Newsletters - Past Issues

Money Update End of summer! READ August 21, 2016

Hello Money Matters fans!

The end of summer approaches. Here are a few money articles for you to read over to get your mind thinking as we march into the late summer.

Before we march in to the money stuff, I want to remind you that another Money Matters show airs first Thursday in September so that is 8th, noon PST so tune in. Our topic will be "Will we fall in the fall".

Markets have done bad things occasionally in the fall season. Will we have a repeat? Tune in! All past shows are available for download at no cost.

Food for thought: "Where you go in life depends a lot on who you hitch your cart to"

I was invited to go to a summer BBQ loaded with VIPS to hob nob, shake hands, endorse and otherwise show my mug at the event. I met a lot of fans and got a chance to hear some great feedback on my show and articles. I also took the oppurtunity to hitch my son, Kyle, up to some important contacts. Here is Kyle again with both a Congressman and Senator. I managed to fanangle a private tour and lunch at the Capitol in Sacramento with the Senator, one on one, just him and Kyle, with Dad thanking the Senator for making this happen. A great set up for my boy that will happen in September. I also met several elected officials which included some school board members, the head of the Sheriff Department, an NID official, and the Senator and a Congressman, to name a few. I was asked to add my endorsement to a school board candidate which I gladly did after hearing her views on what she would do to help our kids. I shook a lot of hands and placed some ace cards in my pocket for future use. Yes I did..........

Hook your cart to successful people and go places!

Kyle and the Senator- A one on one lunch was set shortly thereafter with the Senator including a tour at the Capitol next month.

Now on to the money stuff!

------------------------------

When debts become too burdensome to an economy in relation to historical averages, I call this occurrence/environment a “negative credit cycle”.

Some analysts might refer to it as a “credit-default” cycle. Sounds confusing but just think of it as a time when companies, individuals, municipalities, states and even entire countries have a harder time paying their bills. Defaults on IOU’s like bonds and notes start to rise and interest rates begin to reflect that rise in defaults by rising as well. This increase in rates reflects lenders demanding more interest as they begin to worry about being paid back when things turn south.

Look back at 2008/2009 for an example of a major negative credit cycle. There are minor negative credit cycles, major events and all points in between.

Is a new negative credit cycle beginning and if so how bad will it be?

According to Standard and Poor’s credit monitoring service, global credit defaults hit 100 meaning that a relatively high number of large corporations defaulted on what they owed.

That’s about 154 billion worth of debts may not be paid.

That figure is 50% higher than this time last year. Moodys, the other heavy weight credit analyzing company, estimates noninvestment grade debt will hit a default rate of over 6% by year end. At that pace, more than 200 good sized companies will go bankrupt by years end and that will surpass the previous all-time high set in 2009.

If that year sounds familiar, that was at the height of the credit crisis and banking blow up.

Simply put, if the Moody’s forecast is correct, conditions in the corporate credit markets will be worse this year than in 2009, and it was awful bad back then if you recall.

How big will the total default figure be?

Marty Fridson, called the “Dean” of corporate debt in New York, predicts a default figure nearing 2 trillion. That’s trillion with a “T”.

All this is happening strangely enough as the Dow is flirting with all-time highs, actually setting an all-time high just a week back.

So apparently we have a contradiction in the equity markets. Bond markets look to be bleeding red if Standard and Poors and Moody’s has their way, while stock market participants apparently see everything coming up roses.

Which is it?

Are we on the verge of a massive negative credit cycle or on the cusp of a new bull market reaching for all-time highs? One of these groups is wrong obviously, as we can’t have it both ways.

What does this tell the average investor beside everyone has an opinion, and because they are opinions and not fact, they can differ greatly?

It tells us to be cautious no matter what we do. With such differing and widely opposing views, apparently anything can happen and when it does, some folks are going to lose a lot of money while others stand to take that money and run with it.

If you don’t know which way to turn, what to buy and what to sell, an investor might consider reviewing their portion of cash in their portfolio in relation to equities. A higher cash position will tend to smooth out the bumps and reduce volatility. As always, consult with your investment professional to discuss options that may be better fit your risk tolerance.

