Posted by admin at 7 August , 2009

Last week, Congress began debate to determine if additional funds should be allocated to the “Cash for Clunkers” program to the tune of another $2 billion. Originally funded for $1 billion, the program is already out of money even though original projections had the program fully funded through November 1, 2009. The debate began after some members of congress reported the program was out of money due to excess demand. The program provides up to $4,500 in incentives to car buyers who qualify.
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Tags: cash for clunkers, DEPRESSION, STOCK MARKET MANIPULATION

Posted by tfrisby at 4 August , 2009

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THIS RALLY IS BASED ON BS AND FED MANIPULATION.

SO…IS THE RECESSION OVER? Isn’t that what the PTB (powers that be) want YOU to believe?

The Dow finished its best gain for July since 1989. The index was up 8.6%. The S&P 500 also had a good month. It finished up 7.4%. Boosting stocks, of course, was “better-than-expected” news about US GDP. This was typical second derivative stuff: the pace of decline slowed, but the figures were still heading in the wrong direction. According to the Commerce Department, US GDP shrank “only” 1% year-on-year in the second quarter, 0.5% less than forecast. And this was taken as reason for optimism!

The feds are clearly playing the optimism game. They know that the consumer who represents 70% of GDP, MUST start spending (instead of paying down debt) in order for the economy to end the tailspin. So, they will do whatever it takes to boost consumer confidence…through outright misrepresentation of the economy, continued and deliberate manipulation of the stock market, and OUT AND OUT BRIBERY WITH OUR TAX DOLLARS…to get people to buy car (mortgaging future car business to buy “instant gratification” for Obama and his minions)

Market Investors STAY AWAKE. If you have been in this market since March….don’t be greedy, get out now while you can. And by asleep we mean sucking up the manufactured optimism and hype of Washington, Wall Street and the mainstream financial press.

To be clear, we’re highly skeptical here of the rally on Wall Street. In our opinion, it O(bama)BS.. Sooner or later investors are going to wake up to the fact that the economy and corporate profits are in the ditch.  And there’s only so much optimism you can squeeze out of “better than expected” but still thoroughly crappy results.

Earnings forecasts are deliberately “low balled,” so that when the actual results come out, they appear to be positive. The reality, no matter which way you look at it, is that corporate profits are down 31% from their already recession-ravished levels of a year ago.

There cannot be a genuine reversal of this secular bear until the unemployment picture improves. No jobs = no spending = no profits. The government can ‘stimulate’ all it wants self abuse never produced babies, and neither will this socialistic program produce jobs. And you can’t force people to spend money they don’t have.

The US stock market is now following a near identical pattern to the 1929/1930 bear market rally. The 1929/1930 rally lasted just over 100 days from the 1929 trough before taking a dive. We are now at the same distance from the March 9, 2009 low of 666 on the S&P 500. If history repeats itself, we are in for another stomach churning leg down.

Japan’s 20-year-long secular bear market has seen no less than four 30% rallies along the way. And there were over six rallies of this magnitude in the S&P 500 in the 1930s. This current rally is just about run out of gas. The next move down WILL BE A KILLER!

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This posting is being provided to you courtesy of Timothy Frisby, the noBSAdvisor. Principal of WealthCare Consultants, a Registered Investment Advisor. For More information, contact tfrisby@ameritech.net or visit www.wealthcareconsultants.com

Investing in market related securities involves a risk of principal loss. Prior to making any investment decision, the services of an appropriate professional should be sought as investment related recommendations are dependent upon the personal financial situation of each individual investor

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Tags: BEAR MARKET RALLY, DEPRESSION, STOCK MARKET MANIPULATION

Posted by admin at 29 July , 2009

As I’m writing this blog entry, I am seated next to a gentleman on an airplane who commutes between his two business locations, one in Florida and one in Michigan. He is traveling to Florida for business as he does most every week. I am traveling south to the studios of FOX Business News to be interviewed for a story that the network is doing on one of the financial planning strategies that I’ve developed.
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Posted by tfrisby at 29 July , 2009

Long Term Care Insurance:

A Long Life Can Be Dangerous To Your Wealth!

