ISIS goal: rule the world. That was Charlie Manson's goal, too...

These ISIS dopes are all over the internet now, claiming that one day they will raise their black flag over the White House.  They are drunk with success in terrorizing a bunch of tribes in northern Iraq. 

Their victories came so easily, they figured ISIS will rule the world by Christmas.  

Good luck with that, Mustafa.

These maniacs of ISIS remind me a lot of Charles Manson and his murderous 'family' back in the late 1960's.  Yes, it's a stretch, but here goes:

Charlie figured he could start a race war in the US by randomly killing some 'piggies' (rich white folk) and blame it on blacks.  He then figured that the whites would retaliate by rising up and killing blacks indiscriminately and subsequently society would fall into chaos.  He and his bunch would then hide out at the Spann Ranch until the shooting subsided, and then he would emerge and unite everyone, with him as king.

Yes, this was about as numb-nutted a plan as was ever concocted by a human in the history of the planet, with as many holes in this moronic plan as a million pound chunk of Swiss cheese.

And the same idiocy can be assigned to these dolts that comprise ISIS.  Their plan involves sweeping throughout the world installing their caliphate on everybody.  Everyone will fear their tactics of chopping off heads, hands, legs and eyeballs willy nilly and subsequently everyone will submit to the will of Allah.

Nice plan if you can pull it off, Mahmoud.

Mustafa, Mahmoud and the rest of that murderous ISIS bunch are nothing more than a pack of uneducated goat herders who have been given AK-47's and told to shoot infidels.  They then capitalized on the Obama failure to retain any residual US forces in a fractured Iraq and subsequently seized a ton of US weapons from the stupid goat herders-turned-Iraqi-soldiers when they dropped their rifles, abandoned their Abrahams tanks at the first sign of trouble from ISIS.  It's a local mess that will fizzle out to nothing once ISIS runs out of US howizter ammo, and their M1 Abrahams tanks conk out (which will be real soon, those babies need a butt load of maintenance: something about which these ISIS boobs have no clue).

Once their cache of seized weapons is expended, they are done with their expansion plans.  They couldn't manufacture so much as a toaster, to say nothing of assault rifle rounds and RPGs.

But they sure know how to make the news.

And, of course, so did Charlie Manson .

“The Kid” predicts investors lose their shirts

“Fredd, looks like a 10-12% correction in store for the markets this month.”  This sentiment was uttered in a post script comment  to me just a few days ago. The Kid, proprietor of the site Diary of a Right Wing Pussycat  has gazed into his relatively reliable crystal ball and has spoken.

If this is indeed our future, we would all make some serious scratch if  we were to short the shares of some index stocks such as QQQQ and SPY, which mirror the general direction of assets in the exchanges.

So far, I have made some pretty good bucks on Kid’s predictions, although he has missed the mark recently on a marijuana stock (PHOT), the only blight on Kid’s record.  And I’ll be danged if so far this month, stocks are certainly trending in that general negative direction.

From an all-time high of 17,138, the Dow Jones index has fallen to 16,443, or about 4% in a few weeks.  We’ll give The Kid some slack, and allow his prediction of ‘this month’ to start at the high of July 22^nd or so, and continue for 30 days.  To reach The Kid’s prediction of at least a 10% correction, the markets must lose another 1000 points or so in the next two weeks, or by August 22nd.

Go ahead and ask me if I am betting the farm and pumping my life’s savings into equity shorts.  Not on your life.  The Kid, even with his huge, bulging brain working overtime analyzing the markets is probably wrong on this prediction.  We have two weeks to see, but I am betting on the markets staying the course and moving at worst sideways, but probably ticking upwards in the next two weeks.

Here’s why: Obama is president, and people don’t like Barry’s effect on the markets.  That is not arguable, since both times he won, in 2008 and 2012, the markets tanked the following day.   He is a socialist (not even arguable here either), and firmly and steadfastly believes in redistribution of wealth.  The market doesn’t share his beliefs in this regard, and has been strangled owing to so much capital sitting on the sidelines and overseas since his election.  Imagine how equity markets might have performed had Mitt Romney been elected in 2012 – perhaps a Dow Jones topping 20,000 or more.  No way to tell now, but my theory is as follows:

There is pent up demand for equities, but investors are tentative in putting their hard earned money into the markets in earnest until they are convinced that uncertainty regarding tax policy, foreign policy and health care costs has been alleviated.  The administration has also set the Fed funds rate at 0.0%, which affects interest rates throughout the economy, so bonds and CD’s are not attracting any money, either.