---------------------------------------

The Federal Reserve could potentially raise interest rates as soon as next month, New York Fed President William Dudley said, warning investors that they are underestimating the likelihood of increases in borrowing costs. “We’re edging closer towards the point in time where it will be appropriate, I think, to raise interest rates further,” Dudley, who serves as vice chairman of the rate-setting Federal Open Market Committee, said Tuesday on Fox Business Network. Asked whether the FOMC could vote to raise the benchmark rate at its next meeting Sept. 20-21, Dudley said, “I think it’s possible.”

So here we go again. The markets seem tethered by an invisible thread to what the Feds say and do, but mostly since what they say happens far more frequently then when they actually act, the “Fed Speak” has had tremendous sway on what markets do in its day to day movements.

Investors must be scratching their proverbial heads. One day the markets shoot higher on a particular news piece then the bottom falls out on some other news item.

It could be argued the markets react on both fundamental news and non-fundamental news which means it may not be so tied to what the economy is actually doing but tied to what the Federal Reserve is actually saying.

In my father’s day, stock markets generally reflected what was expected to happen in the economy and the businesses in it. More specifically it was said the stock market told us what would happen in advance, like six or nine months in advance. Good business news and growth in earnings bolster investor confidence and subsequently they bought stocks.

Fast forward to today, and the markets seem not only concerned about what businesses will do but what the monetary authorities will say and do as well.

If businesses have positive growth, investors may perceive the Federal Reserve will raise interest rates, which is what they do to cool off an overheating economy. This fear of rising rates may spur a selloff in stocks, the exact opposite of what traditional stock market reaction would be in the face of good news in the business sector. Conversely if businesses start to suffer, and the economy shows signs of weakening, investors my think the Feds will drop rates, which is generally good for stocks, and the markets may rise despite a poor business environment.

Case in point: New York Fed President Dudley’s remarks that rates could rise sooner than expected caused a significant sell off in stocks the day he made his speech. It is indeed a strange world we live in when the markets now react positively to negative business news and react negatively when businesses say they’re doing better.

This “opposite reaction” compared to what markets had done in years past may be caused by the Federal Reserve’s hyper activity in the markets of the world as they attempt to steer the economy where they think it should go. As the Feds have increased their activity and involvement in the economy over the decades in their belief they can control such a beast, it could be argued the cure may be worse than the disease.

All for now,

Marc

Need a financial advisor? Want to talk about your investments? Email me at mcuniberti@cambridgesecure.com.

I need a painter to paint my second story on my house? Know a painter? Email me.

Need deck refinishing? Painting? My son Kyle will do it at half the cost. Email me

In other words, email me!

Jambo!

Update August 6th, 2016 New shows posted, more on Japan and our economic enviroment- Read or heed!

Marc's Notes:

How about one of these cool T Shirts! Mail me a prepaid large envelope with your size and gender. If I have one, you get it! Mail to KVMR 401 Spring St, Nevada City, Ca 95959 attention Marc Cuniberti.

New shows posted on the website; moneymanagementradio.com. No cost to join and no cost for anything! Get free newsletter emailed to you or a friend. Keep up on the markets. Schedule a no cost- no obligation review of your portfolio or financial situation- Email me at mcuniberti@cambridgesecure.com or call me (530) 559-1214.

I need a bid on my house for painting. Contact me!

My son Kyle is doing deck finishing to raise money for a car. Low cost and saves decks! Pressure washed, sanded, coated. Help around the home as well. What kind of kid is he?
Here he is with Congressman LaMalfa. Read his article he wrote on this business at the bottom of this newsletter.

--------------------------

The price of Gold- Where to?

The price of gold has moved from a yearly low of around $1050/oz. to the mid $1300’s and investors are wondering if the lows are in and if a new bull market is upon us.

