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Thursday, June 9, 2011

Corruption All Around

Came across this article in my readings and have also been hearing about it on the news. Another local example of how far the rot has seeped into our government.

Pay raises at top leave county employees in tears

A dozen county employees, including a county librarian who walked away in tears, told the Board of Supervisors Tuesday they felt betrayed after revelations by a county auditor that top county executives received double-digit raises while hundreds of county employees were being laid off and furloughed.

Five politically connected employees of the County of Orange, including a Santa Ana city councilman and a member of the Santa Ana school board, were promoted by the county and several were given multiple raises that added up to as much as 33 percent in less than six months, public documents and interviews show.

116 comments:

  1. A sad post, Thor.

    I can see how people get large raises in order to adjust to others in that position, because there may be unfair wage practice lawsuits. But IMHO it shouldn't be at the top.

    I have in my career many many times hired people to work for me and paid them more than I was making. so many times, I didn't worry about it.

    That, coupled with the IMF not having disciplinary procedures for the directors, really encourages this kind of misuse of the system at the top.

    I wish it didn't happen, but it does.

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  2. @Dss:

    From yesterday, the Zor Trades article:

    You might have a look at

    http://25yearsofprogramming.com/blog/20070411.htm

    I gave 20,000 to a guy who said he'd been trading options for 5 years and was consistently profitable. In 2 months, I had 10,000 left.

    that was before I realized that you have to ask to see your money manager's tax return. No show, no go.

    And this fellow was quite smart. I wasn't. I'm smarter now, and I believe what 25yearsofprogramming believes, that tomake money in options, you have to either have insider information or be lucky as heck.

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  3. I have known option traders who made tons of money but they were market makers on the floor. Mostly they sold options in large quantities and then they would hedge themselves.

    One of these guys blew up spectacularly in a tech stock he made markets in, as a result of both sides of his hedge blowing out. He can never work again on the floor of the exchange after settling with the exchange.

    Another guy was computerized out of his job, as so many on the floors of Chicago have been, and now he is the primary care giver to his kids. At least he made enough that he could retire at 40.

    I know another guy who made millions over 25 years selling covered calls.

    But for the average Joe, options are one of the worst investments out there, followed by leveraged ETFs.

    The bid ask spread will kill you on options and you have to be exactly right on your stock moving.

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  4. I did think that the Zor Trades guy made some good points about the oversold nature of the market.

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  5. Rock,

    I knew a man who was awarded several million dollars from a business settlement. He then proceeded to tell me that he gave the money to three money managers, because the could compete against each other. (As if they care what the other guy is doing) He lost his ass during the 2002-3 bear market because these guys were terrible money managers who looked like genius's during the former bull market.

    Two questions I tell people to ask a potential money manager:

    Do you put the money in all at once, i.e., one day or do you put it in over time.

    And what was your track record during the last bear market. If they rode the market down, this is not the manager you want to have.

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  6. @Rock,

    You cann't get away from Asians! LOL! I know what you mean.

    ICan

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  7. @Thor,

    Those in power giving themselves raises. It happens here in Canada and ofcourse in India too without really thinking about others. Even city coouncilers in Canada do that all the time. The only people who cann't give themselves raise are people on fixed income.

    ETHICS!

    In my State in India, the current Chief Minister(head of the State) is a billionaire(his name would be in the Forbes' list if he was declaring all his property), made the state treasury to pay for his wife's cancer treatment in New York. The treasury is bankrupt yet the politicians are millionaires and travel on helicopters!

    Something is stirring in India - the corruption debate. The Prime Minister of India( an honest, competent ,yet weak person) has asked all politicians to declare their assets by August. We'll see how far this goes.

    ICan

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  8. U.S. record exports. Oil and auto imports down.

    Nat. gas has been going up. May be just seasonality. Long term prospects are good.

    ICan

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  9. US CDS moving up. Now, we're higher than Mexico and the Phillipines.

    This is serious, folks.

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  10. Hey, Mannwich! Gotta love that RIMM, man!!!

