There Is No Recession in Washinton, DC!

http://finance.yahoo.com/news/Home-prices-falling-in-most-apf-2179818115.html?x=0&.v=1

Real estate continues its bull market in Washington, DC.  No recession there!  Plenty of government workers buying up houses with our tax money.  But just think of what a great job they are doing for us!  Right on!

"Home prices in the nation's capital are up 3.6 percent year over year and have risen nearly 11 percent since they bottomed out in March 2009. And among the 20 cities, prices there have held up the best since 2000, appreciating almost 84 percent."

Meanwhile, in the real world:

"Home prices are falling in most major U.S. cities, and the average prices in four of them are at their lowest point in 11 years. Analysts expect further prices declines in most cities in the coming months."

Obama Getting Heat From Left and Right for U.S. Role in Libyan Attacks

Silly Dennis the Menace Kucinich.  Doesn't he understand that launching a hundred missiles at another country is only kinetic military action? 

"For Rep. Dennis Kucinich, that's not enough to justify what the U.S. has done in Libya. The liberal lawmaker called it "an act of war" and said Congress should be called back from a spring recess to decide whether to continue the military action.

"On the website Raw Story, Kucinich (D-Ohio) went further, calling Obama's move in Libya "an impeachable offense." The president "didn't have congressional authorization; he has gone against the Constitution, and that's got to be said," Kucinich maintained."

http://www.politicsdaily.com/2011/03/22/obama-getting-heat-from-left-and-right-for-u-s-role-in-libyan-a/

What the hell is he talking about?  The Constitution?  What's that?  At least we have plenty of money to throw at kinetic military action.  Maybe we'll get prisoners of kinetic action out of this instead of POWs and detainees.  We won't use fighter planes, only peace-enforcing airborne units, manned by goodwill envoys.  Damn that evil Gadaffi.  Of course we won't go into Syria, who doesn't have oil, nor will be go into Bahrain, who does have oil but has other dictator buddies of ours.  Those people will be "insurgents" no doubt.


This is all great entertainment.  I fully expect another Nobel Peace Prize for Obama, don't you?  Maybe Hillary should get one this time.  I'm sure Kucinich won't be considered even though he voted against the Iraq war and all money for the war since like Ron Paul, too.  Now there's another war monger.  Imagine, if we had listened to Ron Paul we wouldn't have spent $1 trillion in Iraq, killed all those people, and lost thousands and crippled more than that.  What an asshole Ron Paul is!  A wacky loon!  Can't he ever get ANYTHING right?

By the way, I am taking all bets for Obama to be reelected in 2012.  I have little doubt that he will get a second term.  Somebody give me some love and put up some money!

Why I’m Never Going to Own a Home Again

Well, not necessarily me, but I had to pass on this most interesting and humorous article. 

http://blogs.forbes.com/jamesaltucher/2011/03/21/why-im-never-going-to-own-a-home-again-3/

Right on, US Supreme Court!

The Supreme Court, by refusing to hear the appeal, has in effect ruled in favor of freedom of information and against the banking cartel.  RIGHT ON!

http://www.reuters.com/article/2011/03/21/us-usa-fed-bailout-court-idUSTRE72K3FJ20110321

Fantasy Stock Challenge--Beat The Pizza Guy!

Sorry for not posting for awhile but life has been getting in the way.  In my case, I must admit that every day for me is like going to Disneyland.  I have been contemplating lately whether it is just my position in the time line of life or if it is always supposed to be this way?  I have come to the conclusion that whatever your age or position, if every day for you isn't filled with fun and excitement, you really need to change something.  Either that or somebody is slipping something in my coffee pot while I'm in the other room writing blogs.

So when I say that life has been getting in the way, I mean I have been distracted by working, riding the bike, playing music with the boys, watching Dexter and Netflix in general, hiking, playing chess online and at a friend's house, playing poker, going out and hearing some great local music, visiting family, reading, playing the bass and keyboards, following world events, and trading stocks online.  (I noticed I said "playing" several times).