Although no one can say for certain which way an asset will go in price, opinions vary from one extreme to another. Larry Edelsen of Money and Markets in his July 13, 2016 article entitled “Caution gold and silver miners” makes the case that a correction may be coming and the only way that might change is if gold were to close above $1,404.50 at the end of the month. He also states “gold can’t even get through the first major level of resistance at $1,368”.

He shows an ominous looking chart with forward looking plots that shows gold making a drastic pullback into the fall somewhere around October. Although the forward plot is only an estimation and fabricated completely by Mr. Edelsen, the backward looking data showing his previous methodology and the actual gold price plotted against it could give some validity to his argument.

Although past performance never guarantees future movements, history can be a guide to a particular tendency if it reoccurs enough times.

Gold certainly has made something of an aggressive move up in the last weeks and the reason is thought to be aggressive monetary policy by a variety of central banks around the world.

Aggressive policy includes low or even negative interest rates, Quantitative Easing (QE), asset purchases (central banks buying a variety of debt) and stimulus in the form of aggressive social programs and government spending such as on infrastructure and public transportation.

The thinking being as these aggressive policies are undertaken, they require more money to be conjured up and more debt to be amassed to fund these policies which in turn will weaken the currency in question.

The result of that would be more investors possibly fleeing to gold to protect buying power as paper currencies erode in value. At least that’s the thinking.

Although Edelsen’s article illustrates some good points, no one person holds the magic key to forecasting price movements. Sharp spikes in asset prices can just be as easily followed by equally sharp corrections.

Remember, investing involves risk so do your own research before investing and read the prospectus of anything you might be considering. Always consult a financial professional before making any investment decisions.

-----------------------------

Markets remain trade bound again. Dow 18,000 plus. Fall is coming. Election fever. What to do? What will happen? Where will markets go? Stay tuned for Money Matters on KVMR FM.and keep up on this newsletter.

------------------------------

Money Matters update July 20, 2016 Please read!

Money Matters airs tomorrow Thursday at noon, PACIFIC STANDARD TIME on KVMR FM

Marc's Notes:

THE BREXIT

Wikipedia defines the Euro currency as the official currency of the Eurozone, of which 19 of the 28 member states of the European Union (EU). Recent news has covered the so called “Brexit” where the British people voted 52% to 48 % to leave the common currency agreement.

Global stock markets immediately illustrated the surprising move by Britain by falling in concert in the days following the announcement. The vote is not actually binding and Parliament could elect to ignore the will of the people and stay in the Euro. A renegotiation between Britain and Euro authorities might take place to try and reach a more palatable outcome then an outright exit or even another vote may be in the cards given the gravity of the situation. An actual Brexit will take about 2 years to implement.

Only time will tell if Britain actually becomes the first nation to leave the EU but if it does, it may signal the beginning of some serious problems for the Euro. The more likely outcome however would be a shuffling of the existing members and a rework of the rules to better address the issues that may have led to Brexit in the first place and to prevent other nations from following suit.

At issue is the inherent problem of a common currency being used for differing economies. One could argue the only example of a common monetary representation in history is the use and acknowledgment of gold as a common unit of measure but the Euro is the first example in modern history of this type of concept being implemented.

The problem with a common currency is that each participating nation is inherently different then the next. Each nation has its unique levels of debt, trade levels, deficiencies, advantages and subsequent fiscal policies to handle such uniqueness.

Even the authorities that handle such policies and the people that make those decisions differ from country to country and therein lies the problem. One nation may have a strong balance sheet and a responsible fiscal administration while the next may border on fiscal irresponsibility. One nation might overspend while the next runs a balanced budget. In a world where each nation has its own currency, such differences in economies are addressed by each nations ability to borrow money in the public markets and how readily lenders are to pony up their money for government IOU’s. Simply put, the more irresponsible the country, the harder it is for them to borrow and the more they have to pay in interest to do so.

In a common currency situation however, such as the one we have with the Euro, the ability to borrow is centralized and equal. Being a common currency, the rules are the same for everyone. To grasp the concept of problem, imagine a group of people with differing credit scores all being allowed to borrow on the same terms and at the same rates.

