Last week a small, footnote of news hit the wire. Kim Jong-un, the son of the recently passing, Kim Jong-il of North Korea, declared that the armistice between his nation and South Korea was terminated as of this Monday, the 11th of March. The north has been very aggressive in attitude toward the south in recent years. They have instituted acts of aggression after every election in the south with excessive force in 2010. In that year the north sunk a vessel of the south(Cheonan) killing 46 sailors. In addition, an artillery shelling of the south's island of Yeonpyeong cost two more lives. The south is on alert, but the international community treats this rhetoric as crying wolf.
The problem as I see it is this: a severe future acting out by N.Korea to gather attention. I see this small person like the terrible lost souls that inflicted so much pain in the world acting out. I'm talking about the recent incidents in Connecticut and Sweden.
Do you realize that modern, basic artillery weapons from the north could strike downtown Seoul? What little response the media gave to this fearful dialogue was that N.Korea didn't have the technology to put a nuclear warhead on a missile. Of course, the source of that info was our military. You know, the same guys who said Iraq had weapons of mass destruction. Intelligence?! There's another agency that needs a revamp.
Bottom line, I hope nothing happens, but consider this: on the 27th of July of this year, it will be the 60th anniversary of a war that has never been officially ended. In addition the Ides of March appear next week.
Liars and Crooks:this week goes to our leaders in government. The media was filled with fearful alerts that would result from the "Sequester." Dear reader, the lies are so bad, I have no idea what the truth is. According to Ron Paul the cuts to the government with the sequester were no cuts in spending at all. All it was according to Paul was not increasing spending in the budget. In any event the economy didn't stop, the world still revolves around the sun and life goes on. Having said that I'd like to march against our leaders with a protest march to all their lies to us their citizens and I would begin with the Consumer Price Index(CPI). The government has the nerve to not include food and energy in this report on inflation. Folks, I don't need to remind you that gasoline has increased .52cents in the 59 days of the first two months. Eggs have gone up in price 70%. You and I know this B.S. has got to stop. I demand that the future CPI only has two components, food and energy and if it did it would show inflation running over 10%. ..and as always end the Fed!
Sunday, March 10, 2013
Sunday, March 3, 2013
Sequester's Here, Now What?...L&C
For those of you who have been reading this blog you know that I predicted back in 2011 when President Obama signed the Budget Control Act that the compromise between the debt ceiling and the budget would lead to Sequester Day. At that time the president said that the Republicans were playing dirty pool in politics. They were unfairly delaying the legal extension of debt, distracting the president's reelection campaign and hurting the nation.
The Democrats came up with the compromise agreement of automatic spending cuts in the budget for a quick debt ceiling extension.
Now, that these cuts are progressing, the name blame takes front page. The real problem, dear reader, is the fact that federal law requires a budget every year and the Obama administration has not gotten one passed in the last four years which is a gross violation of duty, law and leadership.
Two Parties, Two Ideas
on how government should operate. At one time the cultural values of the nation centering around self reliance took center position to which each of the two political parties jockeyed for their modern concept of what that entails.
The Democrats like to lead by spending to which they then classify as demand. More demand is better.
The Republicans like to let an individual develop a market for something to prove that there is actually a demand. Then, they don't care how it operates in regards to the nation. No rules, the wild west influence.
True self reliance does not demand or form a market for a service to which both parties don't like cause less demand is bad in the ultimate equation of government.
Traditional Stance
The Republicans want defense spending. They will spin any adversity as a danger to national security to keep the pump primed.
The Democrats say that they represent the "little guy." This party fought for social security, unemployment benefits and medicare. They don't mention Vietnam, Korea and the two present wars that they voted to enter. They don't mention the fraud in medicare, cell phones and the other 52 tax loopholes that the president just extended when he signed the Payroll Tax Act on 1 January of this year.
