The Port Portiere Pecuniary Peccadillo

America For Sale: The Dubai Ports Peccadillo

If only you knew what was going on in the wide world of business, you would understand the dangers of the Market Media Matrix. The recent Port Portiere Pecuniary Peccadillo should wake up most Americans to the realization that everything in America is for Sale. This sad fact was brought to the attention of "Joe six pack" back in September of 2001. The people who work for a living are too busy watching "American Idol", and "Desperate House Wives", to understand they are living in the world that George Orwell created many decades ago.

Back in the fall of 2001, Americans did not care who was controlling the airline security screening, they were just happy to have cheap airline tickets. The average Americans doesn't care when they call a "800" number for technical support, where the connection is located. Americans do not care when their investments are being manipulated by foreign investors through programmed trading, as long as the prices keep going higher. Foreign investors using our stock market like a gigantic gambling casino with long term investors sitting at the loser's table. The global financial markets go beyond borders, language and culture. The large amounts of cash are being moved (S.W.I.F.T)ly throughout the world's trading markets, silently moves between countries with the Federal Reserve's consent. This week's Port Portiere Pecuniary Peccadillo should make it obvious that everything in America is for Sale to the highest bidder. The Panama Canal is owned by the Chinese. The Indiana and Illinois toll roads are being bought by a consortium of international investors. There are several military suppliers being bought by foreign companies. Isn't it a shame that the Army's new black berets were being manufacture in China, until enough people passed the word. Isn't it a shame that there is no television manufactures in America.

So no one cares until their security and safety is in jeopardy. Americans demanded that only the government could control the airline security function, hence the newly created TSA. Now that we feel better making the TSA part of the federal government, yet studies show the airport screening process is far from perfect. The purpose of politicians are to protect their constituents, yet the politician are only concerned with re-election and to profit from their positions of power on select committees. The 45 day waiting period was waived by low level bureaucratic minions at the subtle bequest of major political power brokers. There are reports of Republican Bob Doyle legally representing the Abu-Dhabi consortium and Secretary John Snow who used the same consortium when he was working for CSX railroad.

The amount of money being spent by this administration should be questioned by members of the Republican party. If the present administration were a Democrat, the Republican lock steppers would be shouting for fiscal responsibility, yet they are given a free reign in spending like a drunken sailor in Thailand.

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The market media matrix broadcast the headlines of " Six American Ports for sale" to a Abu-Dhabi consortium, DP world. Now "Joe six pack" assumes that the company will control all aspects of the ports. This is not true, but in the market media matrix world, sensational headlines sell newspapers. Since the Headlines encourage readers to buy newspapers, their ad rates improve. The politicians, who don't want to be caught sleeping at the helm also jump on the popular cry of the headlines. This is a mid-term election year, and no politician wants to be on record of letting this popular event pass by without getting their 15 minute of fame. Even the truth is for Sale in America, based on ratings!

In the most shocking of all aspects of this debate is the fact that no politicians came forward with the sale of the the port portiere pecuniary peccadillo until news reached talk radio shows. As President Bush tried to justify the decision of turning over management of the ports, vowing to veto any legislation to stop the handover, all the politicians, both democrats and republicans now want to investigate the sale decision. President Bush further stated that all security aspects were scrutinized and no security risk was associated with the handover. Later this week, President Bush now says he didn't know anything about it until it was in the media spotlight. As the week ends, the news headlines have turned to other events in the middle east with a possible civil war breaking out in Iraq. The threat of civil war is caused by an Iranian intervention in the Iraqi internal affairs. Thanks to inadequate border security and a weak Iraqi army, the attacks will probably continue.

Meanwhile, on the home front, some good news if you believe "the glass is half full" with the economy and investments. History of world market's are secular and time will tell if you are right.


Good News: Wage Earners Rises 8.9%
An inflation Warning indicating rising labor cost.

Good/Bad News: Value of Equities owned by foreigners rise by $500+ Billion 2005 Foreign investments are controlling more U.S. companies.

Bad News: Top Insider Selling Rose 6% in January From December, High CEO turnovers, jumping ship before their stock prices fall.

Good/Bad News: Announced Corporate Buying Doubles Corporate Selling in February. Companies buying stock instead of paying dividends or investing in R&D. Announced buy backs are not always completed, but help bolster short term stock prices in light of insider selling.


Bad News: Portfolio managers and individual investors apparently fearing a slide in real estate are putting about $1 billion per day in offshore banks. Shifting money to off shore banks in case of banking failures due to real estate slump, credit card debt, and increased bankruptcies.

Bad News: U.S. economy is growing rapidly, job postings index is holding steady at its highest level since May 2001. The beginning of the last cyclical bear market started which I predicted in August 2001 in my yahoo group, with a duration between 18-36 months. The market declined from Sept 2001 down 45% over the next 2 years.

Bad News: Portfolio Managers Dump U.S. Equities
Bad News:: Four Major Futures-Related ETFs
Redeem $4.6 Billion in February and $10.8 Billion this year.



Good/Bad News: Individual investors' affection for global equity global equity funds posted an inflow of $4.2 billion.
Bad News: U.S. equity funds have been virtually ignored.


Housing to Spur Global Economic Slowdown?

According to a report in the Washington Times, a home sales slowdown and recent drop in mortgage applications could pull the economy into deeper waters and, in the process, energize the arguments and political agendas of many. The Washington Times went on to say,
"The booming housing market has driven a third to a half of the growth in jobs in recent years. Economists estimate the housing bonanza is slowly coming to an end."


Trimtabs.com reports:

Estimated Global Equity Fund Inflows Exceed $2 Billion for Unprecedented Sixth Week. Meanwhile, Individual Investors Remain Wary of U.S. Stocks: U.S. Equity Fund Inflows Slump to $10 Million Daily.


Being 9 steps Ahead of the Curve,
(my past post concerning the Fed raising rates and the stock market, my article called Market Strength Index, 7-10-2001 in docsstockclock yahoo group)

I predicted the future market changes and the coming cyclical bear market in 2000 just before long term investors lost an estimated 9 trillion dollars.

The Fed created a liquidity trap, which has led them to a conundrum of an inverted yield curve. A simple tax law change occurred which sparked the real estate wild fires of inflation in the housing market. The wild fires of inflation will be spread throughout the world with the commodity market and will be exacerbated by the Federal Reserve raising interest rates higher.


God Bless
Doc

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