The truth from behind the curtain...

I found this article on the Daily Kos. I read this periodically and find the information quite interesting. I thought I would pass this one on...

Jim Cramer Uses CNBC to Manipulate Stocks
by TocqueDeville
Thu Mar 05, 2009 at 04:56:48 PM PDT

I've been waiting for a good time to bring this story to Daily Kos and, since it's CNBC day (or week hopefully), I figured now would be a good time.

By now, everyone should have heard about the ongoing war that CNBC is waging against the Obama administration and its plans revamp the economy. From it's constant anti-Obama propaganda and commentary to its shady PR stunt to manufacture a bogus uprising against Obama's mortgage plan, CNBC has been working overtime as a propaganda front against the Obama agenda.

And now, Jon Stewart has joined in for some good fun. But you haven't seen real fun until you've immersed yourself into the story of Deep Capture.

* TocqueDeville's diary :: ::
*

This rabbit hole involves the thugs surrounding Jim Cramer and some of the top financial "journalists" from the New York Times, WSJ, Fortune magazine and BusinessWeek, top hedge funds, the Mafia, and the DTCC. It also includes "blackmail, smear campaigns, espionage, fraud, harassment, extortion, bribery, rumor-mongering, sabotage, off-shore money laundering, political cronyism, frivolous lawsuits, witness tampering, biased financial research, false identities, bogus credit ratings, bribery, libelous blogs, bad science, forgery, wiretapping, counterfeiting, collusion, lying, cheating, threats and theft."

And if that wasn't fun enough, it may be the underlying story of what collapsed the entire, global banking system or at least served as the catalyst for the collapse.

Unfortunately, this story is so rich and multi-dimensional that I cannot possibly hope to do it justice here. So I will primarily focus on the financial media angle and, specifically, Jim Cramer and his thug cronies.

The story begins when a very highly respected journalist and business editor for the Columbia Journalism Review, Mark Mitchell, decides to look into allegations made by the CEO of Overstock.com, that some top hedge fund managers, in cahoots with a circle of financial analyst and reporters, had conspired to make a lot of money by betting short on companies and then systematically destroying those companies by spreading false negative information about them and employing other tactics such as flooding the market with "phantom shares" to drive down a stocks value.

To understand this you have to understand how short selling works. A short seller will borrow stock (say at $10) and then sell it immediately and pocket the money ($10). Then, when the company's stock value plummets ($1), they buy it at its deflated value and pocket the difference ($9). This is perfectly legal. But there's another variety that takes place because of a flaw in the system.

This is where a short seller sells stock that they haven't actually borrowed yet. There are loopholes that allow shorters to do this legally, but those loopholes have allowed the practice to be abused - which is illegal. Therefore, it is quite easy to fraudulently put on the open market shares of stock that do not, nor ever will, exist. These phantom shares do nothing but crash the value of a stock and therefore make legitimate short transactions highly profitable.

This is what Overstock CEO Patrick Byrne had discovered had been done to his company. Naked short selling combined with bogus financial analysis, lies and rumors propagated by CNBC reporters all served to trash his company's stock. So he decided to fight back. He gave a big conference call presentation to a bunch of corporate CEOs and broke the story. That's when Mark Mitchell comes in. (For the record, Byrne is a Republican. I don't much care for him. But this is completely irrelevant to this story.)

To the 500 Wall Street honchos who listened in to this conference call, Patrick said that a network of miscreants was using a variety of tactics – including naked short selling (phantom stock) – to destroy public companies for profit. He said this scheme had the potential to crash the financial markets, but that the SEC did nothing because the SEC had been compromised – or "captured" – by unsavory operators on Wall Street.

In January 2006, I [Mark Mitchell] was working as an editor for the Columbia Journalism Review, a well-respected ( if somewhat dowdy) magazine devoted to media criticism. Patrick had claimed that some prominent journalists were "corrupt" and were working with prominent hedge funds to cover up the naked short selling scandal, so I called to discuss.

Patrick picked up the phone and said: "Chasing this story will take you down a rabbit hole with no end." He said that the story had it all – diabolical billionaires, phantom stock, dishonest journalists, crooked lawyers, black box organizations on Wall Street, and a crime that could very well cause a meltdown of our financial system [This was in 2006].

Not only that, Patrick said, but "the Mafia is involved, too."

Well, Patrick seemed basically sane. I decided to write a story about the basically sane CEO who was fighting the media on an important financial issue while harboring some eccentric notions about the Mafia.

I figured it would take a week.
* * * * * * * *

Months later, my desk was buried under evidence of short seller miscreancy, I had done nothing but investigate this story since the day I first called Patrick, and I had just gone to a topless club to meet a self-professed mobster who told me all about a stockbroker who had peddled phantom shares for the Russian Mafia and the Genovese organized crime family.

Heh, it gets better. But, again, way too long to address here. So back to the media angle:. Here's Mitchell later on:

I have analyzed well over a thousand stories written by this clique of journalists. The vast majority of them were sourced from a small group of short-sellers who are also friends of Cramer. Other popular sources for this group of journalists include convicted felons, mobsters, dubious private investigators, crooked lawyers, hired stock bashers, and gun-toting goons - most of whom are tied to the Cramer constellation of short-sellers.

Some of the stories written by these reporters are accurate enough. But many are not. The journalists misconstrue data with seemingly purposeful intent. They exaggerate and obfuscate. They publish innuendo or merely repeat, Deus Optimus Maximus, the words of their hedge fund and criminal friends. A single negative story by one of these reporter-thugs can send a company’s stock tumbling by more than 50% — pure profit for their hedge fund sources, who of course sell the company short (often right before the articles are published). Meanwhile, an overwhelming majority of the companies targeted by these journalists will also be the victims of phantom stock selling and other shenanigans. The journalists do not mention this in their stories, and in fact go out of their way to deny that phantom stock exists.

Anyone who says otherwise is subjected to a vicious media smear.

To fully appreciate the Jim Cramer angle a little journey to his past is in order. This is from Cramer himself:

"We had it down to a science in 1992: my wife would pick stocks that technically looked ready to go up, or she would keep track of merchandise to see what was down to tag ends. She would then generate a list of stocks that could move quickly on good news. Jeff would then go to work calling the companies to try to find anything good we could say about them. I would call the analysts to see I they were hearing anything. When we found a stock that looked ready technically to break out, or where the supply had been mopped up, and Jeff found something positive at the company, and I knew the analyst community didn’t know anything positive, we would load up with call options and common stock and then give the good news to our favorite analysts who liked the stock so they could go do their promotion. That would get the buzz going and we would then be able to liquidate the position into the buzz for a handsome profit." (Confessions of a Street Addict, page 61).

This is Cramer's big secret. He figured out early that the way to make money betting on stocks was to rig the game - control the news and you control a stock's value. Now he has his own TV show.

Nicholas Maier worked for Cramer until 1998. He quit and wrote a book about it called, Trading with the Enemy: Seduction and Betrayal on Jim Cramer’s Wall Street (New York: HarperCollins, 2002). Here's an excerpt showing that Cramer was into naked short selling early on:

Jim turns toward his head trader. "Mark, sell ten thousand Bristol Myers."

"We never bought any Bristol Myers," Mark replies.

"We own the calls," Jim corrects Mark impatiently, aggravated by the delay.

"So sell it short?" Mark asks for clarification. Mark knows that according to the SEC rule book, selling stock you don’t already own (even if you do own the call options) must be marked and executed as a short sale.

"You are confusing me with someone who gives a shit. Just sell it! I said hit the fucking bid!" adds Jim, not interested in wasting time over petty semantics. Skirting the "plus tick" rule in this case won’t necessarily make us a lot of extra money, but in Jim’s eyes, the rule is still an unenforceable annoyance. "And don’t ever ask me that again!" (Trading With the Enemy, pages 70-71).

The story of Jim Cramer cannot be fully presented here. BUt here's an excerpt from Mitchell's book length expose that will get you into the ballpark:

Cramer, who is a sociopath, owns TheStreet.com with Marty Peretz, who is an aristocrat. Peretz is also the former editor of the New Republic magazine. He dabbles in high finance and Harvard professing, which has resulted in his entrusting a large portion of his family fortune to a close-knit group of hedge fund managers, several of whom were his students. For example, Cramer was his student. Then Cramer was destitute. He lived in a car with a loaded gun hidden under the seat. Eventually, though, Peretz gave Cramer some money to start a hedge fund, which Cramer managed with celebrated ruthlessness until he resolved to seek spiritual enlightenment as a TV news host.

Cramer had originally planned to run his hedge fund out of the offices of Ivan Boesky. Shortly before he was to move in, however, the feds busted Boesky for insider trading, making him one of the most famous criminals of the 1980s. (This is not necessarily to suggest that Boesky is the "Sith Lord" mentioned in Patrick’s "Miscreants Ball" presentation. Some people have wagered that Patrick was referring to Michael Milken, a business colleague of Boesky known as the "junk bond king," who also went to prison in the 1980s. Patrick has since modified the analogy, saying that the crime has multiple masterminds - "like Al Qaeda").

