So what does Uncle Sam stop spending money on when everything blows up this week. Here is a list of potential solutions.
- Stop paying all elected and appointed officials in Washington. That includes the expense accounts. We’re getting bad value for our money.
- Cut back on social security and food stamps. Big savings here. Grandma doesn’t need the money. She just spends it on the grandkids anyway.
- Cut all government programs in congressional districts represented by tea baggers. They do not want the money any way. Just listen to them.
- Release federal prisoners earlier. It is very expensive to keep someone in jail. Actually I think Obama might just release anyone imprisoned for minor drug charges. Mass Presidential pardon anyone.
- Stop all international aid or welfare depending on how you see it. We obviously cannot afford it.
- Stop secret bribes to foreign despots that go straight into secret Swiss Bank accounts. Swiss Banks just buy safe US Treasuries.
- Tell Seal Team Six on the next big op they have to use less bullets but we still want a big win.
- Turn the lights and air con off in all federal buildings. Save money and it is energy-efficient.
- Tell the IRS to stop chasing accounts under $100.00 it can’t be efficient.
- Put the entire US Postal service on furlough. Who wants to get bills anyway.
- Unbalanced Budget is Necessary – Reject the Amendment Idea!! (tostereotype.wordpress.com)
- Debt Ceiling being held hostage (brianscottthomas.wordpress.com)
- Will I get paid if the federal government shuts down on August 2, 2011? (asktheblogster.blogspot.com)
- Recession II Ready or Not (godspace.wordpress.com)
- Lessons from a turtle redux (seepamblog.com)
- Checkmate Uncle Sam ? (tallman1928.wordpress.com)
- With Economic News Like This, Why Would Anyone Risk Crashing The Economy? (outsidethebeltway.com)
Apple (Nasdaq:AAPL) put its foot down and into its mouth by demanding that App’s selling stuff on iPad and iPhone must pay Apple 30%. Cha Ching said the lawyers and watch the million dollar fees go round and round. 30% is a lot and what business would not love to eliminate or reduce it.
Meanwhile other systems may be able to offer cheaper deals and the consumer will learn to shop around and get a better deal elsewhere.
Perhaps we are seeing the beginning of Apple Hubris and another tilt away from the Apple ecosystem?
Disclosure: George Gutowski writes from a caveat emptor perspective. I hold no positions in stocks mentioned in this post. I have no plans to initiate new positions within the next 72 hours. I am greedy and would appreciate lower prices for anything I buy on-line. Well why not?
- Some Kids Just Stole A Bunch Of iPhones From An Apple Store In White Plains [UNCONFIRMED] (AAPL) (businessinsider.com)
- HTC Wants To Work Out A Deal With Apple Over Their Patent Fight (AAPL) (businessinsider.com)
- Apple’s New Grand Central Terminal Store Looks Stunning (AAPL) (businessinsider.com)
- Here Are All The Best iPhone And iPad Apps You Missed This Week (AAPL) (businessinsider.com)
- I Love and Hate Apple (fool.com)
- 10 iPhone Features That Android Phones Had First (AAPL, GOOG) (businessinsider.com)
Bad News Blues Financial Freddy Kruger stalking your portfolio #investorrelations #regfd #disclosure
The debt ceiling thing is taking up so much mind space that companies with bad news can just spill their guts er I mean disclose and probably get away with a lot. Watch this weekend and Friday night for hideous disclosures. Financial Freddy Krueger may be coming out.
Disclsoure: George Gutowski writes from a caveat emptor perspective. No stocks involved in this post. I’m just really scarred.
Ford (NYSE:F) announced $1 Billion factory in Gujarat India. In part to satisfy Indian demand for economic cars. In part to satisfy global demand for economic cars. A Globe and Mail article based on a Mumbai Reuters story also mentioned a new plant in Thailand and four in China.
No talk about the currency used to finance the facilities. Of course the local labour and contractors will be paid in local currency. But what currency was the source? Given the falling US Dollar the local currencies are becoming more expensive. You know the finance guys at Ford have it mapped out and they know when they have to pay bills.
The plants become fixed assets denominated in other currencies. Does Ford hedge or should we stop reading their statement because everything is converted back to US Dollar.
