'm not an economist, but I do believe that we're growing." — President George W. Bush, July 15, 2008. 5. "I think Bob Steel's the one guy I trust to turn this bank around, which is why I've told you on weakness to buy Wachovia." — Jim Cramer, CNBC commentator, Sept. 15, 2008. 6. "Existing-Home Sales to Trend Up in 2008" — Headline of a National Association of Realtors press release, Dec. 9, 2007. 7. "I think you'll see $150 a barrel [of oil] by the end of the year." — T. Boone Pickens, June 20, 2008. 8. "I expect there will be some failures.... I don't anticipate any serious problems of that sort among the large internationally active banks." — Ben Bernanke, Federal Reserve Chairman, Feb. 28, 2008. 9. "In today's regulatory environment, it's virtually impossible to violate rules." — Bernard Madoff, money manager, Oct. 20, 2007. 10. "There's growing evidence that parts of the debt markets...are coming back to life." — Peter Coy and Mara Der Hovanesian, Business Week, Oct. 1, 2007” THE WOMAN AT LEFT is saying something like "SAY WHAT?"

Santa Claus

Here’s a photo of Bernie – Bernie Madoff, that is. He looks in good spirits, though they say that at the time the picture was taken, he already knew he was in deep trouble. Looks can be deceiving, no? He could almost pass for a guy I met at the Detroit Yacht Club many years ago, when it still existed. Pretensions are among the most useless things around, except to a con artist. They say he used to be fastidious and obsessive – nothing but the best for him. I wonder if his family knew he was just a fraud – as fake as Santa Claus. Judging from this photo, he would probably have made a good Santa Claus. I don’t really know.

Who knew??

A Congressional hearing into the workings of the S.E.C. is scheduled soon. People want to know how it was the S.E.C. failed to heed warnings about scammers on Wall Street. Were these smart people just duped??? I don't think so. I believe they chose to look the other way, just like Enron's auditors. Remember them (Arthur Anderson.)? Remember the Kansas City building inspectors and the New York City building inspectors who ignored problems in structures that later failed? Same thing. I once asked a CPA friend how it was that Mexico enjoyed such a high level of corruption in government if the books were audited? His response: "The auditors are in on it." OBVIOUSLY. This woman is looking the other way, but I'm pretty sure she's not an auditor.

In the old days

I found this on some website I do not recall. It is - believe it or not - a photo of a fashion show. All we see is one model but the site said it was taken because someone in the family happened to be there. As you can appreciate, there are no runways for the models. The crowd was not there for the show, I'm sure, so the extracurricular event is beyond me. It was supposedly taken in 1958, when women still wore swimsuits. How odd!!!

Listen up

I have been advising my eight readers to buy stocks - 100,000 shares to start - as long as they are safe, conservative companies they're buying into. I also said the market has gone as low as it's going to go - 8500 - give or take. Today, the market went up by almost 900 points - 10%. Now, we continue to hear dire predictions about the housing sector. The housing sector will hit bottom in about three months. Some say it won't hit bottom for another year or more. I say no, no, no - three months max. Why does the media enjoy scaring people? Because FEAR sells. The lady at left proves the economy is about to right itself. Hemlines are a better indicator of the state of the economy than any ECONOMIST. Remember that.

Simple Finance 101

Herewith, a few words of advice for dealing with the recession and personal financial losses. I copied it from I don't remember where. Buy lots of cheap stocks too, if you have the money. Stocks can only go up, in the long term. My simple formula for financial security? Always, always live below your means and save the difference.

Deal with Debt: If you have debt, pay it down. Better still, eliminate it completely. Going forward, pay cash for everything you buy. That may keep you from making some purchases; if so, that's good.
Downsize Your Life - Before it Downsizes You: Differentiate between things that you want, and things that you actually need. By streamlining your life, you'll rediscover that some "things" (time with your family) are more important than other things (a plasma TV).
Stay in, Don't Cash Out: If you're a decade or more away from retirement, everything we know about market probabilities and recorded history suggests the better option is staying in the market, as opposed to cashing out. But don't go crazy, either. We also know that balanced funds, hard assets and a solid emphasis on income offer the best shot at higher returns over time.
Be Real: If you're already retired, and your "nest egg" has been eviscerated, conduct a realistic appraisal of your financing needs. If you realize you can't risk losing part - or all - of the money that you still have invested in the markets, talk to your financial advisor immediately. It may be better to pull out of the markets and move on to safer choices.

World Finance

OK, now we know. The market is not going to get better any time soon. If people want to panic, they will panic. If they want to riot, they will riot. French President Zarkozy has already made some pronouncement about the need to change the world financial structure - whatever that is. The meaning behind that is ominous. It has become clear that the U.S. has - up to now - exerted too much influence over world money markets. When things have gone sour here, they then have soured the rest of the world financial order. That is no longer acceptable. He didn't say it in so many words but that's what he meant. It is now clear that Europe does not want to be held hostage by economic or financial conditions in the U.S. A meeting will be held some time in November to initiate changes - whatever those may be.