Now What
nothing! The actual cuts are small. Remember the committee that gave us the format used a small, compromise edition of the original budget cut plan. For example, the 2% cuts to medicare means .98 cents on the dollar to overpriced medical care. The IRS will suspend any layoffs until summer. Did you actually think that the govenment would take a chance on losing your money?
Both parties will watch each other, the polls and the stock market. The name blame game will rise as the cuts gain momentum. The president will attempt a new spin on his solution that gave the nation the sequester. The Republicans will see if they can hold off the complaints against the sequester due to the fact that it hits defense spending in a larger proportion in the spending cuts. If they can spin the public to their viewpoints, they will cave the president to which is his basic character(all talk, no conviction)and a new compromise will surface to which cuts in entitlements will rise. The biggest influence in all this is...No! Not the public. Neither party represents the citizen. It will be the rise or fall of the stock market. I see a slow downward drift that could crash, depending on how long the new deal takes to develop and the fact that our economy contracted in the last quarter to which the administration pulled some strings and that was changed. It was just revived to a plus from a minus.
Liars and Crooks: goes to the president. We now know why the Democratic big shots got behind him. This goes back to his early entry into politics in Chicago. You may not remember, but Obama lost his reelection bid in the city. When the next election came around, Obama offered everything including the kitchen sink to win. He promises to everyone, but has no conviction, vision or leadership in what he says. The $16.5trillion to our national deficit will climb to over $20t before his term is ended.
The Democrats came up with the compromise agreement of automatic spending cuts in the budget for a quick debt ceiling extension.
Now, that these cuts are progressing, the name blame takes front page. The real problem, dear reader, is the fact that federal law requires a budget every year and the Obama administration has not gotten one passed in the last four years which is a gross violation of duty, law and leadership.
Two Parties, Two Ideas
on how government should operate. At one time the cultural values of the nation centering around self reliance took center position to which each of the two political parties jockeyed for their modern concept of what that entails.
The Democrats like to lead by spending to which they then classify as demand. More demand is better.
The Republicans like to let an individual develop a market for something to prove that there is actually a demand. Then, they don't care how it operates in regards to the nation. No rules, the wild west influence.
True self reliance does not demand or form a market for a service to which both parties don't like cause less demand is bad in the ultimate equation of government.
Traditional Stance
The Republicans want defense spending. They will spin any adversity as a danger to national security to keep the pump primed.
The Democrats say that they represent the "little guy." This party fought for social security, unemployment benefits and medicare. They don't mention Vietnam, Korea and the two present wars that they voted to enter. They don't mention the fraud in medicare, cell phones and the other 52 tax loopholes that the president just extended when he signed the Payroll Tax Act on 1 January of this year.
Now What
nothing! The actual cuts are small. Remember the committee that gave us the format used a small, compromise edition of the original budget cut plan. For example, the 2% cuts to medicare means .98 cents on the dollar to overpriced medical care. The IRS will suspend any layoffs until summer. Did you actually think that the govenment would take a chance on losing your money?
Both parties will watch each other, the polls and the stock market. The name blame game will rise as the cuts gain momentum. The president will attempt a new spin on his solution that gave the nation the sequester. The Republicans will see if they can hold off the complaints against the sequester due to the fact that it hits defense spending in a larger proportion in the spending cuts. If they can spin the public to their viewpoints, they will cave the president to which is his basic character(all talk, no conviction)and a new compromise will surface to which cuts in entitlements will rise. The biggest influence in all this is...No! Not the public. Neither party represents the citizen. It will be the rise or fall of the stock market. I see a slow downward drift that could crash, depending on how long the new deal takes to develop and the fact that our economy contracted in the last quarter to which the administration pulled some strings and that was changed. It was just revived to a plus from a minus.
Liars and Crooks: goes to the president. We now know why the Democratic big shots got behind him. This goes back to his early entry into politics in Chicago. You may not remember, but Obama lost his reelection bid in the city. When the next election came around, Obama offered everything including the kitchen sink to win. He promises to everyone, but has no conviction, vision or leadership in what he says. The $16.5trillion to our national deficit will climb to over $20t before his term is ended.
