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During two days of recent congressional hearings into how as much as $1.2 billion disappeared from MF Global customer accounts, the chief operating officer of the imploding investment firm responded again and again that he did not know.
Yet as the House and Senate interrogated Bradley I. Abelow and other top executives at MF Global Holdings Ltd., lawmakers did not mention Mr. Abelow’s role as a financial adviser for the Environmental Protection Agency, which as of Tuesday listed him as the chairman of its financial advisory board.
Even as he finds himself the public face of a bankruptcy and admitted to lawmakers that he had no idea how client funds disappeared, Congress and the administration have voiced no public concern about Mr. Abelow’s role advising the $8.6 billion government agency on its finances.
“EPA relying on Wall Street for financial guidance is like the blind leading the blind,” said Jeff Ruch, president of Public Employees for Environmental Responsibility, a nonprofit environmental advocacy group based in Washington.
http://www.washingtontimes.com/news/2011/dec/27/mf-global-chief-missing-12b-fina- ncial-adviser-epa/
Apparently no one thinks it is strange that the EPA has so much money that they don't know what to do with it, and have to pay some crook with a bad memory to tell them how it spend/invest it. How about giving the excess back to the taxpayers? :confuse:
2013 LX 570 2016 LS 460
2011 was a mess. Look where the markets ended up... and worse, consider the rollercoaster ride to get essentially nowhere. Good riddance to 2011.
Let's just hope and pray for a significantly improved economy in 2012.
It's already shaping up to be a potential mess with our upcoming Presidential election, and very ominous global political and military developments.
For me, I'm predicting that I invest in real estate, but I am not sure quite yet. Still have homework to do, but I received a text message this week from a friend who knows about some upcoming property listings that could prove to be interesting.
Good luck to all. Have a boatload of fun!
TM
I've been swamped with work and haven't been around much lately. Business is strong but our receivables grew by $1.2mln in December 2012 vs 2011. This is due to growth but even in good growth years we've had only minimal growth in receivables. We bill like a magazine, in advance of services and about 80% of our receivables are for services starting in January and February. I mention all this not to talk about my business but to give you an impression of the economy, especially the media side. When people speed up payments to us the following year is usually slower. They in effect are looking for the tax deduction in the current year. When they delay payment into January (our bills are generally annual bills for a year of service) they are seeing the following year as the better economic year and want the tax deduction then. In media that will make a lot of sense because its a presedential election year and advertising will be strong. Now the question is will the media business be indicative of the broader economy?
Tag - absolutely hate my droid phone. 3 out of 10 times it freezes on start up causing me to take the case apart, take out the battery and then put it back in and this almost always seems to happen at the worst possible time. Now in the last month or so it restarts itself after I power it off. A few times this has caused me to have a dead phone when I most needed it. I was ready to slam it against a fire hydrant when this recently happened to me in NYC. It also silences my rings on its own causing me to miss some important phone calls. I'm getting rid of it this week.
2013 LX 570 2016 LS 460
Len, it might be a transition year in 2012 but I believe it will be 2% better than this year!!
Regards,
OW
I also want to wish all of you a very healthy, happy, and prosperous 2012. Let's hope and pray for a more peaceful world.
Sounds like things are going well for you, and that is really good to hear.
Now the question is will the media business be indicative of the broader economy?
I have generally been one who holds the belief that advertising-related business is a strong barometer for the broader general economy... to the point that I have been able, without fail so far, to predict recessions based upon my business revenues. It is interesting to note that during the point in time during 2011 that there were concerns about a recession, my revenues took a temporary dip, and I posted here that a recession was a possibility... however, the revenues then suddenly skyrocketed to levels not seen in a while, and I knew that a recession was simply not going to happen during the time in question. So far, revenues continue to be very healthy, and I have no concerns about a recession whatsoever at this time.
