Sunday, October 05, 2008

Congress Creates New Religious Order

Congress just passed a 700 billion dollar funded religious organization bill called “The Church of the FDIC.” Paulson is to be ordained Pope with Bernanke as head priest. Their Wall Street Bible will be published shortly, by Goldman Sucks Inc. Their motto “Hand basket to Hell or Do It My Way!” They have a great supply of hand baskets to choose from (for slackers).

This new religious order is going to cure the sick, and raise the dead. We are not talking souls; we are talking non living institutions.

Our retirement accounts are on their way to hell anyways, why do we have to buy their hand baskets?

Double Click for a larger picture.

Where to from here? Dow 2000! It won't happen right away, you can buy the dips all the way down, but by 2010 you will have learned a financial lesson that will last a life time. If you are like me, age 62 is not the time to be looking for a good paying job.

Copyright 2008 All rights reserved


Sackerson said...

Dow 2,000? Want to try for a more accurate forecast plus a timeframe? How about touching 9,000 at some point before New Year's Day?

Jim in San Marcos said...

Hi Sack

We ought to go through 9,000 by the end of the week. Then expect a 75% recovery and a slow but consistent drop downward from there.

Everyone in 1929 bought the dips until they hit bottom in 1932. At that point no one was interested in stocks anymore. That was a market drop of 90%.

Remember we are not talking fundamentals, there is a lack of faith in the markets.

frakrak said...

Jim do you have an opinion on why the financial system was allowed to get to this state in the first place?

Your comment about balancing both sides of the equation hasn't appeared to be part of the plan for some time now by the regulators! Why? I thought big money was smart money, and we, the other 99% were allowed to feed from the other end of the trough as part of this symbiotic relationship!

The bubble may have been created by Greenspan, and all it needed was a pric to burst it you have any ideas on who that pric was?

Jim in San Marcos said...

Hi Frakrak

I don't think we can blame anyone but ourselves for this mess. Greed made the first bubble the stock market. Lack of supervision made the real estate bubble.

Congress has to take responsibility for the repeal of all of the controls enacted by the Congress back in the 1930's that should have stopped this from repeating. The repeals happened over a 25 year period.

It's a little like the frog in a pan of warm water cooking on a fire. It's starting to get hot!

Jump if you can--rivit rivit

Anonymous said...

I'm also 62 and very sad that after a life of trying to do the right things, (raise a family, pay taxes, serve in the army, take care of a sick wife) my final years will be in turmoil. I have apologized to my kids for being part of a generation of juveniles. I think the baby boomer generation will be the largest cohort of poverty stricken folks this nation has ever seen.

Jim in San Marcos said...

Hi Anon 8:51

I don't think you can blame this on the silver foxes. We as a generation stand to take the biggest hit.

Congress has to bear a lot of the blame. The Democrats and the Republicans have used the Congressional wallet to get re elected. This is irresponsible and now we have to pay for it.

The thing that scares me, is if you destroy the middle class and the rich, Democracy is shot. The Soviet Union failed financially and fell apart. It could happen to us. There was that fear in the US in the 1930's.

I do believe that you are right, we stand to lose a lot and Social Security ain't what you want to fall back on for comfy living.

Here's hoping it won't get that bad. Thank you for your comments

Anonymous said...

Hey Jim,
What would be the indicator or red flag that tells one to pull their cash out of the bank before it's gone?

I'm serious. I'm worried about my money. I've got 200k in a money market account and it is the only working capital that I have to make money with as a real estate investor If I lose that I'm sunk!

Jim in San Marcos said...

Hi Anon 9:40

If its FDIC insured, you don't have to worry about losing it. They can always print more.

An issue you might want to consider is that during the 1930's some banks limited the amount you could withdraw. So if there was a limit of say $5,000 a week, it would take you 40 weeks to get access to all of your funds.

The real question here, is that no one knows which rules the government will change next. Keeping one step ahead of them is not easy.

I'm Not POTUS said...

Yippy now we own IOU's for payrolls.

This is getting silly.

So here are some new definitions.

CEO --Chief Embezzlement Officer.

CFO-- Corporate Fraud Officer.

BULL MARKET -- A random market movement causing an investor to mistake
himself for a financial genius.

BEAR MARKET -- A 6 to 18 month period when the kids get no allowance, the wife gets no jewelry

VALUE INVESTING -- The art of buying low and selling lower.

P/E RATIO --The percentage of investors wetting their pants as the market keeps crashing.

BROKER -- What my broker has made me.

STANDARD & POOR --Your life in a nutshell.

FINANCIAL PLANNER -- A person whose phone has been disconnected.

MARKET CORRECTION -- The day after you buy stocks.

CASH FLOW-- The movement your money makes as it disappears down the toilet.

WINDOWS -- What you jump out of when you're the sucker who bought Yahoo @ $240 per share.

INSTITUTIONAL INVESTOR --Past week investor who's now locked up in a nuthouse.

PROFIT An archaic word no longer in use

Anonymous said...
This comment has been removed by a blog administrator.
Jim in San Marcos said...

Write a novel and I will delete it


Jim in San Marcos said...

Hi Im not Potus

I like it! The Bull Market one speaks volumes on the people in the market.

Thank you for the definitions

frakrak said...

Jim I thank you for the courtesy in your response to my previous questions. I am a first time blogger! I find this site unusual by comparison to the few others I visit; I have found the quality and insight of your posts (and the comments generated from it) very helpfull. Also enjoy the fact that it doesn't touch too much on the conspiratorial!!

I don't posses a genius IQ but I did see the potential for what we are starting to experience now, 3 or 4 years ago. I took steps to protect my family from what may turn into a financial armageddon! Importantly in the past year I have actively sort out community with people should the situation turn dire! I have started with the Church I attend, a community garden, that may prove to be a very impotant part of our lives.

I do believe it is important to take responsibility for yourself, but we could all eventually be paddling the same canoe! And community maybe the best way to get through these "interesting times".

Feel my posts dilute the main intent of the blog, so I will finish by wishing you and the readers, my very best for a soft financial landing! I will continue to read with great interest all your comments.

Jim in San Marcos said...

Hi Frakrak

Feel free to post. Today I took exception to someone who posted an extremely long missive that no one was going to spend time reading. I removed it once and he posted it again.

I deleted it as a courtesy to readers like you, your spare time is valuable. 5,000 words posted in the comments section IMHO is rude and thoughtless.

The whole time I have had this blog, I have only deleted 5 comments. Two of them were today.

I welcome people with comments to share and try to answer most of them--I've missed a few the past week or two.

Thank you for your comments and I hope you change your mind

frakrak said...

Jim no need to publish this one, but in my second last post, made a grammatical error with "who that pric was" meant to read "what that pric was". It has a very definite slang connotation here in Australia. Hope your readers are not savvy to Australian slang! Apologies!

Jim in San Marcos said...

Hi Frakrak

Welcome back friend

Take care