California = 50 Days From Bankruptcy, Lakers Fans = $2mil+ Party

Oh yeah...

Another classic example of logic and reason being appropriately applied by politicians at all levels of government to insure they're making the best decisions possible for their constituencies.

With the state of California a mere 50 days away from possible bankruptcy, the local officials have broken out the calculators to see how they can squeeze in a $2mil+ 'Champions Parade' for the L.A. Lakers. Sounds like a case of throwing 'worse money after bad' to me...or perhaps 'pathetic money after insane' or...

Check out this brief and entertaining take on the situation from the WSJ. Even if you don't read the article, quickly stop by to check out the accompanying picture of the post game festivities - it's beautiful...

The burning television(?)
The bling
The track suit
The peace and/or gang signs
The sunglasses at night
The sheer love for the game


Sport, art, peace, love and chaos all united for a brief moment on that dangerous street in downtown LA.

Where Are The Stimulus Dollars Going As Of June 2009?

As hard working citizens, we can't keep an eye on every little detail out there with regard to where are tax dollars are being spent. That's why we try to elect accountable representation and subsequently hold our breath and cross our fingers hoping that they'll actually do their job!

Thankfully, a couple of them do seem to be doing something.

Maryland's Republican Senator Tom Coburn had his office put together an overview where and how some of the stimulus dollars are being spent. The full 45 page report is available here.
You may have already seen the press release for this report however, these ten (10) items of note stuck out and are worthy of a quick once over:

1. $1.5 million in “free” stimulus money for a new wastewater treatment plant results in higher utility costs for residents of Perkins, Oklahoma.

2. $1 billion for FutureGen in Mattoon, Illinois is the “biggest earmark of all time” for a power plant that may never work.

3. $15 million for “shovel-ready” repairs to little-used bridges in rural Wisconsin are given priority over widely used bridges that are structurally deficient.

4. $800,000 for little-used John Murtha Airport in Johnstown, Pennsylvania airport to repave a back-up runway; the ‘Airport for Nobody’ Has Already Received Tens of Millions in Taxpayer dollars.

5. $3.4 million for a wildlife “eco-passage” in Florida to take animals safely under a busy roadway.

6. Nevada non-profit gets $2 million weatherization contract after recently being fired for same type of work.

7. $1.15 million for installation of a new guard rail for the non-existent Optima Lake in Oklahoma.

8. Nearly $10 million to renovate an abandoned train station that hasn’t been used in 30 years.

9. 10,000 dead people get stimulus checks, but the Social Security Administration blames a tough deadline.

10. Town of Union, New York, encouraged to spend a $578,000 grant it did not request for a homelessness problem it claims it does not have.


Hat tip to Michelle Malkin for spreading the word to the masses.

The Big Ten Financial Bubbles Prior To 2008

Nothing new here folks.

These cyclical bubbles and crashes have been going on for hundreds of years. I'm going to delve into this in far greater detail in the coming days and weeks. Stay tuned for much more:

• 1636 - Dutch Tulip Bulb Bubble
• 1720 - South Sea Bubble
• 1720 - Mississippi Bubble
• 1927-1929 - US Stock Price Bubble
• 1970's - Mexico and other developing countries Loan Bubble
• 1985-1989 - Japan Real Estate & Stock Price Bubble
• 1985-1989 - Real Estate & Stock Bubble(s) in Sweden, Finland & Norway
• 1992-1997 - Real Estate & Stock Bubble(s) in several Asian Countries
• 1990-1993 - Mexican Foreign Investment Bubble
• 1995-2000 - US OTC Stock Price Bubble (dot com)

(Source: Kindleberger; 'Manias, Panics, and Crashes')

Just under 400 years of history to look back on and see the similarities. There are many.

Do yourself a favor and buy Charles Kindleberger's 'Manias, Panics, and Crashes' and learn how to react to the current crisis by studying the history of all those that have preceded it. Click below and get it today. It is well worth your time and $10.

VP Joe Biden Opens His Mouth And Guess What Comes Out?

"...everyone guessed wrong..." on the impact of the Stimulus.

Everyone? Seriously, Joe?

How many common sense, everyday citizens called, emailed and wrote letters in opposition to this thing?
How many public figures on radio, television and in print spoke up loudly about just how wrong this 'stimulus' was?

