Words of Wisdom From Mark Twain

10,996,447: Disability Beneficiaries Hit New Record!

The number of Americans receiving disability benefits continues to exceed the populations of Greece, Tunisia, and Portugal and is approaching the population of Cuba, which according to the CIA World Factbook is 11,047,251.

Who is paying for all of this?  Of course, you are!  Isn't America great?  That is, only if you are one of the individuals receiving such entitlements.  As I have mentioned previously, this is not going to end well!

GM Has Recalled 56% More Cars in 2014 Than it Sold in 2013

The total number of global recalls so far in 2014 is 15.2 million cars, which is 56% greater than the 9.7 million cars GM sold in all of 2013.  Guess what?  We still have seven months to go!

For those of you that have purchased the Escalade, you better read the following announcement from GM: "Purchasers of the 2015 Escalade and Escalade ESV were sent overnight letters and instructed them to not let occupants sit in the front passenger seat until the vehicle has been serviced."   

I would probably wait to purchase a GM vehicle until it can figure out its quality control measurements, or lack thereof.

Basic Cost for Health Insurance for an Individual Between the Ages of 25 and 35

Who Got the Jobs in April?

 

Did you notice from the above chart that all the job growth for April occurred with those individuals between the ages of 55 and 69.  The largest decline in jobs occurred with those individuals between the ages of 25-54.  Shouldn't it be just the reverse for a vibrant, healthy economy?  But, then again, who said we have a healthy economy? 

Are You an Institutional Investor or Retail (Small) Investor?

My money is on the institutional investor being correct about the future direction of this market. The tendency is for the retail (small) investor to always buy near the top and sell near the bottom. 

China Ready to Take Out the U.S. as the Number One Economy This Year

 

Well, America, it has been a good ride! But, our status as the #1 economic power and soon to be the #1 military power is about to end.  China should be the new world economic power by the end of this year.  And, the sad part of this is that the majority of Americans are totally clueless about this or really don't care.

Long-Term Perspective of the 10-Year Treasury Note

I still believe that "interest rates" are heading higher over the intermediate term, not lower. The long-term declining trend line from September 1981 has finally been penetrated on the upside.  Does this mean that rates are going straight up from here?  No.  Nothing goes up in a straight line.  If anything, the rate on the 10-year $TSY Note may decline to 2.4%, still above its declining trend line, before reversing to above 3%,

It's All About the Money

 

The about chart clearly depicts the reason why Wall Street hates the Fed's tapering policy, which is a policy of currently buying $65 billion of Mortgage Back Securities and U.S. Treasury Securities down from $85 billion.  In other words, Wall Street's perception is that tapering by the Fed is in reality a tightening position by it.  Also, the chart clearly demonstrates a rather close relationship between the growth of "Federal Reserve Assets," a cause, and the performance of the "S&P 500," an effect! 

Upcoming Lunar Eclipse

A lunar eclipse is scheduled for Tuesday, April 15, 2004.  A lunar eclipse occurs during the night when the earth passes between the moon and the sun.  [It is interesting to note that this lunar eclipse occurs on the same day as the start of Passover (Pesach), which is from sunset April 14 to sunset April 21.]  What are the potential economic/financial implications during such an eclipse?  My answer to that question is to simply keep your eyes on the Middle East during this time  Any happenings in the Middle East during this time would have major consequences on the financial markets throughout the world. 

Chevy Colbalt: The Next Corvair (Unsafe at Any Speed)

 

Do you remember the Corvair?  That was the car that GM produced in which Ralph Nader referred to as "Unsafe at Any Speed."  Well, GM has another Corvair on its hands by the name of Colbalt.  So far, GM as recalled closed to 5 million vehicles, one of which have been alleged to be responsible for at least 12 deaths.  Shame on GM for knowing for over ten years of this ignition problem and doing absolutely nothing about it.  Will anyone within GM go to jail?  Probably not, but someone definitely should.  This is another reason why I will never "buy" a GM product. 

Putin Calls Obama?

A lot has been made of the call that President Putin made to President Obama yesterday.  The media is claiming that Putin called Obama to discuss ideas about how to peacefully resolve the standoff in Ukraine.  However, my sources indicate that Vladimir Putin had simply dialed the wrong number.  He really was trying to dial Wen Jiobro, Chinese Premier. 