Sunday, February 24, 2013
2013: Year of Economic STORMS...L&C
CCR sang about a bad moon rising and if you were in Florida as I was back in the summer of 2004 when Hurricane Charley hit, you lived it. In fact there were three hurricanes to hit Florida that year and two, Charley and Bonnie within 24 hours. Those storms caused severe financial damage and loss of life. This year we are entering a period from January 2013 to January 2014 of economic storms that will make nature disasters appear like Sunday's leftovers. For those of you that are still suffering from Hurricane Sandy, please forgive me. I'm using the summer of 2004 because there were three terrible storms and now, I see three terrible economic storms.
Payroll Tax
was scaled back 2% beginning in January. This is only a squall compared to what is coming. Next week the sequester will hit with its $85billion in spending cuts to the budget. There are many avenues to approach this reduction in government spending. The military will feel most of it. Praise the Lord! Not only am I against the military because they breathed destruction and waste, but they have been destroying our economy since Vietnam. Defense spending results in 40% of our manufacturing and if we cut that spending, that is how much our manufacturing will decline. Like I've stated many times, there is no such thing as free trade and if we protected our workers, there would be no fear of loss in manufacturing. This is the first storm and like Hurricane Bonnie, the weakest
May 6
storm number two will hit. On that day mortgage loans with less than 20% down will face demandatory PMI(private mortgage insurance). Before the recession all home purchases had to have PMI, however ninja and liar loans did away with PMI. In the "old" days PMI would end after a homeoner reached a 20% threshold in equity. Now, if you have 10% or less, PMI will be added to your mortgage payment for the LIFE of the loan, This is like your loan interest rate rising 1%. Not only that, if you had less than 20% down, then expect to pay this increase for ten years. It gets worse because this will effect all loans that have already closed. It will hit everyone!
Obamacare
under the Affordable Care Act will kick in next January.This so-called Medicare fix will cause a tidal wave of debt for the taxpayer and our country. You see every state government has not put away funding for their municipal workers. Now, they can place their workers under Obamacare and the health cost will shift to the federal government. This will cause the deficit to add another $trillion in debt.
Liars and Crooks:goes to the Federal Reserve again! You see, most folks don't understand the bond market and how important it is to credit and finance. For example, our nation had $10trillion in debt before president Obama took office and now, we have $16t with him. However, we pay 20% less to finance our debt with $16t than we did with $10t. How can that be? The Fed! You see, they buy over 60% of our bonds because no one else would with these low rates. In fact, if rates return to their normal level, our nation would have to pay $500billion just to pay the interest on our national debt. It is that bad!End the Fed!
Payroll Tax
was scaled back 2% beginning in January. This is only a squall compared to what is coming. Next week the sequester will hit with its $85billion in spending cuts to the budget. There are many avenues to approach this reduction in government spending. The military will feel most of it. Praise the Lord! Not only am I against the military because they breathed destruction and waste, but they have been destroying our economy since Vietnam. Defense spending results in 40% of our manufacturing and if we cut that spending, that is how much our manufacturing will decline. Like I've stated many times, there is no such thing as free trade and if we protected our workers, there would be no fear of loss in manufacturing. This is the first storm and like Hurricane Bonnie, the weakest
May 6
storm number two will hit. On that day mortgage loans with less than 20% down will face demandatory PMI(private mortgage insurance). Before the recession all home purchases had to have PMI, however ninja and liar loans did away with PMI. In the "old" days PMI would end after a homeoner reached a 20% threshold in equity. Now, if you have 10% or less, PMI will be added to your mortgage payment for the LIFE of the loan, This is like your loan interest rate rising 1%. Not only that, if you had less than 20% down, then expect to pay this increase for ten years. It gets worse because this will effect all loans that have already closed. It will hit everyone!
Obamacare
under the Affordable Care Act will kick in next January.This so-called Medicare fix will cause a tidal wave of debt for the taxpayer and our country. You see every state government has not put away funding for their municipal workers. Now, they can place their workers under Obamacare and the health cost will shift to the federal government. This will cause the deficit to add another $trillion in debt.