Everyone guessed wrong?

Sounds like everyone means everyone in the administration. I wouldn't put it past Joe to succinctly clarify this in not so certain terms before too long. He has a knack for speaking what's on his mind whether he really understands it or not.

Chicago Style Politics - Cashing Out to Cash In

Say it isn't so!

Chicago's Democrat Senator, Dick Durbin, sold $116,000 in personal investments after meeting face to face with Treasury Secretary (at the time) Paulson and Federal Reserve Chairman Ben Bernanke as reported by the Chicago Sun Times.

He sits down with them on September 18, 2008 and is selling on September 19, 2008.

Sure we were all aware that the market was experiencing severe issues but don't you think having direct contact with these two gives you something of an edge? Not according to Durbin's spokesman, Joe Shoemaker who claims that Durbin didn't capitalize on anything he was told in the meeting and that any information he received wasn't secret or classified. He does admit however, that the information was made public the next day when Durbin was cashing out so he could cash in on some Berkshire Hathaway shares.

Wise up Illinois.

Vote these corruptocrats out of office ASAP and get them off our national stage. Decades of corrupt dealings are starting to rear their ugly head as your 'best and brightest' politicians are making their way into the wider public eye. It's giving the rest of us a good impression of the collective intelligence of your voting class...

The Dark Pools Of Wall Street

Liquidity isn't a problem for the institutions. Neither is tipping off the market to your intentions when you can trade millions of shares per day without the general public knowing.

Here's a slightly aged but still relevant breakdown of the major Dark Pools that currently exist (Courtesy of Advanced Trading).

As noted in this article (also from Advanced Trading): "...from September 2008 through April 2009...the percentage of trading conducted with these non-traditional liquidity pools has grown steadily from 15% to 24%...Conversely, the market share of the single largest trading venue -- NASDAQ -- fell from 30% to 20% over the same time period."

An apparent strong shift to an essentially non-transparent market for millions of shares to be traded. Are these shares trading at open market prices? What other advantages are there to trading in these Dark Pools that the average trader/investor doesn't have access too?

There's a lot of recent talk about possible increases in regulation of the Dark Pools. Time will tell if any significant changes are made however, be prepared for a portion of the dirty underbelly of Wall St. to be exposed in the process.

Obama Wields His Powers to Remove Inspector General Who Investigated One Of His Supporters

Typical.

From AP via Yahoo

From the story:

"Obama's move follows an investigation by IG Gerald Walpin finding misuse of federal grants by a nonprofit education group led by Sacramento Mayor Kevin Johnson, who is an Obama supporter and former NBA basketball star."


Ok, so this Inspector General is apparently doing his job and finds that federal funds (i.e.: TAXPAYER MONEY) are being wasted and all of a sudden it's time to get rid of him. Makes all the sense in the world...

It does when he starts to get too close to what's really going on and the most powerful man in the world needs to step in and protect his good friends and supporters.

Remember folks, he 'Won' and he can do this. Give it a minute, he'll remind you of that fact again momentarily...

Update: Two Japanese Men Busted with $134 BILLION in US Bonds

Here's a very weak update (via Bloomberg, in English) to the story of these maybe/maybe not Japanese men busted smuggling $134 Billion in US bonds from Italy into Switzerland.

From the article:

"The Asahi newspaper reported today Italian police found bond certificates concealed in the bottom of luggage the two individuals were carrying on a train that stopped in Chiasso, near the Swiss border, on June 3.

The undeclared bonds included 249 certificates worth $500 million each, the Asahi said, citing Italian authorities. The case was reported earlier in Italian newspapers Il Giornale and La Repubblica and by the Ansa news agency. "


Counterfeit? Real? Japanese nationals?

Who knows!

Whatever the real story behind this ultimately is, it could certainly have some far reaching implications.

$134 BILLION in US Bonds Seized At Italian Border

Nothing to see here folks - move along...

Two Japanese men busted trying to smuggle $134 Billion in US bonds from Italy into Switzerland.

The official release (in Italian)


Feel free to speculate as this isn't normal. Really, it isn't...

Welcome to the Fiscal Corruptocrat!

Here we go...

Another unhappy, nameless citizen unleashing an endless tirade of disdain to the blogosphere about the economy and corrupt politicians.

Enjoy!