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June 5, 2011
Issue 150  -  BOHICA!
The power structure of the United States and the world are escalating their efforts of raping and pillaging the "plebs" and we just have to BOHICA.  Exhibit A:

Taxpayers To Lose Only $14 Billion on GM Bailout?

To begin with, that's a lot of money.  And I don't believe that number.  I think before we consider some of my points below, to take that number based on Geithner's calculations and proclamations would be more than just pure faith-based naivete, it would be ignorance.  That number, before looking at my add-ons below, is no doubt a lot higher than $14 billion (unless of course you put faith in Government-reported numbers).

Here's the news LINK  NOT included, I'm sure, in this estimate is the amount of money that was spent to subsidize the financing of autos produced by GM that have flooded the floor of the GM dealer network PLUS the money spent to subsidize the purchase and leasing of these vehicles by the consumer.  As an example, and this is well-known to those who observe the news and the facts, the cost of leasing a GM vehicle has been completely subsidized by the U.S. Government.  This is accomplished by the Government guaranteeing the "residual value" component of all GM auto leases, enabling the finance company, Ally aka GMAC, to create a lease with an unrealistically high residual value - the value at the end of the lease term, which thereby allows the lessor, GMAC, to create a lease with lower monthly payments and a much lower implied interest rate. But then what happens at the end of the lease when the market value of the used car is substantially lower than the residual value guaranteed by the lease?  The Government, aka the Taxpayer, ponies up the difference. We won't know what the final tab is to the Taxpayer on this subsidy clusterfu$k until the leases start expiring, but it will run into the billions.  That's just one example.  There's also the implicit guarantee of workforce entitlement and benefit plans.  Again, billions not included in the $14 billion.  It's insane.

Let me just say though, that while some may look at whatever the real amount of lost taxpayer money is as part of a crucial effort to rebuild America's auto industry, the fact of the matter is that IF the Government withdraws its life-support effort, GM will inevitably fail anyway.  America's labor and production costs - not to mention the fact that the product sucks compared to the competition, especially the better-priced, better-built Korean models - are not even closely in-line with that of the rest of the world.  This is just another one of those situations in which the Government will have wasted billions in resources and actually made things worse.  The proper resolution to this situation would have been to endure the short term agony from having GM and Chrysler die and let private entrepreneurs figure out how to make an automobile product that is both profitable for the shareholders AND doesn't burn up taxpayer wealth.  All we got with the GM/Chrysler bailout is the ephemeral extension of a dead business and the massive transfer of middle class wealth to the workers and upper management of GM and Chrysler.  Once again - just like with Wall Street - the CEO and other senior officers  at GM/Chrysler will make millions which are paid with Taxpayer money and the market will fail anyway.
Posted by Dave in Denver
Yes, I feel so much better knowing we "only" lost $14 billion but as the article says, that doesn't include the subsidies to loans and leases and probably a whole lot more.  Why can't we just let a failure fail?  Let the chips fall.  As long as the government continues to bail out their friends we have no chance to right the U.S. ship and the elite continue their accumulation of the world's net worth. 
This is, in case you haven't figured it out yet, the plan.  Steal everything not nailed down and abscond with the loot, while the middle class goes down with the ship.  Yes, you better BOHICA.  And as for that change....not so much:

Limousine liberals? Number of government-owned limos has soared under Obama

By Joe Eaton

6:00 am, May 31, 2011

Limousines, the very symbol of wealth and excess, are usually the domain of corporate executives and the rich. But the number of limos owned by Uncle Sam increased by 73 percent during the first two years of the Obama administration, according to an analysis of records by iWatch News.

Most of the increase was recorded in Hillary Clinton’s State Department.

Obama administration officials said most of the increase reflects an enhanced effort to protect diplomats and other government officials in a dangerous world. But a watchdog group says the abundance of limos sends the wrong message in the midst of a budget crisis. The increase in limos comes to light on the heels of an executive order from President Obama last week that charges agencies to increase the fuel efficiency of their fleets.

According to General Services Administration data , the number of limousines in the federal fleet increased from 238 in fiscal 2008, the last year of the George W. Bush administration, to 412 in 2010. Much of the 73 percent increase—111 of the 174 additional limos—took place in fiscal 2009, more than eight months of which corresponded with Obama’s first year in office.  However, some of those purchases could reflect requests made by the Bush administration during an appropriations process that would have begun in the spring of 2008. 

The GSA said its limousine numbers are not reliable, even though the federal fleet numbers are officially recorded every year.  In a statement, GSA spokeswoman Sara Merriam said, “The categories in the Fleet Report are overly broad, and the term 'limousine' is not defined,” adding that “vehicles represented as limousines can range from protective duty vehicles to sedans.” Asked whether the GSA actually knows how many limos it has in its fleet, Merriam responded that GSA “cannot say that its report accurately reflects the number of limousines.”  