Liars and Crooks:goes to the Federal Reserve again! You see, most folks don't understand the bond market and how important it is to credit and finance. For example, our nation had $10trillion in debt before president Obama took office and now, we have $16t with him. However, we pay 20% less to finance our debt with $16t than we did with $10t. How can that be? The Fed! You see, they buy over 60% of our bonds because no one else would with these low rates. In fact, if rates return to their normal level, our nation would have to pay $500billion just to pay the interest on our national debt. It is that bad!End the Fed!
Monday, February 18, 2013
Disneyland in Euroland...L&C
The fantasy park grew from the West Coast to the East Coast in Orlando to Europe in France, to Asia in Japan and to central banks everywhere. The big boys are meeting in Moscow while the little members grumble from the outside with no passes to the event. I, personally cannot understand the market that keeps rising in the face of declining aspects.
Change can be good or bad, but always cause transition problems. You cannot go from point A to C without passing B unless you are in a fantasy ride.
Elections
are taking place today(President's Day)in Cyprus with Italy next week and Germany later in the year. There are governments that could lose confidence like England, Greece, Italy again, which could cause another election this year. This creates doubt which is not good.
Economic Rules
are being changed in Sweden today to tighten lending standards because the government fears a housing bubble in the nation with one of the highest personal indebtedness among European nations.
The Swiss are tightening their banking requirements by 1% to avoid future problems with capital reserves.
Lars Christensen, co-chief of the Danish bank, Saxo fears a serious decline in the Euro currency because there is no real fiscal union behind it. He says this while the Euro has gained over 8% against the dollar in recent months, while at the same time other central banks like Japan and Venezuela are debasing their currencies. In fact, central banks around the globe are printing in excess with each looking to capture some export niche.
German banks are selling a new type of bond that is backed by weaker assets and American hedge funds like BlackRock fear that this could seriously damage the bond market. Amazing! They fear these assets while they don't fear the printing of excess fiat money? This can't be good.
Current Facts
are not very strong. Germany, the European leader, is shrinking. The ECB says that its GDP will fall to .4% for 2013. The euro zone itself has contracted for three straight quarters and now has seven countries in recession. By the way, the US economy was in contraction for its last quarterly report. This is not good.
China
the world's largest exporter is slowing too, however they offered this tidbit. They said that trade with European nations will rise to the point where China will trade more than European nations will among themselves. Not good.
So, I ask you, how can governments claim that things are getting better when there is so much doubt? I would not enter this market and I would place stops to protect whatever you bought. If you buy, who benefits?(cui bono?) Buyer Beware!
Liars and Crooks: The Army Corp of Engineers who last week allowed water from the Mississippi River to go to fracking oil companies while at the same time, denied shippers to traverse the river to deliver goods because water levels are low.
Change can be good or bad, but always cause transition problems. You cannot go from point A to C without passing B unless you are in a fantasy ride.
Elections
are taking place today(President's Day)in Cyprus with Italy next week and Germany later in the year. There are governments that could lose confidence like England, Greece, Italy again, which could cause another election this year. This creates doubt which is not good.
Economic Rules
are being changed in Sweden today to tighten lending standards because the government fears a housing bubble in the nation with one of the highest personal indebtedness among European nations.
The Swiss are tightening their banking requirements by 1% to avoid future problems with capital reserves.
Lars Christensen, co-chief of the Danish bank, Saxo fears a serious decline in the Euro currency because there is no real fiscal union behind it. He says this while the Euro has gained over 8% against the dollar in recent months, while at the same time other central banks like Japan and Venezuela are debasing their currencies. In fact, central banks around the globe are printing in excess with each looking to capture some export niche.
German banks are selling a new type of bond that is backed by weaker assets and American hedge funds like BlackRock fear that this could seriously damage the bond market. Amazing! They fear these assets while they don't fear the printing of excess fiat money? This can't be good.
