Category Archives: News

LAST WEEK

Posted on May 22, 2010 | Leave a comment

Week ending May 21, 2010

Monday
Lulu of Brazil makes a deal with loon of Iran.


Pres. Lulu looks like Foster Brooks to me. In any event, Brazil gets uranium. Iran gets a friend.

Tuesday
Blumenthal hits the fan.
See the post “It Was A Blumen Lie, So It Was”

Rachel Maddow gets night sweats and vibrates off her seat.
If Rachel vibrates and Matthews tingles MSNBC’s ratings might go up if they were put on the same program. I wonder what would be a good name for the show… Click for video.

Wednesday
Euro slides to 1.22

Chicago bank is too cozy to fail
Breitbart reports that ShoreBank, a community lender with strong ties to the Obama administration gets bailed out.

Thursday
Stock market crashes again.
European nations’ financial irresponsibility drags down American markets.

Friday
Jobless claims rise by largest amount in 3 months
It is not good news.

Bob B

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Posted in News, Satire

PAPANDREOU BLAMES AMERICAN BANKS

Posted on May 17, 2010 | Leave a comment

The Greek leader has said he might consider suing American banks as responsible for Greece’s insolvency. This is not as stupid as it sounds. Papandreou knows the lenders are not responsible for his nation’s virtual bankruptcy. He also knows his popularity is plunging and he must focus the anger of the Greek people away from himself if he is to have any hope of continued political power.

There lies throughout Europe an underlying resentment of America and a distrust of banks, Wall Street and capitalism. They serve well as straw men toward which the arrows of public discontent may easily be deflected. The idea of suing the banks may be absurd on its merits but at the same time a wise step for the man who put it forth. This is the mud of which the building blocks of a political house are formed.

This one is for Citibank! And the people cheered.

Nor does it appear the man is fighting a lost cause. Papandreou’s popularity has sunk below 50% but he still leads his closest opponent by 17%. His chances for re-election appear good. In a nation with multiple parties a plurality is all that’s needed.

One should not be too quick to take a politician’s actions at face value. There is an old joke that asks, “How can you tell when a politician is lying?” The answer is “His lips are moving.”

Bob B

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Posted in News, Opinion

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LAST WEEK

Posted on May 15, 2010 | Leave a comment

Week ending May 14, 2010

Monday
Another flag flap.
One student reprimanded for drawing a picture of the American flag while a classmate is praised for drawing one of Barack Obama.

Detroit News reports that workers prefer unemployment over work.
Correction –
Detroit News reports that people prefer unemployment over work.
Extending unemployment benefits has led to an increase in unemployment.
Read about it here.

Tuesday
We learn of proposal for a medal to be awarded soldiers who exercise “courageous restraint”.
British Maj. Gen. Nick Carter, the NATO commander of troops in southern Afghanistan, proposed the idea of awarding a medal to troop who exercise “courageous restraint”. There must be danger for there to be courage. Therefore I presume this medal will be awarded to soldiers who, facing imminent danger to themselves and their comrades, do nothing.

Wednesday
U.S. Treasury announces April deficit was 4 times larger than last year’s deficit.
Federal spending to stimulate people was held partly to blame. IRS action also contributed to the shortfall as they returned some of the peoples’ money to them as tax refunds.

Thursday
Obama administration authorizes killing of a U.S. citizen.
His name is Anwar al-Awlaki, and he is hiding in Yemen. The NY Times reports, “Congress has protected Awlaki’s cellphone calls,” said Vicki Divoll, a former C.I.A. lawyer who now teaches at the United States Naval Academy. “But it has not provided any protections for his life. That makes no sense.”
I agree. I see no reason why we should be protecting terrorists’ phone calls.

Friday
Detroit starts the process of demolishing 10,000 buildings.
There goes the neighborhood. Read about it here.

Bob B

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MARKET MYSTERY SOLVED

Posted on May 14, 2010 | Leave a comment

It was Waddell & Reed, not Fat Finger Freddie

Waddell & Reed is a non-aggressive middle America mutual fund manager. They were hedging, i.e. protecting, the investments they manage by placing an order to sell some derivatives called e-mini contracts. If the market goes down the e-minis go up and vice-verse. It is an easy way to insulate a portfolio from the market temporarily.

The wild impact was due to the confluence of a larger than normal order to sell contracts and an unusually nervous market. Foul play would have been better. You find the culprit, mete out a punishment and increase surveillance for the future. But here there was no culprit. There is nothing to say it will not happen again.

The order in question was for 75,000 contracts into a market that trades 50,000 an hour on average. It is easy to imagine how two or three nervous managers might come in with, say 25,000 each in a short period of time to protect their portfolios as the market starts to tank. I hate to say it, but a rule is needed, not sweeping new regulation but a rule or two so the tail cannot wag the dog.