Some would cry foul while others would reap the benefits. Such is the issue with the Euro. Responsible nations are crying foul for having to pick up the tab for others. Overspending nations want to renege or renegotiate on their debts by pulling out of the Euro and pay what they owe using their own currency obviously made easier made by using their own printing presses. Something which is far easier to do then pay back what they currently owe in Euros.

Britain joined the European Economic Community in 1973 and hence the European Union in the 1990s. But Britain never fully accepted the legitimacy of European control over British institutions in a way that other EU members did. It refused, for example, to eliminate its internal border controls or the use of the common currency in question, the Euro dollar.

Even without direct involvement with the Euro currency, the ramifications of the Brexit are unknown but no doubt still serious. Should Britain set the example of how a nation could possible take an easier route by simply leaving the EU, other nations could eventually do the same. If enough nations leave, this could shake the whole concept of the Euro to its core.

-------------------------------

We have been talking about my recent trip to Japan and how amazing their systems are.

So here is a batting cage near Tokyo where my son is batting. Look carefully and you will see on the far wall a TV monitor the size of a man. The movie shown is the pitcher winding up and delivering the pitch. The timing is perfect which means the professional pitcher winds up and as he delivers the ball on the screen, the ball comes screaming out a hole next to the screen. Amazing!

They love their rock groups over there. Here is a photo booth that has lights that make you look like you are in a rock promo photo. No makeup was worn. It’s the lighting and the booth processing. Yours truly looks ridiculous I know!

Here is a cool museum with all sorts of visual gadgets that blow your mind. Here is my daughter Sadie standing on her finger! Is she really doing that?

Many of the Japanese are Buddhist or Shinto or both. They throw coins in these shrine bins and make a wish. Before anyone showed up, I, being an ignorant idiot, thought it was a recycle bin and tossed in a beer can. I was immediately arrested and flogged. These below are doing it the correct way. (It DID look like a recycle bin. Trust me)

This is Tokyo Tower. It was destroyed and rebuilt three times, twice by Godzilla and once by Mothra. I, being afraid of heights, forced myself to jump onto this glass panel.

Although many stood on it, I was the only one brave enough to jump on it. The thought of it breaking by the jumping impact was with me the whole way thru the act and that fear is also what kept anyone else from doing it. The view from the Tower is also below.

The Japanese subways are jammed full during rush hour. Note my wife and daughter totally crushed. The picture doesn’t do full justice. I could not even reach in my pocket and they cram in until sometimes it’s literally hard to breath. Note my sister in law who lives there not even phased and on her I phone. The second photo is people crammed against the door as the train pulls away. I hope they have good locks on those doors.

That does it for now but I encourage anyone who has the means to definitely make Japan an item on your bucket list!

All the best,

Marc

PS: Japan has negative interest rates on many of their bonds.

What does this mean? Keep reading ….

Back from Japan so lets do some catching up! July 10, 2016

Marc’s Notes:

Money Matters shows posted for your listening and downloading at Moneymanagementradio.com. Next show is July 21, Thursday, noon Pacific Standard Time, or on this website or KVMR.ORG.

Want to meet with me about inheritance, money management, the markets, bonds, retirement or just have questions? Email me at mcuniberti@cambridgesecure.com.

----------------------------------------

Brexit

Wikipedia defines the Euro currency as the official currency of the Eurozone, of which 19 of the 28 member states of the Euro Union belong. Recent news has covered the so called “Brexit” where the British people voted 52% to 48 % to leave the common currency agreement.

Global stock markets immediately illustrated the surprising move by Britain by falling radically in concert in the days following the announcement. The vote is not actually binding and Parliament could elect to ignore the will of the people and stay in the Euro. A renegotiation between Britain and Euro authorities might take place to try and reach a more palatable outcome rather than an outright exit or even another vote may be in the cards given the gravity of the situation. An actual Brexit will take about 2 years to implement.