Current Facts
are not very strong. Germany, the European leader, is shrinking. The ECB says that its GDP will fall to .4% for 2013. The euro zone itself has contracted for three straight quarters and now has seven countries in recession. By the way, the US economy was in contraction for its last quarterly report. This is not good.
China
the world's largest exporter is slowing too, however they offered this tidbit. They said that trade with European nations will rise to the point where China will trade more than European nations will among themselves. Not good.
So, I ask you, how can governments claim that things are getting better when there is so much doubt? I would not enter this market and I would place stops to protect whatever you bought. If you buy, who benefits?(cui bono?) Buyer Beware!
Liars and Crooks: The Army Corp of Engineers who last week allowed water from the Mississippi River to go to fracking oil companies while at the same time, denied shippers to traverse the river to deliver goods because water levels are low.
Monday, February 11, 2013
HOUSING:What Happens Next...When?...L&C
According to every report concerning housing, the bottom has been reached and the slow, steady, upswing engineered by the Fed is under way. Really? Well, if that is so, what happens next?
I won't waste your time with the endless litany of positives, but I will remind you that it was the Fed in its policies that is the root cause of the housing crisis. It was "Helicopter"Ben who said that housing has never declined on a national scale. It was Ben who said that the Fed does not see a recession in 2008 and again, Ben who stated that the apparent crisis is contained in 2007. It is now the same Fed who takes the bows with this so-called recovery. By the way, the Fed does not see a new recession.
New Home
prices start on average at $304k, while existing homes sell at a national average of $231k. That is a nice spread and hedge funds are jumping all over it. In fact, one-third of all sales are from the foreclosure category. Buyers like the Blackstone Group are spending upwards of $100 million a week in 2012 and with eleven million homeowners underwater, the pickings are steady, especially when you do the math and of course, with the help from the Fed.
Fed
policy keeps rates low and the unintended consequence of their actions are forming a neo-serf society. You see, the old homeowner and now renter for the hedge funds, had a mortgage at 6% or higher. Losing his job, he could not afford the payments at around $1200 plus per month for piti(principle,interest,taxes and insurance). Blackstone and others buy on a short sale for $90k and with a low mortgage, have payments at around $350 per month. They rent to the former owner and now a serf for the corporation at $1,000 per month. The company says, "hey, your saving over $200 per month and you still get to reside in "your" home". Everyone is happy. I know Blackstone is with a 65% return which will last until the spread gets more interesting and or the rates begin to climb. Why? Because the Fed does not have an exit strategy. They are creating a new feudal society.
Corporate Flippers
If the rates rise, these same hedge fund groups will sell, flooding the market and at present, they have a $140k cushion, and rising with every price rise and it was 7% for 2012. This is bubble level.
They will also try to securitize their portfolio. In addition, when rates climb, bonds will suffer, causing another credit crisis because bonds have gone up for 30 years in a row which is the technique the Fed uses to hide our national deficit. You see, dear reader, as I state in my unpublished book, all things are related.
Historical
averages for home-price rises are from 2 to 4%. The excessive present rate is forming a new bubble if it continues. Bonds are also in danger and of course, this leads to our national deficits. Oh yeah, there is another by-product problem on the horizon. Because people are feeling better about the value of their homes, they are starting to use these same houses as ATMs to buy cars, which on average are 11 years in service. All things are related. This cannot end well...
Liars and Crooks:see book recommendation. Companies like Comcast and Time Warner have gotten government to give them exclusive control over our internet to the point where cities cannot get funding to supply their own network(if they wanted to add it along with electricity, water and sewerage). Modern society needs access just like every other utility. This is corruption!...and as always End the Fed!
I won't waste your time with the endless litany of positives, but I will remind you that it was the Fed in its policies that is the root cause of the housing crisis. It was "Helicopter"Ben who said that housing has never declined on a national scale. It was Ben who said that the Fed does not see a recession in 2008 and again, Ben who stated that the apparent crisis is contained in 2007. It is now the same Fed who takes the bows with this so-called recovery. By the way, the Fed does not see a new recession.
