Tuesday, February 17, 2009

Can't Buy Here

We wanted to buy some more SSO when the Dow reached its November lows, and now that it's happening, we find ourselves unable to pull the trigger. And it's not because of fear, or because we want a better price. It's because we strongly feel that investing in any stock or index fund at this time is a "yes" vote for a system that supports criminals such as Madoff. And now there's Stanford, another $50B investigation that surfaced this past weekend.
The government has demonstrated to the public that corruption and theft on Wall Street is an acceptable practice. How can we vote "yes" when we don't agree that corruption and theft are acceptable? We cannot in good faith support a system that rewards bad behavior. It simply goes against our principles.
So while we struggle with this crippling moral dilemna, here's something to think about...
Toyota, now the world's largest automaker, posted their first annual loss since 1980. Until now, the Japanese automakers were seen as bulletproof, at least compared to their domestic counterparts. If there was any doubt about this recession/imending depression being global, there should be no doubt now. Toyota (TM) actually makes a good short, as it's in a Stage 4 downtrend, yet close to its moving average. We have nothing against the company itself, it's just that with U.S. automakers selling at less than $2 per share, a fair price for TM in this economy is probably in the ballpark of $10 - $15. GE may even be below $10 soon.
With oil making new lows every day, you would think there would be some relief at the pumps. But then, you'd be wrong. Oil companies are getting rich, and the wealth is certainly not going to their shareholders. Well, except for Cheney and other high-ranking government officials. If you want to question Cheney in depth about his retirement package with Halliburton, we hear he'd be happy to take you on a "hunting" trip.
But it's not all bleak out there. Here's a silver lining...
There was a time when investors, in addition to doing all other fundamental research, faced the overwhelming task of trying to guess which privately-run company was being truthful. Now that the government is taking over our banks, insurance companies, automakers, etc, investors can look forward to a new era of truth in accounting practices! With the government at the wheel, we expect this new era to be corruption-free and completely transparent!
Ok, the Dow is down 280 now. Maybe other investors don't share our enthusiam about the new, government-run corporate America, backed by the full faith of a government that rewards criminal activity. Wait a second, we're back to where we started this post. So much for a silver lining, this country's going to hell in a handbasket! The only thing that could make us even have a sliver of hope in restoring our faith in America would be to see Madoff and his sons behind bars. From there, we could start to repair the psychological damage the S.E.C. has done to our confidence in Wall Street. Until then, it's really, really hard for us to pull the trigger.

11 comments:

sbbuilder said...

Here's a silver lining: when the tide goes out, those not wearing suits are being exposed. The shell game perpetrated by Madoff, presumably Stanford, et al can't exist in these economic climes. So the rats are jumping ship. It remains to be seen if the ship itself can stay afloat.

Well, Wall Street has had a look at the Stimulus package and doesn't seem to like it. Now why is that? It's because it decidedly is NOT a stimulus package. I've said I wouldn't comment on politics on this blog, but my patience is wearing thin. I feel a good rant coming.

j f said...

well, obviously i don't mind (actually quite enjoy) the rants. but not it's my turn to ask: what do you guys expect tomorrow/this week???!

j f said...

(i mean NUMBERS-wise. sbb, i do believe we just traded places from the other day!)

Anonymous said...

SB, i disagree, the real criminals are the ones who have been engineering this crash for years, so far everything is going to plan, when it is over they will buy up banks and other large companies at pennies on the dollar, these people will never be punished, they will never be exposed, they will be celebrated as "heros", when they swoop in at the bottom and buy up everything in their path, including your and my freedom.

Anonymous said...

All you guys need to go buy a box or two of canned pork 'n beans and tuna fish and head for your bomb shelters. Oh, don't forget to stock up on batteries and ammo for your rifles and shotguns.

Icon, do you still have SRS?

Anonymous said...

DESPAIR. That's what I read in what SnotWheel has to say. Snot, you were eloquent, and almost poetic in your description of reaching that point in time where we're forced to "wake up and smell the coffee." For those of us who've done the research, there's no escape from the truth.

I've known for many years there were powers at work, and they were stronger than I could grasp the concept of. So strong that Madoff, Stanford, and others that are scrambled up to the surface of this grand farce are just the "little guys." I didn't have an understanding that we would see this reckoning in my lifetime. But the putrid reality of the state of this world and what got us all to this point is becoming clearer every day now.

Anyone who doubts the magnitude of the crisis at hand is long overdue some in-depth study of several hundred years of history and power. Icon has made references to these issues. DK is on target.

The multitudes.....billions even...... of trusting, hard-working people in this world have been done a grave injustice as a part of a long-term plan. My belief is it can't be fixed, no matter what, because those who orchestrated this entire situation have no need for that.. All we can do is tiptoe around this and try to "make do." G-d help the younger generations. Despair - I share it.

Kay

Snotwheel said...

That's depressing, Kay, but so true. Painfully true. Younger generations may come out better than many from our generation. Americans are saving money once again. Not so good for the current economy, perhaps, but good in the long run. People are back to buying only what they can afford. If this mentality passes on to the next generation, they'll be better off. They'll be like depression babies, hopefully without the depression.

hal4511 said...

I too share the despair you feel in this financial crisis, this is but the tip of of the iceberg if this isn't the NWO manipulating the human race what is it ??? I have lived over 50 years seen and done much. I have traveled to distant lands, talked with people and lived in different cultures but this is unlike any thing I have ever seen. There is an evil at work here, a pure evil that permeates everything. The only peace I have these days comes from my relationship with God. Heaven help us all ...

Conorsh said...

Honestly people, we are supposed to be educated, rational and intelligent investors here. What's with the the talk of permeating evil and the "new world order"?

I respectfully point out that america today is a damn sight better off than 60% of the worlds population was two years ago when evil was safely at bay. A financial crises may be unlike genocide in the congo or a scrabble for existence in rural china but it is significantly more enjoyable and on the good/evil scale it is pretty puny. After all, no one is selling their children yet.

Anonymous said...

Conorsh, i think you need to educate yourself about Globalisation and internationalists. Here is an article that may clarify for you this subject. Please note, i do not intend to get into arguments or deface the good intent of this site. I'm only replying from a constructive criticism point.

http://www.newswithviews.com/baldwin/baldwin487.htm

Bush, Sr. further said, "The world can therefore seize the opportunity to fulfill the long-held promise of a new world order . . ."

What was President G.H.W. Bush talking about, if there is no such thing as an emerging New World Order? Was he talking out of his mind? Was he hallucinating?

England's Prime Minister, Tony Blair, said, "We are all internationalists now, whether we like it or not." He continued saying, "On the eve of a new Millennium we are now in a new world. We need new rules for international co-operation and new ways of organizing our international institutions."
(...)
In his book, "A Reporter's Life," Walter Cronkite said, "A system of world order--preferably a system of world government--is mandatory.

More on the link above ...

LeBlanc

j f said...

conor, i wrote a longer reply this morning, but i guess i was tired cuz it failed to post. out of frustration, i will limit my response to the following two points:

1) dude, i am having a really hard time parsing this: "america today is a damn sight better off than 60% of the worlds population was two years ago when evil was safely at bay" -- basically it is false and nonsensical. and i really do mean this respectfully as well.

2) just one concrete point that's easy to argue: people absolutely ARE selling their children.

http://en.wikipedia.org/wiki/Trafficking_of_children