Friday, July 27, 2012

Economy? Who cares? I'm focused on wealth. 'nuff said

Lots of moaning and groaning about how the economy will be the end to the Obama Presidency.  Hmmm,  I wonder what the stock market says .... keeping in mind the 10s of millions of middle class Americans who have 401 ks, IRAs, Coverdales,  529s, et al:

S&P 500

Jan 21, 2001 Bush sworn into office 1342.54
Jan 21, 2005 Bush completes 1st term 1167.87
Return .... -13.01%

Jan 21, 2005 Bush sworn into Office 1167.87
Jan 21, 2009 Bush completes 2nd term 840.24
Return .... -28.05%

Jan 21,2009 Obama sworn into office 840.24
Jul 27, 2012 Current day 1383.17
Return .... +64.6%

'nuff said.

Monday, July 23, 2012

Articles worth a read, July 2012

07/27 Cantor and Bachmann: Nut jobs
07/27 Strip clubs: GOP spends 3x more
07/27 Burr: Let's NOT tax the RICH

07/26 Phil Gramm: GOP Jackass
07/26 UK Enemy #1: Mitt Romney
07/26 Mitt: Really dumb move

07/25 TurboTax Timmy: Obama's biggest mistake
07/25 Mitt re defense: Cuts needed
07/25 GOP Senator: Tool for the RICH

07/24 America: Energy landscape
07/24 Middle class: Getting stomped
07/24 Tea Party Stupidity: Costs real money

07/23 Guns: Kill
07/23 Apple: Pays only 13% Corporate Tax Rate
07/23 Religious differences: Spur violence

07/20 Slide 7: US Politicians grossly incompetent
07/20 Corn: Problem
07/20 Higher taxes: No small-business impact

07/19 Romney: Lying his way forward
07/19 Bankers: Screwing us, again
07/19 USA budget: The facts

07/18 Annual droughts: In pictures
07/18 Bankers: Scumbags
07/18 US Politics: The 1% in control

07/17 US Senate: Yet more worthless bullshit
07/17 Summary: Recent Fed policy
07/17 Business loans: Growing nicely

07/16 Getting rich: Off sand
07/16 Congress: Worthless scumbags
07/16 Wall Street: Screwing the little guy, again

07/15 Congressional GOP: Underpay women
07/15 Banks: Constant lies, lies, more lies
07/15 Tax cheating: Not just for Mitt

07/14 Banks: Screwing America, again
07/14 Mitt: Arrogant ass
07/14 Kiss of Death: Palin endorses Rice

07/13 Financial Charts: 66 most important
07/13 GOP: Liar, Liar, Pants on Fire
07/13 Darth Vadar: Raises $ for Mitt

07/12 Romney: What's he hiding?
07/12 Romney: Plan to screw middle America
07/12 Romney: Won't release tax returns

07/11 GOP Senator: Real Americans pay no tax
07/11 GOP and Romney: Out to destroy America
07/11 Romney: Loves offshore shell corporations

07/10 Romney: Master of offshore accounts
07/10 Romney: Major donors are tax cheats
07/10 Mitt: Liar

07/09 Mitt: Liar, again
07/09 Romney: King of Gilded Age
07/09 Americans: Focus on jobs, not healthcare

07/08 China: Ruled by crooks
07/08 Romney or Obama: No difference
07/08 Romney vs Obama: Class warfare ahead

07/07 IRS: Punishes Americans for overfunding IRAs
07/07 Romney: Over $100 M in an IRA
07/07 Romney: effing tax cheater

Saturday, July 21, 2012

Earth, Economics

I trade securities for a living,  which means I sit behind a computer screen all day.  Most of my day is engulfed in reading and research.  In the background I am tuned into Bloomberg Radio and TV.  Periodically,  I've got CNBC running. I keep a myriad of economic spreadsheets and financial models up to date,  and I'm always listening to company conference calls.  Its not the static, ho-hum lifestyle most people think.