New Home
prices start on average at $304k, while existing homes sell at a national average of $231k. That is a nice spread and hedge funds are jumping all over it. In fact, one-third of all sales are from the foreclosure category. Buyers like the Blackstone Group are spending upwards of $100 million a week in 2012 and with eleven million homeowners underwater, the pickings are steady, especially when you do the math and of course, with the help from the Fed.
Fed
policy keeps rates low and the unintended consequence of their actions are forming a neo-serf society. You see, the old homeowner and now renter for the hedge funds, had a mortgage at 6% or higher. Losing his job, he could not afford the payments at around $1200 plus per month for piti(principle,interest,taxes and insurance). Blackstone and others buy on a short sale for $90k and with a low mortgage, have payments at around $350 per month. They rent to the former owner and now a serf for the corporation at $1,000 per month. The company says, "hey, your saving over $200 per month and you still get to reside in "your" home". Everyone is happy. I know Blackstone is with a 65% return which will last until the spread gets more interesting and or the rates begin to climb. Why? Because the Fed does not have an exit strategy. They are creating a new feudal society.
Corporate Flippers
If the rates rise, these same hedge fund groups will sell, flooding the market and at present, they have a $140k cushion, and rising with every price rise and it was 7% for 2012. This is bubble level.
They will also try to securitize their portfolio. In addition, when rates climb, bonds will suffer, causing another credit crisis because bonds have gone up for 30 years in a row which is the technique the Fed uses to hide our national deficit. You see, dear reader, as I state in my unpublished book, all things are related.
Historical
averages for home-price rises are from 2 to 4%. The excessive present rate is forming a new bubble if it continues. Bonds are also in danger and of course, this leads to our national deficits. Oh yeah, there is another by-product problem on the horizon. Because people are feeling better about the value of their homes, they are starting to use these same houses as ATMs to buy cars, which on average are 11 years in service. All things are related. This cannot end well...
Liars and Crooks:see book recommendation. Companies like Comcast and Time Warner have gotten government to give them exclusive control over our internet to the point where cities cannot get funding to supply their own network(if they wanted to add it along with electricity, water and sewerage). Modern society needs access just like every other utility. This is corruption!...and as always End the Fed!
Sunday, February 3, 2013
SUPER BOWL SUNDAY
...that says it all. This game is our cultural holiday and like it is known that God rested on the seventh day but no one knows the reason why. HE wanted to watch football!
I'm not happy about all the commercialization of the game. By that I mean the changing of the rules to allow more points, to speed up the action and the money flowing around what is no longer a game, but a business. Nevertheless, it is still the last competitive event that gives every team an equal chance to win.
If you look at basketball, you see the worse of money into a sport. How can you allow a top player to leave a team with no compensation? The ref's almost determine a game's outcome through the foul line. It is so phony, it is like wrestling. The bottom teams are the minor leagues for the top teams, especially the Lakers who just picked up the best point guard and center to add to Kobe&Co. which was another corrupt draft situation to bring Kobe to the team.
The only other sport that can say that is hockey, but then again, the ref's influence it...a lot.
Believe it or not baseball gives all teams a chance. You can argue that the Yankees buy players and they dominate the game, but they do not win every year. Yes, they contend and rightfully so, spoken like a Bronx Bomber, but the winner is usually out of left field.
Bottom line: this is a great day to spend with family and friends whether you like the sport or sports at all because love is the highest stage to life.
Oh yea, GO NINERS!
I'm not happy about all the commercialization of the game. By that I mean the changing of the rules to allow more points, to speed up the action and the money flowing around what is no longer a game, but a business. Nevertheless, it is still the last competitive event that gives every team an equal chance to win.