GM Halts Sales of Chevy Cruze

What's up at GM?  It has just announced today that it has instructed dealers to stop selling 2013 and 2014 Chevrolet Cruzes.  The unsettling aspect is that GM gave no reason for the halt.  Could it be the massive recall due to the ignition switch problems, linked to at least 12 deaths, or the potential bankruptcy fraud?  By the way, whatever happen to those Chevy Volts?  Are they still around, or did they all catch on fire?  The last I heard about the Volt, besides catching on fire, was that GM was losing $59,000 on every one sold.

$SLV's Critical Price Support Remains at $18

Stock Market Prognostication

 

Those of you that have been following my blog for several years know that I consider September 13, 2015 as a potential date for an economic/financial meltdown for global financial markets. (Go back and read my blog from November 19, 2012 entitled, “Mark this Date for Potential Economic/Financial Disaster.”)  September 13, 2015 marks the end of a “Shemitah (Sabbatical) Year”, which occurs every seven years and starts on September 25, 2014.  By the way, the greatest stock market crash, point wise, occurred on September 29, 2008, which was at the end of a Shemitah year.  Also, the stock market crash caused by the events of the infamous “9/11” tragedy occurred on September 29, 2001, which was at the end of a Shemitah year.  By the way, all these market declines occurred at the “end” of a Shemitah year.  Are these dates all coincidental with severe financial market crashes?  I don’t think so!  You may want to do your own research on what is meant by a “Shemitah Year” and its significance. 

What is very interesting for the upcoming Shemitah year is that it ends on September 13, 2015, which is the same date of a partial “lunar eclipse” and Yom Teurah.  Why are eclipses significant?  Usually, they portend to significant global events.  I guess a major stock market crash would be considered a significant event.  Also, from a Scriptural perspective, Genesis 1:14 states: “And Alahim (God) said, Let lights come to be in space of the heavens to separate the day from the night, and let them (moon and sun) be signs and appointed times, and for days and years.”  As a matter of fact, 2015 has three lunar eclipses [April 4 (Passover), September 13 (Yom Teruah, or Rosh Hashana), and September 28 (Sukkot)] and one solar eclipse on March 20. 

Will this prognostication of a market collapse occur?  Who knows, but at least we will know by the end of 2015.

Do You Know the "Net Worth" of the U.S. Government?

According to the "Government Accountability Office (GAO)," the U.S. Government has a "net worth" of a minus $16.91 trillion.  The U.S. Government's assets in 2013 amounts to $2.97 trillion, which includes cash, financial assets, land, highway system, etc.. Its liabilities amount to a total of $19.88 trillion, which includes the national debt and loan guarantees.  If the U.S. Government was a household, its FICO score would  be 350.  But then again, no one seems to really care about the underlying financial health of our country.  In other words, none of this economic/financial rants matters to anyone until, unfortunately, it matters to everyone.

The Process of Addition Under the Common Core Curriculum

Now, let me see if I understand this new math curriculum under the "Common Core." In the above example, we all know, hopefully, that "7 + 7 = 14."  However, according to the above example, that second "7" is allocated between two numbers, "3 & 4."  Therefore, one should then add the "3" to the original "7," which yields "10."  Then, add the "4" to the "10" and arrive at 14, which is the correct answer.  I believe I fully understand this new math curriculum.  Saying that, I will go ahead and stick with the old way of adding two numbers together.  What about you?

Comparing the 1929 Blemish to the 2014 Giant Pimple

Are You a Sub-prime Borrower? Hopefully, Not!

According to the Corporation for Enterprise Development (CFED), 56% of Americans have a sub-prime FICO score of 660 or lower.  In 2006, the percentage of Americans with sub-prime FICO scores was 48%. 

A FICO score of 660 or lower is just one measure that is used to identify a sub-prime borrower.  Other measures used to identify these sub-prime borrowers are as follows:

1. Two or more 30-day delinquent payments in the past 12 months, or one 60-day delinquency in the past 24 months. (In other words, don't miss that credit card payment!)
2. A foreclosure or charge-off in past 24 months.
3. Bankruptcy in the last 60 months.
4. Qualifying "debt/income" ratio of 50% or higher.

FICO points system ranges from 300 to 850.  The following categories indicate what those ranges are from "Poor Credit to Excellent:"

1. 350 to 619: Poor Credit
2. 620 to 659: Sub-Prime Credit
3. 660 to 720: Prime Credit
4. 721 to 750: Prime Plus Credit
5. 751 to 850: Excellent Credit.

Point & Figure Chart Look of Silver ($SLV)