Trading stocks is not a game for everyone but it is something I got into a few years ago.  Until the Ford administration, there was no such thing as an IRA or a 401(k).  Back in those "good old days," the DOW trudged along at 1000 with very little volume compared to today.  Very boring.  I knew nobody who owned stocks just 30 years ago.  With the advent of the above vehicles, volume rose dramatically while most everybody pumped money into the stock market for their retirement account.  Now it is to the point where most everybody has some exposure to the stock market although most people don't actively trade.  I have heard it estimated that 1/2 of the entire stock market is related to retirement accounts and pensions!  (Just a thought, what do you think the DOW would be today without the government subsidy of a tax break for retirement accounts?  Yet another example of government intervention in the free market distorting real price values).

So I have an IRA and a separate trading account at TDAmeritrade.  What else am I supposed to do with cash, take advantage of Chase Bank's current 13-month CD rate of .6%?  Yes that is right, POINT 6 percent.  So if I put $10k in a 13-month CD, they will give me $60, which will be taxed, of course.  As long as I don't take it out early and get penalized.  I also have some physical gold and silver stored in a safe deposit box.  Everybody should own some gold and silver.  If you don't, what are you waiting for?

So the last four years or so I have been actively trading and trying different methods.  I have stumbled onto a couple of strategies that have worked out well and a few that didn't.  I managed my mother's $90k account for a year and a half until she died and made $17k, a 14% annualized rate.  Not bad for a pizza delivery driver/bass player.  (This helped offset her expenses at an assisted living facility).  I did this by buying GLD and SLV and selling the calls.  In a primary bull market it was like taking candy from a baby.  Believe it or not, I was 15 for 15 in profitable trades with no losers.  If you would like details I would be happy to post my trade history.

There are many indicators to watch and I have recently been doing well using another method.  Since January 1st of this year my accounts are up 8.6%, which is an annualized rate of about 43%.  That should be a hard rate to keep up, but looking back at my trades it is amazing the glaring weaknesses I see.  Even so, including both accounts I have 10 winning trades and only 3 losing trades, an amazing win/loss ratio of 76%!  Take that, Chase banksters!

So can you beat The Pizza Guy?  Here's the deal, I will post all trades I make on this blog.  I just signed up for a Twitter account, so I will also tweet my trades immediately so if you follow me you will get instant notification.  Don't forget that I am using "live ammo," a real account with real hard earned cash, if you consider delivering pizzas hard work, that is.  Whether you have a real account or not, see if you can beat me!  Let's imagine we each have $40k in a trading account.  Buy and sell stocks and options too if you want since I will be trading both.  If you don't know how to trade options, just buy and sell stocks.  If you have a real account, all the better!

Here are the rules...if you decide to make a trade, leave a message on this site immediately after you make the trade.  No fair cherry picking and waiting for a future time to post a better price.  I will keep a spreadsheet with all the trades and post a running tally twice per week here.  As I said, I will post my trades and also tweet them.  After two months the loser buys the first pitcher of beer.  Or maybe you can think of a better reward although it is hard to top beer.  In any case, I will try my method against yours and we'll see who has the best method.  The worst that can happen is we can learn from each other and have some fun along the way, besides drinking some beer.  I know for a fact that there are some serious sharks who occasionally stop by here and I am also looking to learn and know why you make the trades you do.

So are you afraid of The Pizza Guy?

Another Month, Another Record

http://www.washingtontimes.com/news/2011/mar/7/government-posts-biggest-monthly-deficit-ever/

We are almost at $1 billion a day deficit now.  At this rate we will have a $3.5 trillion deficit.  haha  The Paper Bugs are fighting an all-out war.  Bring it, bitches!  HAHA  Silver is $36 an ounce now.   They fight a losing battle.  Better stock up on KY Jelly.  They aren't giving gasoline away, either.  But at least groceries aren't going up.  HAHA  No inflation anywhere!  HAHAHA

I am sorry about all the laughing, but you just have to wonder how gullible the government thinks the people are.  So far, I would agree with the government that the majority are ignorant and gullible.  I don't mean it in a demeaning way, I am just being objective.  I believe few people have any idea what the Federal Reserve does or even is.

