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. 

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. 

Obsession

Is it possible to get too caught up in the stock market - to treat it as you would a table card game like poker? I'm afraid so. It can become an obsession - like a beautiful woman or like fine liquor. There is nothing wrong with becoming obsessed, just be careful what you become addicted to. There are always at least two roads to travel - choose wisely. 

Wall Street Bankers

Let me tell you. Wall Street bankers have done a number on the USA. It's really a pity that legally, nobody can tell these men how much is too much. I heard a story the other day about one hedge fund manager who makes $900,000.00 per hour. Might that be true??? If this were 1789 and we were all French,....

Executed for stealing

China today executed a securities trader for stealing money from his company. It is what we call a white collar crime - non-violent. There is still money missing - about ten million - and he would not say where he stashed it. What would be the point of telling the authorities where the loot was and then letting them execute you??? Maybe he gave it to some charity? This topless woman knows nothing about this, by the way. I wonder what the Chinese would do to American Wall Street executives, such as Bernie Madoff. Ask them.

What corruption?

They say that corruption is hard to quantify and that is probably true. The papers say that Somalia is the most corrupt country in the world. Afghanistan is not far behind. What exactly happens when corruption occurs? For one thing, it engenders more corruption. One rotten apple can turn a whole barrel full of apples rotten, no? But let's say that there is only one corrupt person among many honest ones. That corrupt person takes a bribe for a service not rendered or a product not delivered. It gets in the way of productivity and denies the economic equation its purpose - fair trade. The same can be said of greed. Greed is another form of corruption. But, how does one quantify greed? Ask yourself: do we really need to? How does one quantify hate or love or generosity or sincerity or honesty? Perhaps this topless woman knows.

Indebted to China

Someone said that China is now the U.S.'s unofficial banker. They hold more U.S. Treasury bills than any other country. People who work at think tanks must be worried about this, though they are not saying anything - at least not in public. What would happen if the Chinese decided to cash in their Tbills? It has been said that when you make a bank your partner, the bank cannot afford to see you go bankrupt. They will therefore not cash all their bills at once. Perhaps they will opt for 100 billion at a time? The Chinese also converted all of their bills to one-year notes - from thirty year notes. I would not pretend to know why they did that. This topless woman does not know either.

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.

Free Enterprise

This is what happens when you are in debt: “WASHINGTON – The Treasury Department on Thursday is expected to order seven companies that have not paid back last year's government bailouts to halve their top executives' average compensation. The cuts apply to the 25 highest-paid executives at banks and other companies that received the most assistance, with salaries being slashed by as much as 90 percent, according to a person familiar with the matter. The seven companies are Bank of America Corp., American International Group Inc., Citigroup Inc., General Motors, GMAC, Chrysler and Chrysler Financial. Smaller companies and those that have repaid the bailout money, including Goldman Sachs Group Inc. and JPMorgan Chase & Co., are not affected.” Everyone knows that the capitalist free-enterprise system is designed to reward those who strive, but one little drawback is that even when you are super rich, nobody can tell you when you’ve had enough. Where does ambition end and greed begin? Where would you draw the line? Is that why Buffett gave most of his money to the Gates Foundation - to ease his conscience? All I know is, this topless woman has nothing to feel guilty about. She only has $200 in her back account.

Justice

From an internet news story: “BEIJING – China executed two businessmen for defrauding hundreds of investors out of more than $127 million, calling the scam a serious blow to social stability, state media said Thursday. China puts to death more people than any other country, although last month a high official for the Supreme People's Court, which reviews every death sentence, said the punishment should be used more sparingly. Though usually reserved for violent crimes, death sentences are also applied for nonviolent offenses that involve large sums of money or are seen to threaten social order.” I only have one question: If these men knew they could be executed for stealing large sums of money, why did they persist? And why didn’t they just get out of China and go hide somewhere? And, if they were so good at persuading people to let go of their money, why didn’t they come work in the U.S.? Here, you get about five years for a little crime like that. And the prison food is terrific, along with the minimum security accommodations. Our model has no opinion about this - she is just enjoying her tanning time. Please.

Affordable what?

From a story in the Wall Street Journal: “Carlos Araya used to order lobster, filet mignon and $200 bottles of red wine at the Palm Restaurant in midtown Manhattan. Now, he seats customers at its Tribeca branch. Nowadays, during Mr. Araya's late nights at the Palm, reminders of his old life crop up when former colleagues come in. Some are encouraging and offer hugs. Others sneer, he says. "The way they look at you, you know they're thinking negatively," he says. Some are laid-off like him, and ask if the restaurant is hiring.” Few people realize that the Federal government had a lot to do with the financial collapse on Wall Street. Deregulation? No. That is not the entire story. The real story is that the federal bureaucrats (back in the 90s) thought that affordable housing was the panacea for lots of social ills. It was pushed in such a big way that everybody bought into the myth and soon, like lemmings, even people who should have known better were in favor of putting people who could not afford homes into homes they could not afford. That created a housing bubble of historic proportions which eventually led to abuses on an unprecedented scale. The financial mess was created by no more than five or six people - all of them somewhat delusional - and everyone who just went along. People are afraid to tell their bosses that they are wrong.

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.

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?

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.