When Boesky went to prison, Cramer worked instead with hedge fund manager Michael Steinhardt. The media portrays Steinhardt as a financial wizard, a deep thinker and an all-around swell guy. The truth is, he’s a thug who perfected the concept of trading on privileged information, and pounded it into the heads of his employees. "What’s your edge!?" he’d shout, pacing his trading room floor. "What’s your fucking edge!?" After one of Steinhardt’s tirades, a top employee (and the godfather to Steinhardt’s children) had a heart attack. It is said that Steinhardt showed no remorse.

Indeed, Steinhardt has one of the most fearsome reputations on Wall Street. Which is perhaps unsurprising given that Steinhardt’s father, Sol "Red" Steinhardt, was a mobster once described by a Manhattan district attorney as the biggest Mafia fence in America. Steinhardt Sr. worked for the Genovese organized crime family, with goons like Meyer Lansky and Vinnie "Blue Eyes" Alo, before he was sentenced to a number of years in Sing-Sing prison.

By Steinhardt Jr.’s own account, the principal partners in his first hedge fund were the Genovese Mafia, Ivan Boesky, Marty Peretz (the aristocrat who funded Cramer), and a man named Marc Rich. Rich is closely connected to Ronald Greenwald, described in the authoritative book Red Mafiya as the man who, along with the Genovese family, brought the Russian Mob to America.

In 1983, Rich was indicted for trading illegally with Iran while Islamic revolutionaries were holding the American embassy hostage in Tehran. Along with his associate, "Pinky" Green, he fled to Switzerland. In 2001, Steinhardt, a big-time operator in Democratic circles, convinced Bill Clinton to give Rich a scandalous presidential pardon, but Rich remains in Switzerland to avoid paying his tax bill.

In the early 1990s, Steinhardt shut down his hedge fund after he was implicated in a scheme to corner the U.S. treasuries market - a horrendous infraction with serious implications for the U.S. economy.

So this is a rough crowd. Says one Wall Street trader: "It was the day the bad guys came to town — when Steinhardt and his people arrived."

One of Steinhardt’s people is Jim Cramer. Another is Cramer’s wife, who was known as the "Trading Goddess" when she worked as Steinhardt’s head trader. Maria Bartiromo, a CNBC anchor known as the "Money Honey," is married to the top partner in Steinhardt’s newest hedge fund. (A former employee of Cramer’s hedge fund has written that Cramer often fed tips to the Money Honey, trading ahead of her stories, and it is rumored that she recruited him to CNBC.)

And then there is David Rocker, the short-selling hedge fund manager believed to be scheming, along with Cramer and Herb, with Gradient Analytics, the financial research shop under SEC investigation in 2006.

Cramer says he’s met Rocker only once - apparently while squeezing the grapefruit at some grocery store. But the truth is, Cramer knows Rocker well. Rocker is a former employee of Steinhardt’s hedge fund. He worked there at the same time as the Trading Goddess.

And, until recently, Rocker was the largest outside shareholder in Cramer’s website, TheStreet.com. Cramer sometimes quotes the hedge fund manager on his television show, and once interviewed him live. Rocker is also a regular writer for TheStreet.com, where he bashes stocks that Cramer subsequently also bashes in multiple stories on both the website and CNBC.

In February 2006, the SEC is investigating Gradient Analytics for disseminating false information about public companies. The agency has affidavits from former employees who say that Gradient’s "independent research" is produced by recent University of Arizona graduates who know little to nothing about finance and essentially take dictation from hedge fund managers, including David Rocker.

One of these employees says that Herb conspired with Rocker to hold his negative stories (premised on Gradient’s false information) until Rocker could establish short positions. This is called front-running - a jailable offense. It is reasonable to suspect that Rocker had similar relationships with TheStreet.com (of which he has owned a substantial portion) and other media.

Not long before Cramer announced his SEC subpoenas, Rocker sold all of his shares in TheStreet.com. Cramer sold around $2 million of his own shares. If Cramer knew about the SEC investigation before he sold his shares, which was almost certainly the case, he was trading on insider information - another jailable offense.

But Cramer don’t know nothin’ about nothin’. And Herb thinks the SEC investigation is an outrage. So Herb and Cramer have commandeered CNBC. They are live on CNBC. Herb has jabbered something about a conspiracy - a conspiracy to get Herb.

And now Cramer is going to show us something.

He’s pulled out a big, red magic marker. Veins are popping, rope-like, from his bald cranium. And he’s snarling. Cramer is actually snarling while he uses the big red magic marker to scribble something on a piece of paper.

He holds the paper up to the camera.

It’s...it’s his government subpoena...Cramer has vandalized his government subpoena! On live TV... in big red letters...

It says, "BULL!"

Jim Cramer is a crook. Wall Street is full of crooks. The next time you see CNBC, keep that in mind. They are not reporting. They are trying to sell you something and, quite possibly, trying to manipulate the market.

Now, one last bit about how this all relates to the financial crisis. The SEC is investigating whether abusive and illegal naked short selling brought down Bear Stearnes and Lehman as well as many other companies.

SEC Chairman Christopher Cox, 55, told the Senate Banking Committee yesterday the agency is investigating whether illegal trading contributed to the collapse of Bear Stearns in March and the 75 percent drop in the market value of Lehman Brothers this year. The probe focuses on traders who seek to profit by intentionally spreading false information about the New York- based firms.

In the Jon Stewart video, you can see Cramer talking up Bear Stearns. That doesn't sound like he or one of his hedge fund buddies going short. But remeber, naked short sellers will often try to pump a stock before they trash it to create a wider spread and, consequently, more profit.

But that said, there is some evidence Cramer changed his tune after that SEC subpoena. After mocking people who complained about naked short sellers, he eventually joined the call for reform. Always covering his ass.

Watch Bloomberg's report, which was inspired by the work of Deep Capture, on Naked Short Selling here.





This, the 265th entry in bloggoland! Thanks for reading and coming back. I always enjoy the comments, emails and the banter!!


(c)Copyright 2009 Doug Boggs

Will.i.am does it again!

Will.i.am does it again. This mover and shaker for us all has recently been awarded by the NAACP for Outstanding Male Artist, Outstanding Music Video- "Yes We Can", and Outstanding Song- "Yes We Can". He has just written an OpEd in the Huffington Post that I enjoyed and thought that I would pass it on.

I wrote back on Sept. 27th, 2008, of a poem that Will.i.am put out. It is as good today as it was then! I am also including his "Yes We Can" award winning video and song. I urge your eyes and heart to listen to its message.



He discusses today in the Huff Post that we have reached a milestone with Obama in the Oval Office, yet we all know that there is much more work to be done. With a black man in the White House have we reached the point of equality for all? There is no room to say yes!

As the NAACP is for the advancement of colored people, there are many other colors around the world that yet need help.

There is a primary color called GREEN. Whether this is the color of the inequality of money and the ills of global capitalism to the worlds poor, or whether it is the color of the moniker to save the world from global warming it means that there is much work yet to be done. If we can work toward the eradication of greed, corporatocracy, and social elitism we will find a world and its people that are filled with the colors of the rainbow. As the total global population of whites is only about 10%, it is time for the ego of the rich white man to make room for a myriad of others who's colorful minds and personalities are ready to step into creating a new world with a new vision.

Keep in mind, as some may feel their ego's rise through their racism, classism, sexism, elitism, socialism, communism, capitalism and any other isms that create the walls between us all, that white is the absence of color while black holds all colors.

Send the world a Valentine today by vowing to stop purchasing bottled water and purchase a water filter and reusable thermos!

Will.i.am has found a very effective and powerful voice through the medium of music, words, video, live performance and technology. His new video is entitled "Take Our Planet Back!" Watch this one...!






This, the 254th entry in bloggoland! Thanks for reading and coming back. I always enjoy the comments, emails and the banter!!


(c)Copyright 2009 Doug Boggs

Concrete and solid Steel Points to Obama's Stimulus Package

I found this in an investment newsletter I am a member of and thought you all might be interested in this. Remember, one must always read between the lines. What goes up must come down, and what has gone down must come up again... One cannot listen ONLY to FOX Noise, but should also listen to MSNBC. One must be able to see both sides of a story in order to make the appropriate decisions. Obama does this, and quite well.

There are numerous investment ideas within this article. I will say herein, that you must do your own due diligence for your investments and I make no claims as to their legitimacy. I do not personally recommend these investments and they are the views of the writer solely. Although, some investors feel that this is one of the most opportune times in our lifetime in which anyone, and everyone will be able to capitalize on.

* * * * *
Written by Sara Nunnally, Senior Research Director, Taipan Daily



President Obama Pours Billions Into U.S. Infrastructure Projects

Barack Obama’s massive stimulus package has billions of dollars in funds waiting to be spent on the nation’s aging infrastructure. Once the American Recovery and Reinvestment Plan is passed, these three companies could reap the benefits of the U.S. Infrastructure Boom of 2009…

On Aug. 1, 2007, in the heart of rush-hour traffic, the 64-foot I-35W River Bridge in Minnesota suddenly and dramatically collapsed. Whole sections of concrete slabs and twisted metal fell into the swift waters of the Mississippi. Tragic photographs and video show a school bus just a few feet from a break in the bridge that would have taken the lives of 50 children returning from the Waite House Neighborhood Center Day Camp.

The collapse did take the lives of 13 people, and searchers spent days looking for missing people. Cars were trapped under the mangled wreckage of the bridge, and in the strong currents of the Mississippi River, the treacherous water was choked with debris.