Only time will tell if Britain actually becomes the first nation to leave the common currency but if it does, it may signal the beginning of the end for the Euro. The more likely outcome however would be a shuffling of the existing members and a rework of the rules to better address the issues that may have led to Brexit in the first place and to prevent other nations from following suit.

Even the authorities that handle such policies and the people that make those decisions differ from country to country and therein lies the many problems.

One nation may have a strong balance sheet and a responsible fiscal administration while the next may border on fiscal irresponsibility. One nation might overspend while the next runs a balanced budget. In a world where each nation has its own currency, such differences in economies are addressed by each nations ability to borrow money in the public markets and how readily lenders are to pony up their money for government IOU’s.

Simply put, the more irresponsible the country, the harder it is for them to borrow and the more they have to pay in interest to do so.

Such is the issue with the Euro.

Economically responsible nations are crying foul for having to pick up the tab for their overspending brethren. Overspending nations want to renege or renegotiate their debts by pulling out of the Euro and pay what they owe using their own currency obviously made easier made by using their own printing presses. Running the printing presses is far easier than pay back what they currently owe in Euros, a currency which they cannot print themselves.

The ramifications of the Brexit and unknown but no doubt serious. Should Britain set the example of how a nation could possible take an easier route of addressing their massive debt levels by simply leaving the Euro, other nations could eventually do the same. If enough nations leave, this could shake the whole concept of the Euro to its core.

---------------------

Turning Japanese

We just got back from the tiny island nation of Japan, a trip we undertook so my kids could visit their relatives and learn about the heritage. It was a great experience for them and us.

Japan's economy has dodged a recession after it grew faster than expected in the first quarter of the year. (www.bbc.com/news/business-36319420).

Indeed when I was there I was amazed as to how vibrant the malls and centers were.

The systems there were amazing and one wonders how they lost the war.

Update June 11, 2016 Hens, Signs, Crooks and Elections

Money Matters Airs July 7th, 2016 (no show the rest of the month)

All past shows on this website for free download in case you missed a show.

Marc's Notes:

Markets up, Markets down. What to do, What to do. Keep reading, all sorts of good stuff below:

(ADVERTISEMENT)

Kyle my son whose is 16 is working for a car and college tuition. He coats decks, sands them, pressure washes them and preserves them saving thousands in potential weather damage. He works hard and does it for a fraction of the cost. SAVE THOSE COSTLY DECKS AND STAIRS, even wood benches and flower boxes! Give me a call or email me. (530) 272-5042 or mcuniberti@cambridgesecure.com. He also does odd jobs or will just help you! He is a 4.14 GPA student who plays varsity sports and sings choir.

If need a deck repaired or replaced, Kyle has the gracious services of a carpenter who can do all the deck work while using Kyle as an apprentice. The labor rate for this gracious gentlemen is $30/ hr. and Kyle helps him for $15/ hr so the total rate for BOTH of them is ONLY $45 while most carpenters charge $75 to $125/hr. for just ONE person!

So get your deck or carpentry done for a lot LESS!

After sanding......... after coating............

What kind of kid is Kyle? Here is Kyle with Congressman LaMalfa!

Attention Painters!

Kyle painted the bottom of my 2800 SQ foot house but now I need the second floor finished in stain with trim. Call or email me to submit a bid!

Its ladder work with stain and doing the trim with also replacing a trim board or two that the woodpeckers chewed up. I will accept all bids. Contact me. (530) 272-5042 or email me here!

---------------------------------------------------

This pretty much says it all………

Read my article below!

With the elections coming up and big money riding on it, besides the most powerful office in the world, you have to wonder what the average Joe is thinking as his voting time approaches.

Wall Street claims a Trump victory might crash the markets and Hillary thrashers say she just represents the status quo and a vote for her would mean the Wall Street party continues.

No matter which side of the aisle you sit, one thing is for sure, the stakes are high and the air is heated.

Driving through our county, I noticed the Trump signs were far and few between, Hillary signs were more prevalent and the Bernie supporters tended to paint their cars with his name and make their own signs. Locally we also had an anti-pot bill on our local ballots so the tension was almost palatable.