    Back in the day, the PDP8 and PDP11 had a RIMM mode. It meant "Read In Magnetic Memory". It was a sequence of instructions you'd patch in with switches from the front panel which was the boot loader for the TTY paper tape reader.

    Not that anyone cares.

    But looks to me like RIMM is going the way of the PDP8.

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  11. @Rock, your question on last thread re:Apple. How about Adobe and Nokia, and possibly Netflix?

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  12. @Greg:

    I thought about Nokia. I have a friend here in Sing who runs Nokia AP. I had him over the other day for synthetic cheese steaks. He feels that if Nokia gets much cheaper, they might be ripe for a buyout.

    Now who, (google) might want to buy Nokia? But because it's so cheap, I'm afraid of a short, because if GOOG or somebody wants a platform with huge volume, there would be a pop that would rip my face off.

    ADBE is a thought.
    NFLX is a thought, but my old motto, don't short strength. NFLX has a ton of cash.

    But ADBE may be a good short. Good idea, thanks. I'll investigate later and report.

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  13. Next Greek Bailout: 66B. ((Euros?)

    That will buy a lot of Feta.

    Trichet is afraid of inflation. Telegraphing an interest rates hike for sure. UUP is up today, the SPY is up today. Something doesn't add up. Wouldn't an interest rate hike cause the Euro to gain strength and cause UUP to go down?

    I can't wait to see what's going to give. But my shorts don't need any extra starch.

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  14. All the markings of a culture in decline. Very sad.

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  15. "Trichet: "Of course" we won't have U.S. default

    Now could you and your official mates stop giving your opinion!!?

    Each time these people give such over-confident statement, the opposite happens in the next 6 months.

    Joking.:p
    (half)

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  16. If this story hold true, then the whole commodity complex is ripe for shorting. Lot of names in Canada and Australia.


    Zerohedge: "A classic technical signal: China breaks down".

    ICan

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  17. You sold me on RIMM, Rock. You may a strong case, I looked into it a bit and bought it. I tip my hat to you. I'd love to add more over time. This one may be a mid term short.

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  18. Postitive trade data out of the U.S. causes market to rally.

    Japan is buying U$D and CAD.

    But trade # is lagging data.

    ICan

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  19. Sawteeth market.


    ICan

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  20. Here is the relief rally, such as it is. Needs to power up more if it is not going to be a one day wonder and fail.

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  21. It did not convincingly break over yesterday's highs so unless it does we could be looking for more of the same and testing/breaking of the lows again.

    The day is early...

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  22. More on one of the giant elephants in the room:

    http://www.zerohedge.com/article/robert-shiller-economy-tipping-point-10-25-slump-home-prices-would-not-surprise-me-all

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  23. Nice article, Thor. The corruption that exists today is endemic and rampant all through our economy, private and public.

    But should we expect different after 30 years of "Greed is good" mentality? I got mine, who cares if I stole from you?

    This is really one thing that does trickle down, shameless corruption because probably what those people did is NOT against the law. Sleazy, unethical, but perfectly legal.

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  24. @dss(10:33)

    Where is the revolution? It's happening in the East.

    Even in India, there is lot of TALK(openly discussed).

    ICan

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  25. Manny,

    Here is a sampling of Geithner's mindset:

    Debt and deficit reduction over stimulus, it is all you need to know about why we are repeating the mistakes of the 30's.

    Welcome to the Recovery

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  26. Exactly, Denise. What's interesting is that the backlash by the Sheeple (when it finally comes) is going to be brutal. Timmy had better hope he's long gone and working for a foreign Goldman office by then.

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  27. What is frightening to me about Geithner is that he continues to be the point man for Obama. Which means they are more concerned about deficit reduction than reducing unemployment. Increasing employment would automatically improve the deficit and debt because of more taxes being paid.

    Which is another reason why Obama has not pushed forcefully for the Bush tax cuts to be retired.

