Government Corruption

Someone has suggested that even the best of intentions by the best and most honorable men are subject to corruption.  I tend to agree wholeheartedly.  Just look at the mess.  The U.S. Postal Service was established in 1775; after 234 years, it is broke.  Social Security was established in 1935; after 74 years, it is broke.  Fannie Mae was established in 1938; after 71 years, it is broke.  The War on Poverty was started in 1964; after 45 years, $1 trillion of our money is confiscated each year and transferred to "the poor" and they only want more.  Medicare and Medicaid were established in 1965; after 44 years, they are broke.  Freddie Mac was established in 1970; after 39 years, it is broke.  The Department of Energy was created in 1977 to lessen our dependence on foreign oil. It has ballooned to 16,000 employees with a budget of $24 billion a year and we import more oil than ever before; after 32 years, it is an abysmal failure.  Now, here comes the health care law.  I didn't bother to look for a picture to post with this blog. 

State of the Union

The U.S. hasn't been doing too well lately - what with two wars, fear of terrorists, and the recession that feels more like a depression. California has been doing even worse. There seems to be no end to the bad economic news. However, life does go on. Maybe the middle class will completely disappear. Perhaps China can start a foreign aid program to help us out. Who really knows? This topless woman seems to have no worries. Let's all be optimistic, just like she is.

Pot

A bill that would legalize marijuana in California cleared a committee vote Tuesday 4 to 3. They say the vote is symbolic because the bill cannot get to the assembly before the elections in November. Legislators think this is funny. Maybe that's why California is in the mess it's in? Lawmakers and judges entrusted to keep society safe and healthy do not take their duties seriously. Everyone just seems to work for a paycheck. Too bad. Even this topless woman knows better. Trust me on that.

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.

Music and Art

“Dave Brubeck, left, performs with Tony Bennett at George Wein's Carefusion Jazz Festival 55 in Newport, R.I. on Sunday, Aug. 9, 2009. Brubeck and Bennett performed 'That Old Black Magic,' a number they last did together for President Kennedy at the White House.” Brubeck is 88 and Tony Bennett is 83. I’ve never played with Brubeck but I have performed with Bennett. So, I ask myself, why should a life this good have to end? It does not seem fair, but you figure it out. I know nothing.

California' s trouble

From a story on the internet: “WASHINGTON (Reuters) – The White House on Tuesday dashed hopes that the federal government would help California overcome a mammoth budget crisis that has brought the state dangerously close to an economic meltdown, saying the state will have to solve the problem on its own. "It's obviously not an easy time for the state of California," White House spokesman Robert Gibbs told a briefing when asked if the administration would provide emergency financing for the state. "We'll continue to monitor the challenges that they have, but this budgetary problem unfortunately is one that they're going to have to solve," Gibbs said.” Pity the State of California. Perhaps as long as it doesn’t fall into the Pacific Ocean when the next earthquake hits, all is not lost. This woman does not care all that much - she doesn't live in California.

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?

Scary

The market is down - much further than I ever thought it would go. 8,000 would be the bottom - so I thought not too long ago. It's right now hovering around 7,300. It is really scary to see how scared investors are. What are they doing? Buying gold and pharmaceuticals and bonds and nothing else? What if this really turns into a depression? Then, to make matters worse, there is plenty of uncertainty in the global political sphere - wars and conflicts all over the place - Israel, Korea, Pakistan, Iran, and Africa in general, just to name five. What do you do with so many belligerent nations? There is definitely a scarcity of good government. Sooner or later, some one will tire of all this confusion and insecurity and urge a joining of strong forces - the reunification of church and state. That's the only thing that will keep unruly people in line. Europe will make a sharp turn to the right and probably catch everyone by surprise. The U.S. will simply keep playing games. Buy a house in Europe or Brazil or Argentina and good luck.

Frostbite

From Yahoo! News: “MONTPELIER, Vt. – The cold wave that stunned the nation's midsection expanded into the Northeast on Wednesday with subzero temperatures and biting wind that kept even some winter sports fans at home. The wind chill hit 33 below zero during the night at Massena, N.Y., and the National Weather Service predicted actual temperatures nearly that low in parts of the region by Thursday night. Winter-hardened people across northern New England bundled up amid warnings about how fast exposed skin can freeze. "Anyone who sends their kid out today is out of the running for parent of the year," said Eric Friedman, a spokesman for Mad River Glen ski area in Fayston, Vt. A frostbite caution sign was posted at the ticket office, but few skiers were there to see it because of the 5-below-zero cold, Friedman said.” When I lived up there, I went out for a stroll in 10 below zero weather. My walk lasted all of two minutes. This woman, of course, doesn't care - she lives in Puerto Rico.

