for the record, this investment club and private hedge fund are not licensed. The license applications
I attempted were turned down by the ks securities commission where the fagot punks said my degrees and genius IQ does not
matter. The license procedure involved being sponsored to take the tests, which I passed with some of the highest scores in
America when allowed to try. the kc area stock broker offices, merrill lynch, smith barney, painewebber did not sponsor me,
said my degrees do not matter, said my ownership of those companies does not matter, and had me arrested for fiction such
as trespassing, which the fagots in the securities commission used as reasons to deny my license saying, 'ownership is not
right'. Since I have been bankrupt, jailed, put in mental hospitals, drugged, lost my real estate sales license and denied
my real estate broker license, told for 30 years by my so called daddy a harvard degree lawyer in kc, not to go to law school,
I would never get a license or job, and his mafia crap has put me in jail mental hospitals for 30 years, I started the private
hedge fund/investment club, and always said it is not licensed.
I
have been disrespected since age 18 and have to be a multi billionaire. The ks state securities office mailed me a letter
today questioning my web site and the fact I am not licensed and are threatening me with law suits. These same punks would
not grant me a license and disrespected me face to face. There is no license for this, I HAVE TO EARN $5 BILLION/YR IN AMERICA
IN 2012 AND BACK PAY CHECK and PAY BACK FOR 30+ years of disrespect, mafia, nazi, punk murder.
That is, buy junk bonds when there’s panic in the air
and spreads off treasuries have ballooned extraordinarily, and sell them when there’s confidence and spreads tighten.
HYG We’re attempting only to impress upon you, our reader, the importance of this sector as
an indicator of what’s to come. On the one hand, junk is sensitive to the general state of credit (as we mentioned
above). During times of instability and fear, spreads will widen considerably, as they did earlier this summer.
On the other hand,junk trades
directly off the underlying stock. That is, it moves with the market in general and not as a function
of changes in interest rates.
The Sage of Omaha made a bet that was written
up in a recent Fortunemagazine article. Basically, Warren Buffett bet that the S&P 500 would outperform a group
of funds of hedge funds over the next ten years. A million dollars to someone's favorite charity is on the line. This week
we will analyze the bet, using it as a springboard to learn about valuation and value investing. As we will see, there are
times that making a bet on the S&P 500 to outperform hedge funds (or bonds or real estate or whatever asset class) makes
sense and times when it doesn't.
Warren Makes a Bet
Buffett
is the clear winner in investing, and his wisdom is followed by a large legion of fans, among which I am one.( I am a fan
of an intelligent person with that much wealth )
"And to that there is a certain history, which began at
Berkshire's May 2006 annual meeting. Expounding that weekend on the transaction and management costs borne by investors, Buffett
offered to bet any taker $1 million that over 10 years and after fees, the performance of an S&P index fund would beat
10 hedge funds that any opponent might choose. Some time later he repeated the offer, adding that since he hadn't been taken
up on the bet, he must be right in his thinking."
I will
make Warren Bufffet that bet, with my private Investment Club here at Learn A Better Life, if any one knows Mr. Buffett, please
tell him I will take his bet, as I have been a Berkshire Hathaway owner before and feel I will win the bet. ( my
Investments will out perform the SP 500 over the next 10 years )
George A. Crawford III
A Quick Bio on Warren Buffett
From 1965 to 2006, the Standard and Poor’s 500 Index—one of the most commonly
used benchmarks for the overall U.S. stock market—had an average annual return of 10.4%.
The goal of most investors is to "beat the market", meaning they would like for their portfolio to outperform
the S&P 500. This would not have been an easy task over the past 42 years. However, one individual not only beat the market
over this time period, he absolutely crushed it. Who, you ask? None other than the “Oracle of Omaha.”
An Investing Genius Is Born
Warren Buffett was born on Aug 30, 1930 in Omaha,
Nebraska, to Howard Buffett, a stockbroker and member of Congress, and Leila Buffett. He wasted no time jumping into the investing
world—purchasing his first stock, Cities Services preferred shares, at the tender age of 11, for $38 each. He would
turn around and sell his holdings and make a cool profit of $2 per share.
You will never guess
what unfolded next. The stock eventually hit $200 a few years later. However, this laid the foundation for what would be Buffett’s
long-term investment strategy.
In addition to recognizing the importance of the stock market at
such an early age, other highlights included Buffett successfully deducting his bicycle as a work expense at 13 years old
while filing his first income tax return. Also, in 1944, when he was 14, he invested $1,200 of his savings into 40 acres of
farmland. Little did he know at the time that he would eventually be worth more than $40 billion.
Father Knows Best
Warren Buffett is considered by many to be the greatest investor
ever. When he took over at Berkshire Hathaway in 1965, its shares sold for $20. They recently traded at a whopping $109,650.
That is not a typo—trust me. What is this Wall Street wizard’s recipe for success? Wouldn’t we all like
to know? We do have some clues, however.
Buffett worked under the tutelage of Benjamin Graham—the
father of value investing. Value investors are constantly on the hunt for stocks that are selling below their true value.
When Buffett is contemplating investment opportunities, he goes beyond determining whether or not it is selling below its
fair value. The business has to have solid economics behind it as well.
A number of Buffett’s
investing tenets have been pointed out by many people. Some of the more popular are covered below. They can serve as a nice
blueprint when constructing your value approach to investing.