Question: What’s the downside of living a longer life?

Answer: The increased probability that you or your spouse will require care in a long term care facility.

It’s true. Nearly 50% of the people will require long-term care.

At the toweringly-high costs of long term care — the only way to protect your wealth from the devastating effects of long term care costs is LTCI - long term care insurance.

How high? Well, in some areas of the country, the cost of nursing home care or quality around-the-clock in-home care may be $250 per day ($91,250 per year). In addition, the U.S. Health Care Administration reports that costs are increasing 5.8% per year and are expected to more than triple in the next 20 years.

Another reason for buying LTCI is so you can ensure you have quality care — not just the care funded through Medicaid.

The good news is that the federal government allows businesses to deduct the premiums for LTCI. The premiums are treated like health insurance premiums. That means if you are an owner of a C-Corporation, S-Corporation, P.C., or LLC you can now take a tax deduction for 100% of the LTCI.  (The deduction is limited for owner/employees in non-C-Corps).

In addition, it’s possible that you can use certain types of life insurance riders where you can actually get your LTCI for free.

Tax-free or completely free, we have the tax savvy to find how to save you substantial amounts of money on your taxes, grow your wealth, and still have your wealth protected against what could otherwise be catastrophic occurrences.

What a relief, and a aid to healing, should you or a loved one need long term health care. Not only can you get LTCI tax deductibly, but your worries about the devastating effects on your estate can be erased.

This posting is being provided to you courtesy of Timothy Frisby, the noBSAdvisor. Principal of WealthCare Consultants, a Registered Investment Advisor. For More information, contact wealthcareconsultant@ameritech.net

Investing in market related securities involves a risk of principal loss. Prior to making any investment decision, the services of an appropriate professional should be sought as investment related recommendations are dependent upon the personal financial situation of each individual investor

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Posted by tfrisby at 26 July , 2009

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According to IRS data the bottom 50% of wage earners paid a total of 2.99% of all taxes, almost none. The top 50% paid 97%. With Obama’s new scheme, to pay out cash to people who pay little or no taxes (SO CALLED REFUNDABLE TAX CREDITS) more than 50% of American citizens will pay NO FEDERAL TAXES next year

This revenue policy spells big trouble for America down the road. Why? When more than half of the people in the country aren’t paying for any of the costs of government, it becomes impossible to win an election by promising to reduce the size of government, even when doing so becomes critical (like when there’s a huge budget crisis or a runaway deficit). And that’s how democracies have always fallen apart historically: The moment the majority is allowed to tax the wealth of the minority away from them, the society falls apart.

This posting is being provided to you courtesy of Timothy Frisby, the noBSAdvisor. Principal of WealthCare Consultants, a Registered Investment Advisor. For More information, contact tfrisby@ameritech.net or visit www.wealthcareconsultants.com

Investing in market related securities involves a risk of principal loss. Prior to making any investment decision, the services of an appropriate professional should be sought as investment related recommendations are dependent upon the personal financial situation of each individual investor

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Posted by tfrisby at 24 July , 2009

Here is the latest from Ron Paul’s blog …. Thank God we have a FEW GOOD MEN IN CONGRESS.

Fed Independence or Fed Secrecy?

Last week I was very pleased that hearings were held on the independence of the Federal Reserve system. My bill HR 1207, known as the Federal Reserve Transparency Act, was discussed at length, as well as the general question of whether or not the Federal Reserve should continue to operate independently.

The public is demanding transparency in government like never before. A majority of the House has cosponsored HR 1207. Yet, Senator Jim DeMint’s heroic efforts to attach it to another piece of legislation elicited intense opposition by the Senate leadership.