Given the current state of the economic crises in the developed economies of our world,  governments are now playing an extremely heavy hand in trying to fix our economic problems.  So,  I am knee-deep in political news too.  My world is in insular bubble of business,  economics and politics,  24x7.  I soak it all in,  form opinions on what it all means for the immediate future,  and place bets with my capital in an effort to garner superior returns.

So far, so good.  22.1% IRR through 14 years of trading (that's an annual return,  not over 14 years),  AND after-tax,  after draw down for living expenses.  That's damn good.  And it's made for a financially comfortable lifestyle.

These days,  you simply can't turn around without hearing, reading and thinking that the economies around the world are on the verge of a giant crash. Given the current economic crises in all the developed nations in our world,  its easy to allow all the negativity to influence my investing opinions.   But,  if one steps back from all the daily negativity and takes a fresh look at the larger landscape of our planet,  is it really all that dire out there?

Answer:  No.

There are good reasons to be positive about the world economy.  One only needs to roll up the facts,  which I've done in just two simple tables.  Look at these tables,  think about the information they present,  draw your own conclusions about what this information means for the intermediate term economic future of planet earth.

I look at this info and can't help but shake off all the negativity.  You?


Focus on this:
  • Only 14% of the world's population live in countries that are in debt up to their eyeballs.  These 14% have a GDP per person of about $39,135 per year.  
  • These 14% also account for the bulk of the world's GDP ... 63%.  
  • The other 86% of our world live in developing countries in which debt is under control.
  • These 86% have a GDP per person of only $3,996 per year.
Citizens in countries like China, India, Russia, Brazil, Indonesia, Korea and Taiwan have just recently gotten a taste of the good life.  They want homes,  and cars,  and good schools,  and vacations,  and decent food.   They want to live safe, comfortable,  productive lives.  They want their children to receive a good education.   They want what the developed world has had for decades.   Because of financial crises in other parts of the world,  will these folks suddenly stop demanding an equal standard of living?  Nope.

That gap between $39,135 for 14% of the world,  and $3,996 for the other 86% will be closed.  And it's going to happen more rapidly than we can currently envision.  And as it closes,  there will be a massive amount of worldwide economic growth and opportunity.

Just think about the math.  Even if the annual GDP in the developed economies stayed stagnate,  and the developing economies could produce output at $39,135 per person,  well,  the world economy would be significantly larger than it is today.  The world's GDP would grow from $63 Trillion annually today,  to $273 Trillion.   4.3 fold growth.

It's easy to get sucked into all the negativity around us right now.   But, it's wrongheaded.  And if you allow it to guide your deployment of capital,  you're going to be a loser.  Shake the negativity off,  there is economic growth ahead,  and lots of money to be made.  Yes,  there will be bumps in the road,  but that's no reason to get off the road entirely and not make the trip.   Stay engaged.  Stay invested.  Continue to read and research, and deploy your capital wisely.  There's massive economic growth on the horizon.

Tuesday, July 17, 2012

@SenatorBurr ... Surprise, surprise

Americans WANT what Republican Senator Richard Burr and our GOP party REFUSE to deliver.

WE want a fair tax system.  WE want higher income taxes on the top 1%. 

It's simply infuriating.  And it prevents GOP moderates, like myself,  from getting behind my political party.

Monday, July 16, 2012

Excellent article on current political polls in NC and Va

An excellent article on where the Presidential polls currently stand in both NC and Va.  I couldn't help but laugh at a couple of things:
  1. Burr doesn't move the needle.  He has no pull within our State.  Of that,  I was already aware.  After 15 years in Congress,  he's a nobody,  with exactly ZERO notable achievements for North Carolina,  or our nation.
  2. Eric Cantor is tremendously unpopular.  No kidding.  That idiot caused $2.4 Trillion in wealth destruction at about this time last year.  You can't act like a damn child over issues as important as financing our nation's budget.  You can't take actions that directly destroy massive amounts of wealth without making Americans tremendously upset. What was he trying to achieve when he wound up making $2.4 Trillion disappear?  He was in a rage over a couple hundred million in tax increases on the extremely wealthy.  It was an idiotic trade-off,  which is typical of our modern day Republican party.