The Oracle’s Investment
Philosophy
1. Buffett will place his investment dollars only in businesses that he fully
comprehends. This makes sense: if you don’t understand the business, how can you project future performance? Furthermore,
if a company’s life is less than 10 years, it will typically miss his radar.
2. Some of
the common financial measures that Buffett will look at include return on equity (ROE) and the debt-to-equity ratio (commonly
referred to as a firm’s leverage).
As we mentioned in our article on ROE, it is not only
important to find companies in which their ROE’s are improving, but this measure must also be compared to the industry
average. Buffett adheres to this.
The debt-to-equity ratio tells investors what proportion of
equity and debt the company is using to finance its assets. The ratio is provided below. A high debt-to-equity ratio can lead
to greater volatility in a company’s earnings. I bet you can guess what Buffett looks for here.
Debt/equity
ratio = Total Liabilities/Shareholder’s Equity
3. Buffett is a stickler for quality management—management
committed to expanding profit margins. High and growing profit margins, calculated as net income divided by revenues, are
extremely appealing and rightfully so. It is one thing for a company to increase profits, but if it can manage costs along
the way, that is the ultimate goal.
4. Economic moat. What? Yeah, that is a rather unusual term
that floats around the finance industry (no pun intended). Buffett is credited with coining the term which simply means a
company’s competitive advantage. When a company is said to have a wide economic moat, competitors have a much tougher
time capturing market share. Buffett favors these types of companies.
5. Last, and certainly not
least, Buffett determines what every value investor attempts to uncover—the company’s intrinsic or actual value.
No one knows for sure exactly how he arrives at this. Or if someone does, I can guarantee he or she is also a very wealthy
individual. Some suggest he utilizes a discounted cash flow model, while others refute this claim. This is the most difficult
task for any value investor, except for Mr. Buffett, of course!
Whether you are a Buffett fan
or not (Warren, not Jimmy), you cannot argue with the man’s success. When Forbes released its recent list of the world’s
richest people, Buffett occupied second place. But he has a firm hold on first place in the hearts of value investors around
the world.
From 1965 to 2006, the Standard
and Poor’s 500 Index—one of the most commonly used benchmarks for the overall U.S. stock market—had an average
annual return of 10.4%.
The goal of most investors is to "beat
the market", meaning they would like for their portfolio to outperform the S&P 500. This would not have been an easy
task over the past 42 years. However, one individual not only beat the market over this time period, he absolutely crushed
it. Who, you ask? None other than the “Oracle of Omaha.”
An Investing Genius
Is Born
Warren Buffett was born on Aug 30, 1930 in Omaha, Nebraska, to Howard Buffett,
a stockbroker and member of Congress, and Leila Buffett. He wasted no time jumping into the investing world—purchasing
his first stock, Cities Services preferred shares, at the tender age of 11, for $38 each. He would turn around and sell his
holdings and make a cool profit of $2 per share.
You will never guess what unfolded next. The
stock eventually hit $200 a few years later. However, this laid the foundation for what would be Buffett’s long-term
investment strategy.
In addition to recognizing the importance of the stock market at such an
early age, other highlights included Buffett successfully deducting his bicycle as a work expense at 13 years old while filing
his first income tax return. Also, in 1944, when he was 14, he invested $1,200 of his savings into 40 acres of farmland. Little
did he know at the time that he would eventually be worth more than $40 billion.
Father
Knows Best
Warren Buffett is considered by many to be the greatest investor ever. When
he took over at Berkshire Hathaway in 1965, its shares sold for $20. They recently traded at a whopping $109,650. That is
not a typo—trust me. What is this Wall Street wizard’s recipe for success? Wouldn’t we all like to know?
We do have some clues, however.
Buffett worked under the tutelage of Benjamin Graham—the
father of value investing. Value investors are constantly on the hunt for stocks that are selling below their true value.
When Buffett is contemplating investment opportunities, he goes beyond determining whether or not it is selling below its
fair value. The business has to have solid economics behind it as well.
A number of Buffett’s
investing tenets have been pointed out by many people. Some of the more popular are covered below. They can serve as a nice
blueprint when constructing your value approach to investing.
The Oracle’s Investment
Philosophy
1. Buffett will place his investment dollars only in businesses that he fully
comprehends. This makes sense: if you don’t understand the business, how can you project future performance? Furthermore,
if a company’s life is less than 10 years, it will typically miss his radar.
2. Some of
the common financial measures that Buffett will look at include return on equity (ROE) and the debt-to-equity ratio (commonly
referred to as a firm’s leverage).
As we mentioned in our article on ROE, it is not only
important to find companies in which their ROE’s are improving, but this measure must also be compared to the industry
average. Buffett adheres to this.
The debt-to-equity ratio tells investors what proportion of
equity and debt the company is using to finance its assets. The ratio is provided below. A high debt-to-equity ratio can lead
to greater volatility in a company’s earnings. I bet you can guess what Buffett looks for here.
Debt/equity
ratio = Total Liabilities/Shareholder’s Equity
3. Buffett is a stickler for quality management—management
committed to expanding profit margins. High and growing profit margins, calculated as net income divided by revenues, are
extremely appealing and rightfully so. It is one thing for a company to increase profits, but if it can manage costs along
the way, that is the ultimate goal.
4. Economic moat. What? Yeah, that is a rather unusual term
that floats around the finance industry (no pun intended). Buffett is credited with coining the term which simply means a
company’s competitive advantage. When a company is said to have a wide economic moat, competitors have a much tougher
time capturing market share. Buffett favors these types of companies.