I think it is not possible to make a dependable prediction about the economy for 2012, other than to say that I definitely expect it to be better than 2011, but the truth is that there are a number of ominous wildcards that could throw a monkey wrench into the gears. 2011 had a number of them, and it is reasonable to expect that 2012 could have some as well. That said, I am more optimistic than I was, and I am really looking forward to some real estate investments... I think they will be a rewarding and fun experience. I expect to purchase property (or properties) somewhere between a half million and 2 million dollars to start. Of course, I might discover that my expectations are not realistic, but I will keep you posted.
absolutely hate my droid phone.
I don't know much about your particular droid phone, but I've heard that some folks have issues, but others seem to love 'em. Are you talking about a Verizon phone? ... an AT&T phone?
My Android phone is a (Sprint) HTC EVO 4G, and quite honestly, it has been the most amazing and reliable phone I have ever owned (it replaced my two prior iPhones), and almost all reports about the EVO 4G have been nothing short of stellar. The EVO 4G is now getting a little long in the tooth, but still has bragging rights as one of the best Android phones ever made, and still holds its own with some of the best of them. It easily holds its own against the iPhone, and its camera is incredible as well. In fact, in some ways, it surpasses the iPhone.
However, in spite of all of that... if the product rumors are true, I will most likely buy an iPhone 5 when it finally comes out. It will be the one to win me over... and I also anticipate making a complete conversion to Apple computers from my current Windows platform. The bottom line is that I expect to own a couple of new Apple computers, an iPad3, as well as an iPhone5 by the end of 2012.
So far, both my kids are loving their new iPhone 4s Christmas gifts, and since they already each have a MacBook Pro, they are now very happy Apple campers.
But, FWIW, I sat next to a video game engineer on one of my flights, and he said that their preliminary peeks at Windows 8 indicate that Microsoft has a VERY good product in the works. He was very positive about Windows 8.
Anyway... Time to go party (although I hate to admit I am bush-whacked from the holiday traveling, and I am not really at 100%). Happy New Year once again to you and all!
TM
I guess a new group of optimistic people are starting the new year off in style....This is what `dreams` are made of....Tony ps Here around the Charleston area, there are so many non descriptive small houses for sale that it made me wonder how in the world does anyone value them? and further they are everywhere I go.....Makes me wonder if we as a nation will ever get out from under the backlog?and even further people keep dying so that make for even more problems.....A shame...Tony
Always thought we might move to SC, when we retire...
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The Charleston area has alot to offer, so I think you would fit right in, as so many other people have....There is something for everyone, you just have to search for what you want.....Tony
Eastman Kodak Co. is preparing to seek bankruptcy protection in the coming weeks, people familiar with the matter said, a move that would cap a stunning comedown for a company that once ranked among America's corporate titans.
The 131-year-old company is still making last-ditch efforts to sell off some of its patent portfolio and could avoid Chapter 11 if it succeeds, one of the people said.
The company, for instance, invented the digital camera—in 1975—but never managed to capitalize on the new technology.
http://online.wsj.com/article/SB10001424052970203471004577140841495542810.html?m- od=WSJ_hp_LEFTTopStories
"... On October 15, two weeks before MF Global filed for bankruptcy, Corzine and his wife, Sharon Elghanayan, were at a birthday party in Paris talking about a château they were about to buy in the South of France. 'It's not in Cap Ferrat,' one person recalls Elghanayan saying, perhaps to mitigate the extravagance. 'To buy any decent château is at least a couple of million euros,' explains another person who was at the party, 'and that is before the renovation with the air-conditioning and the new kitchen. Sharon was very excited. She said she was flying down there on Monday morning.'"
http://www.npr.org/blogs/thetwo-way/2012/01/05/144743370/report-shortly-before-m- f-global-collapse-corzine-was-ch-teau-shopping?ft=1&f=1001
I believe you are correct. I believe I own a portion of this chateau.
It now looks like I will get the 72% either tomorrow or early next week. This is what the CME folks told me yesterday.
The arrogance of people like that is astounding. No thought whatsoever of who they may have destroyed.
It does seem to me that we are all getting closer to `The Wild West` with the different government departments just not doing their jobs, and we citizens not being aware of that until it is too late...Tony
At least my AAPL stock is doing awesome once again.