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  28. Goldman Scrutinized on Libya Dealings - WSJ.com

    "U.S. securities regulators are examining whether Goldman Sachs and other financial firms might have violated bribery laws in dealing with Libya's sovereign wealth fund".

    And also from WSJ, "Merkel:More Fossil-Fuel Plants needed".

    "Germany needs to build twice as many fossile-fuel plants than the govt. has earmarked in order to secure energy security".

    What happened to climate change advocates?

    No easy solutions. Balance is needed.

    ICan

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  29. Read this critique of Geithner and you will understand the baffling policies of Obama, why we are still in this declining economy, and why our economy will continue to slide.

    Good thing that the Republican's running for President and the Republican leadership are masters of self destructive politics, as Obama's economic policies are not going to get him re-elected.

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  30. Geithner Finds His Footing

    It is a long article, but it explains many things.

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  31. Unbelievable Denise. But, hey, things have never been better in THEIR circles, so what's the problem? That's a very dangerous attitude for them to have, if you ask me. The arrogance is breathtaking.

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  32. Thinking of backing up Mannwich's short bus for more nibbles soon. LOL.

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  33. This is classic. Gotta love George Carlin, a true one of a kind. RIP.

    http://www.ritholtz.com/blog/2011/06/investment-advice-from-george-carlin/#comments

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  34. Looks like short-covering to me.

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  35. Exactly emmy. I'm not buying this rally. I think the bears are in control now with the bulls running scared.

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  36. I'm not covering or selling TLT either.

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  37. Covering my small shorts, that is.

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  38. Tim Geithner is Obama's Rumsfeld.

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  39. @Mannwich

    "Tim Geithner is Obama's Rumsfeld."

    Ouch!

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  40. If this is more than just a flash in the pan rally, it should continue for 3-5 days.

    We have successfully bested yesterday's highs, and now we are working on Tuesday's highs of 1295.00 ESM.

    Potentially we could rally to the 1310.00 ES.

    But today we should not have a major sell off back to the lows in the afternoon for that scenario to take place.

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  41. Denise - i'll be watching now! :-)

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  42. @emmy. I know it's harsh but do you think it's off base? When you really think about it, the parralels are quite eerie. Bush listened to, and stuck with, Rummy way too long through the disasters in Iraq and Afghanistan, just as the O man is on Geithner and the economy.

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  43. I'm assuming this is true, if so, it is QUITE disturbing.

    S.W.A.T. Team Breaks Down Doors Looking For Student Loan Defaulters

    http://www.alternet.org/newsandviews/article/609535/s.w.a.t._team_breaks_down_doors_looking_for_student_loan_defaulters/

    What country is this again?

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  44. Mannwich - It seems to me that GWB came into the White House surrounded by a hand picked group of friends, business partners and confiadants.

    So he would remain loyal to them as they remained loyal to him.

    And it would be foolish to believe Obama does not have his own hand selected people in key positions, but Giether does not seem to be one of them.

    To me GWB was foolish in his loyalty to Rummy, but BHO has no (percieved) loyalty to Timmy, so maybe it just shows his lack of being able to grasp the bigger picture and lack of leadership skills.

    Who knows.

    Mutt

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  45. @Mutt: Actually, I think you're wrong there. I believe Obama's mother or grandmother knew Timmy's mother or worked for her or something but let me look that up. There IS definitely a link there.

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  46. SWAT for Student LoansJune 9, 2011 at 12:48 PM

    Mannwich - I read that yesterday, not sure how much hype is involved in that situation, but I do feel very badly for our future generation that is stuck with way too much debt as they spend the rest of thier lives just trying to pay it off.

    Mutt

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  47. Found several links with assertions that Obama's mom worked for Timmy's Dad but can't seem to validate it on any non-wing nut sites. Anyone else know the answer to this?

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  48. Wrong??? ME??? NEVER!!!!!!June 9, 2011 at 12:53 PM

    Ok, so the surprise is not so much when I am wrong but when I am right...When ever that happens.....

    Hmmm if they had some sort of a back door friendship that would not be too surprising as it seems like most the people in power got their because of who they know rather then what they know.