It is in this environment that we live, so I say look for the opportunities.  The government via the fed is destroying the value of your dollars.  You must find the opportunity or get crushed.  Your dollars are going south.  There are 599 failed currencies in history.  This is not the first rodeo.  Educate yourself.  There is no need to go down with the masses if you see history repeating itself.  This is a good place to start:


http://dollardaze.org/blog/?post_id=00405

I would like to put to rest once and for all a comment used to justify paper money..."Why can I go to the store and get groceries with this paper $20 if it is worthless?"  Number one, the same argument was used in all 599 failed currencies at one point, and number two, your $20 used to buy a hell of a lot more groceries 30 years ago than it does today, and the rate of that depreciation is accelerating, so you can tell me it is an honest system if you like but then you would have to explain to me where that lost value went.

Food Stamp Nation--Another Month, Another Record

Bernanke's plan to recreate Libya in our own back yard is continuing to work magnificently. It is no surprise that on Charles Ponzi day, the update to food stamp usage indicates that in December those receiving an average of $134 per month has just hit 44.1 million people. These lucky people will soon be able to buy an inflation adjusted 2.3 crumbs of notional bread with this generous handout from the Chairsatan. In other words, America is now the land of the free, home of the brave, of whom 14.3% can't afford to eat, even with all the new jobs created by both the old QE1, Lite and 2, and soon to be 3. Don't forget that according to the Bernank, QE2 has already created 250,000 new jobs... all at the a modest cost of $1.3 million per job.

http://www.zerohedge.com/article/charles-ponzi-day-we-celebrate-another-all-time-record-food-stamp-usage

 

And courtesy of one of the few places on the web to actually get real news, a couple of zerohedge.com articles explains why unemployment numbers from the government are an absolute joke.  Just look at these three charts and then we'll talk about "unemployment."

http://www.zerohedge.com/article/civilians-not-labor-force-hits-all-time-record

http://www.zerohedge.com/article/labor-force-participation-rate-remains-25-year-low-642-birthdeath-adjustment-112000

 

Fannie and Freddie--Welcome to Zombie Town

http://www.bloomberg.com/news/2010-08-16/treasury-fixing-mortgage-finance-system-juggles-limitless-bailout-economy.html

In case you don't know, Fannie Mae and Freddie Mac, when we took over these failing giants, guaranteed half of the mortgages in the United States worth about $5.2 trillion at the time.  There was a limit on the amount of help we could give Fannie and Freddie until Congress, the President, or pick your criminal, it makes no difference to me, committed UNLIMITED RESOURCES indefinitely, in other words, taxpayer bailout.

Things have accelerated in the direction of government in the last couple of years.  97% of all mortgages in 2009 were backed by the US Government.  There is virtually no real estate market now, outside of cash, without government backing the loan.  What does that tell you about the solvency of the banks??  FHA is still making loans with 3% down.  HAHA  Would you loan your money to somebody to buy a house with only 3% down when we are in the worst housing market in 80 years?  haha  I hope you don't hurt yourselves laughing.

The only solution is for the government to entirely get out of the housing market.  Let banks and people negotiate their own terms.  Both will have skin in the game.  The current system is not only a bad system, it is in total failure mode.  Fannie and Freddie are already a $153 billion drain on the taxpayer with hundreds of billions more to come, per the Federal Housing Finance Agency.


http://money.cnn.com/2011/02/11/news/companies/fannie_freddie_losses/index.htm

This is a colossal example of the failure of government trying to manage 15% of the economy when the obvious solution is free market capitalism.  Let bankers take the risk of the loan, not taxpayers.  Until then, there is no sure way to say with any accuracy what a house is worth.  I will be willing to bet that housing priced in gold with continue to crash massively.  With gold hitting a record high of $1436 today, a $100,000 house would cost just under 70 ounces of gold.  I predict that house will eventually go for 10 ounces of gold or less.

How it unwinds at this point is hard to figure.  With the takeover of Fannie and Freddie, the US taxpayer already is responsible for over half of the mortgages in the US.  How do you solve that without a default, especially when the economy and housing continues to crash and burn?  It should be obvious to all that we are passed the point of no return.

AND THIS IS JUST THE HOUSING MARKET!