Leslie Paige, a spokeswoman for the nonprofit watchdog group Citizens Against Government Waste, was outraged that the GSA’s numbers may not be accurate. “They can’t figure out a way to define a limo? How hard can it be? If the government can’t track limos, I’m not sure we should trust the numbers they put out there on anything,” she said.

I'm shocked and chagrined that our fearless leader, who promised to be SOOOO much better, is just the same old, same old.  174 more limos!!  Are they friggin nuts!  What is going on, in plain sight, is beyond belief.  All of these elite clowns care about is themselves.  You don't matter.  Wall Street can steal us blind and nothing is done.  Proof?  Look at this from zerohedge:
This graph is showing the price of a stock but only on the main exchanges.  Notice the near perfect stairsteps up and down.  That is odd enough but it doesn't tell the whole story.  A large quantity of the volume on the stock exchanges take place on "off" exchanges.  These are very much a mystery to most and are largely unregulated.  If they were regulated, do you think this type of obvious manipulation could happen?
With all of the exchange data composited together with the size of the trades a complete joke appears.  Keep in mind this stairstep took place in about 30 seconds!!  Notice the trades are all the exact same size.  Notice the near perfect separation in frequency.  This is not done by humans.  Where are the regulators as these stock "bots" are completely running the exchanges.  This type of activity is used to try and locate large sell or buy blocks.  After they are located, the computer can then acquire shares at a lower price and then take it up to the buy order and rake in the profits, risk free.  Think of it this way.  A large seller has an order at $10.  The current price is $10.50.  The "bots" take the price down to $10 and then go quickly through it.  This allows them to "frontrun" the seller and take advantage of the information that no one else has.  Completely illegal, but if nobody is watching, they get away with it. 
I would argue that the whole system is now so crooked and manipulated that the little guy has very little chance.  How about "revisions" to numbers released by the government which are done months later:  (urbansurvival) 

I'm still scratching my statistical bald spot wondering what this means: "With the release of April 2011 mass layoff data on May 20, 2011, data suppression procedures will be updated in the MLS time series database. These changes may affect data as far back as 1996. Similar changes were made to quarterly extended mass layoff data on May 11, 2011."

What's a "data suppression procedure"?  I must have missed that class...

By suppressing the right data, my chart above is all screwed up and BIG UGLY MASS LAYOFFS got toned down.  Example:  May layoffs in April of 2010 were 200,870 when initially reported.  Here, what I logged at the time and the archived press release agree - which we'll return to in a sec.

After data suppression?  Down to 159,358.  Cool, huh?  40,000 fewer people in April 2010 got unlaid off. Without pay, of course...  

Even cooler?  Look what the "data suppression/revisions do to February 2009 mass layoffs: 143,997 was what I recorded in my spreadsheet at the time of release back in March 2009. 

But now when I look at "Series Id: MLSMS00NN0119005 (1)" I see that the Bush presidency hangover just got worse,510 unemployed.  The database now shows mass layoffs seasonally adjusted there at 315,507!

Wanna bet me that we'll get a speech from the democorps in about 12-months that says something like "...When I took office, mass layoffs in February 2009 were 315,507  (or some higher number since we know it's drifting....)..." 

So an official statistic is "fixed", over two years later and the adjustment is more than doubled??!!!???  This is having us look more and more like a banana republic.  So if the numbers are manipulated, then what would this one look like if it weren't:  (contraryinvestor)
The REPORTED length of the average unemployment is now about 40 weeks.  What is it really?  This is nuts.  All the while we are told things are getting better.  For whom?  Certainly not the little guy.  CNBC et al are begging everyone to get back into the market.  Wonder why?  This insider trading chart doesn't have anything to do with it I'm sure:
The chart is blurry but it's not really necessary to read everything.  What you need to know is that the top lines under the green bar are insider buys while the lines under the red are sells.  3 million shares of buys versus 232 million shares of sells is the tally.  Still think the stock market is a good value here?  We very well could go higher from here, but this chart is not a good indicator.  Some of these insiders are in the upper echelon where the strings are pulled and the policies decided.  This says a "sell off" is on the way.  I'm still on the sidelines until the elite give the all clear.   I expect that signal to be a large fall in the stock market which will be the "excuse" for QE3.  At that point the chart above will be reversed.
GORO  (closed $27.15, down $0.60, average price paid $6)
Mexus Gold  (closed $.20, even, average price paid, $.22) 
Alexco Resource Corporation -  AXU  (closed $7.71, down .39, recommended at $7.90) 
Stocks    (Current status, out, sold on March 18)
Physical Gold  (Closed $1,540,  up $3`,  average price paid $395)
Physical Silver  (Closed $35.19,  down $2.73,  average price paid $5.31)
This week's video shows a woman feeding a great white shark by hand.  Hopefully she doesn't end up like one of those guys who thought bears were their "friends."  Have a great week!