5. Last, and certainly not
least, Buffett determines what every value investor attempts to uncover—the company’s intrinsic or actual value.
No one knows for sure exactly how he arrives at this. Or if someone does, I can guarantee he or she is also a very wealthy
individual. Some suggest he utilizes a discounted cash flow model, while others refute this claim. This is the most difficult
task for any value investor, except for Mr. Buffett, of course!
Whether you are a Buffett fan
or not (Warren, not Jimmy), you cannot argue with the man’s success. When Forbes released its recent list of the world’s
richest people, Buffett occupied second place. But he has a firm hold on first place in the hearts of value investors around
the world.
Berkshire Hathaway Inc. (NYSE: BRK.A, BRK.B) options will begin trading on the Chicago Board Options Exchange (CBOE), enabling investors to bet on the company using a technique Chairman and Chief Executive Officer Warren
Buffet has rejected, Bloomberg News reported. “Usually, if you want to buy or sell a stock,
you should buy or sell the stock,” Buffett said last year on the weekend of the company’s annual meeting. “Using
options, four times out of five you will be right, the last one you’ll miss. I’ve virtually never used options
as a way to enter or exit a position.” CBOE will offer contracts on Buffet’s conglomerate starting today (Thursday).
Join the Learn A
Better Life Investment Club
Every week we give Investment recommendations
some have had gains as much
as 500% in less than 2 months
This
is an example of biased opinions to automatically disqualify, based on the words 'only way', as I studied finance at Purdue
Krannert, when it was ranked 'simply as good as it gets' in national mba school polls, they taught the efficient market theory
with such biasness, that I did not study the crap much, earned Bs, as I was the same way in many classes in engineering and
high school, that were too biased, too much crap, too much fraud. When I look at certain things, written words, people, objects,
I auto matically disqualify many based on first impressions/looks, such as teachers in school, ie finance teacher- efficient
market theory. I called smith barney morgan stanley last week, the yahoo finance listed number, asking to talk to the listed
chairman, and was transferred to the complaint department, where a younger sounding girl acted like she was seriously listening
and taking notes, about my issues since the 1970's - asking me how much money would settle my complaints, I replied,
$100 Billion, based on real damages, physical, and lost money, pay checks at hedge funds at over $1 billion/yr for 10years
now, and the current listed $3.5 million/yr pay check of the ceo. She said they would be back with me in 4 weeks, in
October 2012. The next day, a dirty old looking crummy car drove by the front of my house, a woman, all
made up smiling, a guy who looked like the old Purdue finance teacher, PhD MIT- I could hear snot off saying 'punk', key idea
is 'looked like' 30+ years of look a likes, idiots, identity theft, pretenders, as that teacher in class acted tough, smoked
cigarettes-like an idiot- with his military? crew cut, turtle necks, black nerd glasses, and contradicted himself over
the 2 year period I earned my degrees, REAL BIASED.
“Channel Investing”: The Only Way To Beat The Efficient
Market Hypothesis
There is a way to beat the market. To understand how it is possible, we must first understand why it is so difficult
and why the vast majority of traders never accomplish it.
In a nutshell, the barrier to truly spectacular gains is “efficient markets.” As you may know, the efficient-market
hypothesis is one of the most important insights into equity trading ever developed. First, I’ll give you the Wikipedia
definition. Then I’ll add to it and tell you how to overcome it. Wiki says:
In finance, the efficient-market hypothesis (EMH) asserts that financial markets are
“informationally efficient.” In consequence of this, one cannot consistently achieve returns in excess of average
market returns on a risk-adjusted basis, given the information available at the time the investment is made.
In other words, so much information is available to so
many traders all the time, it is nearly impossible for one person to glean something from the blizzard of information and
disinformation available online to consistently outperform all the others trying to do the same thing.
This is true. There is a way, however, to beat the traders.
The technique is a radical financial strategy called “investing.”
Yes, I’m being somewhat facetious, but it’s true.
Historically, investors who did their homework and identified technological innovations before the mass of traders began
trying to predict every micro-movement in a stock have been able to reap legendary gains.
This is possible for a number of reasons. One is that the vast majority of traders are
not experts at anything except following trends. They are generalists almost by definition. Therefore, an army of generalists
is constantly reacting to the tiniest, most trivial bit of data, trying constantly to predict what all the other generalists
will do.
The odds of winning this game, once you
realize that the brokerages play the same role as “the house” in Las Vegas, are dismally low. I have a friend
who has run several major brokerages who tells me that he and everybody else in that business know this is true but will never
admit it.
Investors, however, have the option of
actually doing the work and learning about emerging technologies. Armed with sufficient understanding of specific innovations
and overall economic forces, investors in breakthrough technologies can earn huge returns. I use the word “earn”
purposely, by the way. If you hear somebody use the word “win” or “won” in the stock markets, you
know they are gamblers, not investors.
Investors
don’t constantly buy and sell trying to outguess the market, which is exactly what brokerages want you to do. Investors
do the work to understand where science and technology are going and buy equities in companies, not stocks, positioned to
profit from the constantly changing technological environment.
This is actually a very difficult thing to do, for psychological and emotional reasons. People tend to watch tickers
too closely and fall prey to the herd mentality. I tell people, however, that it is far better to sit on a transformational
stock that doubles in value for five years than it is to try to win 10% or 15% gains in the short run.