The lack of transparency is being held up as one of the key issues. As a result, it may well come to pass that cash will be eliminated as an exchange medium for buying and selling. Perhaps only banks will be allowed to transact cash. You and I will need credit cards. Electronic transactions is the only way to keep everything transparent. It will also cut down on the crime rate since every dime you have will have to be accounted for. Pretty clever. Let's see what happens. In the meantime, buy the cheapest stocks you can find.

Einstein and success

I was having lunch with a friend yesterday (Wednesday) noon. I happened to mention that I was going out of town next week - it's the only week between now and December 15 that I can travel. Too much going on in the orchestra business. She wanted to know where I was going and with whom. I told her she didn't need to know but that it was business, not pleasure, and she was not offended. She knows how blunt I can be - besides, she likes me way too much to be offended. Anyway, I told her I would explain with a quote from Einstein. He said the secrets of success were three - imagination, work, and keep your mouth shut. I think it's good advice.

Timid Reporter interviews Jimmy Cayne

TR: Good afternoon. Are you Jimmy Cayne?
JC: Who are you?
TR: I’m the Timid Reporter. I have an appointment.
JC: Since when? Nobody told me anything about it. Are you with the media?
TR: Yes, sir, the Coffee Club Newsletter.
JC: What is that, a financial paper of some sort?
TR: No sir, it’s the company in-house newsletter for coffee drinkers and subscribers.
JC: That doesn’t tell me a thing little man. How many readers do you have?
TR: Eight.
JC: This must be some sort of joke. Get out - I have a very important bridge game to play in an hour.
TR: But, don’t you care what happens to your company?
JC: What company? I have all my money in European stocks.
TR: Bear Stearns.
JC: Oh, that company. I’m no longer in charge. Go talk to Alan.
TR: Alan who?
JC: Alan Schwartz. Don’t you know anything?
TR: Yes, of course. Mr. Schwartz. I tried talking to him yesterday but he sent me to you.
JC: I don’t have any time for this. I have nothing more to do with Stearns. Leave now or I’ll have to call security.
TR: I’m not leaving – the butler told me how you win at bridge.
JC: Ok, sit over there. I’ll give you ten minutes.
TR: I just need five. I don’t have enough questions for ten. I do want a couple of beers please.
JC: Sure, I’ll have James bring them. Push that red button on your chair to summon him.
TR: Ok.
JC: Now, back to your questions.
TR: My readers would like to know how it is that while the company is losing so much money, there’s always enough to pay all the directors huge salaries.
JC: That’s not hard to answer. Do you know anything about hedge funds?
TR: No.
JC: Good. How about short-term un-liquid periodic indexed debenture funds?
TR: No.
JC: Good. We call those STUPID funds, for short, by the way.
TR: I’m with you.
JC: Well, in the banking business, we’re constantly playing one set of funds against another. It’s sort of like betting the red and the black at the same time.
TR: I don’t understand.
JC: Don’t you ever gamble?
TR: No.
JC: No wonder. Let me try to explain. The reason we get paid so much money is that we are the only ones in the world who can handle the ultra complex processes of money management. I have barely scratched the surface and you are already at a loss.
TR: In more ways than one.
JC: Well, on top of that, there’s thousands of funds and hundreds of types of funds. On top of that, the game is on a global scale.
TR: So, it’s a lot of work?
JC: You have no idea, my friend. Do you ever invest?
TR: I have a savings account.
JC: You need more than that. If I had time, I would share a good tip with you.
TR: I’ll talk to the butler again if you don’t tell me. I want to make some money.
JC: Ok, ok, but you can’t print any of it.
TR: I won’t.
JC: Look up Mr. Octavian Shin in the Paris phone book. He is listed.
TR: Then what?
JC: Tell him client number 13 sent you. He will then give you the code for a Russian energy stock that pays 790%, guaranteed. You’ll be a millionaire in no time, especially the way oil has been going up lately.
TR: How much should I put in?
JC: Ten thousand to start.
TR: I only have two hundred.
JC: Well, I can’t help you there.
TR: You can lend me the difference.
JC: I don’t make personal loans. Talk to Alan - he’s the risk taker.
TR: You’re the one who cheats at bridge.
JC: Ok, ok. I’ll write you a check.
TR: The check won’t bounce?
JC: It’s not a Bear Stearns check.
TR: I am grateful to you, Mr. Cayne.
JC: Remember, you just have to know where to park your money.
TR: I think I learned a lot today.
JC: Please give my kind regards to your eight readers. Have a nice day, sir. James will show you out.
TR: Thank you.

Finance for kids

I cannot stress this enough - always live below your means. Whether you make $1000 or $100,000 a month, always spend less than you earn - if possible, a lot less. A word of advice to the young - take finance courses in high school and online. Save money - always save. If you don't, the person you borrow from will own you. Avoid impulse buying. I know that buying stuff makes one feel good. Find another way to feel good. Remember, every dollar you spend means you have just transferred your wealth into somebody else's pocket. You'll find that if you save for a rainy day, that rainy day will never come. Why? Because you'll be ready for it. That's my best guess.