    Whether BHO knew Timmy prior or not is not as important as the mis-placed trusted put on Timmy, but it does explain it.

    Mutt

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  49. Mannwich - Did she work for Timmy's dad while she was giving birth and raising her family in Kenya :)


    Mutt

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  50. The rumor looks to not be true, but nevertheless, it appears that Obama has yoked his fortunes to Timmy, for better or for worse, just like Bush did with Rummy.....

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  51. Apparently! LOL. I still think that Obama's stubbornness to not admit being wrong and changing direction by going with new advisors and a new plan is going to cost him, just as it did with Bush (athough Bush won re-election, his legacy is in the garbage can).

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  52. This was all I could find that didn't seem too wing-nuttish:

    http://www.economicpolicyjournal.com/2009/03/obamas-mother-and-geithners-father.html

    I DID find this though! LOL. What more evidence do you need?

    Obama and Geithner have a "Man-Crush" on Each Other

    http://www.huffingtonpost.com/2010/05/24/obama-and-geithner-have-a_n_587150.html

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  53. Axelrod was the one who said that, apparently!

    Indeed, the president's support for his Treasury secretary has been unwavering. (Axelrod would laugh at rumors that Geithner was about to get the boot: "Don't these people realize they have a man-crush on each other?") And Obama's loyalty has been repaid with results. Geithner's stabilization plan is now widely regarded as having worked -- mainly thanks to the once-derided "stress tests" that he imposed on the banks, which showed the world that their circumstances weren't as dire as many feared and let them raise the requisite capital to get back on their feet.

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  54. Summary of Shiller's analysis. VERY good. And sobering.

    http://www.realestateindustrynews.com/uncategorized/robert-shiller-on-the-housing-boom-and-best-and-where-home-prices-are-headed/

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  55. Question ElectionJune 9, 2011 at 1:18 PM

    Mannwich - For the past few elections I have questioned the validity of them.

    Not whether the person who got the votes one or not, but whether, we as voters are given the best choices.

    People can say what they want about GWB, “Stealing” the election from Al Gore, but that falls into the same type of argument as BHO birth certificate, so that is not what I mean by questioning the validity of the election.

    What I question is the validity of our choices.

    I believe we would be hard pressed to many people who think BHO has been an asset for our country, but at the same time I believe he will more then likely win a second term.

    Not because he is a great leader, but because he is better then what the R’s will give us.

    In many instances BHO has carried on the same policies as GWB, he has only changed the flavor. And much of that policy has been to do what big business and banks want done and what they want done is not in the best interst of the common folk.

    If you are a D your candidate is slightly better then the R, but if you are an R your candidate is slightly better then the D

    During GWB first term the D’s sat around saying he was an illegitimate president because he stole the election, now that BHO is in office the R’s sit around boo hooing his birth certificate.

    And to some extent I believe this type of silly bickering is designed to make people bicker over the little issues, while the big issues are left (For the most part) unchanllenged.

    Mutt

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  56. Mannwich (1:04)- Hopefully we will not have to start hearing about seaman stains on Timmies Tie.

    And hear a press confrence where we hear.
    "I did not have sex with that man......Timeithy Giether"

    Mutt

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  57. @Rock,

    "Who wants to buy Nokia" - financialpost.com

    And from the sam link

    "Apartment rents rise as demand outsrip supply".

    Most rent rise in Toronto and Vancouver.

    ICan

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  58. @I Can: There are new apartment buildings going up in many areas of Minneapolis right now for rentals. Will we see a rental property bubble now?

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  59. Mutt - I just refreshed my window and the first thing that popped up is Seamen Stains, I almost spit up my coffee! :-P

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  60. @Dss
    A question about your 10:50 and 11:07

    from the link, Geithner's position was no more stimulus (it's just sugar). Then the comment, as a result of the position taken there should be no more sugar, was "any effort to push up demand was unsound".

