Former Federal Reserve Chairman Alan Greenspan says the current crisis is much broader than anyone could have imagined...a state of shock and disbelief. This is the same man that accomplished gross financial deregulation that then translated out into our own financial downfall. A financial deregulation on a scale never before seen.
Thursday, October 22, 2009
Interpreting Government or "Official" Reports part 2
Former Federal Reserve Chairman Alan Greenspan says the current crisis is much broader than anyone could have imagined...a state of shock and disbelief. This is the same man that accomplished gross financial deregulation that then translated out into our own financial downfall. A financial deregulation on a scale never before seen.
Wednesday, October 21, 2009
Interpreting Government or "Official" Reports part 1
- The number of unemployed persons increased by 466,000 to 14.9 million, and the unemployment rate rose by 0.3 percentage point to 9.7
- The number of discouraged workers in August (758,000) has nearly doubled over the past 12 months.
- Big layoffs at major automakers, suppliers and dealers are just one of the latest signs that the recession is still hitting the U.S. economy fully
- Related drops in consumer spending will continue to affect corporate earnings that will be hard to continue hiding, perhaps even among financials
- The majority of this recession was caused by the greed of Federal Reserve leaders and their banking friends via the whole subprime mess and longstanding credit pushing policies.
Sunday, October 18, 2009
World’s First Solar-Powered Car Carrier
Friday, October 16, 2009
Recession IS Ending, DOW 10,000 ...Right?
Larry Levin says it best in his daily comments:
Dow 10,000! Uh Really?
This has happened before, not too long ago in fact. Each time I turned the channel from one financial station to the other yesterday and this afternoon, I thought I was watching a scandalous XXX movie. I kept hearing, "Oh Yes!...OH GOD, OH YES! That's the stuff 'Big Ben and Timmah'...you know how I like it. Oh my GOD!!" Was I hearing an audio replay of Mr. Spitzer's liaisons with his high priced call-girls? Nope. I was once again witnessing the on-air hosts experiencing multiple DowGasms.
After all, isn't Dow 10,000 exciting? Dow 10,000? Uh, really? Not so much. As usual, the so-called financial experts are not giving you the whole story. And why would they? The truth sucks.
The truth lies with the value of the US dollar. Another great illustration of the amazing loss of purchasing power by the US public are the recent ignorant statements about the Dow at 10,000. While in absolute terms the Dow may cross whatever the Fed thinks is a sufficient mark before its quantitative easing begins to taper off (Dow crosses 10k just as Treasury purchases expire), the truth is that over the past 10 years (the first time the DJIA was at 10,000) the dollar has lost 25% of its value...TWENTY FIVE percent!
On a real basis (not nominal) the Dow at 10,000 ten years ago is equivalent to about 7,500 today! In other words, not only have we had a lost decade for all those who focus on the absolute flatness of the DJIA, but it is also a decade where the consumer has lost 25% of its purchasing power from the perspective of stocks! You won't hear this fact on TV.
You don't believe me? The value of the US dollar only effects high-flying world travelers you say? Huh - that's odd. Then why did President Obama give a special $15-billion "bailout" to the elderly this past February? It was part of the "spendulus bill" in case you forgot. By definition they're already retired so they haven't lost their employment. They are losing their purchasing power, like you, so the Pres stepped in for a lil' bailout.
What else should we expect with trillions upon trillions of new dollars flooding into the system via the Fed's printing machine? It makes the money supply that was available before the money & credit that was created out of thin air worth less than other wise would be.
President Obama, Helicopter-Ben at the Fed, and Tax-Cheatin-Timmy at the Treasury all apparently want the U.S. currency to be used as Kleenex and toilet paper.
With such a great reaction by the media to Dow 10,000, Big Ben and Tax-Cheatin-Timmy must be receiving many messages: "Hey big boy, voulez vous coucher avec moi?"
Trade well and follow the trend, not the so-called "experts."
Do Banks Make Money On Foreclosures? JPMorganChase Does!

The Recession Has Ended They Say Part 1
Fact: US foreclosures jumped to an all-time high of 937,840 in the third quarter. According to RealtyTrac that's a 23% rise from the same time last year.
Fact: According to the Mortgage Brokers Association, 58% of the foreclosure starts are now in Prime Loans, not subprime loans.
Fact: 46% of Option Arms are currently 30 days past due. An Option Arm is A monthly adjusting adjustable-rate mortgage (ARM) which allows the borrower to choose between several monthly payment options.
The bottom line is that far too many Americas, not simply those with low credit scores, have borrowed more money then they are realistically capable of repaying. The credit boom was created by initially low adjustable rate mortgages, interest only, or negative amortization loans, and an appreciating real estate market that allowed homeowners to extract equity to help make mortgage payments. Now that real estate prices have stopped rising, and mortgage payments are resetting higher, borrowers can no longer “afford” to make these payments.
According to the Financial Times, JP Morgan's U.S. credit card division lost $700 million in the quarter, it wrote off $7 billion in noncollectable consumer loans. So how is it that they are making profits? JP Morgan took bailout money, paid bonuses, then played the stock market before paying some of the bailout money back which was the profits it made in the market. They also got some multi-billion worth of mortgages for a song and then wrote down some $31 billion of that which means that their profit was a sure thing from the get-go. Yet despite the bailout, JP Morgan is not lending much of anything to spur the U.S. economy. It made more profits recently trading the stock market instead.
Tuesday, October 13, 2009
Tale of Two Stories

