Bubble Masters

New Head Of The U.S. Federal Reserve ‘Fed’ Gets Greeted With Un-Carbonated Champagne

News Analysis: A 326 Point Drop in the ‘Dow” Stock Index on the First Day of the New “Fed” Chairwoman’s Appointment appears to show “No Fizzle Remains in the Champagne”.  Her much touted Predecessor had an ever enthusiastic Press that made lauding comments about his many mistakes; either they did not know any better or through their own avarice.

Today, years later, Unemployment is still a Major American Problem and the ‘Fed’ Chairwoman cannot lower Interest Rates into ‘Negative Zones’; she received an emptied Tool Box from the Bearded Gentleman. “Same-O” “Same-O” as her predecessor will gain her little now.

It seems as though the “Bubble Masters” to whom we often allude are finding their ‘Cork Stoppers’ to be defective; their Champagne is getting ‘Flat’. Even a Sommelier cannot repair the damage, so the Gullible will buy this “Wine”. What happens now can be easily estimated: the “Bubble Masters” will quickly Liquidate their Inventories; A Little of Something Is Better Than A Whole Lot Of Nothing. They do not want Vinegar.

The Investing Public who has enthusiastically ‘Taken the Plunge” into the Stock Market need to look around; they may see the “Bubble Masters” running quickly out of the ‘Water’.

As for justification for running onto the beach, the Press (who are Minions of the “Bubble Masters”) will report in their newspapers: ‘Stock Sharks Seen In Ocean – “Innocent”Bathers Flee!’

Reality.

Reference: http://nypost.com/2014/02/03/dows-326-point-sell-off-is-a-helluva-hello-for-yellen/

World’s 202 Million Unemployed (And Increasing) Does Not Bode Well For Markets

News Analysis: United Nations’ International Labor Organization (ILO) Data depicts that Contrary to the many joyous sounding pronouncements by Journalism Majors writing in respected Financial Publications, World Unemployment exists for 202 Million Citizens! This is disastrous to Real World Economic Recovery. Making this FACT even more Dire is that 5 Million People were added to the number in 2013. Estimates of 2018, suggest about 215 MILLION PEOPLE WORLDWIDE ARE EXPECTED TO BE UNEMPLOYED, according to the ‘ILO’.

Since our readers understand our Mantra to be “Reality is the truth”, We want Entrepreneurs and Investors to realize what is ACTUALLY OCCURRING in the Markets.  If one looks at the Stock Markets he or she will be confused by the current  Price/Earnings (PE)  Ratios of Stocks relative to existing and projected World Unemployment. “Since Unemployment is very high, how will people be able to afford things?” they wonder. The answer for the ‘PE’ Ratios is simple: “Bubble Masters” and their ‘Media Minions’ are at work.

“Bubble Masters” took the “Real Estate Bubble” and transferred some of their gains to the “Precious Metal Bubble” at the appropriate time. They then deflated that ‘Bubble’ by selling $20 Billion Dollars of Gold on the Market [in ‘One Shot’] gaining Media attention. They took some of their “Precious Metal Bubble” funds and went to work creating the present “Stock Market Bubble”; each ‘Bubble” is in Serial Fashion, isn’t it? 

As the “Bubble Masters” work, London Inter-bank Official Rates Scandals and Precious Metal Price Fixing Scandals Continue apparently unabated. These ‘Shenanigans’ are certainly dis-incentives to Invest.

Unwise ‘Freiers’ (who keep investing and losing the monies) need to stay ahead of the ‘Bubbles’ (not behind them). By Consulting with LEGITIMATE Seasoned International Professionals they can learn where to place funds and what ‘Scams’ to shun. Those who continually  put their “Thinking Caps” on and ‘Connect the Dots’ will have a clear vision of Tomorrow’s Investment Opportunities (‘Bubbles’ or Not). They can help Consulting to  both Entrepreneurs as well as Investors. Their knowing “Tomorrow Is Today, Today Is Yesterday” causes them to ‘Always Sleep With One Eye Open’.

Reality.

Reference: http://www.telegraph.co.uk/finance/jobs/10584384/Global-unemployment-on-rise-despite-economic-recovery.html

☆ U.S. Federal Reserve “Ignores Termites In The Woodwork”

News Analysis:  America has been, and is currently experiencing 7% Unemployment nationally.