    I don't see how one leads to the next. The conclusion "any effort to push up demand" does not follow from one effort, that is the sugar-stimulus. One effort is not all of the efforts. And with no supporting evidence in the link, I think to make one the conclusion of the other is invalid.

    Then from your 11:07, you say "which means they are more concerned with deficit reduction than reducing unemployment". Again, I think those are disconnected. You seem to tie the addition of extremely low paying jobs (reducing unemployment) to substantially increasing tax revenues, and I would think that (again) one does not follow the other.

    Decreasing unemployment has little to do with reducing US deficits. The tiny taxes paid by McDonalds cashiers won't matter squat to the US deficit.

    However, decreasing unemployment in the job sector from which most jobs were lost, that is the higher paying jobs, would have an effect on US deficits. However, neither you, nor the link you provide, discriminates between "reducing unemployment" and "reducing unemployment in high-paying jobs".

    In that view, Timmy may be right. The stimulus may be just sugar, and will not bring high-paying jobs back to the US. And the associated tax revenues from those jobs.

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  61. @Thor & Greg: have you checked the latest "Google Doodle" dedicated to Les Paul ?

    Still airing, in case somebody missed it:p

    See? That's MY definition of cool shiny toy :D

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  62. @Jeff,

    I am totally confused about the Cdn r/e.

    Vancouver is insane. Calgary - just oil boom. Winnipeg and Regina - agri. Toronto - Em immigrants.

    But if markets are turning around, shouldn't Cdn r/e also turnaround.

    My sister just flipped her home in Toronto for insane price. Very small amount of debt though.

    Lot people(I think Nick from earlier blog) sold their homes and are waiting for market to come down. She was renting. I think she moved back to U.K.

    My question to you or anyone - are reits a good buy? If int. rates aren't going up, they are. No? Bill Gross thinks int. rates are going up.

    ICan

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  63. re Denise,1295 line:would like to see it break the 1294/1295 zone too. I too think it would open the way for higher move.(short squeezing at least.. if anything ..)

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  64. @Dss
    Your 11:13 (I'm a little slow tonite, excuse me)

    Of course Obama will be re-elected. However, it's not his economic policies that will cause that. He led us out of the financial abyss, he killed Osama, and he's getting more McDonalds cashiers hired. And I read in the paper the market's up again. Wow!

    His economic policies are not reducing the deficit, bringing middle-class jobs back to the US, but that's not where the votes are.

    Obama's definitely got his head on straight to be re-elected.

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  65. Gotta go. Don't watch these tickers for too long. ;)

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  66. This turned out longer than I thought.
    Liked the options link. Kind of fitting for me, I've traded a lot of options the past two weeks. Well a lot for me. Mostly on the successful side too. Trying to fight the trend two years ago was wrong, the carlin link works here too.
    The material is true to a point but also dated.
    It is not a zero end game. The entity earning the fees is making most of the profit. It's high as a percentage, but is a lot lower than it used to be. If you try to trade options every day you will lose money, or try to make it your primary investing vehicle you will lose money.
    That being said, you can make money with it if you use it just like any other investing tool. I think of options two different ways. One way is using options as a revenue augmenter. Meaning that if I’m long in a position say I own 100 shares of SPY, I sell short or I sell a call, covered call. If I feel that SPY in the long term will go up but there might be a pull back in the near future, I sell short or I sell a put, cash covered. Never go naked.
    The other way, the way most people lose all of their money, is the long option. Buying the puts or calls and holding them. Buy and hold of an option is an almost guarantee loss of money, he has it right that you can’t predict the future. There are times you can make money going long, but they are few. You just have to be aware of them, be disciplined and not be greedy.
    The funny thing about the terms is that I hold my short positions in options long, I want their value to go to zero. I made my money up front when I sold. My long positions are only held for a short time, A day or less, usually less than an hour.
    Volatility and liquidity is the key to making money with options. Movements in prices become exaggerated making it easier to ride the trend to a profitable conclusion. No volatility no chance. For me the .5% daily movements in SPY is a trigger point to start looking. Last week it was the fade the gap strategy that worked. The gaps do need to be significant, large enough to cover your costs and to make money. Short term opening gaps attempt to close. They may only close 50% but they try. Don’t be greedy plays a large part here, since almost everyone now knows that gaps try to close. Today was another, there was risk, but after 6 down days and the technicals screaming over sold you can take a chance.
    Going long also means you have to have the time to watch it like a hawk and act immediately, its just like any other investment decision. You have to go in with an exit strategy and be willing to accept your losses. Instead of day or weeks, it now hours and minutes.