If you look at basketball, you see the worse of money into a sport. How can you allow a top player to leave a team with no compensation? The ref's almost determine a game's outcome through the foul line. It is so phony, it is like wrestling. The bottom teams are the minor leagues for the top teams, especially the Lakers who just picked up the best point guard and center to add to Kobe&Co. which was another corrupt draft situation to bring Kobe to the team.
The only other sport that can say that is hockey, but then again, the ref's influence it...a lot.
Believe it or not baseball gives all teams a chance. You can argue that the Yankees buy players and they dominate the game, but they do not win every year. Yes, they contend and rightfully so, spoken like a Bronx Bomber, but the winner is usually out of left field.
Bottom line: this is a great day to spend with family and friends whether you like the sport or sports at all because love is the highest stage to life.
Oh yea, GO NINERS!
Monday, January 28, 2013
Apple Down, Netflix Up, Why?...L&C
If you received 100 Apple shares for Christmas, you are down 100 points in value in one month. If you invested when all the guru's were on CNN, MSNBC, et al. back in September 2012 when Apple hit over $700, you lost 57% of your money. For those of you who laughed at my piece on 11 March 2012, when I was calling for a baked "Apple" at $640, buyer beware! The reasons are the same along with the map and other shortfalls of the IPhone5.
On the flip side, Netflix fell from grace too, all the way down to $52 a share. In just one month it has bounced back to over $170 and climbing. Why?
New TVs
come with a Netflix button on the remote and with the surge of TV Everywhere, young people are hitting the NFLX button, charging digital programming to their parents and grandparents. This is a fad and with economics the way they are, it won't last. I would not be long NFLX, although it will probably go a little higher according to Fibonacci retracement of 61.8%. The reasons are the same as for the decline in Apple.
Bottom line: Apple has a gap at 386 which will act as support. Netflix will decline with the next pullback. It will find support at around 110-115.
Long term both companies will face the same problem as our economy, the loss of the baby boomers dinero.
Liars and Crooks: This week again, it goes to Congress and our corrupt leaders. When the last minute deal was reached to avoid the fiscal cliff, Senator McConnell, Hatch and others placed a last minute loophole for a subsidy for a Big Pharma company, Amgen to the tune of over $500 million. Quess who pays? That's right! Us, the taxpayers. They use the deficit as their personal piggy bank while they all cry we need to cut the deficits. Amgen got its 74 lobbyist to act fast and to take advantage of the situation. This is twice as sad because just last month the government gave Amgen the biggest fine ever at $752 million for mis-representing one of their drugs. I do however have to acknowledge congressman Peter Welch(D-Vt.). He is aware! He is trying to pass a bill to overturn the Amgen loophole. God bless you, Sir!
On the flip side, Netflix fell from grace too, all the way down to $52 a share. In just one month it has bounced back to over $170 and climbing. Why?
New TVs
come with a Netflix button on the remote and with the surge of TV Everywhere, young people are hitting the NFLX button, charging digital programming to their parents and grandparents. This is a fad and with economics the way they are, it won't last. I would not be long NFLX, although it will probably go a little higher according to Fibonacci retracement of 61.8%. The reasons are the same as for the decline in Apple.
Bottom line: Apple has a gap at 386 which will act as support. Netflix will decline with the next pullback. It will find support at around 110-115.
Long term both companies will face the same problem as our economy, the loss of the baby boomers dinero.
Liars and Crooks: This week again, it goes to Congress and our corrupt leaders. When the last minute deal was reached to avoid the fiscal cliff, Senator McConnell, Hatch and others placed a last minute loophole for a subsidy for a Big Pharma company, Amgen to the tune of over $500 million. Quess who pays? That's right! Us, the taxpayers. They use the deficit as their personal piggy bank while they all cry we need to cut the deficits. Amgen got its 74 lobbyist to act fast and to take advantage of the situation. This is twice as sad because just last month the government gave Amgen the biggest fine ever at $752 million for mis-representing one of their drugs. I do however have to acknowledge congressman Peter Welch(D-Vt.). He is aware! He is trying to pass a bill to overturn the Amgen loophole. God bless you, Sir!
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