Wednesday, December 29, 2010

Rich gets Richer and the Poor?

Rich gets Richer and the Poor? Well, you figure out yourselves. Here is an interesting Graph even my 5 year old can deduce.

It is extremely important for us to understand this graph especially at this time of the economic crises. There is a GREAT disparity between the Rich and the Poor and everyone else in between. The Rich are getting extremely Richer and the Poor are getting (slaughtered) worse. Our Govt. who favors the Richest of Rich among every one else is on a debt. destruction mission. All the private debt. (mostly from Rich) is being converted to Public debt. Fannie, Freddie, Sally Mae etc are examples.

From WashingtonPost,

The income gap between the richest and poorest Americans grew last year to its widest amount on record as young adults and children in particular struggled to stay afloat in the recession. The top-earning 20% of Americans - those making more than $100,000 each year - received 49.4% of all income generated in the U.S., compared with the 3.4% earned by those below the poverty line, according to newly released Census figures. That ratio of 14.5-to-1 was an increase from 13.6 in 2008 and nearly double a low of 7.69 in 1968.

A different measure, the international Gini index, found U.S. income inequality at its highest level since the Census Bureau began tracking household income in 1967. The U.S. also has the greatest disparity among Western industrialized nations.
Now, We know that a strong "economy" is created by the "consumer". If the Poor are getting poorer, where is the buying power. The Rich can only spend so much (Jay Leno can only buy so many cars and Oprah can only have so many houses) and when they know that the poor don't have enough money to spend they don't have very many incentives to invest in production/manufacturing. Catch 22? Ya, I know.

Our Govt. for Now, can keep printing money out of thin air and create the artificial demand for everything, the treasuries, bonds, funds & Stocks but eventually there is exhaustion waiting for our Govt. in the near future where the Supply and Demand will balance out, naturally. "Naturally" is the priceless keyword here. Without any interference. Clear Example of JAPAN, they are still not out of their economic problems. We aren't doing anything different than them to solve our problems.

It really disgusts me to see the Stock Market keep going into green day in and day is 12/29/2010 where 19 out of 21 trading days the indices has seen green especially when most of the indicators are suggesting terribly overbought numbers. Consumer Confidence dropped, Average Home Prices dropped, Employment numbers (always skewed) are at pretty high levels (U6 at almost 20%) The Bastards are holding the stock markets for their private gains. Rich gets Richer and the Poor gets slaughtered.

Black Swan waiting to the neighborhood near you. Wall Street.

Monday, December 27, 2010

....and one Year later, Justice has been served. Wait! Really?

From the massive collapse of Lehman Brothers, Bear Stearns, Merril Lynch and such reciprocating into the Financial Systems world wide to the current record levels of the Stock Markets here in the USA, the DOW Jones, the S&P 500, the Nasdaq and the Russel (SPX, DJI, NDQ, RUT) to the record employment (U6 at almost 20%) to the record debt / deficiets in the USA to the massive losses in the Real Estate valuations, What have we learnt?

I came across very interesting findings by a very good website,

1. This fall, the Securities and Exchange Commission reached a $67.5 million settlement with former Countrywide CEO Angelo Mozilo, the only major case against a financial executive. The SEC charged Mozilo with praising Countrywide to investors while internally doubting its lending standards. As part of the settlement, Mozilo admitted no wrongdoing.

2. In April, the SEC accused Goldman Sachs of creating a mortgage deal that was designed to fail. The argument was that Goldman's hedge-fund client helped design the deal specifically to bet against it - without Goldman explaining the relationship to investors. In July, Goldman settled for $550 million (or about two weeks' worth of profit), admitting a "mistake" but no wrongdoing.

3. The SEC is looking into whether JPMorgan Chase allowed a hedge fund named Magnetar to choose assets for a mortgage deal without disclosing Magnetar's role in selecting what went into the deal. Magnetar encouraged banks to put together riskier deals and bought the riskiest bond slices that otherwise may have been unsold. Magnetar then bet against some of those deals, standing to make far more by shorting its losses on those risky slices if the housing market went south.

4. The SEC is also looking into whether Morgan Stanley created a series of CDOs that its own trading desks bet against, the Wall Street Journal reported in May. A few months later it reported on how Deutsche Bank also bet against the souring housing market at the same time it was marketing new mortgage deals.

5. The Securities and Exchange Commission is investigating Citigroup's role in a $1 billion deal that the bank created in the run-up to the financial crisis. The agency is looking at whether Citi improperly pushed an independent manager to put specific assets into the deal, according to people familiar with the probe.

6. U.S. securities regulators are in preliminary discussions with several major Wall Street banks aimed at reaching settlements to resolve a broad investigation of their sales of mortgage-bond deals that helped unleash the financial crisis.

7. In the most sweeping allegations against an accounting firm in nearly a decade, New York's attorney general is accusing accounting giant Ernst & Young of helping Lehman Brothers Holdings Inc. disguise its financial condition for more than seven years, while collecting more than $150 million in fees from the firm. Executives from the now-bankrupt Lehman have not been charged.

Here is a link to the original Article by the Investigative Journalist, Karen Weise, about this hair raising, blood boiling disgusting sad things that we had to go through and its not over yet.....

Saturday, December 25, 2010

2011 Hennessey Venom GT

Super Car of the Year 2011 - Hennessey Venom GT : I've always been fascinated by the fastest and the most curvacious bodies :) This Supercar packs base 725 Horsepowers, one of the deadliest speedsters and sexy looking Venom GT. Another one added to my wishlist this year! :)

Picture Credits: Autoblog

Friday, December 24, 2010

Top 10 Christmas Quotes

1) There is no ideal Christmas; only the one Christmas you decide to make as a reflection of your values, desires, affections, traditions. - Bill McKibben

2) Christmas waves a magic wand over this world, and behold, everything is softer and more beautiful. - Norman Vincent Peale

3) Blessed is the season which engages the whole world in a conspiracy of love. - Hamilton Wright Mabi

4) Let us remember that the Christmas heart is a giving heart, a wide open heart that thinks of others first. The birth of the baby Jesus stands as the most significant event in all history, because it has meant the pouring into a sick world of the healing medicine of love which has transformed all manner of hearts for almost two thousand years... Underneath all the bulging bundles is this beating Christmas heart. - George Mathhew Adams

5) The best of all gifts around any Christmas tree: the presence of a happy family all wrapped up in each other. - Burton Hillis

6) He who has no Christmas in his heart will never find Christmas under a tree. - Sunshine Magazine

7) If there is no joyous way to give a festive gift, give love away. - Anonymous

8) From Home to home, and heart to heart, from one place to another. The warmth and joy of Christmas, brings us closer to each other. - Emily Matthews

9) What is Christmas? It is tenderness for the past, courage for the present, hope for the future. It is a fervent wish that every cup may overflow with blessings rich and eternal, and that every path may lead to peace. - Agnes M. Pharo

10) The joy of brightening other lives, bearing each others' burdens, easing other's loads and supplanting empty hearts and lives with generous gifts becomes for us the magic of Christmas. - W. C. Jones