So where does all the money go, waiting for some certainty to return to the markets, besides sitting overseas and in low interest bearing cash accounts?  The money that is not sitting on the sidelines (a huge amount, folks, YOOGE)  is still in the market, since the stock market is still the only game in town.  And this ‘town’ consists of the entire world. 

Once Barry is gone, all of that pent up demand for investments that have attractive ROI’s is going to be unleashed in a big way.  When President Christie, President Cruz, President Paul or President Romney (a dark horse) is elected in 2016, watch the markets hit dizzying highs.  We could possibly even see a huge surge in stocks if the US Senate changes hands this November.

Until then, there is still no place else to park your spare cash that earns anything close to reasonable returns: the US equity markets.  Our feeble recovery is simply reflecting reticence on part of worldwide investors in investing in a socialist-leaning American economy.  It’s still the best bet in the world, but it will be a much better bet with adults in charge, rather than the hapless fools that are holding us back now.

Either Kid is wrong, or I am wrong.  We will see in the next few weeks, so stay tuned, boys and girls…..

Read this post or you're going to die!

Not really.  But that headline is the typical method of hawking too many products today.  And much like sex, fear sells very well indeed, and it's not even arguable.

A few years ago, we all saw the Rosland Capital ad featuring G. Gordon Liddy (of Nixon 'Watergate' scandal infamy) telling us to buy gold and buy it now, as much as you can, or you will suffer losses to your nest egg much like we all saw in 2008 and 2009 when the stock market lost 45% of its value.  When Gordo was pitching us this schtick on gold, this was when gold, a commodity, was trading at around $1,900 per ounce.  Then over a period of about three weeks a few years ago, gold prices plummeted to $1,280/ounce where they still remain today and have hovered around this level for well over a year, now: had you listened to Gordo, you would have seen a loss of about a third of your investment.

Where is G. Gordon Liddy now?  Where is Gordo when you need answers to his claim that you needed to invest in his crappy garbage or face ruin?  Gordo? You said my investment was going to 'go up, not down.' What happened, Gordo?  Buddy?  (.....crickets chirping......)

I am a classically trained financial advisor, and I am acutely aware of these tactics every time I see or hear them.  Typically, the bogus ads begin with a startling statement that casts doubt on the performance of equities listed on the various stock markets.  Many of these ads cast fear into the hearts of those watching, and suggest that they will end up in the gutter, eating dog food and living in a dumpster unless they buy the hawked product du jour.

The truth of the matter is that stocks rise and fall, but generally rise over the long term, and that long term rise in assets is averaging around 9% per annum (over the last 100 years).  It's the inherent volatility of the equity markets that these predators focus on, and they completely disregard the general long term positive performance of the markets.

The biggest abuser of playing on people's fears are the annuity companies, which peddle insurance products.  Unlike products available through banks or exchanges, the twist on these scams are that they are simply contracts between insurance companies and those buying their crap.  And these contracts are written by lawyers employed by the insurance companies, and those smarmy shysters write those contracts in heavy favor of the insurance company, and not you.  The biggest problem with these products is that they limit your benefits as much as possible during boom times, and your exposure to losses are not always limited - it all depends on how the lawyers spelled out the terms.  Additionally, these products are not guaranteed like bank products - they are paid out based on the good will and financial viability of the guys writing the checks.  Nobody is compelling these insurance guys to write checks to customers.  They write them if they feel like it.  If they don't write the check, so sue them.

Buy my annuity or die alone in the gutter, penniless and pitiful.  Don't buy into that crap, folks.  Yes, fear sells.  And it sells very well.  All I can tell you is that these fear mongers lie like dogs.  But you will still probably succumb to their Siren's call.  You can't help it.

Just like you can't help buying Bud Lite, because when you do you will be popular and hang out with swimsuit models just like on the ads.