Lets assume Ford establishes foreign fixed assets of say $7.5 Billion and currency has a negative fluctuation of some 5% . That equates to $375 million in adverse valuation. In a cyclical business that can be a lot.
Ford has raised some $19 Billion this year. Probably almost all of it in US Dollars.
Disclosure: George Gutowski writes from a caveat emptor perspective. I hold no positions in stocks mentioned in this post. I have no plans to initiate new positions within the next 72 hours. I do admire the Ford brand but I am not inclined to buy cheap sub compacts.
- Ford to invest $1bn in India unit (bbc.co.uk)
- Ford to Build Its Second India Factory (online.wsj.com)
- Ford to build $1-billion car plant in India (theglobeandmail.com)
- Summary Box: Ford product investment cuts profit (seattlepi.com)
- Ford $F goes Canadian looking for huge govt handouts #cd4platform #automotive (financialskeptic.wordpress.com)
- Global Ford Fiesta Launch in Mumbai (indiandrives.com)
- New Ford Fiesta sedan launched in India (panasianbiz.com)
Sony (NYSE:SNE) announced Q1 earnings and revealed losses. Market sells off the stock. Duh. They blame the earthquake which we all know about. They blame the security breach which we all know about. They blame falling TV prices which they left out of the headline but we all knew about.
This was an opportunity for Sony to write off and restructure. Mother nature served up the perfect excuse. They clearly have inadequate cyber security which has hurt their brand. The red ink should have been deeper and bolder. Cut costs and reserve for future cost and write-offs.
Management is too timid.
Disclosure: George Gutowski writes from a caveat emptor perspective. I hold no positions in stocks mentioned in this post. I have no plans to initiate new positions within the next 72 hours. Of all the consumer electronic decisions I have made recently or will make in the near future Sony did not figure prominently in my thinking.
- How To Tell If Your Password Was Stolen By The Hackers Who Took Down Sony (SNE) (businessinsider.com)
- Sony sinks to $179-million loss on disaster and security breach (theglobeandmail.com)
- Sony Tipping Point or Self-Delusional $SNE #playstation (financialskeptic.wordpress.com)
- Will Sony Face Bank Lawsuits for Poor Security $SNE #playstation $SNE $V $MCA (financialskeptic.wordpress.com)
- Sony Case Study – When Do You Disclose Cyber Attacks $SNE #cyberattack #disclosure (financialskeptic.wordpress.com)
Google (NASDAQ:GOOG) what am I going to do about you. WordPress just sent me a notice that I have published 275 posts in the past year. Yeah for me. But when you search Financial Skeptic on Google they still give the old Bloglines posts a higher rank. Have not used them for over a year. I post stock market comments exclusively. The older the comment the less relevant it is. But Google keeps pointing in the wrong direction. I must be the only one because if you keep this up someone else will clean your clock in the search industry.
Disclosure: George Gutowski writes from a caveat emptor perspective. I hold no positions in stocks mentioned in this post. I have no plans to initiate new positions within the next 72 hours. Yes I am deeply suspicious about Google’s secret algorithms. That’s Algo’s for the techies.
- SEO Madness: You Can Now Buy Google +1s By The Hundred (GOOG, MSFT) (businessinsider.com)
- Google becomes a loan shark $GOOG #adwords (financialskeptic.wordpress.com)
- Googlers Are Shocked By How Much You Like Google+ (GOOG) (businessinsider.com)
- Now Google Will Warn You Before Nuking Your Google+ Account (GOOG) (businessinsider.com)
- Is the Influence of Search Engine Rankings Over Our Content Access a Good Thing? (billives.typepad.com)
- Google’s Panda ranking algorithm changes SEO forever (mikemoran.com)
- Google’s Search Result Doping Scandal (gawker.com)
- SEO’s shift to social (dailybloggr.com)
Hedge funds are showing signs of capitulating in the market place. Many are just simply not taking new money. Can you imagine a hedge fund not wanting the leverage. That’s the poker tell. The eyes have twitched and we know what they think. Sure some of the funds are huge but when you want to take chips off the table that is the only forecast investors need to know.
But in the end you should consider it a capitulation. Cleverly done during the supposed summer doldrums when we were all consumed with the debt ceiling the big boys want to go home.