Bob B

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CAMERON. BRITAIN AND OBAMA

Posted on May 12, 2010 | 5 comments

Cameron the Conservative won the British elections. Gordon Brown, the Labour Party leader resigned after a little less than three years in office. The far right and the far left each garnered more votes than his more traditionally left Labour Party. Brown assumed full responsibility for the defeat. A gracious act by the Prime Minister, but it is not that simple.

Britain, like the rest of Europe, has gotten itself into quite a mess in recent years. The Labour Party has been in charge for the last 13 years. The electorate are holding them responsible. and they want change. A move to the right would be change. However, conservatism is unthinkable to a liberal believer so what are they to do? They move further to the left, feelings deepen and debate becomes more strident as the gap between the two basic ideologies widens.

Long, long ago, some wise man said, a camel is a race horse that was designed by a committee. Americans tend to view coalition governments in the same light. Sparks are going to fly.

Obama has been quick to invite Cameron the Conservative to the White House and has applauded the special relationship that has always existed between Great Britain and the United States. What’s up? This is a 180 degree reversal from recent behavior. Let us be thankful but wary as we wait to see what follows.

Bob B

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Posted in News, Political philosophy

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CITIGROUP? PROCTOR & GAMBLE? OR GREECE?

Posted on May 7, 2010 | 2 comments

What caused the market crash of May 6th?


A thousand points a minute is 11 minutes to zero. Will Armageddon start tomorrow? At the end it was “only” down 365 points. At that rate it’s almost a month to zero, so there is time to plan.

At this hour the word is that someone at Citigroup placed an order to sell Proctor and Gamble and hit the B key instead of the M key. M is an awful lot of illions and a B is a thousand times an awful lot of illions. Supposedly this was not dollars; it was the number of shares ordered to be sold. In that case we have to multiply again, this time by 63 which was more or less the price of each share, more in the morning. less in the evening.

Proctor & Gamble is one of the 30 companies in the Dow Jones market index. When P&G got slaughtered the market index sunk faster than an oil rig and everybody yelled, it’s Greece! It’s Greece! Citigroup denies the trader story. Greece is too busy to address the issue.

In any event, market panic was the knee jerk (no hyphen) reaction. Relax; Greece is not coming to America. We have headed in that direction, to be sure, but even the biggest ships can be turned around. We are not going down, not this week, not ever without a fight. Fight we will, and win we will. It is 6 months to November.

Bob B

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AMERICAN FLAG BANNED AGAIN

Posted on May 6, 2010 | Leave a comment

Students wearing OLD NAVY brand T shirts were told to take them off or face suspension because there was an emblem of the American flag on the shirts, courtesy of Bay Area News.

It is Cinco de Mayo. A day that commemorates a battle in which Mexico defeated the French Army. Although the United States was not involved, the holiday has come to be equated with U.S. invasion that came 35 years later. At one time it was a day of celebration for both Mexico and America. It has morphed into a day of celebration by Mexicans mixed with a tinge of resentment over the U.S. invasion wherein we annexed Texas.

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Posted on May 4, 2010 | Leave a comment

53 HOURS AND 20 MINUTES AND SHAZZAM!!  SHAZAD IS CAUGHT!
Now that’s nice work, better than a movie. The Times Square bomber is in a taxi on the way to JFK. He’s more nervous than teenagers used to be on their first date. He knows they are on to him. (The FBI, not the teenagers). I have got to get on that plane. On the plane. In the seat, still nervous. Why aren’t they closing the door. His heart beats faster as a crew member walks up the isle towards his seat, …then passes him. Finally the door closes. A great sigh of relief as the plane begins to taxi. I made it!

Halfway to the runway the tower radios the pilot, ordering the plane back to the gate. Handcuffed. No explosion. No killing. No virgins. No freedom. No chance to try again. Just utter failure.

Kudos for our team. Good work, guys !!!

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Posted on April 30, 2010 | Leave a comment

Around the states

NY Governor Paterson has said that 22% of New York State revenues come from Wall St taxpayers. The Governor has expressed concern that the proposed new laws may result in erosion of New York City’s status as the world’s financial center. We at Random Thots believe there is more pomp and circumstance than there is substance in the current condemnations of Goldman Sachs, et al. Some senators are making noise, but there is little to fear from the administration on this score. Still, it is a bit disturbing to see the reputation of our financial institutions tarnished beyond what would be necessary for honest reform.

The only state in the nation with a sizable population and without a budget shortfall is Texas. Others are Alaska, Montana, Wyoming and West Virginia. It is notable that all of them, including Texas are “red” states. They are states filled with the sort of people who take pride in self reliance and individualism. Their geography has help to save them from the fates of Oregon and Vermont whose natural beauty and proximity to liberal dominated populations have seen their cultures inverted by invasion from their neighbors.

If you are searching for a decent Democrat, a man of good character, you will find many. I would nominate Arnold Schwarzenegger. Oh, I know, he ran on the Republican ticket but he governs as would a Democrat. He may be the only (R) governor in the country to give full support to Obamacare. It will take a Republican to pull California out of the hole. Arnold won’t do it.

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Posted in News, Opinion