As I drove thru town on a daily basis I noticed where a Trump or anti-pot signs stood was soon to be a vacant spot. In other words it seemed as if the anti-pot and Trump signs were disappearing. Stolen I thought? Not in today’s America. But my daily drives caused me to think otherwise.

I own 2 empty lots in 2 separate towns in my county so I decided to do an experiment.

I placed one of each sign on each lot. I had one Hillary, one Trump, one Bernie, one anti-pot and one pro-pot sign. 10 signs total, 5 on each lot.

Within two days the anti-pot and Trump signs were stolen. I replaced the signs and this time hung the Trump sign about 15 feet up in a tree. One day later on one lot and three days later on other lot both the Trump and anti-pot signs were stolen again.

I pondered: Who would do such a thing? And climb up a tree to do it the second time around?

The pro-pot signs say “for a fair government” yet if the pro-pot people were stealing the anti-pot signs (we can assume this is true) how is stealing a sign fair anything?

In fact stealing a sign is the epitome of unfairness. Don’t the sign stealers believe in free elections? After all, they talk about leveling the playing income field and equality for all yet don’t practice that equality when it comes to people’s rights to hang a sign on their own property.

Is their position is so weak they are afraid of an opposing one?

I have heard arguments from the pro-pot crowd that they want less government intrusion yet the left leaning candidates advocate even a bigger government than we have now.

On the right side of the aisle, the candidate is an unproven billionaire with no public servant experience. Needless to say, Trump has said things publically that I thought would have sunk any candidate that muttered such things.

Yet Trump seems like the old “Teflon Don” where nothing he says or does seems to sink him.

From stolen election signs to a socialist candidate to an old boy (well, old girl) candidate where the Clinton name smells of dynasty, to a reality TV star and billionaire, we indeed have one the most interesting elections in recent history.

November seems to be shaping up for one hell of month. Now if only I could keep my signs up so I can participate in the “free” election process. Guess I will just have to cast my vote and leave the signs in the trash. They seem to end up there anyway, or at least some of them do.

---------------------------------------------

This is a Guinea Hen chick. My daughter just brought home two of them, not that big as you can see.

I think I may have found the stupidest animal on the planet. First off, they are cute as hell when they are the size of a golf ball, but that was like 8 seconds ago. Now they are bigger than bread baskets and by the time you finish reading this probably the size of a good size volleyball. They eat (and s**t) like CRAZY so now the mystery on how they grow so fast is no mystery at all.

They stink and the cage has to be cleaned like every three hours, it’s that bad.

Talk about s**t for brains, that would be an improvement. They hate being held, probably because I hear they taste better than chicken so it’s like Filet Mignon to predators. Trying to hold one, even one this size, is like trying to put a Tyrannosaurus Rex under your tongue. It’s VERY hard to do and not the best of ideas.

They also scratch like hell and possess very sharp claws.

Not sharp like the killer “Death Cactus” sharp but sharp none the less and sharp enough to do some damage to human skin.

Let us pause for brief lesson on the Death Cactus- stay with me....

The Death Cactus, which is my name for it, is the world’s most hideous plant yet virtually indestructible. I got it near a Dow Chemical Plant that used to make Agent Orange during the Vietnam War. At that time they also made something called Vikane gas, a cockroach killer (pretty ominous sounding eh?)

Most of the cars in the parking lot were peeling chrome off their bumpers, it’s that bad they told me. Keep in mind the bug killer is designed to kill the most survivable creature (and probably the oldest) on earth, the proverbial cockroach.

Anyway near this factory, I nary saw a plant except this hideous cactus 12 feet tall and all knurled up with the sharpest spines on earth.

They go right THROUGH leather gloves, cowboy boots and almost went through the pair of plyers I used to break off a piece. It grows anywhere and I mean anywhere. Drop it on dirt, no need to plant it. Like a space alien, over a few days it rights itself and starts growing. The older it gets or the drier it gets, the sharper the spines.

