Another Shocking Chart Predicts 2014 Crash

Multiple charts exist which predict another recession this year!

net_margin_bubble

Now, I am normally a very positive person.  In fact my first post for the new year was very hopeful.  But recently I found not one but two charts which show we could have a repeat of the recent Great Recession.

The first chart above shows how the Federal Reserve and Quantitative Easing have allowed Credit to run wild again.  In summary, the Net Margin (Credit minus Debt) is out of control.   For the past year it has risen as fast and to the same level as the year before the 2008 Great Recession.  Daniel Fisher of Forbes reported this as found by Ricardo Ronco of Aviate Global.  Ronco says, “…equities are running away from borrowing levels.”

How do we fix this bubble? We convince the Federal Reserve to issue loans to cities and states rather than financial institutions that only buy stocks and bonds. Cities and states will use the money for infrastructure which will create jobs.

Here is another prediction for the S&P 500 to drop 30%.  See http://blogs.marketwatch.com/thetell/2014/04/03/sp-500-will-peak-around-1900-to-1950-then-drop-30-saxo-bank-strategist/

But based on the above chart, I predict a drop of 50% not merely 30% in the S&P 500.

scary_djia_chartThe second chart above shows how the Dow Jones Industrial Average (DJIA) is the same as 1929.   It has followed almost identically as it did in the years leading up to the Great Depression in 1929.

Big name investors like Warren Buffet and George Soros have cut their stock investments or shorted the market.

If another Great Recession occurs, riots will take place that are greater than the Occupy Wall Street demonstrations and President Obama will face impeachment.

Can another Great Recession be stopped?  Yes, the Federal Reserve can take two actions.

1. Put restrictions on QE funds to minimize leveraged lending.

2. Stop issuing QE funds to institutions that use “expected rent” as collateral.

You can make a difference by voting for the following White House Petition.

wh.gov/lQLCi

Thanks for reading this.

American Majority Party

Everyone I know of is sick and tired of partisan politics.

flag_polls

There is a better way.  Rather than have lobbyists or your party determine what you should vote for, how about voting for change based on national polls?

Instead of picking the “least damaging” or “closest to your views” candidate, how about voting for the one in the majority?

That is exactly what the American Majority Party candidate would do if elected.

For example if one year a certified national poll says Americans want prohibition, then the American Majority Party (AMP) elected official will vote for prohibition.

If the next year a certified poll says Americans changed their minds and do not want prohibition, then the AMP elected official would vote against prohibition.

The American Majority Party.  It is as simple as Apple Pie.

Shocking Charts Predict 2014 Crash

Multiple charts exist which predict another recession this year!

leverage_loan_chart

Now, I am normally a very positive person.  In fact my first post for the new year was very hopeful.  But recently I found not one but two charts which show we could have a repeat of the recent Great Recession.

The first chart above shows how the Federal Reserve and Quantitative Easing have allowed financial institutions to run wild again.  In summary, the leveraged lending is out of control.   For the past year it has risen as fast and to the same level as the year before the 2008 Great Recession.

scary_djia_chartThe second chart above shows how the Dow Jones Industrial Average (DJIA) is the same as 1929.   It has followed almost identically as it did in the years leading up to the Great Depression in 1929.

Big name investors like Warren Buffet and George Soros have cut their stock investments or shorted the market.

If another Great Recession occurs, riots will take place that are greater than the Occupy Wall Street demonstrations and President Obama will face impeachment.

Can another Great Recession be stopped?  Yes, the Federal Reserve can take two actions.

1. Put restrictions on QE funds to minimize leveraged lending.

2. Stop issuing QE funds to institutions that use “expected rent” as collateral.

You can make a difference by voting for the following White House Petition.

wh.gov/lQLCi

Thanks for reading this.

Hope – A Nice Concept for the New Year

We had a rough year in 2013.  No doubt it was an unlucky 13th year in this new century.

 

 

Some hope would be really nice.  Here is an article listing 10 things that happened in 2013 that gives hope to everyone for a better world.

http://www.commondreams.org/view/2013/12/30-2

Enjoy!

Wall Street Open 24 x 7

Banker’s hours are so 19th Century!  We are talking about stock exchanges being open ALL DAY Monday through Friday!  That is my prediction.

wallstreet24x7

This has several advantages to the general public.

First, I predict that you will be able to buy or sell stock at any time (except weekends)  just like buying a book at Amazon.com.

After-hour trading has gradually increased over the years as stock markets make more stocks available for trade.  Also stock exchanges have experienced mergers and acquisitions involving exchanges in other countries.  So the exchanges are becoming international which requires support for many different time zones.

Secondly, no longer will institutions sneak in sales “at the close” or use “imbalance only orders” to modify the closing price.

Institutions have been using these “at the bell” prices when convenient or they cancel them if they won’t be profitable.  This distorts the market price.

So 24 by 7 stock exchanges are good for the general public but bad for corporations.  So it may be a while before we see them.  Probably after some huge foreign corporation implements them.