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  67. Rock,

    Bush was thought to be a lock due to his Gulf War victory, approval ratings of 90% and overall mood in the country. The economy did him in.

    There is no credible GOP candidate that is the equal of Clinton, and there may or may not be a third party candidate as a spoiler, so Obama may win even if the stock market crashes, unemployment worsens and we enter recession again. But at this point in time I would not say that Obama has a lock on the election and I would not take a bet that he will win.

    He is right wing enough for the great unwashed out there to vote for him again, especially if Bachmann or Palin wins the nomination.

    He may win just because the others are so unpalatable or unelectable.

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  68. I honestly think that's what he and his advisors are banking on, Denise. Namely, that the GOP will look so loony tunes far to the right that it will make him seem like the only sane, reasonable (and truly "moderate") choice. He's letting the GOP, similar to what little children do when throw a tempter tantrum, wear themselves out trying to outdo each other saying increasingly idiotic things to woo the Tea Party base. Someone had a great repsonse on Krugman's blog about Tim Pawlenty's so-called "Google test" in writing: "I can also use Google to find much better Presidential candidates than Tim Pawlenty." LOL

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  69. Todd - Excellent advice!! damn! you're on a roll lately ;-)

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  70. Manny,

    Exactly, he can't run on "change we can believe in", or hope, or any of his other now ridiculous campaign slogans.

    So he runs on a bad economy that he will say would have been much worse under Republicans, and he does certainly have a point there, but is it too sophisticated a point for most voters?

    Most people don't look further than their own economic situation, if it is good, ok, if it is bad well, they might not look so kindly on Obama.

    The best thing since sliced bread for Obama is that the Republicans have done NOTHING, ABSOLUTELY NOTHING, to create jobs, save jobs or help those who need it. They voted against extending unemployment insurance and for tax cuts for the rich, and they want to get rid of all social programs.

    All they can blather about is "tax cuts for the richest corporations and the ruling class creates jobs", despite zero evidence of that fact.

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  71. yea, lot of projects finished up so I have a little bit of time. Actually had some time to trade.

    Just like everything else there's a time and a place. When the article was posted the only viable option method at that point was to sell. If you stay covered, it's fractional income.

    Sorry on the formatting.
    Copy past removed my lines spacing.

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  72. Market is on it's high for the day. Hopefully, the relief rally will last a few more days.

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  73. @Mutt:

    I think you're right. Because of Timmy's involvement in the "shady deals" of financial bailouts, should the economy turn ever more sour, well, Obama's got his fall guy. I don't remember Bush having such a visible fall guy, but I forget.

    And I think that both Christina and Timmy are right. Chrissy wanted artificial stimulus (no off-color comments please) to lower the unemployment numbers and thus get re-elected, and Timmy wanted to lower the deficit to save the future of our country. Both are right. I think. But to cut spending and tax the rich (lowering campaign contributions) may not be the way to re-election (as Dss pointed out above).

    Bottom line, I was stopped out of my shorts, but I will re-enter either later today or tomorrow. Probably tomorrow because I want to wait for the setup.

    I hate this volatility and popping in and out. But I guess it's necessary.

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  74. Todd - I feel your pain with the being busy - I have so many projects lined up for the next six months I don't know whether I'm coming or going :-(

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  75. Todd,

    Thanks for the comments on options. Great insights. Using options are definitely not for amateurs but they can be a tool for those who know how to use them effectively.

    I have mostly done covered calls in the way that you have described. But every once in a while I will buy a put against a position.