The calculated annual ROI of a successful short-run trade
is, on paper, huge. The fact is, however, that virtually nobody constantly wins short-run trades. Only supercomputers on the
floors of the exchanges do that. Traders who average 20% gains yearly are nearly nonexistent. If you have the patience to
invest in companies that can double or triple in a five or so year cycle, however, such returns are absolutely feasible.
You hear about big trading success stories, however,
as traders are likely to brag about those “wins” while ignoring their losses and charges. Brokerages also tout
those instances, just as the casinos issue press releases when somebody wins big at slots. Neither brokerages nor casinos
put out press releases showing the vast majority of gamblers slowly turning over their wealth to the house.
Investors often buy only once and sell once many years
later. Some sell at various points in the upward movement of a company’s stock to lock in gains or get cash to buy additional
equities when markets inevitably dip. Investors who indulge in this sort of trading are actually engaging in “price
averaging” and can make truly spectacular gains, as quite a few of my readers have demonstrated.
The key, however, is that the trades are
meant to bolster an investment, not outperform the gamblers.
Price averaging is simply adding to your holdings of companies that you believe will increase in the long run. I also
call this channel trading because many early-stage innovation companies vacillate regularly in pretty well defined channels.
Armed with enough information about those patterns, it’s not that hard to buy after a stock goes down and sell some
after it goes back up — keeping in mind that the true point is to add to long-term holdings at low prices.
The key point about this strategy is that the channel
traders’ buys and sells take place “after” movements. Unlike traders trying to predict movements and place
their orders before the herd stampedes, channel investors can sit back, watch the herd and profit by increasing their ownership
of companies in a diversified portfolio of transformational technologies.
This is the only way to beat the efficient-market hypothesis, because it’s based on knowledge that traders simply
don’t bother to learn. It often involves relatively complex science and even some basic knowledge of math and statistics.
While it is simple in theory, it’s very difficult to stay calm and stick to your guns while investors are shouting and
waving their arms around like branches in a hurricane.
Regards,
Patrick Cox, forPenny Sleuth
I like these ideas, below- George A. Crawford III MS BS still, now on my second half century
All life
is an experiment. The more experiments you make, the better.
Ralph Waldo Emerson
Do not believe in
anything simply because you have heard it. Do not believe in anything simply because it is spoken and rumored by many. Do
not believe in anything simply because it is found written in your religious books. Do not believe in anything merely on the
authority of your teachers and elders. Do not believe in traditions because they have been handed down for many generations.
But after observation and analysis, when you find that anything agrees with reason and is conducive to the good and benefit
of one and all, then accept it and live up to it.
The term "theory of relativity" was coined by Max Planck in 1908 to emphasize how special relativity (and later, general relativity) uses the principle of relativity.
The speed of light in a vacuum is the same for all observers, regardless of their relative motion or of the motion of the source of the light.
The resultant theory has many surprising consequences. Some of these are:
Time dilation: Moving clocks are measured to tick more slowly than an observer's "stationary" clock.
Length contraction: Objects are measured to be shortened in the direction that they are moving with respect to the observer.
Relativity of simultaneity: two events that appear simultaneous to an observer A will not be simultaneous to an observer B if B is moving with respect
to A.
General relativity is a theory of gravitation developed by Einstein in the years 1907–1915.
The development of general relativity began with the equivalence principle, under which the states of accelerated motion and being at rest in a gravitational field (for example when standing on the surface of the Earth) are physically identical. The upshot of this is that free fall is inertial motion: In other words an object in free fall is falling because that is how objects move when there is no force being exerted on them, instead of this being due to the force of gravity as is the case in classical mechanics. This is incompatible with classical mechanics and special relativity because in those theories inertially moving objects cannot accelerate with respect to each other, but objects in free fall
do so. To resolve this difficulty Einstein first proposed that spacetime is curved. In 1915, he devised the Einstein field equations which relate the curvature of spacetime with the mass, energy, and momentum within it.
Some of the consequences of
general relativity are:
The Universe is expanding, and the far parts of it are moving away from us faster than the speed of light. This does not contradict the theory of special relativity, since it is space itself that is expanding.
Frame-dragging, in which a rotating mass "drags along" the space time around it.
Technically, general relativity
is a metric theory of gravitation whose defining feature is its use of the Einstein field equations. The solutions of the field equations are metric tensors which define the topology of the spacetime and how objects move inertially.
Living Reviews in Relativity — An open access, peer-referred, solely online physics journal publishing invited reviews covering all areas of relativity
research.
$3.8 Billion/yr, the new minimum wage, just
like Mike Milkin got how many Hundred Million in 1985 when I earned my masters, just like all of the billionaires who got
business licenses to start, etc.