- Continued weakness in consumption spending in the world's largest economy, the U.S, the consumer sentiment index unexpectedly declined, economic data released one recent Friday in New York revealed.
- Exporters, automakers, trading companies and banks declined on concerns about economic recovery.
- In China, sea ports are full of product which are not leaving port because the U.S. consumer is not buying. This has forced closures of Chinese manufacturing facilities which produce goods specifically for the U.S. market.
- Bank deposits are on the rise which is no longer a good sign within a financial industry that has grown from encouraging customers to buy what they can't afford using credit cards, home equity loans, and the like. Deposits, (those that come in and don't go out in bill payments) mean people aren't spending. It means that they're doing the right thing for a change. Meanwhile bank's non-performing assets are also on the rise which will continue to hurt these institutions in the coming quarters.
Banks which are not intimately connected to the Fed, hence not one of the Friends of the Fed are going to be failing in large numbers. They aren't privy to the bailouts already given to the Friends of the Fed.
Sunday, October 11, 2009
Its a Game & You Are the Pawn

The Fed doesn’t tell us whom they buy their Treasuries from, but it seems likely to be the same big banks that serve as primary dealers buying the debt from the government. The primary dealers appear to be holding a slice of this paper for only a short term before selling it on to the Federal Reserve. The net of those transactions becomes a further monetization of the federal debt. So whats going on here?
Trouble Playing Video? Pause it and let it buffer down to your computer. When the line is fully red, it is all buffered. Now click play button to watch.
So even in times of recession or economic downturn, the Federal Reserve & Friends are making money on the backs of the same people it busted in causing the recession, in order to make even more money. I hope that is simple enough for most of you to understand.
The Fed is also buying even more mortgage-related debt. With the government now guaranteeing mortgage-backed securities, those securities are not that much more risky than actual government debt. This gives the Fed further rationale for having purchased almost $600 billion of mortgage-backed securities since March. Which brings us to a likely connection to the speed of the stock market rebound since March 2009. Looking through the evidence today, we can see that the Federal Reserve has purchased close to $250 billion in Treasuries, and that may have provided the liquidity needed for the big banks to turn around and dump new cash into stocks. Goldman Sachs made upwards of $100 million (per day) on many days through its trading activities in just one quarter alone.
You can compare the surprising stock market rally to the Fed’s purchases of Treasuries. You can likely suspect despite what they say in the media, that our stock market is far more manipulated than most people realize. As a cautionary note, many of the emergency programs of making direct loans to financial institutions are being wound down by the Federal Reserve at the same time it is focusing on direct purchases in these specific markets. Those countervailing actions have kept the total balance sheet of the Federal Reserve relatively stable since it doubled in the second half of 2008, but that could quickly change if the Fed wanted to launch new programs.
So we are the Fed's important game pieces in a giant profit-making game. The Fed is the game's creator, rule-changer, banker, and extra player, all rolled up into one entity. The Friends of the Fed are additional players in their game. Try as we might, or not so much, the odds are heavily stacked against us (the tax-paying American). In fact, the way the Fed writes the rules, there is no way that You and your family members have any chance to beat the game. And to not play?? Well, its not an option at this point because your leaders have opted you, your family, friends, and co-workers into the game. After all, your leaders are your representatives and they do so on your behalf. Don't you like those odds?
WAKE UP UK!
Saturday, October 10, 2009
What The Banks Don't Want You to Do!


Smart or Irresponsible?

"Mr. Geithner, in a letter to U.S. lawmakers, said that the Treasury projects that the current debt limit could be reached as early mid-October. Increasing the limit is important to instilling confidence in global investors, Mr. Geithner said. The Treasury didn't request a specific increase in the letter."
Do you think this is a wise move? Our debt with respect to GDP is currently reaching into the 90% range with the U.S. expected to be fully extended by some time in 2010.
It seems that this is a blatantly irresponsible move from a fiduciary standpoint. So I guess the question is: Does Mr. Geithner have an ethical duty to act in the best interests of the people of the United States?
Now on the other hand we've been hearing from the media in an almost droning-like way, that the recession is near its end. Even Bernanke says that the recession has ended. They say that all reports indicate this...well, those reports as we all know have had their data skewed and manipulated in order to make things look rosier than they really are. AND...when the new report is dramatically different than the previous report, they have to re-manipulate all the past data to come into line with the current report. See what I mean?
As recently in 2005-2006 Bernanke said that the U.S. Housing Market is fine and is properly valued. He said that the U.S. is on the path to full employment. Bernanke said that we have a strong future economic growth and boom in exports. To that we simply say: HUH??? Whats you talkin about Bennigins? He obviously doesn't have a serious clue in his body about whats going on unless he's told by those who are really running the show. He's just the puppet on the marionette stage.

