1% job creators debunked

Source

Click here to go to most recent posts.

Things are so bad

The economy is so bad that: I received a pre-declined credit card in the mail. CEO's are now playing miniature golf. Exxon-Mobil laid off 25 Congressmen. Angelina Jolie adopted a child from America. Motel Six won't leave the light on anymore. A picture is now only worth 200 words. They renamed Wall Street " Wal-Mart Street". Finally, I called the Suicide Hotline. I got a call center in Pakistan and when I told them I was suicidal, they got all excited, and asked if I could drive a truck.

 

Click here to go to most recent posts.

Money as Debt

These videos will explain in an easy-to-understand way, how the current financial crisis came about, why it is unsustainable, and offers possibilities for the future. The average person has no idea how ridiculous the banking system really is. This is must viewing for anyone at all interested in their financial future.

The world has gone mad

Insurance giant AIG reported the largest corporate loss in history in the fourth quarter--a whopping $61.7 billion! You'd think that would be enough for them to slash salaries across the board, right? Wrong. They are handing out $165 million in bonuses mostly to members of the group responsible for the massive losses stemming from risky credit default swaps. Doh!

The kicker is that AIG was given $170 billion (yes, with a "b") in bailout money to help keep it afloat. These executives keep singing the same, tired song. We need to give bonuses so that we can retain the best talent. Duh! If you had any talent on board at all, you wouldn't be in this mess.

Here's a radical idea: Fire all those responsible for the current mess you find yourselves in and hire three truly talented individuals for every four dead wood you fire and pay each of the new hires 25% more. Here's another insane idea: Pay according to performance. What, common sense is not a pre-req to getting an MBA?

Money!

I've been putting off writing about the stock market, but I can't ignore it any longer. The economic news keeps getting worse and worse and the indexes keep going higher and higher. Something's got to give. I've been out of the market for several months, having exited before the major carnage started, but I've been reluctant to get back in the water, fearing there's sharks just below the surface.

It's possible that the market dropped too low and has corrected itself, but being a pessimist by nature, I am more prone to believe that the recent recovery is a "dead cat bounce". As far as I'm concerned, we have not yet seen the devastating effect all the layoffs are to have on the economy. Everyone is cutting spending. And that includes those lucky enough to have a job right now. They're scared #$!2^@# that they're next on the chopping block...and they probably are.

This sort of situation tends to be a catch-22. The more layoffs there are, the less spending there is. The less spending there is, the worse the economy gets. The worse the economy gets, the more layoffs there are.

I am going out on a not-so-long limb and declare that this thing will get much worse before it gets better. I know I'm not the only one predicting doom and gloom, but I have been posting, chatting, e-mailing and conversing about the emergence of third world countries and the possible economic collapse of the United States for almost 20 years now.

Having said that, I pray it doesn't turn out as bad as I have imagined it, for that would not bode well for the whole world and especially Canada, America's largest trading partner. One bright note is that the emergence of third world nations has provided a much needed diversification of trading partners. If an economic collapse of the U.S. had happened ten years ago, the entire planet might have become "the third world". Today, there's a few others to do business with.

One last thought, and remember, you heard it here first (at least if I am right), I see the American indexes dropping below their previous lows in the coming months. I'll join the market at that point because I expect slow and steady gains going forward for the foreseeable future. However, I'm not giving refunds if I'm wrong.

The psychosis of corporations

For anyone who still had a modicum of respect for the institution of corporations, guess what Goldman Sachs and Morgan Stanley are doing with the $10 billion of American taxpayer bail-out money. What else? They are giving out $12 billion in year-end bonuses, mostly to executives, of course, who have done a fine job taking them to the brink of bankruptcy. Oy.

Their reasons for the bonuses are further testament to the depth of their mental malady. According to them, the purpose of the bonuses is to retain "the talent". The same "talent" that nearly put the company under. The powers that be are so clueless that they don't know that if "the talent" leaves over being disgruntled over a lack of a bonus this year, that 1) they are spared the expense of a possible severance package should they need to cull the herd and 2) that this is an employer's market where they can re-hire better talent and for less compensation. Duh.

I thought he was kidding

Someone posted about tent cities in the United States. I have not seen anything in the news about it, so I thought the guy was joking. Just to be sure, I did a search and found this:






The chickens have come home to roost.

This just in...

Perhaps you've heard: President Bush thinks that "Wall Street got drunk."

After asking guests at a private fund-raiser to turn their cameras off (clearly, at least one person didn't), Bush continued: "It got drunk, and now it's got a hangover. The question is: How long will it sober up and not try to do all these fancy financial instruments?"

With brilliant economic acumen like that controlling the American purse strings, it's a miracle the country hasn't completely imploded. I hope for everyone's sake it doesn't sink much further before the next inauguration takes place and a more advanced form of primate takes office.