    Thanks.

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  76. @Rock: You don't think Rummy was Bush's fall guy on Iraq and Afghanistan when he was canned? I do.

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  77. @Mannwich:

    I can't remember. I only remember he had Dan Quayle, the inventor of the internet.

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  78. Not too much softening so far in this last hour .. .

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  79. I think you're thinking of Bush I. And I thought Gore was the so-called "inventor of the Internet"? Are you confusing these items? LOL.

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  80. Hah - more on Whitney, love watching these people have to justify the predictions they get wrong, it's about time we start holding them accountable.

    Meredith Whitney says she "can't believe I'm the only person talking about" the big budget problems facing states and cities these days and that investors in municipal bonds should be cautious. The reality, of course, is that she isn't and hasn't been ever since the financial crisis, the Great Recession and the obvious failure of Obamanomics to spur job growth led to a sharp reduction in tax receipts and budget deficits across the country.

    But that's only one of the many dubious and sometimes bizarre statements to come out of Whitney's mouth lately as she humps a new report on the municipal bond market while she scrambles to rehabilitate her reputation and possibly her career now more than six months after she predicted an Armageddon in the municipal bond market that isn't coming and probably wont ever come.


    http://www.huffingtonpost.com/charles-gasparino/post_2100_b_873415.html

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  81. For anyone who's spend a considerable amount of time in NYC, this video is pretty damn funny:

    http://www.huffingtonpost.com/2011/06/09/bike-lane-ticket-new-york_n_873790.html

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  82. Ouch - man, that article is very harsh on her. Serves her right, she should have just admitted that she was wrong, and although there are massive problems with state and local debt, that we probably won't see her prediction coming true anywhere near within her original time-line.

    Also, the waffling; "what I REALLY" meant, and all the changing definitions of "default", can't be good for her reputation.

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  83. Manny,

    That guy had a death wish! It hurts to fall off of a bike once, much less 10 times.

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  84. Thor,

    What Whitney does not take into consideration is that most municipalities are cutting their budgets to the bone, less library hours, fewer people to process water bills, fewer cops and deferred maintenance. They are not going to default on their bonds if they can help it.

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  85. Looks like one of Obama's competitors just lost his entire campaign staff:

    Gingrich Senior Campaign Aides Quit Enmasse

    Usually that is because they didn't get paid which means he isn't raising money. Bye bye, Gingrich.

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  86. But Rock - Al Gore invented the internet and global warming, Quayle invented the Potatoe

    Mutt

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  87. Denise - It's ok, they probably all switched over to work with Anthony Wiener.

    Mutt

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  88. Simon Johnson, whom I greatly respect rips Geithner into shreds:

    The Banking Emperor Has No Clothes

    Unfortunately, Mr. Geithner’s speech contained three major mistakes: his history is completely wrong, his logic is deeply flawed, and his interpretation of the Dodd-Frank reforms does not mesh with the legal facts regarding how the failure of a global megabank could be handled. Together, these mistakes suggest that one of our most powerful policy makers is headed very much in the wrong direction.

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  89. Mutt,

    Good point, Weiner is going to need all the help he can get!

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  90. we are getting a little bit of selling into the close after all. . .

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  91. Weak-ass rally that Manny ain't buying. Remember the days when it was a pump up every day into the close? Every SINGLE DAY? Well, say bye to those.

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  92. @Thor: You may enjoy this post:

    http://www.nakedcapitalism.com/2011/06/chinese-real-estate-bubble-finally-imploding.html

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  93. Yesterday it was 95 here today it is 54!

    Unbelievable. Plus many inches of rain today.

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  94. Manny - YES!! reading now . . . .

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  95. Manny - great article! Thank you! Agree with the last paragraph as well, that this might take a few more years to fully play out. Even this drop though, is going to have ramifications for the future of commodity pricing. They can't go on building and re-building forever can they?

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  96. "Hillary Clinton in talks about World Bank Presidency:Sources" - theglobeandmail.com

    Her SIL an ex Goldmanite.