Then they point to a lower unemployment claims number and say that this is the biggest proof. Well it seems to us that all that means is that the big wave of layoffs deemed necessary by companies as a cost-cutting device is slowing. It does not mean that near 15 Million people are not still out of work, it does not mean their lowered hours, trimmed wages, or reduced benefits have returned. It does not mean that consumer spending in the retail sector has returned either, nor has discretionary spending. How do we know this? Because brand new manufacturing cities in China had their gates closed to workers returning from Holiday.

During the Great Depression, there were eight distinct stock market rallies. The rallies lasted an average of 11.3 weeks during which time the average increase was 52.6%.
The rally that began in March of 2009 is now 29 weeks long and has seen the S&P 500 rise 58. percent. Which is to say, it is now double the average duration of the average bear market rally during the Great Depression.
More interesting is that the current rally is eerily parallel to that of the longest bear market rally of that era – a 52% rally that came at the very beginning of the depression and lasted 22 weeks.
Since history has a way of repeating itself as it has time and time again...the folks here at Future1investors group will wait for something much more indisputable before we start saying and writing that the recession has indeed ended. Until then, we are preparing for a longer road back to recovery. A road we feel must include one well traveled by new innovations and technologies that have mass benefits as in things like alternative energy. We are quick to blame the Saudi's for the price of oil, yet our very own American Oil Companies just saw the most profitable year in the entire history of the black gold!
Seems more responsible to work this way rather than throw caution to the wind, only to be let down yet again. Aren't you tired of it?
WAKE UP AMERICA!
Thursday, October 8, 2009
Proof You Only Want to Be Mediocre!

The United States of America was a great country because it strived to make technological advances ahead of the rest of the world. The USA wanted to be #1 and for all accounts and purposes, it was. Lets see that word again....WAS!
What has happened to the USA? Has the credit card charge abilities of the mass public made you mediocre? Is the only thing you think about; that next big screen HD TV?
When the US wanted to be #1, it put massive resources into technological research, seeking breakthroughs and viable products that could propel it into the future. That future is now its past, and very little advances have taken place since. It still uses an un-godly amount of crude oil to propel your transportation system and most of that oil is imported. Yet your American owned oil companies made their biggest profits in the country's history. Guess what America? You are the Saudis!
The U.S. claims that it is spearheading a major effort to accelerate scientific breakthroughs in order to build a new energy economy. It accompanies that to the tune of $777 million dollars in backing (U.S. Department of Energy, Office of Science). Hmmmm how many dollars has it spent on the financial debacle lead by the Federal Reserve? Oh you remember, all those banks that made billions off of selling bad loans, and then putting them into a package that carried a AAA rating to sell to unwitting investors, many of the same financial firms who then where handed over how many billions to prevent them from loosing their ill-gotten gains? Money you gave them, so that they could also turn around and pay themselves historic bonuses! You people are out of your minds for letting that happen. You must be a glutton for punishment. Its like the USA is the wild-wild-west of the new criminal world.
Going back to that spearhead....Hmmmm $777 million towards something that might bring the country into sync with some of the rest of the world? Germany, Spain, China are the top three leaders in solar energy already. China has made a mockery of your spearheaded announcement for funding such research. China's effort will equal an impressive $220 BILLION! Just mentioned, China is #3 in Solar. As for Wind energy, the current goal is set for 100 Gigawatt by 2020. They've already begun construction on the first of seven 10 gigawatt wind projects.
Update:
In the weeks since I prepared this, a few new bits have surfaced: $3.4 Billion for smart grid investments grant, $6.3 Billion for improvement of bio feedstocks, $32 Million for improved hydro-power. So lets say approx $10 Billion on behalf of the U.S. for alternative energy advancement. Problem is, there seems to be a lack of thrust and importance of this movement. Perhaps the administration is taking the lead from the current energy manufacturers meaning the big U.S. Oil companies...some of who are diversifying into these areas. It is clear however that if this is true, big oil isn't in any big rush to deviate from the product that made historic profits for them last year. And that is despite the fact that there hasn't been any significant oil finds since the late 50's and early 60's. That is with the exception of Alberta Canada!
Clearing the Air

Please do not be put off by the negative air that you'll read in the upcoming articles. We are in a recession which was caused by entities who were way more concerned for themselves and cared not for the masses that their work affected.
Wednesday, October 7, 2009
Back With A Vengeance!

