FBI

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.