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.
Actions
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.
About Me
- Bunkerman
- I have a pioneer mentality. My wife & I live in the woods - neighbors aren't visible except slightly in winter. Our "bunker" - hehe, really a fine home & barn - has plenty of security. We have four dogs: Krypto (age 9, Kelpie), Ava (age 13, Rat Terrier), Sky (Kelpie, age 5) and Lucky Star (age 1, kelpie). I don't take crap from anyone anymore, having enough resources & gear stocked up to survive in any circumstance. I have three degrees from Harvard including a Ph. D. in a physical science, and an MS in Management from MIT. I worked as an investment banker for about 25 years, mainly in secured finance, at three major Wall Street firms and for the last 17 years with my partners at our own firm. I'm semi-retired now, managing some private corporations and business interests and doing my own trading & investing. This is not to boast, but to give you an idea I know a little about some subjects from experience. The photo is my 1943 M16 half-track which I am restoring. These armored vehicles were ubiquitous in the US Army in World War II and Korea. It's driveable.
25 comments:
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 ???
should dr bernanke be charged with treason Bman ???
the whole point of QE2 was to get stock prices higher
wrong.
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.
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
that got too long........had to delete some of it.............anyway..........that from Mauldin
he thinks QE2 is a joke
next time..leave a link.....
wonder if South Koreans will protest at US bases today .....
existing home sales down ....
hmmm
guess QE2 is needed; need to slap FNMA+Freddie around a bit re their credit tightening.
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 ?
Velma Hart let go???..whats this world coming to???
load some belts bunky...let's go smoke some northeners...we meet a top pork chop hill...mow down the red wave.
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'
Has anyone ever seen Bud and Tim Knight at the same time? Just asking...
Bman will the EU survive this debt crisis ?? will it be around in 2 years ?? will the Euro be around in 2 years ??
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
north/south korea
China
Ireland
Europe
Mexico
African civil wars
Iran
..and bud is PO'd his celery went up .50
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 ...
"the gooks are shooting at each other"....LMAOOO...ok hogie.
Mrs B are u a buyer of USB...thx in advance.
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'
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
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?
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.
inflation checker
kimchi prices to the moon
i guess the common gook won't be eating kimchi anytime soon..........let it fall my ass
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