In Maryland, on Dec. 23, 2008, at 8 a.m., a 66-inch water main broke and sent a 5-foot wall of water rushing down the ironically named River Road, trapping 15 people in their cars.

Helicopters were sent to rescue the stranded motorists, whose cars were being pushed down the road in the torrent. More than 135 gallons of water per minute was pouring out of the break…

These incidents aren’t unique, and can happen in any state in the nation.

Is Your State Safe?

The U.S. Department of Transportation’s Federal Highway Administration listed 73,764 bridges as structurally deficient in 2006, with four states showing greater than 20% of their bridges as structurally deficient:

Iowa: 20.75%
Pennsylvania: 25%
Rhode Island: 25.37%
Oklahoma: 26.85%

Each and every state has bridges listed as structurally deficient, and these episodes will serve to highlight the growing neglect of our nation’s infrastructure.

Our water system? That water main in Maryland was installed in 1964 – 45 years ago… In fact, this wasn’t the first time that the system had a problem. In 2007, there were 2,129 recorded leaks. In 2008, more than 1,357. All of our infrastructure is just as bad as the bridges and water systems, but we haven’t yet seen a large amount of money poured into fixing the problem.

Until now.

The American Society of Civil Engineers estimates that we may need $1.6 trillion over the next five years to repair and restore the nation’s infrastructure. That’s not including new projects… That’s just making current infrastructure work.

Billion-Dollar Boost

Now, $1.6 trillion is more than double what President Obama has planned for the full stimulus package, but here’s what he’s focused on:

NPR reported, “Every $1 billion the federal government commits to roads, bridges and other infrastructure helps to support some 35,000 jobs.”

One idea that Obama has put forward is a National Infrastructure Reinvestment Bank that will disperse $60 billion over 10 years for highways and other infrastructure projects. And don’t forget the $150 billion over 10 years for alternative energy investment projects. Efficiency is a key factor in that plan, and transmission updates and power plant overhauls are sure to be on the list to get funds.

With Obama’s stimulus package estimated to cost more than $700 billion, investors are getting excited about what could be the Infrastructure Boom of 2009.

Folks are already starting to sift through the beaten-down companies that will see a boost from President Obama’s plan. That means we should be looking at two things: cement and steel.

Interestingly, 81% of the U.S. cement market is met by foreign companies. The three main companies are France’s Lafarge SA (LG:Paris), Holcim, Ltd. (HIM:London) out of Switzerland and Cemex SAB (CX:NYSE) from Mexico. Each holds about 13% of the U.S. market.

Let’s take a closer look at Cemex.

Discounts South of the Border

Here are the bare numbers:

* Annual production capacity of more than 96 million metric tons of cement
* Annual production levels of more than 80 million cubic meters of ready-mix concrete and more than 222 million metric tons of aggregates
* 67 cement plants, more than 2,360 ready-mix concrete facilities, and a minority participation in 18 cement plants
* 564 aggregate quarries, 274 land-distribution centers and 97 marine terminals

I won’t try to cover up what’s been happening with Cemex here in the U.S. Its fourth-quarter numbers are pretty hard to ignore. The company announced a 25%, 39% and 43% drop in operations in the U.S. for cement, ready-mix and aggregates volumes. For the full year 2008, cement volumes are expected to decrease by about 14%, ready-mix volumes are expected to decrease by about 13%, and aggregates volumes are expected to decrease by about 3% versus the same period in 2007.

Here’s what Cemex has to say about Obama’s infrastructure plan:

Momentum is building for a major fiscal stimulus package to create new jobs in the U.S. economy, which would include substantial funding for public works construction. President Barack Obama is working with Congressional leaders on an economic recovery program that would include the largest public works funding program since the creation of the interstate highway system over 50 years ago. We are cautiously optimistic about these developments, especially in view of the fact that public works construction, particularly for highways and bridges, is substantially more cement and aggregate intensive than other types of construction activity.

Most recently, the company announced it received approval of a debt-refinancing deal from the banks. This news caused Credit Suisse to upgrade the stock from “underperform” to “neutral.”

With the positive atmosphere here in the States for a stimulus plan, Cemex has turned a corner. Since hitting a low of $4.01 on Nov. 21, 2008, the stock has rebounded strongly, and traded as high as $10.11 on the first trading day in 2009 – a gain of 152%!

This could be the beginning of a great comeback for the stock. It traded as high as $32.61 in 2008, and could reach $18.50 by the end of the year, as this infrastructure boom really heats up.

But cement isn’t the only commodity that could be jump-started by Obama’s Recovery and Reinvestment Plan.

Reinforcing the Trend

Bridges make up about 5% of U.S. steel demand, or about 7 million tons. That percentage was consistently growing prior to the economic belly flop in 2008. So with any significant push to update and improve existing bridges, steel demand could get back on track.

It wasn’t that long ago that nearly every commodities blog was touting the rise of steel. Over the past 10 years, steel demand was growing at an annual rate of 6%. International companies were raising prices by the month for consumers greedy to fuel their industrial growth. Now, demand is at a 26-year low.

Here’s the prognosis, from the Financial Times: “Global steel production could easily plunge by 10 per cent or more next year.”

But an interesting blog paints a different picture. Tony Taccone, a consultant to steel companies with 20 years under his belt has this to say:

While these projections may prove to be right, they seem overly pessimistic to me. First of all, the latest forecast of global economic prospects published by the World Bank, and discussed by James in a recent post, calls for the world economy to grow by 1.9% (PPP basis) in 2009. As I’ve argued in the past, there is a correlation between global GDP growth and the change in steel demand. If we plug 1.9% GDP growth into the model, the predicted decline in steel production for 2009 is -3% not -10%... Don’t forget that developing economies, which now account for close to 50% of global GDP and whose demand for steel typically grows faster than GDP, are still projected to grow 4.5% next year. They have been driving the global growth in steel production and will continue to do so in 2009.

The gist? An infrastructure boom beginning here in the U.S. with Obama’s Recovery and Reinvestment Plan will begin to put steel back on the right track.

We’ve already seen a bit of a turnaround in some steel companies, most notably with Nucor (NUE:NYSE).

Relative Outperformance

In a bit of a surprise move back on Jan. 6, 2009, one analyst downgraded Nucor from “buy” to “neutral” citing limited upside potential because of “relative outperformance” of its peers.

Let’s take a closer look at this steel producer.

Sales and earnings increased in the third quarter to $7.45 billion and $1.18 billion respectively. These numbers have been steadily increasing over 2008. Now, Nucor has said it expects its fourth quarter to be much tighter, so we have fair warning of some contraction.

But the relative outperformance comes from Nucor’s break away from the rest of the industry.

Back in October 2008, companies like U.S. Steel (X:NYSE), Arcelor Mittal (MT:NYSE), and AK Steel (AKS:NYSE), along with Nucor were showing a share price loss of about 30% on the year.

But unlike the others, who continued falling (AKS dropping more than 80%), Nucor stabilized. On the year, Nucor is down only about 13%. The others are still down between 55% and 65%.

The company still has a ways to go before it re-establishes its former long-term uptrend, though. And a rise back to those levels could put Nucor back at $60. From its low of $25.25 back on Nov. 20, the stock has already climbed 74.9%. Another 50% could be in the works for 2009.

As good as these gains may prove to be, one of the simplest ways to play the coming Infrastructure Boom of 2009 is with a broad net method.

I’m talking about an infrastructure ETF. These guys have been pummeled lately. Just listen to these losses, as reported by MarketWatch.com: “Losses among ETFs included a 32% decline by the SPDR FTSE/Macquarie Global Infrastructure 100 ETF (GII:NYSE) and a drop of 39% by the iShares S&P Global Infrastructure Index Fund (IGF:NYSE).”

Playing the Field

But here’s the thing. All that private capital that made the companies in these ETFs tick dried up with the economic crisis. That’s the cause of these major drops.

So what happens when countries start injecting government cash into big infrastructure projects? The rising tide lifts all ships. The equipment makers, the engineers, the materials producers all benefit from global stimulus packages.

Why not play the field with a global infrastructure ETF?

Every analyst (and their mama) is talking about infrastructure being a mega-trend in 2009, and it won’t end with the U.S. stimulus package. China implemented a nearly $600 billion stimulus package back in November, and you know that country will do everything in its power to keep growing.

One of the most diverse is the iShares S&P Global Infrastructure Index Fund (IGF:NYSE), with holdings in 22 different countries, though heavily weighted (26.46%) to U.S. companies.

Everything from energy pipelines, to water, to transmission cables, you name it, it’s in the fund… And at a discount!

The IGF has been knocked down some 40% in this economic crisis. But a global infrastructure boom, stimulated by government intervention in the U.S. and China could help the fund begin to turn around.

A rise back to before the mayhem would put the IGF up at $48, a gain of 65.9%.

Not bad for playing the field.

Let’s review…

Obama’s Recovery and Reinvestment Plan

President Obama’s recovery plan could very well spark an Infrastructure Investment Boom in 2009.

With $700 billion out on the table for recovery, infrastructure is high on the list of job-creating initiatives. As we’ve noted before, NPR reported that every $1 billion invested in infrastructure has the potential to create 35,000 new jobs.

That kind of optimism is just what the private sector is looking for before it begins to pump its own money back into the system.

And, the idea that Obama may create a National Infrastructure Reinvestment Bank to disperse $60 billion over 10 years for highways and other infrastructure projects is extremely promising to companies like Cemex and Nucor.