Accountability? hahaha

From an investor newsletter - don't ask me which one - there are so many: "After receiving hundreds of billions of dollars in taxpayer-funded federal bailout money, the biggest U.S. banks say they can’t track how that money is being spent. Some of the banks are outright refusing to discuss the matter, a new study has found." Isn't this attitude just like the one that got us in this fine mess to begin with? Where's the government when you need it? Where is that famous bully pulpit I keep hearing about? Who is accountable? Hello? PLEASE. That photo shows a pressed wood violin. That's what the financial system is now made of - PRESSED WOOD. It used to be OAK.

Recession???

I stopped by Target, Wal-Mart, and JC Penney this afternoon to do some last minute shopping. The parking lots were full to the gills, filled to the rafters, standing room only inside. Many shelves were bare. So, I asked myself - where is this recession that economists keep talking about??? Maybe everywhere else except here? Washington should put a commission together to look into this mystery. I did notice the price of gas is at $1.60 now. That much is true, but everything else is still expensive. Where is the deflation I keep hearing about? The woman at left must be smiling because her unemployment check is huge? Or she has a very rich husband? I have no clue.

What bad economy???

I get out quite a bit. I see places - I hear stories - I read stories - I meet people. Every single day. From all accounts, the economy isn't doing well but I don't believe that at all and neither should you. Someone is trying to fool us. I see stores packed with customers. There are long lines everywhere. I see customers buying big ticket items. I see lots of people at banks - depositing big chunks of money. Every single day. I see that concerts with very expensive tickets get sold out. I see sporting events being filled to capacity. I see restaurants packed with people having a good time. Where is the bad economy the media is talking about???? NOT HERE, that's for sure.

Money and Markets

Money and Markets has produced a free one-hour video which you (one of my eight readers) might be interested in, especially if you're looking forward to some day receiving payments from your 401K pension.

Here is what the banking experts behind Money and Markets say:
"We NAME NAMES — 198 of the big banks we believe are most likely to fail, the 197 strongest banks in America, and the most solid brokers as well ...
We give you the simple, step-by-step instructions for finding out how safe your bank is even if it's not one of the 395 named in the X-List report ...
And we give you the four crucial guidelines to follow when choosing a bank to trust with your money." There is, of course, tons of other useful financial information in the video. Buy stocks and plenty of them, but make sure you're investing conservatively. Do not worry about the stock market. It can only go up.

Transparency

Pay no attention to the markets. The markets will be just fine - I don't want to repeat myself so much. In less than a year, everyone will be better off. The adjustments will have washed away all the dirty financial grime. The thing you should be paying attention to is the proposal to eliminate cash as an instrument for barter. The Europeans no longer trust the U.S., even if they act like they do. Keep your eyes on the November meeting of the G20. Your credit card will be your new ID. All of this in the name of financial transparency. Get a second opinion if you feel the need.

FEAR

So, the stock market is still falling despite the bailout legislation? The country (and the world) is saturated with economists - some great and famous - yet, only a very, very few predicted the credit disaster. Those who did were not paid attention to. Credit is driven by confidence and trust. Everyone knows that. When confidence wanes, leaving a vacuum, fear starts to take its place. People see doom and gloom behind every tree and around every corner. Politicians are scrambling to settle things down. Even the State of California is asking for a bailout. It seems nothing was learned from Great Depression days. I believe things will actually get better, but what will now happen is that people of all stripes will look to government for solutions. That means government control and power will grow tremendously. Here, it will be liberal power - sharply toward the left. The virus is in Europe also. There, the power will shift toward the right. That's my best guess. What do I know? Get a second opinion.

Never seen her

I was talking to a friend the other day about young ladies who like to rollerblade in their bikinis. She said she had never seen one, even though she spends a lot of time at the beach. Well, so where do these girls hang out? I have never seen one either. Do they just pose for publicity shots to make a fashion statement then vanish? It seems like it. If you see a real one, let me know. Also, see my blog post of September 8, 2008.