@SenatorBurr is an 'effing loser

I'm sitting here reading Senator Richard Burr's update letter.  It absolutely makes me madder than hell.  This man is a loser.  He's been in Congress for over 15 years.  What do we have to show for his 15 years of service?   We don't have jack ... but $15 TRILLION in fucking debt hanging around our necks.  And this god damn loser can't do anything but whine:

"Our economy is rapidly approaching a “Fiscal Cliff,” and unless Congress acts, on January 1, 2013, every American will experience a perfect storm of unprecedented tax increases and automatic cuts to spending across the board, on everything from defense to Medicare.  Temporary band-aid measures and gimmicks that sound good in talking points but do nothing to help the economy create jobs are not the solution – they only make our dire fiscal situation worse and would delay our economic recovery.  I believe most Americans want to see leadership for tackling the severe budget problems and debt we face in a permanent way, and we should do that with a full and honest debate about our priorities."

Richard,  you didn't get the job done.  So maybe it's damn time we try some fucking automatic cuts that simply kick in and do your work for us.  In the mean time,  do us a favor.  Just shut the hell up and stop your whining.

I can't vote for Mitt

I'm not pleased with the Obama Presidency:
  1. He failed to punish the banking community for screwing our economy.
  2. He failed to punish the GOP for screwing our economy.
  3. He failed to cram higher taxes down the throats of the 1% of Americans who have grossly underpaid taxes for decades, sending our country down the path to $15 Trillion in debt.
  4. He failed to get us the hell out of the war business.
  5. He's just plain weak.  The very day after the election when Mitch McConnell spewed his disdain and loathing for President Obama,  our new President should have gone on the offensive and decimated the GOP.
That should be enough for anyone to turn their back on another Obama Presidency.

But,  it's significantly more difficult to envision a vote for Mitt Romney:
  1. He belongs to an exclusionary, cult religion. Disagree?  If you're a non-Mormon,  try attending a Mormon wedding, or dating a Mormon.  Walk into a Mormon church service and see how welcomed you are.  America is a melting pot.  The Mormon Church is an exclusionary island of religious fanatics.  The two together don't compute.
  2. He's a tax cheat.  $100 Million IRA. How do you even come close to legally accumulating that much when annual contributions are capped at a mere $6,000?  Then you have all the off-shore accounts, trusts for the wife,  trusts for the children, LLCs.  Come on.  And we have to ask ourselves why our country is $15 Trillion in debt?  The answer lies squarely in the tax returns of Mitt Romney.
  3. The man makes over $20 Million a year (not including all the annual tax free income on that $100 M IRA) and pays a lower income tax rate than an average secretary earning $35 K.  How can we allow a person to occupy the White House who fails to live by example?  I don't give a damn if his returns wind up being clean.  It's simply an insult to Americans to earn that much money,  pay that little income tax,  and not just step up to the plate and denounce the unfairness of the system,  whip out a checkbook ... and make it right.
  4. The man hasn't met a job in his life that he didn't try to figure out how he could ship to a lower wage country.
  5. He was for the Health Care mandate,  before he was against it.  Face it,  Mitt will say, and do, ANYTHING to get elected.  ANYTHING.
I just can't do it.  I CAN NOT vote for Mitt Romney.

Like with me,  for most Americans, this election will come down to ...  I know I can't vote for Mitt,  but can I justify a vote for another Obama Presidency?  I either vote for President Obama,  or I stay home.

At this point,  I'm just not sure where I'll be on election day.

Thursday, July 12, 2012

Shi*t @SenatorBurr says - Siri, what does "..'nuff said.." really mean?

Siri says - Senator Butt,  here's a good example of 'nuff said:

Mitt Romney gave John McCain 23 years of tax returns in 2008, after seeing those returns, McCain picked Sarah Palin.