$3,700,000,000.00
/year
$308,333,333.33
/mo
12mo/yr
$77,083,333.33
/wk
4wk/mo
$15,416,666.67
/day
5day/wk
$1,927,083.33
/hr
8hr/day
$32,118.06
/min
60min/hr
I
George A. Crawford III was told my degrees do not matter by so called managers of offices of K.C. area stock broker offices
ie merrill lynch, smith barney, painewebber, and they have had me arrested for fiction such as trespassing 10+ times since
1985 when I earned my masters, (punk-fags)... In jail and mental hospitals I was told my degrees do not matter by so called
Drs and nurses, (punk-nazis), one in particular, nurse fran stauss, said I am brilliant, I said 'yes', she said 'no one deserves
more than $30,000/yr' I laughed, she then said 'I get $40,000/yr' later that week she had me put in jail, (punk-nazis), maybe
they are look a likes from KC stock broker offices pretending to be Drs and Nurses, (punk-joke-fags), other social workers
said my degrees do not matter, stock ownership does not matter- (punk-joke-nazis), and my so called dad, says, 'don't
tell people your degrees' he supposedly has a Harvard Law degree and wharton econ. degree, he has talked how he 'dropped'
people who fucked him, he in 83 in 2008. The punks at the KS topeka securities office said my degrees do not matter,
my genius IQ does not matter and they will not give me a license, (fag-punk-jokes)
I think that the above hedge fund manager needs his ACT SAT scores and degrees made public knowledge along with every
one else who has a license and the punks who grant licenses or in my case do not, along with judges, etc. who jailed me for
nothing. Lets go on prime time TV fag punk jokes............
News recently hit the Street that former Merrill Lynch CEO John
Thain rushed to hand out year-end bonuses prior to his firm's acquisition by Bank of America (BAC: sentiment, chart, options), and the report has now attracted the attention of New York Attorney General Andrew Cuomo. Bloomberg
says that Cuomo may demand the return of $4 billion in bonuses paid out prior to the buyout's completion. The attorney general
is also curious to find out how much BAC CEO Kenneth Lewis knew about the accelerated bonuses, and whether he was truly surprised
by Merrill's massive $15 billion net loss in the fourth quarter.
According to the report, Cuomo is investigating whether
shareholders were properly informed about Merrill's finances, and he's also checking up on the use of federal bailout loans
by Bank of America for potential improprieties. The attorney general is specifically looking for possible violations of New
York securities laws, which could result in fines.
In the first hour of trading today, BAC is off 2.7%. The Dow component
has swallowed a hefty 84.6% loss during the past 52 weeks, and it's hovering near 18-year lows. Despite the stock's dismal
performance, there's still plenty of room for more bearish sentiment to build -- BAC's Schaeffer's put/call open interest
ratio (SOIR) is 0.53, just 1 percentage point from an annual peak of optimism.
Mental health, creativity link discovered
STOCKHOLM, Sweden (UPI) -- Thinking outside the box -- creativity -- may also be linked to mental
illness, researchers in Sweden said.
"We have studied the
brain and the dopamine D2 receptors, and have shown that the dopamine system of healthy, highly creative people is similar
to that found in people with schizophrenia," Fredrik Ullen of Karolinska Institutet said in a statement.
Ullen said studies show dopamine receptor genes are linked to the capacity for divergent thought.
The study, published in the journal PLoS one, measured the creativity of healthy individuals using psychological tests
to determine different solutions to a problem.
"The study
shows that highly creative people who did well on the divergent tests had a lower density of D2 receptors in the thalamus
-- a part of the brain that serves as a kind of relay center filtering information -- than less creative people," Ullen
said. "Schizophrenics are also known to have low D2 density in this part of the brain, suggesting a cause of the link
between mental illness and creativity."
Fewer D2 receptors
in the thalamus probably means a lower degree of signal filtering, and thus a higher flow of information from the thalamus
and this may be behind the ability of healthy highly creative people to see numerous uncommon connections to solve a problem
and the bizarre associations found in the mentally ill, Ullen said.
The Most Important Article You'll Read This Month By Dr.
David Eifrig M.D.
It really ticked me off.
It was 1986... and my first fall working on
Wall Street for Goldman Sachs. It was election season, and Robert Rubin was walking the trading floor. He was head of the
fixed-income division. (He soon became co-chair of the company and later Secretary of the U.S. Treasury.)
Rubin
asked us if we had turned in our donations to the political party of our choice. He asked each of us – one by one –
right on down the desk.
If we said no, he told us he wanted to see a check signed from us soon. When he walked
away, I asked what he was up to. The guys on the desk laughed and just told me to cough up a thousand for the Democratic Party
by tomorrow. I protested: "But I'm Republican."
The response: "Not anymore!"
I hadn't
thought about that moment in a long time until I read the sensational Rolling Stone article recently written by Matt
Taibbi. The article is a true "exposé" of the BS that goes on in the financial world.
The subject
is one I'm well versed in: The investment bank Goldman Sachs (by now, known by many as "Government Sachs"). Taibbi
shreds the company in an article titled The Great American Bubble Machine, and it's an absolute must-read.
The article claims Goldman has helped engineer most of the great asset bubbles
of the past 80 years... including the tech bubble, the credit bubble, and last year's enormous rise in oil prices. Taibbi
also writes Goldman has packed the highest levels of government with former employees, who help it suck billions of dollars
from a gullible public.
It's one of the most damning articles I've ever read in mainstream media. So it's no wonder
I've had several friends ask me, "Doc... You worked for Goldman for a long time. What's your take?"
I
tell them: It's appalling. And, sadly... mostly true.
For years, Goldman has used fear and greed to control markets
and make millions for its employees and shareholders. During the credit bubble peak in 2007, the company doled out over $20
billion to its employees. Its CEO made $65.8 million that year. At last count, the average employee compensation will be around
$386,000 for just the first six months of this year.
Sure... the money is insane. But I don't begrudge any smart
banker or trader for making money within the rules. It's the way Goldman has stuffed its alumni into the most important positions
in government... it's similar to mafia corruption. It ensures they play a major role in fixing the rules for their cronies'
benefit... and your loss.