And don’t forget the $150 billion over 10 years for alternative energy investment projects Obama’s got planned.

In all, this type of government intervention will be both well-received and used well. More than 70% of people in one poll said they approved of a $700 billion stimulus plan. And the companies in this report will certainly have no objection to a package that could have their share prices rising 50%, 65% or 80% over the next boom.

Investors won’t be complaining either.




This, the 249th entry in bloggoland! Thanks for reading and coming back. I always enjoy the comments, emails and the banter!!


(c)Copyright 2009 Doug Boggs

Hail to the Chief - Obama's speech in full text...

OBAMA: My fellow citizens:

I stand here today humbled by the task before us, grateful for the trust you have bestowed, mindful of the sacrifices borne by our ancestors. I thank President Bush for his service to our nation, as well as the generosity and cooperation he has shown throughout this transition.

Forty-four Americans have now taken the presidential oath. The words have been spoken during rising tides of prosperity and the still waters of peace. Yet, every so often the oath is taken amidst gathering clouds and raging storms. At these moments, America has carried on not simply because of the skill or vision of those in high office, but because we the people have remained faithful to the ideals of our forebears, and true to our founding documents.

So it has been. So it must be with this generation of Americans.

That we are in the midst of crisis is now well understood. Our nation is at war, against a far-reaching network of violence and hatred. Our economy is badly weakened, a consequence of greed and irresponsibility on the part of some, but also our collective failure to make hard choices and prepare the nation for a new age. Homes have been lost; jobs shed; businesses shuttered. Our health care is too costly; our schools fail too many; and each day brings further evidence that the ways we use energy strengthen our adversaries and threaten our planet.

These are the indicators of crisis, subject to data and statistics. Less measurable but no less profound is a sapping of confidence across our land - a nagging fear that America's decline is inevitable, and that the next generation must lower its sights.

Today I say to you that the challenges we face are real. They are serious and they are many. They will not be met easily or in a short span of time. But know this, America - they will be met.

On this day, we gather because we have chosen hope over fear, unity of purpose over conflict and discord.

On this day, we come to proclaim an end to the petty grievances and false promises, the recriminations and worn out dogmas, that for far too long have strangled our politics.

We remain a young nation, but in the words of scripture, the time has come to set aside childish things. The time has come to reaffirm our enduring spirit; to choose our better history; to carry forward that precious gift, that noble idea, passed on from generation to generation: the God-given promise that all are equal, all are free and all deserve a chance to pursue their full measure of happiness.

In reaffirming the greatness of our nation, we understand that greatness is never a given. It must be earned. Our journey has never been one of shortcuts or settling for less. It has not been the path for the faint-hearted - for those who prefer leisure over work, or seek only the pleasures of riches and fame. Rather, it has been the risk-takers, the doers, the makers of things - some celebrated but more often men and women obscure in their labor, who have carried us up the long, rugged path towards prosperity and freedom.

For us, they packed up their few worldly possessions and traveled across oceans in search of a new life.

For us, they toiled in sweatshops and settled the West; endured the lash of the whip and plowed the hard earth.

For us, they fought and died, in places like Concord and Gettysburg; Normandy and Khe Sahn.

Time and again these men and women struggled and sacrificed and worked till their hands were raw so that we might live a better life. They saw America as bigger than the sum of our individual ambitions; greater than all the differences of birth or wealth or faction.

This is the journey we continue today. We remain the most prosperous, powerful nation on Earth. Our workers are no less productive than when this crisis began. Our minds are no less inventive, our goods and services no less needed than they were last week or last month or last year. Our capacity remains undiminished. But our time of standing pat, of protecting narrow interests and putting off unpleasant decisions - that time has surely passed. Starting today, we must pick ourselves up, dust ourselves off, and begin again the work of remaking America.

For everywhere we look, there is work to be done. The state of the economy calls for action, bold and swift, and we will act - not only to create new jobs, but to lay a new foundation for growth. We will build the roads and bridges, the electric grids and digital lines that feed our commerce and bind us together. We will restore science to its rightful place, and wield technology's wonders to raise health care's quality and lower its cost. We will harness the sun and the winds and the soil to fuel our cars and run our factories. And we will transform our schools and colleges and universities to meet the demands of a new age. All this we can do. And all this we will do.

Now, there are some who question the scale of our ambitions - who suggest that our system cannot tolerate too many big plans. Their memories are short. For they have forgotten what this country has already done; what free men and women can achieve when imagination is joined to common purpose, and necessity to courage.

What the cynics fail to understand is that the ground has shifted beneath them - that the stale political arguments that have consumed us for so long no longer apply. The question we ask today is not whether our government is too big or too small, but whether it works - whether it helps families find jobs at a decent wage, care they can afford, a retirement that is dignified. Where the answer is yes, we intend to move forward. Where the answer is no, programs will end. And those of us who manage the public's dollars will be held to account - to spend wisely, reform bad habits, and do our business in the light of day - because only then can we restore the vital trust between a people and their government.

Nor is the question before us whether the market is a force for good or ill. Its power to generate wealth and expand freedom is unmatched, but this crisis has reminded us that without a watchful eye, the market can spin out of control - and that a nation cannot prosper long when it favors only the prosperous. The success of our economy has always depended not just on the size of our gross domestic product, but on the reach of our prosperity; on our ability to extend opportunity to every willing heart - not out of charity, but because it is the surest route to our common good.

As for our common defense, we reject as false the choice between our safety and our ideals. Our founding fathers, faced with perils we can scarcely imagine, drafted a charter to assure the rule of law and the rights of man, a charter expanded by the blood of generations. Those ideals still light the world, and we will not give them up for expedience's sake. And so to all other peoples and governments who are watching today, from the grandest capitals to the small village where my father was born: know that America is a friend of each nation and every man, woman, and child who seeks a future of peace and dignity, and that we are ready to lead once more.

Recall that earlier generations faced down fascism and communism not just with missiles and tanks, but with sturdy alliances and enduring convictions. They understood that our power alone cannot protect us, nor does it entitle us to do as we please. Instead, they knew that our power grows through its prudent use; our security emanates from the justness of our cause, the force of our example, the tempering qualities of humility and restraint.

We are the keepers of this legacy. Guided by these principles once more, we can meet those new threats that demand even greater effort - even greater cooperation and understanding between nations. We will begin to responsibly leave Iraq to its people, and forge a hard-earned peace in Afghanistan. With old friends and former foes, we will work tirelessly to lessen the nuclear threat, and roll back the specter of a warming planet. We will not apologize for our way of life, nor will we waver in its defense, and for those who seek to advance their aims by inducing terror and slaughtering innocents, we say to you now that our spirit is stronger and cannot be broken; you cannot outlast us, and we will defeat you.

For we know that our patchwork heritage is a strength, not a weakness. We are a nation of Christians and Muslims, Jews and Hindus - and non-believers. We are shaped by every language and culture, drawn from every end of this Earth; and because we have tasted the bitter swill of civil war and segregation, and emerged from that dark chapter stronger and more united, we cannot help but believe that the old hatreds shall someday pass; that the lines of tribe shall soon dissolve; that as the world grows smaller, our common humanity shall reveal itself; and that America must play its role in ushering in a new era of peace.

To the Muslim world, we seek a new way forward, based on mutual interest and mutual respect. To those leaders around the globe who seek to sow conflict, or blame their society's ills on the West - know that your people will judge you on what you can build, not what you destroy. To those who cling to power through corruption and deceit and the silencing of dissent, know that you are on the wrong side of history; but that we will extend a hand if you are willing to unclench your fist.

To the people of poor nations, we pledge to work alongside you to make your farms flourish and let clean waters flow; to nourish starved bodies and feed hungry minds. And to those nations like ours that enjoy relative plenty, we say we can no longer afford indifference to suffering outside our borders; nor can we consume the world's resources without regard to effect. For the world has changed, and we must change with it.

As we consider the road that unfolds before us, we remember with humble gratitude those brave Americans who, at this very hour, patrol far-off deserts and distant mountains. They have something to tell us today, just as the fallen heroes who lie in Arlington whisper through the ages. We honor them not only because they are guardians of our liberty, but because they embody the spirit of service; a willingness to find meaning in something greater than themselves. And yet, at this moment - a moment that will define a generation - it is precisely this spirit that must inhabit us all.

For as much as government can do and must do, it is ultimately the faith and determination of the American people upon which this nation relies. It is the kindness to take in a stranger when the levees break, the selflessness of workers who would rather cut their hours than see a friend lose their job which sees us through our darkest hours. It is the firefighter's courage to storm a stairway filled with smoke, but also a parent's willingness to nurture a child, that finally decides our fate.

Our challenges may be new. The instruments with which we meet them may be new. But those values upon which our success depends - hard work and honesty, courage and fair play, tolerance and curiosity, loyalty and patriotism - these things are old. These things are true. They have been the quiet force of progress throughout our history. What is demanded then is a return to these truths. What is required of us now is a new era of responsibility - a recognition, on the part of every American, that we have duties to ourselves, our nation, and the world, duties that we do not grudgingly accept but rather seize gladly, firm in the knowledge that there is nothing so satisfying to the spirit, so defining of our character, than giving our all to a difficult task.

This is the price and the promise of citizenship.