In fact, lessening that dire percentage is the fact that many Americans have totally withdrawn from the Labor Pool entirely. The Administration’s counter-argument to this fact is that more Americans are gaining employment. The sad reality is that many people are going into Minimum Wage Jobs (MWJ) such as ‘Fast Food’ Emporia. Now, for the ‘MWJ’s’, the new “Health Plan For America” has employers cutting employee hours since they cannot afford the ‘Plan’s’ cost.

As for “The Fed”, it has provided some of the means to attain a $17 + Trillion Dollar Current Deficit. It certainly has been commissioning the printing of Billions of Dollars per week to help artificially keep money available. Adding to this was Acutely Lowering Interest Rates. Now, it does NOT have that tool available for future use, if needed.

The “Fed” loves to cite the current rise of  “Stocks”. It says little about the lack of Fundamentals to Support the Prices of these Securities.   A creation by the “Bubble Masters”, it lured many Precious Metal Customers to dump their holdings and enter  the “Stock Market”.  For example, Initial Public Offerings of many of the Internet “Socialization” Stocks were given Price Multiples FAR IN EXCESS of their Revenues (Real or Imagined). By having the Media join in to assist the “Bubble Masters” the “Freiers” ‘bit the bait’ (but got the hook).  Do they expect the Market to double in value in 2014?

The trumpeting of the return of the “Housing Market” is more ‘Fed’ “Shuck and Jive”. Many of the foreclosed homes throughout America were re-purchased by Investment Funds who hoped to ‘Flip’ the properties later. However, since 7% Unemployment remains, people cannot afford the real estate. Those who work in “Fast Food’ jobs cannot afford the homes either. Now, the Funds are “Stuck with the Muck”. At best, they hope to rent the properties. Unfortunately, many people cannot afford the monthly rent.

The ‘Fed’ has $4+ Trillion Dollars of obligations outstanding; a “Mount Everest” of Liability. If ANY large Natural Disaster, Created Human Catastrophe, or War were to occur, the “Penny Wise-Pound Foolish” activities of the ‘Fed’ would be demonstrated. The ‘Fed’ is sitting atop a three-legged stool many persons with Financial Acumen think.

The new Regime that will be taking over the ‘Fed’ will exhibit its proclivity to print money at an egregious rate; contrary to current pronouncement, some say.

Unfortunately many Americans cannot discern “Short-Term Financial Tactics” vis-à-vis “REAL Long-Term Economic Prosperity”. Like Ants, they view  the American Economy two-dimensionally; rather than like Bald Eagles, who take a three-dimensional perspective of that which personally affects their survival.

When Americans realize what Economic Realities are in the Nation, perhaps they will exhibit their chagrin when they vote in the next two National Elections. The past two Elections they voted for “Change”; that is what they now have.

Reality.

Reference: http://tinyurl.com/msvnwdv

★ European Countries Debt Load Is Estimated At 134% Of Gross Domestic Product (GDP)

News Analysis: Increasing again in an overall “Soft Macro-Economy” are the Debt Loads of the various European Countries. Since the various Central Banking Organizations have varied “Threshold Limit Points” numerically, they are in disagreement of the increasing danger of a Recession.

Members of the European Community have decreasing Exports and increasing elderly. Outflow of Funds is growing faster than inflow of revenue as a result. Finland in particular faces that reality now.

Germany appears to be the only Manufacturing Country in Europe with presently Significant “Larger Dollar” Exports” (identifiable to the country) such as Automobiles, for example.

Italy with its Ferrari/Maserati and  Lamborghini Automobiles participate on a much smaller Export Level numerically.

To assist in providing an Economic Turnabout will have to be the Consortium of  what formerly was called ‘European Aeronautic Defense and Space Company N.V.’ (EADS) but is NOW “The Airbus Group”. It consists of: Airbus, Airbus Defense & Space, and Airbus Helicopters (all ‘Big-Ticket’ Items). It exports to the entire World  can help all of the countries in Europe participating in various aspects of its manufacture, improve their ‘GDP’.

If European Aerospace and Automobile Manufacturers continue to focus their Marketing and Sales efforts in the Middle East and Asia they will succeed. “Going Where The Money Is” should be their Credo. Automobile Manufacture and Export Sales will help their ‘GDP’

European Continent Cellular Telephone And Computer Manufacturers presently have a Superb Opportunity to Fabricate “Bug-Less” Equipment which can be sold around the world. If both Internal Componentry, Software, and the like are NOT CONTAMINATED with “Invasive Electronics” the world populations will flock to purchase said devices. People and Corporations Want Their Privacy To Remain Private. Such sales will help spur on each country’s ‘GDP’.

