COMMON SENSE

Biggest banks loan money to commercial real estate developers are a leading the way to troubled bank list by the FDIC.  The FDIC trouble bank list now has over 500 banks which could collapse any day! Unless President Barack Obama addresses the structural problems that caused the recession–bad loans and securities on the balance sheets of regional banks and huge trade deficits on oil and with China–the recovery will not be strong … Regional banks labor under the weight of commercial real estate failures. Meanwhile the Chief Community organizer AKA Barack Obama, should be heading back to his home town to help put out the fires he createt through his bronw shirt organization ACORN, to rescue 39 Chicago Banks with bad real estate loans!

Rod Dreher from Crunchycon , a conservative blog about politics and religion,  says

“A year from now, the landscape of America will be forever changed. The office and retail markets will be vastly different than they look today. Not much of it will be good. Five years from now, will empty shopping centers and auto dealerships remain shuttered or will they be rebuilt or torn down and their use converted to something more productive? Will our politicians cease their meddling in the market and allow the market to heal itself? These are questions that will haunt our economy for the next decade.”

There have been 124 bank failures this year as toxic assets, including mortgages and construction loans gone bad, have mounted on lenders’ balance sheets.

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• Treasury to launch 3 more toxic asset funds (money.cnn.com)
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Technorati Tags: Barack Obama, business, China, Commercial property, FDIC, Federal Deposit Insurance Corporation, politics, Real estate, Real Estate Loans

Profits, Politics, and Protection

By Doctrader.com

Starting on Monday, Americans will find out how much illegal immigration will cost businesses in profits, who will be held politically accountable, and how much it will cost for real border protection.
The Market Media Matrix dictates that all activities revolve around producing a profit. The “Market” is all forms of businesses and profits. The “Media” dictates how you should “think and feel” about businesses and events. The “Matrix” is created out of the mass consciousness of people who are not free, logical thinkers.” The “Market-Media” has created the “Matrix Reality”. When I talk to people about the high rates of taxes they just shrug their shoulders and say, “what can we do about it?” They are living their lives out in quiet desperation not realizing that they have the power to hold the politicians feet to the fire and change the “Matrix.” Due to political correctness, the false Market Media Matrix reality of “Generation X” has increased the children’s confidence and self assurances without any evidence of competency with the rest of the industrial nations.

Profits:
A profit at any cost is the American business motto, right? You can only judge a tree by the fruits it bears. There are many examples and antidotal evidence offered by the liberal news media about the benefits of illegal immigrants who are doing jobs that no one else would do. What all these stories fail to mention is that most illegal immigrants are making much more than minimum wages. The average person still believes that illegal immigrants are picking strawberries and cabbages for less than minimum wages. Illegal immigrants are being used for high paying skilled jobs, such as carpentry and masonry, landscaping, and un-skilled factory work. Which according to an immigrant advocate are averaging $15 per hour! These are the jobs everyone would want not just an illegal immigrant. In all business the largest cost factor is labor. So, given the choice of hiring an American or an illegal immigrant the businesses will hire those who will work for less money. Choosing the lower labor cost has depressed all American wage earners and increased corporation’s profits. Since it is not the businesses’ job to investigate an employee’s legal citizen status businesses can in spirit of the law and the letter of the law hire just about anyone with proper paperwork. This leads to greasing the political palms to keep the charade up of guest workers, undocumented workers and a whole host of politically correct names.

Politics:
Years ago, back in the 1980’s when I was in college I had to produce papers that I was an American citizen. Being a fan of the World War II movies I can hear in my mind the Gestapo saying, “Papers! Papers please. Show us your papers!”. When in the 1980’s the requirement of verifying citizenship was increased from a mere social security card or green card I was not a fan. I could not figure out why I had to show papers which could easily be stolen, copied, or forged and sold for a profit to illegal aliens. It would have been much simpler for the illegal immigrants to produce a “green card” allowing them to work here. The politics of producing profits was conditioning us, the law abiding American, to carry personal identification papers. The Pavlov Conditioning effects of the Market Medial Matrix created political power and profits to the politicians who supported the law.

Flash forward twenty (20) years and we have an invading army within our borders destroying our language and culture.

After 9/11 the first act of congress was to nationalize airline security by creating another political agency to “protect the American people” from hijacking. Meanwhile, the borders were left largely unguarded! The first step that should have been taken was to close the borders and not leave them wide open. This demonstrates the political incompetence of our politicians, both Democrat and Republican. Or, was it a calculated risk to gain the fast growing minority’s votes at the expense of the complacent tax burdened American voters?

The politicians never act until there is a crisis situation. They “come to the rescue” by enacting “knee-jerk public opinion polls” to make their constituents feel better Ben Franklin said, “They that can give up essential liberty to purchase a little temporary safety deserve neither liberty nor safety.” We have been fooled again with the help of the Market Media Matrix. The immigration laws have not been enforced because of the large profit potential by employing illegal immigrants without the protection of the Labor Relation Laws. Liberal politicians would like for you to believe that every illegal immigrant is doing a job that no American would like to do. Never mind they are placing illegal immigrants in potentially abusive situations. Not only are the politicians failing to protect the immigrants they are failing to protect Americans by allowing open borders.

Let’s look at some simple numbers for a reality check.

If there are 15 million illegal immigrants within our country working hard and paying taxes “are we to believe that there are not deviants amount them”? “The Market Media Matrix dictates that all poor people are hard-working and honest“. Unfortunately, the Market Media Matrix reality bubble bursts with FBI statistics.