This is the source of our confidence - the knowledge that God calls on us to shape an uncertain destiny.

This is the meaning of our liberty and our creed - why men and women and children of every race and every faith can join in celebration across this magnificent mall, and why a man whose father less than sixty years ago might not have been served at a local restaurant can now stand before you to take a most sacred oath.

So let us mark this day with remembrance, of who we are and how far we have traveled. In the year of America's birth, in the coldest of months, a small band of patriots huddled by dying campfires on the shores of an icy river. The capital was abandoned. The enemy was advancing. The snow was stained with blood. At a moment when the outcome of our revolution was most in doubt, the father of our nation ordered these words be read to the people:

"Let it be told to the future world ... that in the depth of winter, when nothing but hope and virtue could survive...that the city and the country, alarmed at one common danger, came forth to meet (it)."

America, in the face of our common dangers, in this winter of our hardship, let us remember these timeless words. With hope and virtue, let us brave once more the icy currents, and endure what storms may come. Let it be said by our children's children that when we were tested we refused to let this journey end, that we did not turn back nor did we falter; and with eyes fixed on the horizon and God's grace upon us, we carried forth that great gift of freedom and delivered it safely to future generations.








This, the 243th entry in bloggoland! Thanks for reading and coming back. I always enjoy the comments, emails and the banter!!


(c)Copyright 2009 Doug Boggs

Don't let the door hit you in your ass on your way out...sir!

I am amazed as I read through some blogs this morning referring to last nights "farewell" speech by our current reigning terrorist...I mean President. I read responses of people and their statements that Bush had the best interest of the country in mind during his tenure. He had the best interest of HIM in mind throughout his reign.

For a man who has tortured others against the rules of war; for a man who has illegally wiretapped innocent civilians of his own country(after consulting his legal staff); for a man who has tried desperately hard to take away rights of its country's people(after consulting his legal staff); for a man who has tried desperately, illegally and immorally to change the Supreme Court through illegal judicial firings(after consulting his legal staff); for a man who illegally, immorally, and because his god "told" him to started a war to which over a million innocent people have died; for a man who ignored intel on his watch as over 3000 people died due to the twin towers crash; for a man who has taken more time off his job as President than any other even though this past eight years has been continual global mayhem; for a man and his valiant staff and advisers who did nothing to quell the approaching financial collapse(and when the opportunity arose tried to get another blank check in order to make new rules once again to the tune of $700B) due to his arrogant policies of deregulation of the financial industry; for a man who has said is sad to be leaving is due to the fact that he will be unable to continue his reign of arrogance and destruction of this great land; for a man who has created the largest global disconnect and disrespect that our nation has ever experienced, I say good riddance.

I'm sure your offshore accounts are filled due to your carefully crafted Bailout Program which has no means of accountability. You know, those same offshore accounts that were funded by your war on oil, I mean terror, in the middle east which help bring the price of oil into the stratus-fear! Your departure no longer means you need to have your legal staff think of semantic excuses to help make sure your actions do not send you directly to prison. Good bye to a President who throughout your reign discussed accountability at every turn, but have none to show for yourself.

I do so hope that the Obama nation does not let you get your get out of jail free card. There are people you need to meet in Leavenworth.

Don't let the door hit you in your ass on the way out!




This, the 239th entry in bloggoland! Thanks for reading and coming back. I always enjoy the comments, emails and the banter!!


(c)Copyright 2009 Doug Boggs

Where's the CON in confidence? You hide it well...

I guess Washington relies on the factoid that Americans have a very short attention span.

Based on the comment from Lila Rajiva, the other day, who is the co-author of one of my favorite books, "Mobs, Messiahs, and Markets", and a must read (to which you can order from my book library spindle at the top) she mentioned that perhaps more writing needs to be done regarding the financiers who have swindled the world from its money. I do agree, do to the fact that most people have already forgotten what has really transpired in the past only four short months...You can find her blog on the right in the column titled "Other Blogs of Interest" to which I frequent and hers is called, Mind-Body Politic.

To recap;
Back in September, Bernanke and Paulson came to Washington and asked for a blank check with no strings attached so they could get the banks the $700B in order for the banks to begin to buy up the toxic assets...When Bush came forward and asked for the blank check-the public said,"not again with the blank check policy..." But basically the politicos gave in anyway after a few bullshit sessions to make things look good to their constituents since Nov. 4 was right around the corner...politics, right?!

Then the banks took the money and hoarded it. No one in Washington told them they actually had to DO something with OUR money we were giving to them-those who fucked it all up in the first place. Oh, some paid for some great parties and a few CEO's and such got some great golden parachutes albeit with different semantic wording in order to comply...but they still got their-I mean, OUR money...

Then the banks kept hoarding the money. They continue to blame it on the consumer confidence. Is this CON or CONfidence... Businesses failed, people went broke, people lost their homes, people lost their jobs, more people lost their homes...

Obama got elected and people began to see a new light to the world. People forgot about the shit...The banks kept hoarding the money...

But more businesses failed, more people went broke, more people lost their homes, more people lost their jobs, then more people lost their homes...

Well, Bernanke stated today, in a speech in London, that he thought that the banks should be given the rest of the $350B that Obama is asking for so that the banks could buy up the toxic assets.

I'm sorry, did I hear that again? I mean, did you stutter? I mean, do you mean it this time?

And I guess our Democratic Congress and Senate decided to get a set of balls when there is an incoming Democratic President. Where were the concerns and checks and balances for the Bush $350B(actually substantially more...)

I asked for the Democrats to get a set of balls, but perhaps they needed to have a damn backbone when we had the Bush criminals running the show...

Once again, you can't make this shit up!

Bernanke originally came in stating that our old friend Greenspan had failed at his job. By no oversight or foresight he seemed oblivious to the lending rates and bubble that was being created. Bernanke stated that Greenspan should have never brought down the rates as low as he did. Now, Bernanke has brought the rates to the lowest they have been since...I'm an American-I can't remember, oh that's a good thing for Bernanke...but I'll find out online...

Don't these people know that everything is recorded and secured for the rest of time through the internet, cell phones, Twitter, Facebook, blogs and more...?

Perhaps they don't care because they know that America has a very short attention span.

What was I saying again?...

Oh, yeah, I was talking about this guy who "made off" with all of our money...his name was Madoff! Anyway...

And we wonder where the CON is in consumer confidence...




This, the 237th entry in bloggoland! Thanks for reading and coming back. I always enjoy the comments, emails and the banter!!


(c)Copyright 2009 Doug Boggs

A Banter of Basic Economics

This text is from Don Stott, a gold and metals trader, who puts out a column on Tuesday and Thursday of each week on his website Colorado Gold.




January 8, 2009:
There are so many complications, economics wise and there shouldn’t be because as Ludwig von Mises once said, defining economics, “People Act.” It’s just that simple! Examples are everywhere. Toyota is closing its plants for 11 days, and how many employees does this affect? Let’s say 2,000, at $200 a day, for 11 days. The loss in payroll to workers is a total of $4,400,000. Toyota will save $4,400,000, and the laid off workers will buy $4,400,000 less food, cars, gasoline, or whatever they won’t buy, because they have fewer dollars to use.

Multiply this by millions of permanent layoffs, bankruptcies, shut downs, going out of businesses, chains closing for good, autos down the tubes, housing starts virtually zero, and sales almost the same, and what do you get? The Toyota effect, multiplied many times over. 2.5 Million jobs were lost in 2008.

You get millions out of a job, millions behind in their mortgage and credit card payments, millions with homes worth less than is owed on them, and the chain reaction follows. The more layoffs there are, the more store closings and bankruptcies there will be, and resultant layoffs and increasing of all of the above. In other words, thanks to the welfare state, which wasn’t in existence in the 1930’s depression, credit cards which weren’t in existence in the 1930’s depression, and un-backed dollars, which were backed in the 1930’s depression, and no money down home purchases and ARM mortgages, which weren’t possible in the 1930’s depression, the conditions currently extant can and probably will make this depression far more severe than the 1930’s depression. The facts say it will be far worse.

Unfortunately, you haven’t seen anything yet.

Take carburetors. For over 75 years, cars, trucks, planes, and everything powered with gasoline engines, used carburetors to mix air and gas to feed into the engine’s intake manifold. They worked well, but on occasion, they became ‘flooded,’ and the engine wouldn’t run. (Modern, fuel injected engines can’t be ‘flooded.’) Carburetors had two things on them which caused ‘flooding.’ (1) The accelerator pump, and (2) The choke. On cold mornings, often the choke, which restricts the flow of air, might make the mixture too rich, and cause the ‘flooding,’ or often in hot weather, too much gas pedal pumping would inject too much raw gas into the engine, ‘flooding’ it, and causing it not to run. Both things, which caused the ‘flooding,’ and engines not running, were TOO MUCH GAS.

The solution was to stop the flooding by depressing the accelerator all the way to the floor, and crank the engine till the excess gas was used up, or open the choke and wait for it to evaporate. Gasoline engine technology is not the point here. The point is this: What got us into this economic mess? TOO MUCH MONEY INSERTED INTO AN ECONOMY by the Federal Reserve. Just like the engine being flooded with too much gas, the solution is to cut off the gas.