Here's a short list of ex-Goldman heads who've greased the political wheels for the
company: Henry Paulson (former CEO, went on to become Treasury Secretary under Bush), John Corzine (former CEO, current governor
of New Jersey), Stephen Friedman (former director, became Chief of the New York Fed)... and, of course, the aforementioned
Robert Rubin. (You can read about plenty more "implants" here.)
Current and ex-Goldman employees won't even consider the possibility there are conflicts of interest with the
Treasury Secretary (an ex-Goldman head) deciding to let one of Goldman Sachs' main competitors – Bear Stearns –
go belly up.
And it's insulting to think a government employee can give my tax money to a company that was going
bankrupt without any oversight or public discussion in Congress. I'm talking about AIG Insurance, which, incidentally, had
big deals with Goldman that would have gone sour without the bailout.
Sure, Taibbi went over the top with his
assertions. But the spirit of the article – and most of its claims – is 100% true. The fleecing and manipulation
of regular folks like you and me is simply outrageous.
Goldman Sachs – and nearly every other Wall Street
institution – is not in the business of helping you find safe investments. It's in the business of selling overpriced
stocks and bogus mortgages to anyone it can find. It's in the business of siphoning big fees from your 401(k) plan, your mutual
fund, your annuity, and your kid's college fund.
This is how Wall Street bankers live in million-dollar mansions
in the Hamptons, drive Maseratis, and dash off for $20,000 weekends in London. It's why you probably haven't made a dime in
stocks over the past 15 years. Wall Street doesn't care if you make any money... just as long as you keep paying their fees.
And the financial policymakers in Washington D.C. who aren't socialist morons are bright capitalists who work indirectly for
Goldman. It's a crazy mixture that loads the system with huge risks.
Bravo
to Rolling Stone and Matt Taibbi. I lived and worked in the environment described in the article. While there are
some great people and institutions in New York, I left Wall Street because I couldn't stand the Goldman-style conflicts of
interest and political haggling.
The sooner investors wake up and become highly skeptical of everything Wall Street
and Washington D.C. do, the better.
Good investing,
Doc Eifrig
Buffett:
I'm Keeping My Goldman Sachs Warrants
Friday, July 24, 2009 1:31 PM
Article Font Size
NEW YORK -- Warren Buffett said he
has no plans to soon exercise Berkshire Hathaway Inc's warrants to buy $5 billion of Goldman Sachs Group Inc stock, although
he could make a big profit by doing so.
Berkshire got the warrants in September when it also bought $5
billion of Goldman preferred shares, which throw off a $500 million annual dividend.
The warrants let
Omaha, Nebraska-based Berkshire buy Goldman common shares at $115 each at any time until October 1, 2013. With Goldman's stock
having closed at $165.45 on Thursday, those warrants are worth well over $2 billion.
Buffett is sitting
tight.
"We will hold the warrants," Buffett said on Fox Business Network. "Every instinct
in my body tells me that we will want to hold those warrants until they're very close to their expiration date. The preferred
pays us the dividend and the warrants are going to make us the money."
Goldman is the largest financial
services company to exit the U.S. government's bank bailout program.
Earlier this week, it paid $1.1 billion
to buy back warrants issued to the Treasury Department. The government said it got a 23 percent annualized return on its Goldman
investment.
For a while, Goldman had looked like one of Buffett's lesser ideas, as its shares fell below
$48 in November.
Yet its recovering stock price signals investors' belief that Goldman still deserves
much of its luster as one of the world's most aggressive and profitable banks.
Buffett, the world's second-richest
person, has had less success with a purchase of preferred stock and warrants in General Electric Co.
Berkshire
in October bought $3 billion of GE preferred shares yielding 10 percent and warrants to buy $3 billion of GE stock at a $22.25
strike price. GE shares closed Thursday at $11.95, leaving the warrants out of the money for now.
Class
A shares of Berkshire rose $1,050 to 94,550 in afternoon trading on the New York Stock Exchange.
NCAA Wrestling Team Championship
From Wikipedia, the free encyclopedia
The NCAAWrestling Team Championship was first officially awarded in 1929 and began to be continuously awarded on an annual basis in 1934 except during World War II1943-1945. In 1928 and from 1931 to 1933, there was only an unofficial title. Oklahoma A&M, now Oklahoma State, won the 1928, 1931 unofficial titles. Indiana University won the 1932 unofficial title. In 1933, Iowa State and Oklahoma A&M were unofficial co-champions.
At the NCAA Wrestling Championships, which also crown individual
champions, a points system is used to determine the team champion. Oklahoma State University has won more NCAA team championships
than any other school, having won the title 34 times (includes 3 unofficial titles), most recently in 2006. The school with the second most championships is Iowa with 21 NCAA titles
(I have wrestled before- nothing to do with me going to college or OK ST but I have done it, respect gets respect,
ditto disrespect, physical gets physical,professional gets professional, punks/behind the back, gets it back)
Intent in law is the planning and desire to perform an act, to fail to do so (i.e. an omission) or to achieve a state of affairs in psychological view it may mean a different thing.
In criminal law, for a given actus reus ("guilty act"), the required element to prove intent consists of showing mens rea (mental state, "guilty mind").
The requirements for the proof of intent in tort law are generally simpler than criminal law. Knowledge of the repercussions of the act is often not necessary. It is sometimes
only a matter of showing that there was desire to perform an act.