If we take the normal distribution of deviate behavior of the US population we know that at least 1% will have criminal tendencies ranging from child molesters to murders. If 99% of the illegal immigrants are law abiding and 1% are criminals. How much are these criminals costing us? The 1% represents 150,000 potential criminals who have to be caught, prosecuted, and incarcerated. The cost to the American tax payers include educating illegal immigrant’s children, welfare, Medicaid, Food Stamps, personal injuries, auto accidents, social security fraud, and a host of other expenses.

Protection:
Congress has failed to protect and uphold their oath of office. Congress should be recalled by the American people to hold their feet to the fire for allowing profits to come before this nation’s protection.

The first duties of the congressmen are to protect and preserve the Constitution from all enemies, foreign and domestic. Last year there were 80 different nationalities of illegal immigrants were caught crossing the border from Mexico along with illegal immigrants. This undoubtedly is the greatest of security risk we have ever faced in our nation’s history. Yet, the Market Media Matrix has glossed over this major security flaw.

The first reasonable act of congress during a time of war should be to secure the borders. But in typical knee-jerk reaction they have created another useless government agency to help the airline industry.

Profits come first in America at the expense of protection. They have created the Homeland Security Agency and the TSA to protect Americans. These agencies provide very little protection against the massive open border policies which have been in place for the last 20 years. Congress has been complacently incompetent by incumbency. Congress’ complacency has been caused by voter’s incompetence repeatedly returning 95% of the politicians to office year-after-year. Through the help of the Market Media Matrix conditioning the average American by polarizing the population with stereotypical one-line sound bites. They include rich vs. poor, Republican vs. Democrat, White vs. Black, etc…grabs the attention of the average adult reading at a 5th grade level.

During last week’s protest march for illegal immigrants I witnessed the silent invasion of our country’s borders by a foreign nation. Seeing all the Mexican flags paraded throughout our streets should sound the Paul Revere Alarm. There is nothing more stirring to the American flag being raised on Iwo Jima by the marines who liberated the island from Japan during World War II. The spirit of those who fought World War II is gone today. The only worries of the Baby-boomer generation is how much profit they are going to make on their pension plans, homes, and their stock portfolios.
Congress should not make any new laws. They need to follow those already in place.

The first step is having the guts to close the borders, enforce the immigration laws, and build a secure border. The next step should be to determine who and where illegal immigrants are. Once that is determined these people should be added to the waiting list of those who are legally petitioning to enter the US.

Protection of our borders should come first over politics and profits for corporations.

God Bless

Doc

Technorati Tags: American wage earners, Analysis, and Protection, Generation X, illegal immigration, Investment, market media matrix, political palms, politics, Profits, Profits Politics and Protection, real border protection

Doctrader

Friday the 13th

Looks like we are in the same situation as last week. The threat of a “Black Monday” is still a possibility given this Thursday’s closing prices. The Fed announced the expected rate hike, but they are still behind the curve, as per their modus operandi. If you read my previous posts, the Fed has always been behind the curve when predicting interest rates and inflation. The Fed missed the boat to begin raising interest rates back in 2003, when the current stock market bubble began. The Fed’s has been neutered by the markets ever since 1998, when their last pre-emptive rate cut saved the market from a necessary correction. In October of that year, the market was in the process of correcting the irrational exuberance, Mr. Greenspan choose to cut the prime rate by ½ point and cause another bubble to be formed in the stock market, cumulating in 2000. The millennium scare, the Russian economy, Brazilian currency crisis, and hedge fund crisis were swept quietly under the table. When the market was supported by the Fed’s rate cuts in 1998, the market’s cycle was disrupted from its natural boom to bust cycle. The Fed encouraged the last bubble in 2000 and they staved off the depression era collapse that should have occurred naturally. It’s ironic that the Fed had to cut rates back to the last secular bear market beginning in the 60’s to prevent the complete collapse of the NYSE stocks, however the Nasd stocks did suffer major losses which they cannot recover until the next appropriate secular market cycle. The temporary cyclical market cycle began in March 03 and has begun to collapse since the current “irrational exuberance” is wearing off. The market’s top was reached when 90% of the stocks were trading above their 200 day moving averages. In the last 6 months less than 50% of the total stocks are trading above their 200-day moving averages. There are young money manages who are in charge of major portfolios while their senior managers are on vacation in the Hamptons. The $64,000 question is if the senior managers left instructions or hard sell stop orders before going on vacation.

If the market closes on Friday once again, through the next century market on the Dow and the Nasd, a “Black Monday” warning is issued to protect any long-term gains you may still have left. The markets never move in strait line, but will oscillate between high and low based upon the Harmonic Heartbeat.

Friday’s market tone will be set by the CPI report, which should be noted that there have been changes in this report, most definitely under estimating inflation with it’s exclusion of food and energy. My prediction of $45 barrel oil was pre-mature, reaching this high level by Labor Day instead of Memorial Day. The master market manipulators have been building for a huge correction coming soon either in the stock market or in the oil market. The geopolitical concerns along with presidential politics leads me to suspect most government reports, both good news and bad news.

If the market’s trade higher in the morning by the first red zone time, it might be a good strategy to buy some put options for the late afternoon trading. This is because put option will be cheaper if the market rises. If the market sells off in the morning before the first red zone time, then buy put options later in the afternoon if the market internal are improving and the market goes positive. The market internals measures the advance/decline line, and is a simple measure of any real buying and selling pressure. If there are more than 2-1 declining vs. advancing stocks, margin calls on Monday morning could cascade downward. For short term day traders, the next few weeks could very profitable given this weeks volatility.

I will be working on the website this weekend, if you have any questions email me or post in the group.

God Bless

Doc

http://www.doctrader.com/

Technorati Tags: Analysis, bear market, behind curve, Black Monday, bubbles, bull market, economics, Fed, financial, Inflation, market, market cycles, Money, politics, rate cuts, secular markets, stocks, street