The Federal Reserve under Alan Greenspan flooded America with easy money, easy mortgages, and easy credit. The result was bad credit, bad mortgages, and everything being over-priced. Pouring more gas into a flooded carburetor, guaranteed the problem would be made much worse. Cutting off the gas would be the solution. Pouring $2 trillion, and god only knows how much more into the economy, is like pouring gas into a flooded carburetor. It will only make matters worse. Obama says he has consulted 20 of America’s best, most respected economists, and they say pour more gas (printing press dollars) into the flooded carburetor (economy), and the engine of America will start. NUTS! I wish Obama had called me.

The same exact thing was tried in the 1930’s, with huge government spending, and it took WW II to get us out of the depression. We’re already in two wars, and I certainly wouldn’t want us in a third one.

How about this as a cure for the current depression?

(1) Get us OUT of both wars we’re now in, and bring home all the troops. Let ‘em solve their own problems over there. We’ve got huge ones here, and can no longer concern ourselves with theirs. This will save hundreds of billions a year, if not well over a trillion.

(2) Disband most federal bureaucracies, especially the Federal Reserve, and do it Quickly. The DOT, DOE, HUD — and the list is long — serve no useful purpose. The Department of Education educates no one, the Department of Transportation transports no one, etc. This will save hundreds of billions a year.

(3) Revert to the Constitution, which gives government no authorization to subsidize anything. This will put an end to all federal welfare, and save hundreds of billions a year.

(4) Get out of the UN, NATO, and any and all foreign entanglements, at a savings of more hundreds of billions, and get the UN out of America. Declare unconditional neutrality, and send no money or advice overseas at any time, or for any reason.

(5) Close our borders with Mexico, and see to it that they stay closed 100%. More savings.

(6) As illegals come up for police stops, free medical care, welfare, school enrollment etc., which are in the hundreds of thousands each year, instantly send them home.

(7) Renounce NAFTA, and all laws, which encourage, tax wise, the building of plants offshore, and resulting layoffs here. With the budget balanced, and no more Federal Reserve, recovery would be pretty quick.

Today, every single state is in terrible economic condition because of layoffs, bankruptcies, and low tax collections. They have to balance their budgets. The D.C. Gang doesn’t, and can print and print and print, which they are doing, and will continue to do with nary a smidgen of responsibility. We all pay for their lack of responsibility with every single dollar we own being reduced in purchasing power.

I can go on and on, but the point is this: The ones who harm us the most — other than the Congress who has gotten us into this with a hundred years of bad legislation — are bureaucrats, welfare recipients, and illegals, who would be out of work, and that’s great! Let D.C. turn itself into a ghost town, full of worthless, out of work ex-bureaucrats. Maybe they’d burn the place down and we could start over. Let the illegals go home by themselves, or by force when they are picked up. If states want to subsidize the poor, or illegal, they can, but not the federal government. All of these ideas would actually balance the budget, and make America strong again. None of these ideas have a Chinaman’s chance in hell of coming to pass. Not a single one. Obama will print up another trillion dollars in un-backed scrip, and we’ll have hyper-inflation, except in housing, because that has yet to reach bottom.

To fix a flooded engine, you cut off the gas. To fix an economy flooded with paper money, you cut off the paper money, not print trillions more! The economy is in such a sorry state, flooded with fake money, that the fed interest is close to zero. They’ll pay you NOTHING to store your scrip for you. Wise people have taken their scrip, and turned it into precious metals, which will always have value in any currency, or all by itself. An economy such as ours, which has been flooded with unbacked scrip, and ceased to run, as in a flooded engine, has to get itself out of the mess by ceasing the printing of scrip.

It will be very painful to millions of people who have not been acting wisely, or who have been depending on Uncle Sam for their sustenance. The pain of this depression is unimaginable today. We’re only at the very beginning of it. The only sensible way to get out of it, is to let it run its course, and at rock bottom, the economy will begin to rise like the Phoenix Bird.

If my ideas ever came into being, there would be wholesale riots by those cut off, and many millions would die. Wonderful! We are flooded with not only too much scrip, backed by nothing, but too much human trash, who have been flooded with handouts from the public treasury. Millions actually believe that government owes them a living, which is gross error, and extremely costly. They, like the scrip, are basically worthless, and they must be gotten rid of to make our economy healthy again. How to do it? I give up, or at least won’t write about it.

* * * * * * * * * *

My thoughts and recap:
There are some various ideas to which I can see and agree with his points, but I can't go with him all of the way. Perhaps because much of his rants are right winged, conservative, classist, with much hidden racism-or not so hidden. His ideas of the seperatist concept of hunker down is highly dangerous in such a flat and shrinking economic and social world.

The world is looking for a leader on a global scale, the likes to which this country has been since WWII. However, the Bush Administration has set the perception and confidence in this country, to the rest of the world, back many generations. Radical change in the opposite direction through positivity and unification are what people are yearning for. When the masses have opportunity, there are massive amounts of opportunity available to all. When opportunity is available only to a small populace, a small amount of reward is distributed. It's proportional relativism as to its result. The conservative concepts of trickle down economics has shown itself to not work.

In our world of a growing global market and expanding economic opportunity for the largest middle class expansion on a mass scale we should not put ourselves and the world in a position that hinders that, but we must embrace that with openness and new ideas. In the words of the republican icon Reagan, "Tear down the wall."

Although, the writer Don Stott, is a broker with metals to move, there is extreme instability in the metals arena as with anything else at this time. There is nearly nothing anyone can do right now until the financial sector begins to take risks again. Due to the fact that there seems to be a lull in anything as there is a new administration coming in, institutions are careful as to how and when they are going to make moves and in what direction as it seems the Obama administration will be making some changes.

Until that time, there is no where to hide. As a tactical maneuver it is a time to sit in the bunker and wait out some of the cross fire. We all know that this is a time where some profitable deals can be made, but, one must take heeded caution as to the entry and exit strategies.




This, the 236th entry in bloggoland! Thanks for reading and coming back. I always enjoy the comments, emails and the banter!!


(c)Copyright 2009 Doug Boggs

The Audacity to Cope...

There's a feeling in the air, one that is being discussed over coffee and the water cooler throughout the nation, of the optimism and hope that people are beginning to experience as we approach the inauguration of Barack Obama on January 20, 2009.

The historic event of this new Presidency, is coming at which there could be no better time, for a man who has the confidence, the knowledge, the intelligence and the character to which Obama seems to possess.

The movement began on the national stage back in 2004, at his(Obama) DNC speech that was requested by John Kerry for that Presidential campaign. The energy that he created that evening, or shall I say has carried with him throughout, he brought forward to the national stage that evening. He was no longer the community activist. He was no longer the state legislator. He was no longer the Senator. He had become the next President of the United States. His clock began. His door opened. David Axelrod stated that he saw the change in Barack that night. David quipped that he said to himself that Barack's life will never be the same again.

The 2004 18 min. speech is herein to enjoy the retrospection-



Then Bush remained in office. The continued turmoil throughout the world increased while Bush continued to turn his back and not address root core issues, but rather selfishly sidestep or avoid the global major issues at hand. The deep global failures of the administration continue to this day.

However, daily, there becomes a more good riddence - see you in court - kind of sendoff the country was beginning to profess. Then, Nov. 5, 2008, will become known as the day of this countries rebirth. The day of resurrection to its original ideals. A new dawn.

President Elect Victory Speech 2008


It's less than two weeks before we are done hiding behind the Bush. We have elected a new hope. One that is going to step out from the bush and into the highest political position on the planet with new ideas, new courage, and new vision.

The world is waiting with bated breath...the optimism that is being generated during this global meltdown shows us, that our country, once again has found a reason to possess the audacity to cope.





This, the 234th entry in bloggoland! Thanks for reading and coming back. I always enjoy the comments, emails and the banter!!


(c)Copyright 2009 Doug Boggs

Robin Williams gives us all a political attitude adjustment!

If anyone can make an attitude adjustment for us all over this political climate, is Robin Williams.

This is a must see!






This, the 220th entry in bloggoland! Thanks for reading and coming back. I always enjoy the comments, emails and the banter!!


(c)Copyright 2008 Doug Boggs

When would Adam Smith shower?

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I wanted to go back to the Oct. 16th entry and re-introduce the discussion of Adam Smith and his famed "Wealth of Nations" book.

We have seen, these past few days, the level of respect and recognition that the Bush administration has of where the money flow from the TARP bailout should go. It is quite obvious that they care more for the suits on Wall Street who decide to shower in the morning before they get to the office, than the do for the hard working Americans who must shower after they get home from work.

Again, we revisit the "Wealth of Nations", Book V, Ch.2, Of the Sources of the General or Public Revenue of the Society...

V.2.8

No two characters seem more inconsistent than those of trader and sovereign. If the trading spirit of the English East India Company renders them very bad sovereigns, the spirit of sovereignty seems to have rendered them equally bad traders. While they were traders only they managed their trade successfully, and were able to pay from their profits a moderate dividend to the proprietors of their stock. Since they became sovereigns, with a revenue which, it is said, was originally more than three millions sterling, they have been obliged to beg extraordinary assistance of government in order to avoid immediate bankruptcy. In their former situation, their servants in India considered themselves as the clerks of merchants: in their present situation, those servants consider themselves as the ministers of sovereigns.


V.2.9

A state may sometimes derive some part of its public revenue from the interest of money, as well as from the profits of stock. If it has amassed a treasure, it may lend a part of that treasure either to foreign states, or to its own subjects.