The hearings on Capitol Hill provided us with a great deal of information about the types of arguments that will be levied against meaningful transparency and how the secretive central bankers will defend the status quo that is so beneficial to them.

Claims are made that auditing the Fed would compromise its independence. However, by independence, they really mean secrecy. The Fed clearly cherishes its vast power to create and spend trillions of dollars, diluting the value of every other dollar in circulation, making deals with other central banks, and bailing out cronies, all to the detriment of the taxpayer, and to the enrichment of themselves. I am happy to challenge this type of “independence”.

They claim the Fed is endowed with special intellectual abilities with which to control the market and that central bankers magically know what the market needs. We should just trust them. This is patently ridiculous. The market is a complex and intricate thing. No one knows what the market needs other than the market itself. It sends signals, such as prices, that should be reacted to and respected, not thwarted and controlled. Bankers are not all-knowing and cannot ignore the rules of supply and demand. They might act as if they are, but their manipulation of the market just ends up throwing it wildly off balance, which gives us the boom and bust cycles.

They claim the Fed must remain apolitical. No organization is apolitical that relies on the President to appoint the Chairman. In fact, it is subject to the worst sort of politics – power to create trillions of dollars and affect the value of every dollar in the country without the accountability of direct elections or meaningful oversight! The Fed typically enacts monetary policy that is favorable to particular administrations close to elections, to the detriment of long term considerations. They do this partly because of the political appointee process for the Chairmanship.

The only accountability the Federal Reserve has is ultimately to Congress, which granted its charter and can revoke it at any time. It is Congress’s constitutional duty to protect the value of the money, and they have abdicated this responsibility for far too long. This was the issue that got me involved in politics 35 years ago. It is very encouraging to finally see the issue getting some needed exposure and traction. It is regrettable that it took a crisis of this magnitude to get a serious debate on this issue.

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This posting is being provided to you courtesy of Timothy Frisby, the noBSAdvisor. Principal of WealthCare Consultants, a Registered Investment Advisor. For More information, contact wealthcareconsultant@ameritech.net

Investing in market related securities involves a risk of principal loss. Prior to making any investment decision, the services of an appropriate professional should be sought as investment related recommendations are dependent upon the personal financial situation of each individual investor

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Posted by tfrisby at 23 July , 2009

“You cannot legislate the poor into prosperity by legislating the wealthy out

of prosperity.  What one person received without working for, another person

must work for without receiving.  The government cannot give to anybody

anything that the government does not first take from somebody else.  When

half of the people get the idea that they do not have to work because the

other half is going to take care of them, and when the other half gets the

idea that it does no good to work because somebody else is going to get what

they work for, that my dear friend, is the beginning of the end of any

nation.  You cannot multiply wealth by dividing it.”

Adrian Rogers, 1931

This posting is being provided to you courtesy of Timothy Frisby, the noBSAdvisor. Principal of WealthCare Consultants, a Registered Investment Advisor. For More information, contact wealthcareconsultant@ameritech.net

Investing in market related securities involves a risk of principal loss. Prior to making any investment decision, the services of an appropriate professional should be sought as investment related recommendations are dependent upon the personal financial situation of each individual investor

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Posted by admin at 22 July , 2009

Continued from July 14, 2009

The bottom line is this — This is a credit driven recession and until these obscene debt levels are dealt with, the recession won’t end. The Obama administration is trying to solve a debt problem by creating more debt. At this point the only temporary reprieve for the United States is that the rest of the world is in worse shape than we are. However, we are on a very slippery slope. The Federal Reserve is now buying back US Debt, effectively monetizing the money supply; and, when the fed is the only buyer left, the brown stuff will hit the proverbial air moving machine.

Still not convinced this is a credit driven recession?
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Posted by admin at 22 July , 2009

A Bloomberg article last week (June 29, 2009) titled, “Housing in Peril as Obama Fails to Get Finance Breakthrough” succinctly described the current state of the housing market, considered by many to be the key to an economic recovery.

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