Malicious prosecution is a common law intentional tort, while like the tort of abuse of process, its elements include (1) intentionally (and maliciously) instituting and pursuing (or causing to be instituted or pursued)
a legal action (civil or criminal) that is (2) brought without probable cause and (3) dismissed in favor of the victim of the malicious prosecution. In some jurisdictions, the term "malicious prosecution"
denotes the wrongful initiation of criminal proceedings, while the term "malicious use of process" denotes the wrongful
initiation of civil proceedings.
Criminal prosecuting attorneys and judges are protected, by doctrines of prosecutorial
immunity and judicial immunity, from tort liability for malicious prosecution. Moreover, the mere filing of a complaint cannot
constitute an abuse of process. The parties who have abused or misused the process, have gone beyond merely filing a lawsuit.
The taking of an appeal, even a frivolous one, is not enough to constitute an abuse of process. The mere filing or maintenance
of a lawsuit, even for an improper purpose, is not a proper basis for an abuse of process action.
Declining to expand
the tort of malicious prosecution, a unanimous California Supreme Court in the case of Sheldon Appel Co. v. Albert &
Oliker, 47 Cal. 3d 863, 873 (1989) observed: "While the filing of frivolous lawsuits is certainly improper and cannot
in any way be condoned, in our view the better means of addressing the problem of unjustified litigation is through the adoption
of measures facilitating the speedy resolution of the initial lawsuit and authorizing the imposition of sanctions for frivolous
or delaying conduct within that first action itself, rather than through an expansion of the opportunities for initiating
one or more additional rounds of malicious prosecution litigation after the first action has been concluded." (Per the
case of Lossing v. Superior Court (1989) 207 Cal. App. 3d 635, 638-640[255 Cal. Rptr. 18]; see also Tellefsen v.
Key System Transit Lines, supra, 198 Cal.App.2d at p. 615 [Court of Appeal has remedies for frivolous appeals]; Green v. Uccelli
(1989) 207 Cal.App.3d 1112, 1122-1123 [255 Cal.Rptr. 315]
Contents
English Rule
Sixteen U.S. states require another element of malicious prosecution. This element, commonly called the English Rule, states that, in addition
to fulfilling all other malicious prosecution elements, one must also prove injury other than the normal downside of being
sued. This rule is limited to equitable damages, such as loss of profit, and excludes damages that cannot be measured by the
law (e.g., damage to reputation).
In Canadian Law
The Canadian rules have been changed in that if any individual
takes legal action that has the above criteria met may take action against police or the Crown Attorney (The Attorney General). The C.A. used to be exempt from malicious prosecution and abuse of process. This is no longer the case. This may be looked
up @ CANLII.
In common lawlegal systems, a precedent or authority is a legal case establishing a principle or rule that a court or other judicial body adopts when deciding subsequent cases with similar issues or facts.
Contents
Description
The precedent on an issue is the collective body of judicially
announced principles that a court should consider when interpreting the law. When a precedent establishes an important legal
principle, or represents new or changed law on a particular issue, that precedent is often known as a landmark decision.
Precedent is central to legal analysis and rulings in countries that follow common law like the United Kingdom and
Canada (except Quebec). In some systems precedent is not binding but is taken into account by the courts.
Precedent that must be applied or followed is known as binding precedent (alternately mandatory precedent, mandatory or binding authority, etc.). Under the doctrine
of stare decisis, a lower court must honor findings of law made by a higher court that is within the appeals path of cases the court hears. In the United States state and federal courts, jurisdiction is
often divided geographically among local trial courts, several of which fall under the territory of a regional appeals court,
and all regional courts fall under a supreme court. By definition decisions of lower courts are not binding on each other
or any courts higher in the system, nor are appeals court decisions binding on each other or on local courts that fall under
a different appeals court. Further, courts must follow their own proclamations of law made earlier on other cases, and honor
rulings made by other courts in disputes among the parties before them pertaining to the same pattern of facts or events,
unless they have a strong reason to change these rulings.
One law professor has described mandatory precedent as follows:
Given
a determination as to the governing jurisdiction, a court is "bound" to follow a precedent of that jurisdiction
only if it is directly in point. In the strongest sense, "directly in point" means that: (1) the question resolved
in the precedent case is the same as the question to be resolved in the pending case, (2) resolution of that question was
necessary to disposition of the precedent case; (3) the significant facts of the precedent case are also present in the pending
case, and (4) no additional facts appear in the pending case that might be treated as significant.[1]
In extraordinary circumstances a higher court may overturn or overrule mandatory precedent, but will often
attempt to distinguish the precedent before overturning it, thereby limiting the scope of the precedent in any event.
Precedent that is not mandatory but which is useful or relevant is known as persuasive precedent (or persuasive authority or advisory precedent). Persuasive precedent includes cases decided by lower
courts, by peer or higher courts from other geographic jurisdictions, cases made in other parallel systems (for example, military
courts, administrative courts, indigenous/tribal courts, State courts versus Federal courts in the United States), and in
some exceptional circumstances, cases of other nations, treaties, world judicial bodies, etc.
In a case of first impression, courts often rely on persuasive precedent from courts in other jurisdictions that have previously dealt with similar issues. Persuasive precedent may become binding through the adoption of the persuasive
precedent by a higher court. And this is due to per incuram. Dr. McMinge a self made law lord said " the lords can change
its decision when it appears right to do so".