Disclosure: George Gutowski writes from a caveat emptor perspective. I do not invest in or manage a hedge fund. I have no plans to invest in or start a hedge fund in the next 72 hours as well.
- Hedge funds regulation: It’s not working out (csmonitor.com)
- Hedge Fund Cantor and Ron Paul Should Not Both Be Republicans (businessinsider.com)
- Hedge funds dip but outperform S&P in June (marketwatch.com)
- Soros closing hedge fund to outside investors (seattletimes.nwsource.com)
- Soros closing hedge fund to outside investors (sfgate.com)
- ‘Spooky Dude’ Soros Closes Hedge Funds to Avoid Obama’s New Financial Regs (sfcmac.wordpress.com)
- “Hedgefund Company Greenlight Capital President David Einhorn Wants Microsoft CEO To Step Down” and related posts (pulse2.com)
- George Soros And The Feudal Future Of Hedge Funds (businessinsider.com)
- Eric Cantor Is The Hedge Fund’s Man In Washington (businessinsider.com)
If the rain fall is poor and it is, then corn crops will be small. Cattlemen will sell beef if cost of corn goes up. Cheap beef now. Expensive steak tomorrow. Do we lighten up on QSR’s and operations with beef oriented menu’s. What about Bar B Q grill manufacturers. Oh they mainly make in China so here is another negative China story. Rainfall is one of the most complicated subjects known to man.
Disclosure: George Gutowski writes from a caveat emptor perspective. I eat corn and beef products. I do not have any positions in QSR stocks and have no plans to initiate new positions within the next 72 hours. I do like to Bar B Q and buy a new grill about once every four years. I do have opinions on the weather but have no formal training or competency in forecasting weather. I know a cost squeeze when I see one.
- 3 reviews of beef burger (rateitall.com)
- Wendy’s $WEN burps out Arby’s. No more excuses? #stockmarket #qsr (financialskeptic.wordpress.com)
- More Aussie beef in pipeline amid cesium fears (search.japantimes.co.jp)
- Meaty Matters (damnthefreshman15.wordpress.com)
- USDA: Corn supplies jump, easing shortage worries (seattletimes.nwsource.com)
The millionaire players have stopped arguing with billionaire owners and reached some kind of big money settlement. Special note to wives, girlfriends and maybe even mothers. Your husband, boyfriend and son will be on a couch most Sundays during the fall season. America is saved.
Las Vegas sports books are also saved as now they will have action. America may have a debt ceiling but if Americans have football all else is doable. Wonder how many NFL players let themselves go expecting a strike and will not be able to regain form soon enough.
Disclosure: George Gutowski writes from a caveat emptor perspective. I do not own an NFL franchise, sports books or other businesses that benefit from continued play. I do watch the sport and have been known to put down a few bucks every now and then.
- In Las Vegas, Odds Favor Novelty Bets (online.wsj.com)
- $IBM Dividend Sustainable or Engineered? Trend Lines no Work Good.
- Wal-Mart, US Tax Returns and Subterfuge $WMT
- Encana Crash and Borrow Dividend Burn $ECA Integrity When You Borrow. Yeah Right!
- Canadian Banks Trending for Disaster. Run, Hide the Children, Growing buzz says its gonna be bad. $RY, $TD, $BMO, $BNS, $CM
- Will Microsoft Change Dividend or Share Buy Back Strategy with New CFO; $MSFT
- Jamie Dimon Imitates James Cagney $JPM $XLF “Why You Dirty Rat”
- Googles Tax Problem; Uncle Sams Opportunity; Thank You Europe $GOOG, $YHOO, $FB, $TWIT
- Google Achilles Heel; European Income Taxes; Not so Good for Google $GOOG $YHOO $FB $TWIT
- Barrick Gold Conundrum; Commodities and Interest Rates Must Snake Correctly; Good Luck $ABX $GLD
- ISS recommends against 3 directors on JP Morgan Board. $JPM
- Can an Oracle be a Twitter $TWIT $BRK.A $BRK.B #SEC #REGFD
- Warren Buffett Joins Twitter. Look who he is following! $TWIT $BRK.A $BRK.B
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