As we look at our current state of affairs that have plagued the American taxpayer in order to bailout the corporations, we are not seeing any of this "amassed treasure" that we have handed to Washington reach any of its "subjects".

Let's look again at the relevance to Smith's writings and today's economic crisis.

Treasury Secretary Paulson previously publicly professed that we should make sure these businesses (the financial institutions, AIG, and Fannie and Freddie) do not fail. However, as the people who shower in the morning in Washington try to find where to place the next $350 Billion, they continue to raise the issue of the private jets that the Big 3 used to get to Congress to ask for money. I agree that it wasn't a good move, however, the Washington suits neglect to mention all of the private jets that the financial institutions, AIG, and others use on a daily basis. They also forget to remind people of the ways that these bailed out firms of Wall Street have manipulated their books in order to still hand out year end bonuses to their people. They are calling them incentives for the new year...

The Republican welfare state for the rich shows us that the trickle down theory of economics does not work. It is like Washington has received a little slight of hand parlor trick from Vegas magicians to use with the tax payers money. Your and my future earnings. The funds from the hard working people who mostly shower after work, is being slighted from our wallets while we sit in the audience and smile unknowingly in amazement.

The interesting thing about this democratic capitalistic management philosophy that has transpired through the Bush administration is that we are riding a fine line to communism and or dictatorship. Now, through the Bush bailout, we are riding a fine line between capitalism and socialism.

As I have stated previously, there is NOT ONE WAY to do things as we have come to find that a totally free market capitalism does not work. When you put the suits of Wall Street in an arena without regulation it is the same as a kid in a candy store, or Joe the Plumber in Home Depot.

Our system is built on a capitalistic system with socialistic tendencies. What we have recently experienced is a huge redistribution of wealth to the rich with no parameters to the receivers of the tax payers funds. Or, rather a socialistic system for capitalistic tendencies. Congress failed us big time for giving out the nearly $500 Billion without strings attached or rules to the game. The suits of Wall Street are now unwilling to part with our money that we gave them. This is leaving the economy in a worse position than it was two months ago.

Paulson failed. Well, actually he begs to differ. But then, he showers in the morning. I would venture that he should also shower at night to remove all of the filth he creates during the day.

There is a slight irony to capitalism and Karl Marx. I use the first volume of Marx's major work, "Capital", which was published in German in 1867, as an example. In it, Marx focused on the labour(sic) theory of value and what he considered to be the exploitation of labour by capital. The labour(sic) theory of value held that the value of a thing was determined by the labor that went into its production. This contrasts with the modern understanding of mainstream economics, that the value of a thing is determined by what one is willing to give up to obtain the thing. Ironically, Smith is often cited for being the conceptual builder of free markets in Capitalism, and also cited as a main contributor to Communist theory, via Marx.

Smith believed that while human motives were often driven by selfishness and greed, the competition in the free market would tend to benefit society as a whole by keeping prices low, while still building in an incentive for a wide variety of goods and services. Nevertheless, he was wary of businessmen and argued against the formation of monopolies.

Due to the globalization of nearly everything, including currency, in order to keep prices low of products it is the hard working second and third world countries that do much of the labor. As the world becomes more competitive and smaller it is becoming harder to find ways to stretch the production dollar.

Smith discussed at length of the sovereign social state. In today's Republican party they continue to claim that the welfare state as being dis functional. That is until it is time to meet the needs of the sovereign. Our modern TARP program is case in point.

As quoted from The Wealth of Nations:

"It is not from the benevolence of the butcher, the brewer, or the baker that we expect our dinner, but from their regard to their own interest. We address ourselves, not to their humanity but to their self-love, and never talk to them of our own necessities but of their advantages."

I hope that Obama comes out on Jan. 21, 2008, after his first nights sleep as President, addresses the nation by informing us that his first actions will be that the recipients of our hard earned funds MUST begin the distribute those funds back to the people and small businesses to get this economy moving again. That Detroit MUST make new cars that are electric, Hybrid, battery and more. That the government will begin to put money back into the infrastructure of the country and they need people to work...TODAY!

Bush knew about infrastructure and rebuilding. He just spent eight years and trillions of dollars in the WRONG country. Good riddence sir, and don't let the door hit you in the ass on the way out!


Man, I must be making money since it is still morning, but after this I need a shower.



This, the 217th entry in bloggoland! Thanks for reading and coming back. I always enjoy the comments, emails and the banter!!


(c)Copyright 2008 Doug Boggs

The people drank the tea

In 1773, a local crew of disgruntled English taxpayers decided to make a political statement to the English Monarch over their high taxes. The costumed men, dressed like native Indians, boarded the ships in Boston Harbor and dumped over 90,000 pounds of tea into the water creating a huge loss to the shipping and trading firm, as well as, a bay of free tea for those who wished to dip. This show of revolt against the oldest corporation in the world, East India Company, began the separation of the emerging upstart country called The Americas, into what was to become The United States of America and the continuing saga of rich versus the working class.

The United States was a country built on community and personal freedom. Samuel Adams and Paul Revere were the community organizers of their day alerting the community army, or minutemen, to rise up and who fought hard against the British Monarchy to make sure their dreams of change and freedom would win.

What has changed since this moment in time?

Thirty years ago this week, after speaking numerous times of an impending nuclear apocalypse, Jim Jones took his congregation of followers, called "The People's Temple" to Guyana, to escape the impending global catastophe. Just like the fear and insecurity that Bush spread to his "congregation", I mean country, only to find a path to their own demise, but this time there is no where to run and hide. To the extent the actions in Jonestown were viewed as a mass suicide, it is one of the largest such mass suicides in history, and the greatest single loss of American civilian life in a non-natural disaster until the incidents of September 11, 2001. They drank the grape koolaide.

In 1773, The East India Company, to which the modern day corporate system was built upon, was used as a pawn by the people to show the power mongers of the day that the people will not stand for the corrupt system that was depleting them of their hard earned wages. Today, the power mongers approached the people on behalf of the corporations and said, "we need your hard earned future earnings in order to give to the corporations so that we can make sure that they don't fail. We are doing this all in the best interest of you the tax payer."

This time the people drank the tea. They bought the scherade hook, line and sinker. The corporations and the elitist power mongers of the day are laughing all the way to the bank. There are still a few that are open...mostly offshore.

When Noah was building the Ark, we hear no mention of other people coming to the doors of the ship asking for refuge. But, I'm sure they did. He turned his cheek as he turned away leaving them stranded to die in the coming storms. He took his stock portfolio(that two by two of every specie), and the few people closest to him(his cabinet), and loaded them onto the private jet of his day, in order to save the Chairman's business. He closed the doors to the rest of the world. Created the same isolationism that we have seen Bush hide behind. Noah was the ultimate CEO of his time asked by the ultimate Chairman of the Board to save the world's biggest enterprise, life.

Recently, the big three CEO's from some of the largest companies in the world, came to Washington to ask for some of the bailout money being thrown around. They came in their Ark's, those private corporate jets and limos to the Hill to ask for $25 Billion odd dollars of the people's money without any plan, strings attached, or outline as to how things would be spent. So, far the "people" or the officials in Washington, have said no.

Yet, when Bush and Paulson came to the Hill to ask for $700 Billion with no plan, but a promise it would go to fix the failed mortgages and get to the people so they can save their homes, the "people" or the elected officials in Washington eventually said Yes. Bush and Paulson lied about their proposal and gave the money to the corporations instead of helping the people.

It's raining, and the doors to the Ark are closing. We have a bit more than 40 days left of this corrupt administration to which the tax payers might be able to salvage what they blindly pissed away to the most powerful corporation in the world, the United States Government. The current CEO, Bush, is on his way out with his golden parachute still in tact.

On April 22, 2008, then Maldives President Maumoon Abdul Gayoom pleaded to Bush and the United States to sign a document for a cut in global greenhouse gas emissions, warning that rising sea levels could submerge the island nation of Maldives. As the water rises, just like Noah, Bush turned his cheek away as he shut the door of the Ark.

I think we should exchange Bush, his cabinet and cronies associated with the illegal power grabbing coup, the atrocities of the Iraq war, the stripping America of its personal rights, the failed foreign policies, the neglected national policies and blatant lies and deception, for the people of the Maldive Islands. These people work hard and will become great citizens of their new country. They will soon need a new home as it is expected that within the next twenty odd years these islands will be under water due to global warming.

We should give the Maldive people a ride on the private corporate jet, Air Force One, let them have a 51 foot ladder in order to scale the wall between North and South America so they can come in to the dry land.

Since Bush, our modern day Noah, has turned his back on every living thing on this planet, excepting those close to him (to which we might soon be seeing a blanket pardon for the crimes they all participated in) and their multiple billion dollar laundered bank accounts from the bailout funds, they should be left to drown by their own neglect of care and concern for others and this planet we all share.

Perhaps Barack Obama, the modern Paul Revere, our modern day great community organizer will find some restitution in giving the people the satisfaction of a modern day tar and feather display.

The water is rising and the people are drowning.




This, the 202th entry in bloggoland! Thanks for reading and coming back. I always enjoy the comments, emails and the banter!!


(c)Copyright 2008 Doug Boggs

The sprint is on to January 20!