Custom
Long-held custom, which has traditionally been recognized by courts and judges, is the first kind of precedent. Custom can be so deeply entrenched
in the society at large that it gains the force of law. There need never have been a specific case decided on the same or
similar issues in order for a court to take notice of customary or traditional precedent in its deliberations.
Case law
The other type of precedent is case law. In common law systems this type of precedent is granted more or less weight in the deliberations of a court according to
a number of factors. Most important is whether the precedent is "on point," that is, does it deal with a circumstance
identical or very similar to the circumstance in the instant case? Second, when and where was the precedent decided? A recent
decision in the same jurisdiction as the instant case will be given great weight. Next in descending order would be recent
precedent in jurisdictions whose law is the same as local law. Least weight would be given to precedent that stems from dissimilar
circumstances, older cases that have since been contradicted, or cases in jurisdictions that have dissimilar law.
A judicial precedent attaches a specific legal consequence to a detailed set of facts in an adjudged
case or judicial decision, which is then considered as furnishing the rule for the determination of a subsequent case involving
identical or similar material facts and arising in the same court or a lower court in the judicial hierarchy.[2]
Stare decisis is the policy of the court to stand by precedent; the term is but an abbreviation of
stare decisis et non quieta movere — "to stand by and adhere to decisions and not disturb what is settled."
Consider the word "decisis." The word means, literally and legally, the decision. Under the doctrine of stare decisis
a case is important only for what it decides — for the "what," not for the "why," and not for the
"how." Insofar as precedent is concerned, stare decisis is important only for the decision, for the detailed legal
consequence following a detailed set of facts.[3]
Academic study
Precedents viewed against passing time can serve to establish
trends, thus indicating the next logical step in evolving interpretations of the law. For instance, if immigration has become
more and more restricted under the law, then the next legal decision on that subject may serve to restrict it further still.
Scholars
have recently attempted to apply network theory to precedents in order to establish which precedents are most important or authoritative, and how the court's interpretations
and priorities have changed over time. [4]
Super stare decisis
Super-stare decisis is a term used for important precedent
that is resistant or immune from being overturned, without regard to whether correctly decided in the first place. It may
be viewed as one extreme in a range of precedential power,[5] or alternately, to express a belief, or a critique of that belief, that some decisions should not be overturned.
In
1976, Richard Posner and William Landes coined the term "super-precedent," in an article they wrote about testing theories of precedent
by counting citations.[6] Posner and Landes used this term to describe the influential effect of a cited decision. The term "super-precedent"
later became associated with different issue: the difficulty of overturning a decision.[7] In 1992, Rutgers professor Earl Maltz criticized the Supreme Court's decision in Planned Parenthood v. Casey for endorsing the idea that if one side can take control of the Court on an issue of major national importance (as in
Roe v. Wade), that side can protect its position from being reversed "by a kind of super-stare decisis."[8]
The issue arose anew in the questioning of Chief Justice John G. Roberts and Justice Samuel Alito during their confirmation hearings before the Senate Judiciary Committee. Before the hearings the chair of the committee, Senator Arlen Specter of Pennsylvania, wrote an op/ed in the New York Times referring to Roe as a "super-precedent." He mentioned the concept (and made seemingly humorous references
to "super-duper precedent") during the hearings, but neither Roberts nor Alito endorsed the term or the concept.[9]
Criticism of Precedent
In a controversial 1997 book, attorney Michael Trotter blamed over-reliance by American lawyers on binding and persuasive authority, rather than the merits of the case at hand,
as a major factor behind the escalation of legal costs during the 20th century. He argued that courts should ban the citation
of persuasive precedent from outside their jurisdiction, with two exceptions:
(1) cases where the foreign jurisdiction's
law is the subject of the case, or
(2) instances where a litigant intends to ask the highest court of the jurisdiction
to overturn binding precedent, and therefore needs to cite persuasive precedent to demonstrate a trend in other jurisdictions.[10]
^ Marjorie D. Rombauer, Legal Problem Solving: Analysis, Research and Writing, pp. 22-23 (West Publishing
Co., 3d ed. 1978). (Rombauer was a professor of law at the University of Washington.)
^Allegheny General Hospital v. NLRB, 608 F.2d 965, 969-970 (3rd Cir. 1979) (footnote omitted), as quoted
in United States Internal Revenue Serv. v. Osborne (In re Osborne), 76 F.3d 306, 96-1 U.S. Tax Cas. (CCH) paragr.
50,185 (9th Cir. 1996).
^United States Internal Revenue Serv. v. Osborne (In re Osborne), 76 F.3d 306, 96-1 U.S. Tax Cas. (CCH)
paragr. 50,185 (9th Cir. 1996).
^James H. Fowler and Sangick Jeon, "The Authority of Supreme Court Precedent," Social Networks (2007), doi:10.1016/j.socnet.2007.05.001
^ Maltz, Earl. "Abortion, Precedent, and the Constitution: A Comment on Planned Parenthood of Southeastern Pennsylvania
v. Casey", 68 Notre Dame L. Rev. 11 (1992), quoted by Rosen, Jeffrey. So, Do You Believe in 'Superprecedent'?, NY Times (2005-10-30).
^ Michael H. Trotter, Profit and the Practice of Law: What's Happened to the Legal Profession (Athens,
GA: University of Georgia Press, 1997), 161-163.