The Treasury Just Gave Away 1/2 Of Everything Produced In This Country Last Year

Wow. We're now up to $7.7 Trillion??? And to top it all off, much of this money is being given away in secrecy with no oversight.

The TARP program is in danger of becoming the largest financial fraud in history....

Here Come The Crashing Pension Plans

As I noted in my September 18th post, the collapsing pension plan will be the next big new story. Florida announced today that their public employee's pension plan has lost 1/4 of it's value. They say that's "pretty good considering". I bet they're telling the truth on that one too. Many corporate plans are already on the verge of collapse.

I suspect that in the next couple of months, we'll see a few of these pension plans' benefits completely frozen (if not wiped out). The big push will then be a push to fund these plans using taxpayer dollars.

So in essence, these plans represent a huge, unfunded, off-the-books liability for taxpayers that will soon be surfacing.

And you thought it was just going to be $700 billion...

DJIA Prediction: 0/1

Well, my DJIA prediction expires tomorrow...and since that's Saturday, I guess it's up today. The DJIA closed today at 8,497.31. On 10/16/2008 when I made the prediction it closed at 8,979.26.

That's only a 481.95 point loss for the last 30 days.

Truly, I'm at a loss. Could my predictive powers be so bad? Or is it perhaps that the government is manipulating the DJIA and the S&P 500 every time it looks like it's going to tank?

It does seem like every time the market makes some huge drop (like 11/13/2008's -554.11 drop) it makes a remarkable close up the next day (11/14/2008's 324.88 jump). Hmmm.

Could it be bargain hunters? Or could it be the Treasury/FED monster propping up the dead?

Either way, you heard it here first.

Fidel Castro Is Laughing At Us From His Death Bed....

All the years we've had that embargo against him for nationalizing all the 'capitalist' assets in Cuba.

And here we are doing it to ourselves. Soon, the Federal Government will own all the banks, the Washington Metro System, the auto industry, the airline industry, the hospitals....Ad nauseam Maybe Henry Paulson should bring in some of Castro's economics advisors. I bet they could give him some pointers.

Volvo Probably Has Some Sales Going On Right Now

If you're interested. Last month, Volvo only sold 3,717 cars in the entire US. Maybe the economic slowdown is disproportionally impacting yuppies.


But the economy is fundamentally sound (repeat 3x).

10 Year DJIA Gain? A Cool 1.22% Not Bad..

Unless you were hoping to retire at some point....

Link to 10 year performance of the Dow Jones

Prediction: The DJIA Falls to at least 7,500 in the next 30 days

It's got at least another 12% to go before we can talk about a bottom. That was the Jan 1998 DJIA, before the tech bubble...and long before the housing bubble. The scary part is, it might sink lower than that once inflation sinks in and rising mortgage rates cause the housing market to lock up.

Stay tuned and buckle your seat belts....

DJIA Chart

The "English Only" Movement Needs To Take A Good Look At The Law Books

Because it's been completely infiltrated with foreigners. The English Only movement wants to make English the official language of the United States. It seems they have focused their concern mainly on the diffusion of Spanish into US culture, with labels and signs being printed in both languages.

Yet I'm not aware of any outrage against the corruption of our legal language by the Romans. Just look at some of the ridiculous phrases I've found in Virginia law:

• Mutatis mutandis (139 references)
• Guardian ad litem (158 references)
• Sui juris (5 references)
• subpoena duces tecum (83 references)
• subpoena ad testificandum (1 reference)
  

That says nothing to the words and phrases that have already wormed their way into our beautiful language. Words and phrases such as:

• Habeas corpus
• Fiduciary
  
• Affidavit
  

But in all seriousness, why are we still using Latin in our law books? Is it because it's more obscure and therefore more intimidating? Is it because there's a long tradition of using Latin in law (there was a long tradition of not letting women vote also, it doesn't mean it was right).

There are perfectly good English words and phrases that could be used to make the law more understandable to common people. How many non-attorneys have a clue what "subpoena duces tecum" means? I'd bet the number is ZERO unless someone has been subjected to one.

And isn't one of the cornerstones of Western jurisprudence (OMG, there it is AGAIN) that the common people have the ability to read and understand the law?

Washington Is Much Closer To Wall Street Than Maple Street

In order to grease the wheels and get Monday's failed Wall Street bailout bill to pass in the House of Representatives, look what's been added to Senate's version of the bill:

• Increase the FDIC coverage for bank accounts up to $250,000 (up from a mere $100,000 And wasn't FSLIC deposit insurance part of the cause of the savings and loan debacle?? This will just drive us into another reckless investing spree)
• Force insurance companies to cover mental illness just like physical illnesses (Huh? Next they're going to throw in some free movie tickets)

These completely ridiculous amendments just go to show how far Washington is from main street, and how close Wall Street lobbyists are to your "representatives" in congress.