    Is this job open competition?


    ICan

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  97. 100th!

    "U.S. regulators scramble to warn on Chinese stocks" -Reuters(via financialpost.com).

    Too late?

    "Brokerages also continued to crack down by preventing investors from borrowing on margins to buy many Chinese stocks...".

    "U.S. SEC said Thursday it was urging investors to review company fillings ...This is akin to trying to put the horse back in the barn said Lynn Turner, former chief accountant for the SEC".

    ICan

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  98. Same thing happening here, Denise. Was 102 here Tuesday. Now mid-60's. Tomorrow barely gonna hit 60. Nutty.

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  99. What an ass Newt has made of himself (nothing unusual there though) with his imitation of Rudy Guiliani's ill fated '08 campaign. Rumors have Rudy may try again. These egomaniacs simply can't help themselves.

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  100. Speaking of idiots and ass clowns, word has it TX governor and secessionista, Rick Perry, may well run for prez next year. Let the games begin!

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  101. Manny - I can't remember if it was you, or someone else who said this, but both Newt and Palin are only doing this for the money, they want their names out there so they can command more lucrative speaking fees. Still boggles my mind that anyone would pay to see Palin speak, she always says the same thing over and over and over. Although these are strange times.

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  102. Exactly, Thor. Both are media (and money) whores. I honestly wouldn't want to know who would pay to hear these whores speak.

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  103. You know what I have found encouraging though, is that as much as many of us (myself included sometimes) treat Palin and Gingrich as such bogymen, most people would agree that they are jokes. Only a small very vocal minority take either one very seriously. At least I hope I'm right in assuming that, I know their poll numbers are very low.

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  104. This is an EXCELLENT post over at NC. I swear, Yves Smith is doing god's work, what a woman! And Elizabeth Warren, she has to be kept in the public eye somehow, out front, speaking for us. If she doesn't get the nomination, I hope she sticks around, the woman should run for president. Or be drafted to run for president.

    http://www.nakedcapitalism.com/2011/06/obama-still-desperately-seeking-anybody-but-warren-to-head-new-consumer-agency.html#comment-407981

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  105. speaking of Warren, have we all signed the petition to appoint her?

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  106. http://act.boldprogressives.org/sign/sign_warrent_recessappointment/?action_id=6955660&akid=.1124346.OLq6Mr&rd=1&source=bp

    if interested - It's gone up almost a hundred thousand in the last two weeks.

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  107. Thor,

    I just did. Thanks for posting the link.

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  108. I had already as well.

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  109. A token slap on the wrists for JPM, Wells and BAC?

    http://www.huffingtonpost.com/2011/06/09/obama-administration-temporarily-penalizes-banks_n_874491.html

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  110. Hope it's not too late to short BAC too. Maybe Wells too? LOL.

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  111. From the article:

    Potentially "thousands" of troubled homeowners were denied opportunities to lower their monthly mortgage payments under the administration's program due to servicer errors and inadequate oversight by Treasury, according to a June 2010 audit by the Government Accountability Office (GAO).

    "All this appears to be is that, after the servicers seemingly violated their agreements with Treasury with impunity, Treasury's sole response is to give them a temporary time-out before paying them in full," said Neil M. Barofsky, the former special inspector general for the Troubled Asset Relief Program. His critical reports on the bailout earned him plaudits in Congress for looking out for taxpayers, but enemies at Treasury, which administered the TARP.

    "It further reaffirms Treasury's long-running toothless response to the servicers' disregard of their contract with Treasury, and by extension, the American taxpayer," added Barofsky, who now serves as a senior research scholar and fellow at New York University School of Law.

    In statements, Bank of America said it's working to improve its results while JPMorgan said it disagrees with Treasury's conclusions. Wells Fargo went a step further, and said it is "formally disputing" the government's findings.

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  112. Nothing ever seems to change, can't go on like this forever though, the natives are becoming quite restless.

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  113. So cold here! Only 58 degrees. No, there's no climate change at all.

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