It needs no water. I know because I have tried to kill various plantings of it by ignoring it.

It cares not.

I planted it in a knot up in a tree, it grew. I also have some in a pot nailed to the side of tree, never water it and it thrives. Freezing temperature turns it black and it looks dead but don’t be fooled. It is waiting for you to turn your back on it. From one tiny sprig you can get a thousand plants as every piece will grow no matter where you put it. I had one that grew on a brick. No roots, nothing. It just sat there and got bigger. Scary s**t.

Plant it under a window and I GUARANTEE no burglar will enter. He may foolishly attempt it but you will likely find him impaled on this thing in the morning.

Either that or a body part or two will be left and certainly a lot of blood. I have tried to give pieces of this plant away but no one will take it. It is now a white elephant gift I force on people as a cruel joke. Beware this plant. It is a son of a bitch.

Now back to the Guinea Hens.....

Anyway the claws of the Guinea Hen will do skin damage and these hens squirm like hell when held. if you don’t hold both feet and body in a fist prepare to be harmed. They don’t bite thank God but take it from me, they DO NOT like to be held.

They are without a doubt dumber than a retarded clam. They peep and peck at everything. Hold one and peep, peep, peep.

Put one down and they peck even at solid rock or metal. They walk like a small ostrich.The look in their eyes and mannerism say “look at me, I am at the bottom of the food chain and as dumb as they get” all of is true.

God, however, not being without compassion, gave them one quality that prevents them from being eaten into extinction. They run like hell.

Mine aren’t even that big and they can scoot. The good news is if two of them get loose, they stick together. That, luck for me, means they don’t run in opposite directions of each other.

So I let our two out by mistake and said “oh s**t, there they go, I will never catch them and my daughter will then kill me”.

AHHHH, but not so fast. Since they stick together, both bolted in opposite directions, but only for a second. As soon as they realized they were separated they both stopped. THANK GOD!

Like two Siamese Twins, but tethered by an invisible thread, they are too stupid to coordinate an agreed upon escape route. So when one ran, he got farther away from the other and stopped. “Ah” I thought, “my chance and thank you God!”

Grabbing one, I placed it in the cage and the other, too stupid to go it alone, halted long enough for me to grab it. I tossed it in with the other and now they were both caught again, blaming each other for their cursed codependency.

I, on the other hand, worshipped Allah on my Persian rug facing east (or is it north?) for making them codependent so I did not have to face the wrath of my 11 year old daughter and subsequently her mother for my stupidity by letting them out.

Whew!~

So we have two hens and soon to get more. I hear they are good for bugs as in they eat them. The flock (or is it gaggle) run together and stay around if you feed them. At night they roost in the trees so the mortality rate due to predators is an acceptable 1% a year, much like drone collateral damage in the Middle-East.

After all, if the government can accept a 1% collateral damage on innocents killed by drones, I can certainly not lose sleep over a missing Guinea or two a year now can I?

A friend has like 50 (he had like 60 but he has had them a few years hence the 1% is taking its toll) and told me the worst predator is the hawk. (Big thanks to Dr. Sean Avera for enlightening me to this fact and if you need a good periodontist look him up).

Anyway apparently hawks LOVE slow and delicious birds and apparently hit them on the ground in dive bomb attack going about 30 MPH and leave a trail much like a crashed airliner into a hillside. A 15 foot swath trail of destruction marred in blood, guts and feathers.

I picture that in my head and some sick part of me says “Man o man, I gotta see that!”

(Sick I know).

So for now we have two of these prehistoric birds and look to get more. I vision a running triangle of hens, eating bugs and ticks and keeping me company on hot days as I bask in the pool. POOL! Oh crap, I hope they don’t mess with my pool! I better ask Sean about that.

Well if they do mess with my pool, I do have an airsoft gun. The hens look big enough to survive an airsoft hit so that might be quite the game:

Guinea airsoft target practice. Yea baby.

All in all I don’t know how this whole Guinea thing will work out. It certainly SOUNDS like a good idea.