It has to be true, the ads wouldn't lie, would they?

How to solve the Israeli-Palestinian conflict - guaranteed to work.

This conflict has been going on since 1948: vagrant Arabs see Jews as making something of their desert they moved into that was formerly infrequently inhabited by migrant Bedouins. And even these Bedouins didn't stay in one place in the desert that is now Israel for very long.  It was just too desolate.

Now it is an industrial and political powerhouse.  And the vagrant Arabs want it back.  'Right of return' my butt.  Nobody to speak of ever lived there before Israel was formed, and everyone knows it.  These vagrant Arabs who now call themselves Palestinians were in reality Jordanians, Lebanese, Egyptians and Syrians.  They were never Palestinians, ever.  There was no Palestine, other than the area that consisted of western Jordan, northern Egypt, southern Syria and later on, southern Lebanon.  There was no country called Palestine.  There just wasn't.  

But now, these angry Arabs have sworn to wipe Israel off the map, nothing less, and take back Palestine (which they never owned to begin with), now that Israel has put the energy and money into the land to make something of it, where before it was nothing but a desolate wasteland.  

There can be no peaceful co-existence.  There never will be.

Solution?  Easy, piece o' cake.  Let the conflict begin in earnest. Let the combatants loose, and let the bullets fly.  May the best army win.  And the winning army will not win by avoiding civilian casualties.  The winning army will decimate the other's will to fight once it has demonstrated that it can annihilate them.  

Works every time it's tried.  Always has, always will. May the invention of the 'surgical strike' pass into oblivion as the surest way to lose a war in the long term.

Just let 'er rip.  Like I said, may the best army win.

A visit to San Francisco: behind enemy lines....

I just returned from a four day stint in the City By The Bay, home of Barry Bonds*, Al Capone and Nancy Pelosi.  Yes, four days in San Francisco to celebrate my niece's 16th birthday.

This was not my city of choice to spend any time in whatsoever, but there was no convincing a 16-year old that there are communist outposts in the U.S.  Even if she did believe me, she didn't care.  We went anyway.

During my brief encounter behind enemy lines, I was fascinated by what I saw and heard: a city that is in its death throes, but doesn't know it yet.

Our cabbie who took us from the airport to the hotel near Fisherman's Wharf (obviously a gay guy) was explaining with great delight his rental digs up on the hill overlooking the town was rent controlled: he was paying around a $1000/month, as he had been in this apartment for over 30 years, while his next door neighbor was paying 'market price' for identical digs: $5000/month.

I chose not to get into it with 'Gary the Cabbie,' about the effects of price controls and that they simply don't work in controlling prices (just ask Gary's neighbor).  Sure, they are working for Gary, since he's already got his, but they are not working all that great for his neighbor.  I am sure Gary doesn't give a damn about his neighbor, but that is the subject for another day.

We took the 'hop on, hop off' bus tour of the city, and saw all the sights, to include:

• Haight-Ashbury.  This dump is arguably the dirtiest, crappiest neighborhood in town.  I literally had to watch each and every step I took to avoid stepping in vomit, human feces, french fries or bird crap.  The residents walking up and down the street opening smoking dope looked like they were freshly released from the asylum in 'One Flew Over the Cuckoo's Nest.'  Haight-Ashbury is a toilet of a town.
• The Painted Ladies.  You know, those lovely buildings shown in the opening scenes of 'Full House,' with the scenic backdrop of the city.  They were covered in scaffolding at the time I saw them, but I was guessing that were they for sale, they would have been priced at $100,000,000 per unit, in this price controlled town.  Pretty nice digs for  Danny, Aunt Becky, Uncle Jesse and Uncle Joey to hang out in let me tell you.
• A walk from the free bus stop to the San Francisco Giant's baseball park was enlightening.  I have never in my life seen so many big, fat obese bums sleeping the day away along the many benches and sidewalks.  San Francisco has the fattest homeless population in the world, where not one bum has missed a meal in over thirty years by looking at them.  Pickings are pretty good for the homeless in San Francisco, if the size of the bum beer guts I saw is any indication.
• Free buses.  Technically, they are $2.00 a ride each way, but the driver's really don't want to bother with taking your money, despite me trying desperately to pay my way.  The angry bus driver just told me to move along, and looked irritated that I wanted to bother him with payment.  Since everything in San Francisco is subsidized by Nancy Pelosi's Democrats, what's the point in trying to squeeze a profit from anything?  Lots of money is available from the Democrats so why bother.

