Does This Stock Look Like a Buy or Sell Candidate?

So Goes $WMT, So Goes the Economy (GDP)

And yet, there are individuals out there that refuse to see what is really happening within our economy.  If Wal-Mart is struggling to stay above water, what does that say about the underlying financial health of the average company out there? 

Society's So-Called All Students Are Exceptional Are Not So Exceptional After All

Doing Your Best Doesn't Really Count Anymore

Schools took away playing tag in our school yards; then dodge-ball was outlawed from those school yards.  Schools then removed the recognition of being a valedictorian and salutatorian from our outstanding scholarly students, because those schools wanted to tell all students that they are all academically exceptional.  In other words, students' self esteem had to be protected.  Well, now it has really gone way too far.  The Northern California Federation Youth Football League has imposed a $200 fine and possible suspension of any coach who allows his team to win a game by 35 points or more under its "Mercy Rule."

Food Stamp Nation: Who Benefits?

Who really is the major beneficiary of our food stamp program (EBT)?  View the following video, and you just might learn something that will really make you mad.  Why is that?  Well, you will just have to watch the video!

Insanity Continues

The insanity continues in the auto and home lending business.  In other words, we have not learned absolutely anything from the 2008 financial debacle in sub-prime auto loans and home loans.  Why do I state this?  Well, let's look at today's sub-prime auto loans.  You can now get a 97-month sub-prime auto loan if you have bad credit.  The average loan to value on vehicle sale to individuals that have bad credit is 114.5%.  And, car loans to individuals with bad credit have doubled since 2009 to reach over $18 billion.

Now, let's look at the current sub-prime mortgage area.  You say, "Who in their right mind would again be pushing sub-prime mortgages?"  Oh, that is an easy question to answer.  The Government, of course, or more specifically the Federal Housing Administration (FHA).  FHA recently went so far as to cut to one year from three how long borrowers must wait after losing a home to foreclosure or a short sale before qualifying for a new mortgage.  Further, FHA states that lenders are to ignore all the talk about large down payments, and ensuring mortgage borrowers’ ability to repay on loan applications.

Does anyone really believe that things are different this time around from 2008?  I guess they do, because the insanity of the past continues into 2013.

My Explicit Expression on the Fed's Action to not Taper but Continue QE

What is Scaring the Fed?

Do You Know What Goes Into the CPI Numbers?

The following pie chart and graph are extracted from Doug Short.  The pie chart gives the components and its weights.  That is, food is weighted at 15.3% of the CPI; while housing is weighted at 41%.

The next chart shows the annualized rate of change (solid lines) and the cumulative change (dotted lines) in CPI and Core CPI, or core inflation, since 2000.  Core inflation is the overall inflation rate (CPI) excluding Food and Energy, which doesn't make any sense at all to exclude those two components.  Why?  Well, it would only make sense if you do not eat nor heat your home or put gasoline into your car.  But, then again, what do I know.  However, I am sure that our policy makers at the Bureau of Labor and Statistics and the Federal Reserve System would provide you with a perfectly sane and rational explanation. 

Looking at the bottom part of the above chart, one just might conclude that an annualized CPI rate of 2.5% is not that bad to your wallet.  However, when you look at the cumulative (dotted) lines, it takes on a whole new perspective.  That is, what cost you $100 in 2000 would now cost you $140, or a 40% increase.  Now, tell me has your "real" income and/or wages gone up by at least 40% since 2000?  I didn't thing so!

Student Loan Debacle

Direct Federal Loans to students have exploded higher, from $93 billion in 2007 to $560 billion in early 2013, or a 602% increase.  This dollar amount exceeds the Gross Domestic Product (GDP) of entire nations, such as Sweden ($538 billion) and Iran ($521 billion) just to name tow countries.  Now, if you add in non-Federal student loans of $500 billion, you get a grand total of $1.081 trillion.


The following chart illustrates just another "financial bubble" that is going to burst.  Does anyone remember the "sub-prime mortgage" debacle of 2007/08?  What is the common denominator between the student loan bubble and sub-prime mortgage bubble?  Look no further than the monetary polices of the Federal Reserve System.  Does anyone really care?  I do!  But, then again, my rants wouldn't matter to anyone until they matter to everyone.

How to Make the Dow Jones Industrial Average Stay Permanently Higher

Simply eliminate the losers.  And, that is exactly what Dow Jones will do!  The DJIA will eliminate such recent losers as Alcoa, Hewlett Packard, and Bank of America, and they will be replaced by Goldman, Nike and Visa.  Next, I guess the Dow Jones will be adding such companies as Herbalife, Tesla, Netflix, and, of course, Apple.  By the way, of the 30 Dow stocks in the Dow Jones Industrial Average, only 10 are industrial stocks.  That alone should tell us something about our manufacturing base in America.

$INDU: 14,600 Remains Critical for the Bears and Bulls

Syria: Our Achilles Heel

What is the difference, if any, between the "Free Syrian Army and the Al Nusra Front?"  What is the media not telling us about the Syrian chemical attack?  If you want to know the answers to those questions, you better watch the following video by Ben Swann.