It is very interesting to note that while there appears to be a slight regression towards Increases In Country’s Debt Loads, many Stock Exchanges are gleeful at the prices of securities on their Exchanges. One must ask: If Country Debt Loads are high with NO foreseeable major improvements expected in 2014, is Financial Manipulation being played to entice investors into a another mere “Bubble”? Are the “Bubble Masters” at work in a ‘Financial Cabal’? If so, when will the “Bubble Masters” decide to exit the “Mirage” (taking their profits with them)?

As Governments show concern about their Country’s  Debt Loads, should not Investors also exercise similar caution in this “Contrived Market” with  Poor ‘Fundamentals’?

There are Financial Opportunities in Markets. However, to look for them wearing “Rose Colored Glasses” is a Fool’s Endeavor.

Reality.

Reference: http://www.bloomberg.com/news/2014-01-03/bank-of-finland-warns-debt-level-poised-to-double-nordic-credit.html

★ Wealth Advisers: Thousands Are Available Now (To Increase Bankers’ Wealth)

News Analysis: Banks are hiring additional Wealth Advisers, beyond the present Thousands, (to increase the Wealth of Bankers). As more of these people are hired, one must ask: What “Real-World” Experience do they have in: Aeronautics, Agriculture, Building Construction, Manufacturing, Mining, Science, Shipping, or Technology? These are Core Industries, in varying degrees,  for Countries World-Wide.

All too often, the Public is addled by the Marketing by Financial Institutions (FI’s)  into thinking the ‘FI’s’ have all the answers of the Financial Future of Humanity; Hardly!

The end-result desired by the ‘FI’s’ is ‘significant’ Profitability Increases for themselves FIRST. As a follow-on, Client’s Monetary Growth above (however slight) a country’s Consumer Price Index  is Acceptable. A Party interested in Wealth Retention will be appeased by such mediocre performance, hopefully.

2013, was a well ‘Manipulated Market’ for Stocks (as one views a Snap-Shot). To those ‘FI’s’ who point to Clients’ Wealth increases in 2013, one can ask: “Please repeat this performance in 2014”. Many experienced International Investors  think ‘FI’s’ will be “Rolling Sevens” as in a ‘Crap Game’. To add ‘legitimacy’ to 2013 Stock Market Performance, one can expect that 2014 will also come in ‘Like a Lion’ (but ‘Go Out Like A Lamb’).

The “Legitimacy Factor of 2014” in support of 2013’s “Manipulated Market” should ‘Peter-Out’ in approximately a May-June, 2014, time-frame. By continuing out several months into 2014, the Public may think that all-is-well and invest their funds without discretion. ‘FI’ Wealth Managers will be more than happy to accept the funds. The public will be reassured by the ‘FI’s’ that “2014 will replicate or out-do 2013 AND continue into 2015!” Retail and Investment Bank Managers will be “Shorting their Investments while ‘Going Long’ for their Clients”; this is REAL WORLD History for many Wall Street Bankers in particular. “Fleece the Freiers” is their Mantra.

Wise Investors understand that a “One-Year Performance Snap-Shot” is hardly indicative of a Substantial Enduring-Over-Time Investment Market. It is more suited to ‘Day-Traders’. It is also very indicative of a “Artificially Created Bubble”! Where is the Support for this 2013 Market? There is minimal: Manufacturing of Big-Ticket Consumer Items such as “Business Jets” and Yachts: Large Service Contracts; Large Private Employment of Persons with College Degrees or Advanced Degrees.

It appears that, regarding Employment (at least in America) the Federal Government has had the largest employment increase. The National Security Agency and Transportation Security Administration are both bulging with employees many people think. These employees lessen the Unemployment figures which the ‘White House’ loves to allude. 

For 2014, a Wise Investor will have to consider: “Should my Gains remain (by ‘Cashing Out’) or ‘Play and possibly Pay’ on or before a Stock Market Collapse?”

As 2013 ends today, the “Bubble Masters” will be celebrating the New Year with Champagne (as they gleefully anticipate the next Incipient Bubble; of their creation).

Reality.

 Reference: http://www.bizjournals.com/sanjose/news/2013/12/30/wells-fargo-bofa-hunt-talent-to-serve.html?page=all