Fairly hassle free, free running, bug eating, self-docking birds, kind of like the Roomba vacuum that runs around the house and parks itself when done.

Then again I have had LOTS of ideas that sounded good at the time (think after a shot or two of tequila) and then lived to that decision regret it later.

However I am not imbibing, nor have I been at any time while pondering these stupid birds and my owning them yet something in the reptilian part of my cerebral cortex is saying (beside “eat them Marc”) that some other fate awaits me as things just aren’t that easy.

I mean, get a roaming bird that won’t run away, eats all the bugs, self-parks itself in the trees at night, and basically doing all of that without me having to deal with them?

Hummm…….

I have my fingers crossed. I hope to hell they have an appetite for Death Cactus.

Jambo!

---------------------------------------------------------

The biggest scam on Wall Street involved a former head of the Nasdaq stock exchange Bernie Madoff.

He was convicted of running a Ponzi scheme named after investor Charles Ponzi. The Ponzi scheme is a simple one and an old scam. Much like a pyramid scheme, you simply claim outrageous returns, and pay investors interest on their money with money from new investors. No money is ever really made, you just take it from the new investors and give it to the older investors. You claim to be making money but in reality you are not.

The Madoff scam was one of the biggest headlines in the news at the time.

It was said schemes like this are what happens when easy money and credit pour out of the monetary authorities in the way of low interest rates and then finds its way into the latest and greatest of bubbles.

There are many disturbing facts surrounding this case, one being the Bernie Madoff was indeed the head of the Nasdaq stock exchange a few short years ago before the scheme surface at his firm, Bernard L. Madoff Investment Securities LLC in 1960, and Madoff was its chairman until his arrest on December 11, 2008

He apparently learned his trade well heading up one of our most lucrative US stock exchanges.

You have to wonder when the former head of one of our biggest exchanges morphs into a crook, what kind of people are overseeing our retirement funds and stock account money.

Madoff’s scheme netted somewhere in the area of 50 billion dollars or so.

Interestingly, the SEC, the regulatory agency which is supposed to police things like this, had received numerous reports about the possibility of scam and even looked into the firm multiple times and found nothing. That spawns the question, what kind of regulatory body is the SEC and how effective they really are.

The Congress is always calling for more regulations, but what good are more regulations when you miss obvious scams with the rules you do have.

More rules won’t solve the problem if the authorities don’t use those rules in their practice of oversight.

The SEC had plenty of ways to shut Madoff down should they have found something but they did not.

Did they simply look the other way? Did the proverbial “old boy” network have anything to do with the lack of discovery even though the complaints were numerous?

Although Madoff was hauled off to the hoosegow for his Ponzi-like scheme, most governments of the world could be said to operate the exact same scheme.

One example might be the Social Security system. This was originally and still labeled a trust fund which means our retirement money is supposed to be locked away, safe and sound and paid out when we retire.

But the Government spends all of it and has for years.

They just pay current entitlements with money from new workers and put in IOU’s to make up any shortfall. Sounds like a Ponzi scheme to me, the exact same thing Madoff was forced to put on an orange jumpsuit for.

The money `system` of the Federal Reserve also has similar qualities.

The Federal Reserve prints money at will and buys Treasuries from another branch of the government. They then issue these Treasuries as IOUS. When the IOUS come due, they just buy back these IOUS with more printed money, in essence buying back its own debt with more debt.

This is similar to using new investor’s money to pay old investors. The Feds take it one step further and conjures up more money from nothingness with a computer keystroke. Madoff himself never went that far!

It could be argued there is little difference between what Madoff did and what the U.S. Government does everyday. But Madoffs problem was he is not the U.S. government and also didn’t own a printing press of which the US Government does.

Madoff’s went to prison because of the way he handled other people money, illegally.

But that particular illegality isn’t all inclusive to everyone and every institution.

The same type of thing is used to finance our country and many of our governmental programs. I guess the eyes of justice aren’t so blind after all. It might be said they look the other way where the government is involved.

more...