One Republican That Loves Obamacare

Yep you read it right.  There is at least one Republican that loves Obamacare.

obamacaresaves

And that is because he is retired and both his premium and his deductible dropped dramatically using Arkansas’ Obamacare Marketplace.

Here is the article with the details.

http://thinkprogress.org/health/2013/10/02/2721501/butch-matthews-obamacare-convert/

Enjoy!

Obamacare Affects Private Health-Care Exchanges

In a good way.  Let me explain

obama_doctor

1. Walgreens joins Sears Holding, Darden Restaurants and other firms in moving its workforce into the private (health-care) exchanges.

2. Some (Walgreen) employees could end up paying less than $5 a month for a plan offering minimal coverage.

3. “This is good for EMPLOYERS because it makes their costs more predictable,” said Thomas ­Buchmueller, a health economist who teaches at the University of Michigan. “But it is also a good thing for EMPLOYEES, who will have more choices.”

4. Aon Hewitt said that the number of workers joining its (private) exchange in 2014 is five times the number currently enrolled. (Editor: Due to shift from individual insurance companies.)

5. 28 percent of the companies (surveyed) expect to join private health exchanges within five years.

6. The (private health-care) exchanges allow workers to shop for health benefits from a wide menu of insurance plans offering an array of coverage options and prices.

7. The idea behind private exchanges, like Obamacare, is to stoke competition that would lower prices while giving employees more options.

To confirm these facts, refer to this website: http://www.washingtonpost.com/business/economy/walgreens-moves-workers-to-private-health-care-exchanges/2013/09/18/46f2c074-2082-11e3-8459-657e0c72fec8_story.html

I predict  that health-care insurance companies will NOT survive unless they are part of public OR private health-care exchanges.

I predict that the exchanges will reduce the number of plans in the next few years.  Care First has already lowered their number from 62 to 8.

Some of the companies that are in private exchanges include: eHealthInsurance, BenefitMall, Liazon Corporation, ConnectedHealth, Choice Administrators, TowersWatson -Extend.

Some of the companies that are in public exchanges include: Celtic, Kaiser, CIGNA, Access Health, Care First (Blue Cross / Blue Shield)

For more information visit http://en.wikipedia.org/wiki/Health_insurance_marketplace

Overturn Citizens United

We need only 1 more state legislature to ask for a Balanced Budget Amendment and then a Constitutional Convention will be held to overturn Citizens United AND pass a Balanced Budget Amendment.  That is because the Constitution DOES NOT LIMIT the topics at a Constitutional Convention.

Citizens United said that Corporations are people and that money is free speech.

That isn’t what our Founding Fathers intended.

See the following wikipedia website:
http://en.wikipedia.org/wiki/Balanced_budget_amendment
go to the History section and read the last paragraph which says the following:

Article V of the Constitution specifies that if the legislatures of two-thirds of the states petition Congress for a constitutional amendment, then Congress must call a convention for proposing amendments. Between May 8, 1957 (Indiana), and July 21, 1983 (Missouri), applications from 32 different state legislatures, were submitted to Congress on the subject of a Balanced Budget Amendment.  On October 30, 2013, the Ohio Senate adopted Senate Joint Resolution No. 5; making Ohio the 33rd state.

If one additional state legislature were to petition, then the required two-thirds majority of states would be reached (34 out of 50 states) and some contend that Congress would be required to call a convention to propose a Balanced Budget Amendment.

A constitutional convention could overturn Citizens United  WITHOUT CONGRESS!  Please talk to your state legislators!

Stock System for the Little Guy

Why can’t anyone submit a stock sell order with a price range?  In other words with a maximum price AND a minimum price so you maximize your profit and minimize your loss?  Why do we have to hope it will go up and never go down?

Why do we have to use a 100 year old process that is susceptible to flash crashes and flash freezes?

Benefits of a selling price range include less risk.  A flash crash would be averted because free-falling stock prices would not happen since everyone would sell out at the lower price before a crash occurred.

But better yet, what if you allowed the maximum price to rise with the stock price?  The result is more profit if your stock rises even further.

And what if this new system works for shorting stocks as well as buying stocks?

There is a patent pending process called the Low High Trailing Execution Stock Orders System.

Time to enter the next century.

Obama Uses New Stealth Golf Cart

Obama, shown below, steps into the latest US technology on his summer vacation.

obama_golf

The $90 million prototype features a 4 foot high translucent screen that surrounds the cart which is equipped with a silent electric motor.  Many tiny cameras, strategically placed around the cart, project the scenery to the opposite side to make the cart invisible.

Press Secretary, Jay Carney, said, “The stealth features of the cart and its mobility are better than a Harry Potter invisibility cloak.”

The President was enjoying his vacation and the new invention until a golfer did not see the cart and blasted a tee shot into one of the screens.  That prompted Obama to quip, “We’ll have to work on bullet proof screens next.”  The President’s comment resulted in a 10% jump in the futures price of bullet proof commodities.

Rumors are circling that Halliburton wants to purchase 100 of the stealth carts for their petroleum engineers in Iraq even though nobody has seen a petroleum engineer in Iraq in 3 years.