As yourself this question: How many people do you know now that have (or are even close to) $100,000 in the bank? Keep in mind, IRAs are already covered up to $250,000 and have been since 2006.

Why not add in something to provide FDIC insurance to working people's 401(k)? After all, since were bailing out other investors and going completely socialist, why stop just short of the dissaperaing middle class (and growing lower class)?

On the flip side, I bet there are a lot of Wall Street robber barrons who need that extra $150,000 in cash coverage right about now.

$25 BILLION In Auto Loans Part Of Bailout

Incredibly, it's not just houses that are in desperate need of help. Auto manufacturers also are in need of a helping hand. $25 billion worth. Who's going to pay that? It's like the government just got laid off and is forced to use their credit card. Once they get done with this, we'll have $15 billion in there for new shoes too.

Just wait until we have to pay the first minimum payment to the Bank Of China.

EPA Says Rocket Fuel In Your Drinking Water Is Not A Problem

Seriously?? Does the government have any credibility left?

So we should mix up some Perchlorate baby formula with some rocket fuel water and put it in our Bisphenol-A baby bottle. Add some fluoride in their too for good measure.

EPA against limiting rocket fuel ingredient in water

Congress Balks At Massive Corporate Welfare

Wall Street will be sure to punish them shortly with a horrendous roller coaster ride for their reluctance. Then they will then quickly relent (probably before the week is out) and give their 'approval' for something that is already completely outside their control. Clearly the Fed is running the show here, with the ability to buy up massive corporations and chain US taxpayers to the debt. As Ron Paul said, Congress should just go home since they've abandoned their duty to the populace.

In the end, it won't matter. This bail out plan wont' fix whats wrong with the world's economy. What's wrong is that there are too many houses that were priced in a fantasy world, over leveraged by their current owners and now out of reach of most buyers. Add to that new due diligence on behalf of lenders, and you've got yourself a pyramid scheme that's reached its apex. The fed thinks if they can just get new suckers to buy into the fantasy pricing everything will be 'ok'. It won't.

The only way to fix this is to lower housing prices by either devaluing the dollar or letting the housing market crash because what supported it previously was fraud, plain and simple. Devaluation has it's own problems, as we've seen with the oil markets. Not to mention inflation will cause mortgage rates to rise, so in the end, it will be self defeating.

The only thing Paulson's plan will do is give some on Wall Street a chance to take back their gambling bets. To be sure, it will only hurt you and me. But as Paulson sees it, that's going to happen anyway, so he might as well try to help his buddies.

Bankrate Says: If the Ship Is Sinking, Rent More Deck Chairs

Tonight on the local news I saw a BankRate authored piece about how you shouldn't panic in the face of the current market 'volatility' and that you should instead use this time as a way to "dollar cost average". This has been the standard response to jittery investors: If the price is dropping and the stock is fundamentally sound, it's a great time to buy more!

But the devil is in the details. Nothing in this current market is fundamentally sound. They even trotted out the old "If you'd invested all your money in 1950, even with all the ups and downs you would have made this huge sum of money!" They of course, never mention what would have happened if you'd invested all your money on Monday October 28, 1929.

And sadly, that is the type of unusual event we're looking at. It's not as if there's been some huge price shock to our economy. The 70's oil embargo explained the economic downturn then. What explains this one? Alan Greenspan's "JUST GIVE IT AWAY!!!" monetary policy clearly shares a large part of the blame. He kept interest rates so low for so long it was inevitable there would be a bubble of some sort (in this case, a real estate bubble). I have to chuckle every time I see him on TV saying that this is a once in a lifetime event while making it appear he had nothing to do with it.

The fundamental problem that is haunting our economy (and by extension, the world's economy) is that the US is broke. It's hard to imagine, but we're borrowing money left and right from other countries like China. All the wars, all the bailouts mean that the taxpayer, the engine of the economy, is being saddled with more and more debt when they can't pay back what they already owe. China and Arab nations, now flush with dollars which are loosing value every day, are looking to purchase more and more of the US's remaining assets. Although, for the life of me I can't understand why anyone would buy a failing, poisoned bank and not, say, a milk production company or perhaps some of our coal mines/natural gas fields.

Peter Schiff, who has consistently been correct in his predictions of the US economy (despite being called a "prophet of doom" and just an overall 'buzzkill') thinks that foreign stocks priced in foreign currencies (he recommends Asian securities...no surprise) are a good place to stick your money. Maybe. But if banks fail because their borrowers don't pay back, our lenders (China principally) are going to be in trouble too.

In short, there's nothing normal about the current economic climate. And in spite of all the bad news, the market was actually up today. Why? Because the government has floated the idea that it will create an 'entity' that will take their bad loans off of their hands. How incredibly ridiculous is that??? So the government takes on bad debt. Then what? They will be paying the banks dollars in exchange, which will then spread the illness further to our already declining currency. The ridiculousness of these ideas should be enough to demonstrate just how desperate the situation has become.

