Tuesday, November 23, 2010


The press reports the FBI raided the offices of three hedge funds yesterday. I'll wait to read the details on whether this is a real investigation or a scalphunting expedition. Some people automatically trust the FBI. If one has been paying attention for the past thirty years, you can find well researched books that show such trust MAY or MAY NOT be deserved. It all depends on the character of the investigators and their bosses and bosses' bosses, etc.

Here are three books which I've read on this subject: two were written by former agents about successful operations, and one was written by a noted newspaper columnist and radio commentator.

The Good Guys: How We Turned the FBI 'Round - and Finally Broke the Mob [Paperback] Jules Bonavolonta (Author) - this is an excellent account how a few good FBI men corrected multi-decadal FBI negligence caused by J. Edgar Hoover's incompetence or corruption.

Operation Solo: The FBI's Man in the Kremlin [Paperback]John Barron (Author) - this book is a fine, dramatic account of the super-successful FBI penetration of the highest levels of the Soviet Union.

The Brothers Bulger: How They Terrorized and Corrupted Boston for a Quarter Century [Mass Market Paperback] Howie Carr (Author) - Included in this book about political corruption and gangsters at the highest levels of State and Federal government is how the Boston FBI office was actually part of the gangster operations to the extent of condoning murders. The head agent is now in prison for life.

What to Do? Read the details of these hedge fund investigations and try to sift spin from reality. Do not unreservedly trust the investigators. Think - does the story make sense beyond a superficial glance.


Still waiting for a drop to the 1150-1160 area to re-buy US stocks that were sold around 1225.

Word of the Day

"Subrogate" - verb [$10]
Subrogate means to put in place of another [X is subrogated to the rights of Y].
Sentence: Don't subrogate your own critical thinking to institutional propaganda: be skeptical of government and its investigations.


Bud said...

well well well

the whole point of QE2 was to get stock prices higher.............to generate spending..........which will create jobs.............some nonsense like that

spoos down 14..............markets all over the world tanking.............still think QE2 is a good idea Bman ???

Bud said...

should dr bernanke be charged with treason Bman ???

Bunkerman said...

the whole point of QE2 was to get stock prices higher


it is to help improve the balance sheet of the private sector, which will in time aid the job situtaion via better consumer & corproate demand.

so far it's an overwhelming success in the corproate regime; the consumer is being held back by the banks's & FNMA+Freddie excessive caution in giving credit.

Bud said...
This comment has been removed by the author.
Bud said...

O Deflation, Where Is Thy Sting? 

First, we find that inflation for all items is 1.2% over the last year. All items less food and energy, or core inflation (which the Fed pays attention to), is only 0.6%. That is getting dangerously low, isn't it?

Maybe not. What you find is that inflation when you take out housing costs is a jaunty 1.9%. Right in the Fed target range of 1.5-2%. Even "core" inflation, when you take out housing, is 1.5%. That is not exactly something we should be worried about. That flat equivalent-rent number is showing a deflation risk that is simply not there.

But the Fed is worried about deflation and other things, so they are going to embark on a $600-billion quantitative easing, which among other things is going to help devalue the dollar and has already caused a rise in commodity, energy, and food prices.

We may in fact get some inflation, but precisely where we do not want it. While the Fed may prefer to look at core inflation, the rest of us live in a world where we buy food and consume energy. And for those in the lower part of the income spectrum, the rising cost of food and energy is disproportionately high. It acts like a tax on disposable income, which will hurt retail sales, which is PRECISELY what we do not need.

And all because we have the hubris to think we can measure inflation in some precise manner, and then choose policies to react to our imprecision.

Remember my 1967 tools? They wouldn't do me much good if I had to try and fix my car today. Not that if I were in the desert and my car broke down I might not try. It is after all still an engine, and somewhere in there must be something I can understand.

I wonder if the Fed is not trying to fix a modern 2010 economy with tools made in the '50s, based on theories based in the writings of a bunch of dead white guys. They were smart guys, I give you that. But times have changed. And our measurement tools seem flawed to me.

Thankfully, I rather think that the $600 billion can be absorbed without too much collateral damage. We do have a large economy, and the multiplier effect is at an all-time low. Or maybe I am just guilty of wishful, optimistic thinking

Bud said...

that got too long........had to delete some of it.............anyway..........that from Mauldin

he thinks QE2 is a joke

Spin-em said...

next time..leave a link.....

Spin-em said...

wonder if South Koreans will protest at US bases today .....

Bunkerman said...

existing home sales down ....


guess QE2 is needed; need to slap FNMA+Freddie around a bit re their credit tightening.

Bunkerman said...

wierd ... I keep hearing complaints about the dollar yet the dollar is rising vs. the euro. and is wayyyyyy above it's all time low.

Do some persons blab before thinking or checking facts ?

Spin-em said...

Velma Hart let go???..whats this world coming to???

Frosty said...

load some belts bunky...let's go smoke some northeners...we meet a top pork chop hill...mow down the red wave.

Bud said...

the dollar is rising cuz we the prettiest girl at the ugly girl dance.................sheeeesh.............nuthin to be F'ng proud off

the EU is collpasing..............the Euro is toast.............even Merkel admits it................the gooks are shooting at each other...........america looks like a paragon of stability compared to that

and yes..............i do check facts before i 'blab'

mfl59 said...

Has anyone ever seen Bud and Tim Knight at the same time? Just asking...

Bud said...

Bman will the EU survive this debt crisis ?? will it be around in 2 years ?? will the Euro be around in 2 years ??

Spin-em said...

last night ."F the scanners..why not walk into airport at these huge scanner lines and explode a fanny pack bomb....same results..nobody will fly if ya do that...."

another douchebag PA senator

'F the scanners...why not go on a US train..that would do the job"

anymore ideas boyz

what a bunch of thumping tosh

Spin-em said...

north/south korea
African civil wars

..and bud is PO'd his celery went up .50

Bunkerman said...

load some belts bunky...let's go smoke some northeners...we meet a top pork chop hill...mow down the red wave

yes!!!!!!! That's what I say every time I get the belt feds running.

getting the M1917 ready for the waves ...

Frosty said...

"the gooks are shooting at each other"....LMAOOO...ok hogie.

Frosty said...

Mrs B are u a buyer of USB...thx in advance.

Bud said...

shame on you Bman

you call yourself a fraternal libertarian.............freedom lover..............anti-state.........bs

how you are not outraged at this FBI fishing expedition...........channel checks ??? is that inside information ??? give me a F'ng break

and the Bman.............." i'll wait to read the details............blah blah blah..........you ain't no libertarian

like they say in texas..........

'all hat and no cattle'

Bud said...

Janus capital contacted by the Feds................disgusting

Bman is JNS a viking beefer too ???.....oh wait......they a mutual fund

you make me puke Bman

Bunkerman said...

whether Janus is a beefer depends on how much they trade.

Did you not read my blog, Bud ... about being skeptical of the FBI and waiting for the facts?

Bunkerman said...

one would also be supremely gullible taking claims of innocence without skepticism, too.

Don't be lulled by all the public posturing ... because it's posturing.

Frosty said...

inflation checker

kimchi prices to the moon

i guess the common gook won't be eating kimchi anytime soon..........let it fall my ass