Later this month, I expect APPL will announce more amazing financial numbers, and the stock will probably hit $450 before too long.
BTW, I had a meeting today with my realtor friend, and we have uncovered a couple of properties that are now available for HALF of what they sold for previously. I will be taking a look at them on Monday, next week, and I might make an offer.
At some point, the properties ought to appreciate in value, and in the meantime, I will make rental income every month regardless. It's a bit exciting... I've never owned rental property before.
TM
Good luck and hope you get 100% back before too long!
2014 Malibu 2LT, 2015 Cruze 2LT,
I am in the middle of a complete and total re-do of my landscaping. I'm talking the whole nine yards. Fountains, custom fire pit, decking, new driveway, built-in Fire Magic barbeque and outdoor kitchen, sports area (basketball & outdoor ping-pong), all-new pavers, all-new irrigation and drains, outdoor lighting, hot tub, and over a dozen new palm trees and hundreds of new plants, and even a new entry.
My contractor is doing all this for a mere fraction of what others bid, and so much less than what I expected, and he is doing the best job I have ever seen on any project I've ever done, even compared to the large estate expansion project I did several years ago in Northern California, where I used to live.
It's amazing what can be purchased right now with regards to property and construction projects. This is undoubtedly a time in history that offers us some of the very best opportunities we've seen in a very, very long time. It's silly to not take advantage of it.
As far as the "rental" property that I am considering buying... I think that the caliber of renter here is fairly good, and there are also students that attend Pepperdine University here in Malibu. It's a terrific private Christian college, and generally the parents of those students are very well off. They can afford to have their children rent in local private housing, as opposed to on-campus housing. That means that there is even greater demand for rental units, especially nice condos. like I am considering buying as the investment. The rental history is very healthy, and my realtor friend is also a property manager, so I can pay him a small percentage and make sure the property is rented, without me worrying about it. All I would have to do is receive the monthly rent check. What's wrong with that?
TM
Regards,
OW
That is a big concern for me, and I have discussed this. I am told that the security deposit is quite large, and the property would be insured. Anything that goes waaaay beyond normal renter's damage would fall into a criminal category, such as vandalism/destruction of private property, and could result in legal action against the renter. Additionally, I would hope the property manager knows how to screen potential renters, and make a good choice.
That said, there is always some level of risk with investments, even with the stock market... as we all know.
TM
There was an article in the WSJ recently about college kids renting large bank owned homes. It was cheaper for them to go in on a 5 bedroom house than it was to live in the dorms.
IIRC, they said that the "partying" was pretty much non-existent as they spent too much time commuting to the campus and that the house was for sleeping.
Wow TM! I envy you. It seems as if you have it all figured out nicely. Your new venture into rental property sounds exciting and potentially very rewarding. I wish you great success.
I think your re-do of the garden etc is going to give you alot of pleasure...Good luck with it Tony
http://www.paulcraigroberts.org/
I'd like to hear feedback from all y'all. I respect your opinions...
I do wonder how the banking industry values a particular house? particularly one I see no redeeming features in.....The thing is that our country is just so much larger than an individual can comprehend. There are answers for all these questions ...
Tony
I respectfully disagree with that. Although I do know that there are reporters that suggest it is worse than it is, I think the overall concensus of reporters is actually more optimistic than the economy truly is.
For example, the unemployment number is sooooo misleading. If you were to take into consideration the people that can only get partial employment of part-time work, then that would paint an entirely different picture. But, because partial employment isn't considered unemployment for obvious reasons, the true picture is compromised. Many of those people need full-time jobs, but can only get part-time jobs, but they are not counted as unemployed... there ought to be an UNDER-employed statistic, because that would tell a more realistic story about the state of our economy with regards to the jobs picture. I believe the underemployed reality is more like 15% to 20%. That is nothing even close to a healthy economy.