And in the tradition of the Grand Master, I predict the next big shoe to drop will be the sudden confessions of multiple companies and government agencies that their retirement/pension plans are catastrophically underfunded. And the 401(k) lawsuits are just starting too. Fun.

Can It Get Worse? Yes!

The FDIC is now going bankrupt. And we haven't even started to see major banks fail yet.

Everyone! Make An Orderly Line At The Trough!!

Uncle Sam is giving away cash! Actually, he's giving away your cash. CNN is reporting that AIG is the latest recipient of a government gift. A mere $85 billion "loan" (apparently that's what you call it when you give it to a compulsive gambler who's luck has temporarily gone bad). In return the government gets an 80% stake in the company. There's something strangely ironic about an insurance company that made money hand over fist for assuming risks then -when things go bad- they pop their golden government parachute. Kind of like discovering that Mili Vanili didn't really record that album you bought (....you know it's true).

And this brings up an interesting question. Why are we still angry at Fidel Castro? We're nationalizing the private sector faster than he ever dreamed of. In 1997 dollars, he only nationalized $6 billion in US assets in 1960. We're way beyond $6 Billion just this week. So much for the free market, eh? Maybe the US should get into the automotive, airline and home construction businesses too.

These giveaways currently add up to a total of $900 Billion in giveaways in less than a year. And man, Paulson's just getting started! It's interesting to note that Paulson has close, personal ties with China. Maybe he's the economic Manchurian Candidate?

But to be fair, it was our friends and neighbors (and perhaps "us"?) who got us into this mess. The True Believers who thought the housing market could only go up. and up and up. So why not take out that 3rd home equity loan and take a 6 month tour of Africa? We can't lose!

So, in the next few weeks, I'm sure the sound will get louder and louder....The Giant Sucking Sound of the American Dream being foreclosed upon and the collapse of America's free market facade.

Nancy Grace has Leonard Padilla On Right Now

He seems about as smart as she is. At least Leonard now realizes Casey Anthony is guilty. Something everyone else figured out about 2 months ago.

2 mins of Nancy Grace is better than Ipecac

When Did DIGG Turn Into An Obama-Biden LoveFest?

Of the top 10 stories on DIGG, 7 are pro Obama and anti-McCain. I'm pleased to see that 1 is a pro Ron Paul story. Now I know how all those people felt when the Paulites took over Digg.

Check out these current DIGG titles. I'll be happy when DIGG goes back to the nerd crowd (will it ever??)

• Palin's church says Jews deserve to be victims of terrorism

• FactCheck: McCain Ad Continues Lies about Obama's Tax Plan

• 8 More Shocking Revelations About Sarah Palin [Perhaps she is hiding other people's babies??]
  

• Palin Slashed Funding for Teen Moms

• McCain's New Palin Strategy: Blame The Media

• Sarah Palin's Corrupt Mis-Management of Dairy in Alaska

Wow... A Decent Episode Of A Paranormal Show

I really enjoyed the episode of Ghost Hunters that aired tonight. Episode 414, "Iron Island"...check it out if you get a chance.

Out of all the paranormal shows, Ghost Hunters is probably the best, mainly because of their mostly skeptical attitude. I might watch the next one.

Paranormal State on the other hand, just gets flakier and flakier.

The Internet Finds A Conspiracy With Sarah Palin

So the latest tabloid story on the internet revolves around the seemingly odd time-line of the birth of Sarah Palin's most recent child. "Liberal" bloggers have really ramped up the story that Sarah Palin's most recent child was actually her grandchild, and that there's a massive conspiracy to cover up the teenage pregnancy of her own daughter. It's interesting to note that the allegations are not new. People were making them as early as March of 2008.

There are some unusual circumstances. True or not, we need to remember that it was the Daily Kos that pushed the story. It's a big gamble for them. If it's true, they'll look like the Drudge of 2008. If they're wrong, they'll be branded as the site that dragged a candidate's children into the fray (including an infant child with a serious health condition), which will make them look really, really sleazy.

Ostergren Prevails In US District Court

Betty Ostergren has prevailed in the US District Court in Richmond. Ostergren sued the Attorney General of Virginia (Robert McDonnell) to block the new Virginia law that had been specifically crafted to prevent her from re-posting social security numbers on her website. She had been doing this to bring attention to the fact that the Virginia government was aiding identity thieves and was burying their head in the sand when the problem was pointed out to them.

I haven't had time to read the opinion (Link to PDF) in its entirety, but it appears the court agreed with her First Amendment argument that the state could not prevent her from republishing "public" information.

Will there be an appeal? Hopefully Virginia will just fix the problem that got us here in the first place: Posting SSNs on government websites.