This city will someday collapse like any other socialist society in human history.  The bums will overwhelm all available resources (the paradox/tragedy of 'The Commons'), and all of this free stuff will go away, and most likely not peacefully.  Those bums are pretty aggressive in San Francisco and will most likely not go away quietly into the night.

Peter Doocy doesn't belong on Fox News

Nepotism is alive and well on Fox. Peter Doocy didn't need to start at the bottom and work his way up, why go through all of that when your dad can pull some strings and get you a gig on a top rated national news broadcast right out of college.  I can't help but shake my head in disappointment each and every time I see the no-talent son of Fox and Friends morning co-anchor Steve Doocy's covering a story.

Steve Doocy must have embarrassing photos of Fox chief Roger Ailes, because Roger is the consummate professional when it comes to running a news program.  He knows that the heavy weight talent that people tune in to for their news should not include a snot nosed, wet-behind-the-ears greenhorn like Peter Doocy.

This kid looks like Richie Cunningham of 'Happy Days' trying to act like Walter Cronkite.  It just doesn't work.  The kid has as much talent and looks as anyone off the streets, but unlike Joe Average, he has clout in his dad pulling for him to keep him on the air.

Remember these Fox guys hammering Chelsea Clinton when she got her short lived NBC gig?  Remember them saying the very same thing I am saying about Peter when reporting on this blatant nepotism in Chelsea's hiring, relying on dear ol' mom and dad to pull some strings at NBC?  I recall Steve Doocy ticking off the many low rent TV gigs he had prior to Fox and Friends, and that nobody handed him the job without putting in his dues as a  weather guy in Dented Pig, Wyoming, then moving up to a larger audience in Butte, Montana, etc.  (no, these are not really Steve Doocy's early gigs, but you get my point).

Note to Roger Ailes: unless Steve Doocy really does have those aforementioned photos, you need to dump his rookie son and get someone on air with some street cred.  And looks.  And talent.  You know, somebody who paid their dues.

For what it's worth.

Obama: 'phony scandals'...'ginning up the base.'

Obama will forever be in denial about these mistakes, botches, bad moves and out-and-out crimes his administration has done over the last 5 plus years.

He truly believes that he is doing great work for the American people, and that the media is simply obsessed by the 'phony scandals' and doesn't cover any of the good work he is doing.

Brent Bozell pointed out the coverage of these phony scandals is less than 1% of air time as compared to all other news by the mainstream media.  And Obama thinks that's too much.

Since elected, the Obama administration has had to deal with a minimum of the following 'phony scandals:'

• Fast and Furious - Obama gave guns to Mexican gangs in hopes that Americans would be outraged that the gangs killed people with American guns.  Of course, he didn't want the word to get out that he was the one providing the guns.  But this one is a phony scandal.
• VA Scandal - untold numbers of veterans actually died while on fake waiting lists created so that VA administrators could fudge the number of weeks patients waited for treatment in order to collect bonuses.  Nothing to see here, folks, move along.
• IRS Scandal - Obama is using the power of government to suppress opposition from political foes via audits and refusals by the IRS to grant valid exemption status.  This is not the America most of us would recognize.  No scandal here, though.
• Bergdahl exchange: Five murdering terrorists exchanged for a traitor.  Nothing more needs saying here.
• Benghazi - See above, the reason for the Bergdahl exchange given by Obama is that America leaves nobody behind - except four dead Americans at the embassy in Benghazi since no effort at all was made to help them during a 12 hour assault on our assets by terrorists, and Obama insisted for weeks that no terrorism was involved, only reaction to a video.  No scandal here, no siree Bob.

Ginning up the base?  Yes, probably. Sady, the above list is only the tip of the iceberg.  And remember: Nixon was forced to resign for far less.  Obama will continue to believe he is working on behalf of the American people well on into the future, but history will judge this pathetic man as the worst scandal ridden president in American history.