So, that's one reason I think the economy is not better than reported. Another is the level of hunger in our country. It is much too high for the United States of America, that's for sure. And, you don't see that being reported much either. Additionally, all the reports about our health care are more optimisitc than the truth. Further, our country is not the world leader in education, as it should be. Also, our infrastructure is eroded. The overall state of this economy is actually worse than reported, from what I can tell.
I believe that many folks have become almost too accepting of a mediocre economy, and I think we would be shocked to see what a truly healthy and vibrant economy looks like.
I would especially be shocked to see our representatives in Washington stop wasting all our tax dollars, and get this country moving in the right direction for the benefit of the taxpaying legal citizens.
TM
On the un employment, you may be right to a degree, but the other side is there are so so many people who are `scamming` the system.
I personally know of two smart men who were `bought out` and paid many hundreds of thousands of dollars....They got on un-employment, and stayed there for more than two years....These guys are able people, and knew what they were doing.....They both recently went back to work doing what they knew how to do, in the same industry....
I guess we both see different situation where we live, and call it like we `see` it...I`m in full agreement about our elected leaders, and further believe the country could be oh so much better if they would do what any logical person would think to be `right` ..Hopefully a better future is in store .....As to the stock market it is just too rigged for me, and I have to keep an eye on everything every day and I am tired of it Tony
I enjoy your perspective, but let's be frank that there's just no way our economy is even close to running on all cylinders when there is so much corruption at all levels.
TM
Speaking at AmeriCatalyst 2011, in November, hedge fund manager extraordinaire Kyle Bass of Hayman Capital Management LP told attendees he was given one of the strategies for reviving a dying U.S. economy. It involves devaluing the U.S. dollar to affect renewed export demand.
No surprise there, really, as the playbook for mature economies, strapped with bizarre levels of public and private debt, deficits and stagnant employment, always opt for trashing the currency to make good on debt promises.
http://www.blanchardonline.com/investing-news-blog/econ.php?article=3875&title=T- he_plan_is_to_kill_the_dollar%2C_hedge-fund_star_Kyle_Bass_confirms
2013 LX 570 2016 LS 460
TM
http://www.nytimes.com/2012/01/08/technology/microsoft-defying-image-has-a-desig- - - n-gem-in-windows-phone.html?_r=1&ref=todayspaper
I love stocks this year but the pre-requisite of a 20-25% gain is Europe. If the Europeans get things under control I expect as much as 25% gains for the year with a 15K+ Dow by year end.
REUTERS — 16 MINUTES AGO
By Catherine Bosley and Caroline Copley
BERNE (Reuters) - Swiss central bank chief Philipp Hildebrand resigned on Monday in the face of growing criticism of a controversial currency trade made by his wife in August.
His resignation came as he prepared to face Swiss parliamentarians in the aftermath of the scandal, and as the bank employee sacked for leaking news of the trade was reportedly committed to a psychiatric clinic after a suicide attempt.
Hildebrand's wife Kashya, a former hedge fund trader who now runs a Zurich art gallery, bought 400,000 Swiss francs($418,000) worth of dollars on August 15, three weeks before her husband oversaw steps to cap the rise of the franc.
It is a World wide epidemic of Greed and corruption.
There's an entire class of people out there who need to be reviewed for a case of French justice, and they always tend to hover around the FIRE industries, along with perhaps pharma, corporate food, and defense contracting.
Btw, I heard from my dealer that the next generation LS will be out early in 2013 as a 2014 model year. I am seriously considering diving in and buying this next generation LS if I ever get my money back from MF Global. I wonder if the Detroit Auto Show will have any glimpses on the next LS. My son-in-law and I will be visiting the show on the weekend of January 14.
PS...AAPL looks real good now.
LOS ANGELES (AP) -- Tim Cook could well end up being the highest paid CEO in America in 2011, after Apple Inc. granted him a million restricted stock units last August for taking the reins shortly before cofounder Steve Jobs died.
An Associated Press review of a securities filing shows Cook's pay package was valued at $378 million. The vast majority came in a grant of a million restricted stock units worth $376 million at the time. Half of the stock units will vest in August 2016, the other half in August 2021.