Take a chance but live and learn. Good intentions do not always payout.
Future1Investor Is You !!!
Sunday, July 20, 2008
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Friday, June 27, 2008
AudioCasts of Future1investor Friday Morning
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“What is good for General Motors is good for America”
For those of you who did not take advantage of the FREE look into MarketClub, a tool we live by and for those who have but have not had the time to really get into all they have to offer, I am reposting a blog post written by one of the founders Adam Hewison. I'm doing so because not only does it follow-up to my previous posts regarding electric vehicles and our country's need to get on the ball, but it shows how MarketClub can be used when a stock is going down, as well as up! This is the case for General Motors (GM). You can read the entire piece here too if you like.
“What is good for General Motors is good for America”
Back in 1955, Charlie Wilson, then chairman of General Motors Corp. made this somewhat pompous statement. Here we are, some 53 years later and look what is happening to the stock of General Motors (NYSE_GM). This stock is at a 53 year low and shows no signs of turning around.
So the question becomes, what happened to America and General Motors? How did this company lose its edge in the marketplace?
HOW DID GM GET IT SO WRONG?
Digging through the history of GM, I found one fascinating item. GM developed an electric car back in 1996 when gas was $1.28 a gallon! They named the battery powered car the EV1 and then basically scrapped it in 2002.
Today there is very little evidence that this car was ever in existence. I am sure you’re thinking right about how we could sure use a car like that today with gas prices trading over $4.00 a gallon.
When you look at the stock of General Motors, you’ll see that the high for the stock in the last eight years was around $68 in 2002. What’s interesting is that high point in the stock was right around the time GM scrapped its EV1 car.
So what happened to GM’s first electric car? GM claims there was not enough public demand. That could be, but I think the story is a lot more complicated than that.
You can see all the GM - Big Oil conspiracy theories in the movie
WHY KILL THE GOLDEN GOOSE?
From a business standpoint, why would GM want to improve something that would kill the goose that lays the golden egg? General Motors tends to make most of its money on sales of replacement parts. Up to 40% of its profits come from selling replacement parts for existing GM automobiles, so why would they sabotage their own cash flow?
Unlike a gasoline driven car, which has many moving parts, an electrical car like the GM’s EV1 has very few parts to go wrong, so therefore part sales and cash flow would go right into the tank for GM. The other perception problem GM has with an all electric car with zero emissions is this: if GM produces an all electric clean car with zero emissions, it’s making an admission that all of their other cars are dirty, spew out harmful emissions and pollute the planet.
But look at how GM got it wrong. This may be one of the biggest blunders ever in American corporate history. GM took the lead in electric car technology (smart move), but was not convinced that they as a company could be profitable selling electric cars.
WHO OWNS THE MOST ADVANCE BATTERY TECHNOLOGY?
One fascinating piece of information is that GM acquired advanced battery technology from Ovonic’s in the form of a NiMH battery. This battery produces a stronger, longer lasting charge, and was the ideal battery for their second generation of EV1 cars. What came out later was truly a shocker, GM sold this amazing battery technology along with the patent (dumb move) to Texaco who was later taken over by Chevron. Now Chevron owns the technology and the patent!
You have to ask yourself the question… why would an oil company be interested in purchasing advanced battery technology from a major car producer like GM?
I’ll let you draw your own conclusions.
Fast forward to 2008 when everyone is mad as H#LL for having to pay over $4.00 for a gallon of gas. Back in 1996 when GM launched the EV1 with very little fanfare, the cost of gas was around $1.28 a gallon.
Why GM decided to scrap the EV1 and look for short-term profits in big cars as opposed to building and preparing to adopt a different business model is still a mystery and one that has decimated GM’s stock price in the last five years.
The automobile business has not changed in almost a century and the industry appears reluctant to embrace change. It would now appear that GM’s business model like many of its big cars is rapidly becoming outdated and destined for dinosaur land.
LET’S LOOK AT THE STOCK OF GM
Let’s take a look at the GM stock chart and see how you would have fared had you purchased GM stock at $68 in 2003. Then let’s look at the same stock using a MarketClub’s proactive approach. As you can see the results of a buy and hold strategy have been a disaster losing 79% of its value for all share holders while the proactive results have been quite stellar.
If a major company like General Motors can fall to a 53 year low, so can any stock on the big board.
Readers of this blog know that MarketClub uses a proactive approach when taking positions in the marketplace. The world has changed, and it has changed not only for GM but for many other mature companies that are using business models and products that are rapidly becoming outdated and will prove to be noncompetitive in the long run.
Original Posting