It is good that our new President elect is in great shape. He is sprinting all the way to the start of his new position as the most powerful person in the world. And it looks as though Obama is getting into a stride. Some will find it troubling, and most will find it to be a breath of fresh air. His cabinet positions are beginning to fill up with some great heads to move this country into a new direction of success. Based on these people's previous history it will look like a 180 has taken place. Although this change is using some of Washington's insiders, they are still listening to Obama who is not, thus giving things a great amount of new life.

It seems that Hillary Clinton is going to be the Secretary of State. This should bode well. She has had plenty of experience for this position. It will be interesting to see how Obama uses the California roster of high powered women such as Diane Feinstein, Barbara Boxer, or Barbara Lee. I would imagine that Nancy Pelosi will remain in her position. I would also be interested to see how Leon Panetta fits into Obama's agenda. His distinguished career in public life would be a great asset to the Obama team!


This, the 201th entry in bloggoland! Thanks for reading and coming back. I always enjoy the comments, emails and the banter!!


(c)Copyright 2008 Doug Boggs

Cogito, ergo sum...

Descartes, Aristotle, Archimedes, King Solomon, Napoleon Hill, Obama, Oprah...

The Law of Attraction swept through the nation a year or two ago with the release of the book with that same title, as well as, through the hugely successful book and video, "The Secret", that was discussed quite a bit of "Oprah". All of this stems from the long running personal bible to many, the Napoleon Hill book "Think and Grow Rich" or the old testament biblical stories of King Solomon.

It seems that the rules do exist and are exemplified quite strongly today. Or are they? It is discussed throughout the self help world with guru's like Anthony Robbins and others to envision your successes. Whatever that may mean to someone whether it be in love, finance, personal health or anything in life. If you can see it, you can achieve it, is a common workshop mantra.

It is also discussed in philosophy classes throughout the world that, as Descartes wrote, "Cogito, ergo sum" or "I think therefore I am", that not only are we the creators of our existence do to that theory, but by thinking of your life and how you want things to produce themselves, it is said that you create your own life. Aristotle stated, "But if life itself is good and pleasant and if one who sees is conscious that he sees, one who hears that he hears, one who walks that he walks and similarly for all the other human activities there is a faculty that is conscious of their exercise, so that whenever we perceive, we are conscious that we perceive, and whenever we think, we are conscious that we think, and to be conscious that we are perceiving or thinking is to be conscious that we exist... (Nicomachean Ethics)

There are three important notes to keep in mind here. First, Descarte only claims the certainty of his own existence from the first-person point of view — he has not proved the existence of other minds at this point. This is something that has to be thought through by each of us for ourselves, as we follow the course of the meditations. Second, he is not saying that his existence is necessary; he is saying that if he's thinking, then necessarily he exists. Third, this proposition "I am, I exist" is held true not based on a deduction nor on empirical induction, but on the clarity and self-evidence of the proposition.

But, as in Isaac Asimov's principles of robotics, The Three Laws, and how they are broken in "I, Robot", was the basis of the hit movie with Will Smith. Constantly, the robot malfunctions as a result of "thinking" about itself, its behavior, and loopholes in the Three Laws of Robotics from this quote.

Although, Descarte's theories came from the first person perspective, we also know through emergence theory and mob mentality as a collective, that we exist albeit not in a vacuum. We exist in an ever shrinking global community of beings. The global energetic is a key factor to helping us create the world we wish to live in. As the global leaders, the press, one's own community and familial environment show us that, as Roosevelt stated so clearly, "We have nothing to fear, but fear itself."

We have been running or shall I say, the world has been following an administration that bred fear throughout the world to which they created a global stream of people who manifested that fear and confusion. We are in the midst of changing this energy and turning things around. As we went from positiveness to eight years of darkness and turmoil instantly, we can turn things around just as quickly and powerfully with the right global attitudes and consciousness.

Whether you believe in these theories or not, it works. This seems to be true. When people began to believe there was no way out for the economy, since that was the only topics of the water cooler discussions, the global press and the blogoshpere, the economy had no other means but to fail. This can change!

Well, can we see ourselves getting out of this global catastrophe? Can we end the occupation of Iraq? Can we put positive back into our lives? We must! Obama has shown us all that thinking positive and acting with purpose can bring one the results they are looking for. He gave us all the example that these books tout so clearly. We must begin to do as Obama has done to set the example and only think of the positive. There are solutions to any problem and we must think clearly and act with decisiveness as to our desired outcomes to reach a positive result.

In conclusion, and in the words of our modern metaphysical President elect, who said, "Yes We Can."


(c)Copyright 2008 Doug Boggs

The irony of Vox Humana and Barack Obama

The term Vox Humana is latin for "human voice". The French phrase would be "voix humaine", and "voce umana" in Italian.

Despite the literal translations to this latin phrase it also is a term used for a short resonator reed stop on a pipe organ, named of its resemblance to the human voice. There is a process in pipe organs to which an undulation of wind supply through the different pipe ranks causes a vibrato effect, referred to as a tremulant.

The vibrato effect which is created sounds much like the natural qualities of the human voice. A large organ may have several tremulants which affect different sets of pipes. There are different tremulants that allow for a variable speed and depth of the tremolo, which is controlled by the organist.

The vox humana is intended to evoke the impression of a soloist or singing choir. The actual success of this intent depends as much upon the acoustics in which the organ resounds, as it does the voicing of the pipes.

Why is this on my mind, you ask? I found it a bit ironic. You see, Bush and his policies have held and pushed our country back socially, economically, politically on both our local, national, and international communities. As this country's, and the world's organist, he failed to recognized the value to the power of harmony and the use of vox humana.

We have seen the energizing efforts that Obama has created by allowing the human voice to be heard. He, as a global organist, sees the power in the use of vox humana. Whether he is using it for his own solo efforts to add to the political dialogue or whether he is using it for the unification, and bringing the world's voices together in a large choir to create harmony throughout the world.

Vox humana stops in very old organs had a fairly wide variety of designs and tonal qualities. It was during the nineteenth century that the design became fairly standardized. Today, most organ builders construct vox humana pipes in approximately the same way, though the scaling will vary between builders and according to the tonal style in which the organ is designed. The actual sound of the pipe is dependent upon the organ voicer, with an open "O" or a long "E" sound probably being the most common result. Occasionally, an organ will feature a lever or stop knob marked "Vox humana" that does not engage a rank of pipes, but rather the tremulant instead. While it is seen in pipe organs, this usage of the term is now more common on the harmonium.

As the organ stops over the centuries have become more standardized, much like our global economy and political landscape which has become so innertwined, as well. Although, they have not become one, and there are various ranks of pipes and soloists that still sing loudly, I believe that the world has found a new organist.

Vox humana is simply the human voice. There are moments of tremolo that take place in life, as well as, disharmony and global dischord, but having an organist that understands the use of vox humana can empower the global music of all of the voices that play a part in the human symphony. All voices are heard always only some are louder and more disharmonious to the rest of the world orchestra. It is knowing that all of the voices are singing at the same time and all need to be heard in a melodious manner in order to bring the world to a universal choir of harmony.

The irony of this Presidential campaign has given harmony and vibrato back to the Vox Humana.



(c)Copyright 2008 Doug Boggs

As the U.S. Wakes Up The World Celebrates !

People throughout the world are celebrating, "The New World", as was the front page headline of The Times Of London. I have friends who are currently traveling in France and another in Burma who emailed stating that the celebrating is everywhere! The headlines in the London Sun newspaper read "One Giant Leap For Mankind".

The impact that this is having across the world will begin to give America the respect it has lost in the Bush years of isolationism and war mongering. There is a Saudi journalist named Samir Saadi who said that Obama's election means "the U.S. has won the war on terror. Given Obama's name, his background, the doubts about his religion, Americans still voted for him, and this proved that America is a democracy," he said. "People here are starting to believe in the U.S. again."(1)

Viktor Erofeyev, a prominent Russian novelist, said he believed the election signaled a new era. He stated, "The choice of an African American president in the United States overturns the whole idea of the stiff and conservative America. This means that America did wake up. This means that America is again open for free and democratic values. America has once again become a good model to emulate. It has again become a great country."(1)

"It is almost impossible to overstate the impact of this vote on the rest of the world," said Joichi Ito, a globe-trotting Internet entrepreneur and blogger who is based in Tokyo. "The United States looked closed, stupid, xenophobic and aggressive under Bush. By electing Obama, it looks open, diversity-embracing, humble and intelligent."(1)

Nelson Mandela, the South Arican civil rights icon who helped bring down his country's apartheid regime, released a letter to Obama which stated, "Your victory has demonstrated that no person anywhere in the world should not dare to dream of wanting to change the world for a better place."(1)

Desmond Tutu, another iconic anti-apartheid leader and the retired Anglican archbishop of Cape Town, said Obama's victory tells "people of color that for them, the sky is the limit. We have a new spring in our walk and our shoulders are straighter."(1)

Through the inclusion of all, everyone benefits. Through isolationism the benefits are left only to the elitist and power mongers. History has shown this time and time again. This election has returned the world their feelings of inclusion into the Democratic Experiment and that we all have equal opportunity. This is a symbol to the world that we as a country have not lost our way. We now have the opportunity to repair and regain our status as the world leader again, with a leader who is admired and respected throughout the world.

We have witnessed the rebirth of a Brave New World!




(1)Washington Post, Nov. 6, 2008

(c)Copyright 2008 Doug Boggs