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GM Lines Up for Its Take

NOTE: Mike Stathis predicted the precise details of the financial crisis in his 2006 book, America's Financial Apocalypse.

The Jewish Mafia REFUSED to publish this landmark book because it exposed the widespread fraud committed by the Jewish Mafia.

Instead, the Jewish Mafia published useless marketing books written by their broken clock tribemens (like Peter Schiff's useless book which was wrong about most things and was written a year AFTER Stathis' book).

Stathis also released a book focusing on strategies to profit from the real estate collapse in early 2007.

The Jewish media crime bosses prefer to simply ignore those who speak the truth and threaten to expose them as the best way to hide the scams from the public.

In contrast, the Jewish media crime bosses continuously promote Jewish con men and clowns who have terrible track records as a way to enrich them all while steering the audience to their sponsors, most of which are Jewish Wall Street and related firms. Figure it out folks. It's not rocket science.

 

View Mike Stathis' Track Record here, herehere, here, here, here and here.

 

 

Membership Resources

 


 

__________________________________________________________________________________________________________________

Mike Stathis holds the best investment forecasting track record in the world since 2006.

View Mike Stathis' Track Record here, herehere, here, here, here and here.

 

 
 

 

 


So why does the media continue to BAN Stathis? 

 

Why does the media constantly air con men who have lousy track records?

These are critical questions to be answered.

You need to confront the media with these questions. 

Watch the following videos and you will learn the answer to these questions:

You Will Lose Your Ass If You Listen To The Media

 

  

 

 

  

__________________________________________________________________________________________________________________

 

 

Shocking as it may seem, in just five years, GM has lost $73 billion, or $129 per share. Ford and Chrysler haven’t faired any better. And now they’re pleading for an even bigger bailout using Paulson-like scare tactics.

Instead of lines like “people will lose their pensions and 401(k) plans,” the Big Three are predicting over 1 million job losses if they don’t get taxpayer funds.

Has Washington forgotten that America is supposed to be a free market economy? If businesses can’t make it on their own they must fail. Otherwise, taxpayer bailouts will create the worst kind of socialism possible – selective socialism for corporations.

At least in real socialist societies, everyone is provided with higher education and healthcare. America’s form of socialism favors only corporations.  

The recent $25 billion “loan” to the Big Three wasn’t enough. But don’t expect an additional $50 billion to help either. The U.S. auto machine is broken beyond repair, making it absolutely ridiculous to keep funding its losses with taxpayer funds.

Apparently, House Speaker Nancy Pelosi and Senate Majority Leader Harry Reid disagree.

The democratic-controlled Congress continues to squander taxpayer funds with no regard for the people. We have already seen Pelosi strike a deal with T. Boone Pickens, with the attempt to use taxpayer funds to fuel his useless wind power plan. In my view, Pelosi should be brought up on allegations of insider trading, abuse of power with the intent to profit.  

At the very least, Pelosi’s actions demonstrate the intent to profit by proposing taxpayer subsidies to enhance the financial merits of her stake in Pickens’ company. Apparently, the easiest way to get IPO shares is to run for office. That way, you can help determine the fate of your investment. Why hasn’t this been covered on the televised media? By now, you should know the answer.

Mrs. Pelosi and Mr. Reid, neither of you possess adequate financial expertise to determine what is best for the auto industry. And you certainly have no idea what is going on in the economy, much like your peers in Washington. You need to step aside and let some real experts without any agendas assess the situation.

My verdict is absolutely no bailout for these miserably run companies. The Big Three are in trouble not because of the economic problems but because they spend too much on labor costs to make products at the low end of consumer demand.

Let me spell it out. They will ultimately fail and deservedly so because these businesses are run like crap. Supplying them with billions will only carry them a few more months. The Big Three need real leadership and vision.

If either GM or Ford stood a real chance of survival, you’d see private equity firms step up to the plate. As we know, even this is no predictor of success. Just look at Cerebrus Capital Management. They not only purchased an 80% stake in Chrysler, but they also bought a 51% stake in GMAC in November 2006. Great timing guys. This is just another example of more clueless big guns who have been entrusted with pension fund assets. 

GM: The Roadmap of America’s Decline

Certainly the Big Three are lining up for their take on taxpayer funds. The current crisis provides them with an excuse for their failure. To highlight this pathetic industry let’s take a look at GM. We can track the decline of America by noting that GM was once the nation’s largest employer. It was a great job to have, with good wages and a nice pension.

Today, the largest employer in America is Walmart – a company with minimum wages and no real employee benefits. Washington’s unfair trade policies have caused corporations to export good jobs and wages overseas for the sake of corporate profits. And as we know, when you lose your job, you also lose healthcare for yourself and your family. 

As oil prices continue an unprecedented correction from record highs, it looks like the Big Three’s master plan to boost auto sales turned out to be a big loser, much like their master plans of the past three decades. 

Any company or industry felt to be “too big” or “too important to fail” should never be rewarded for its poor mistakes using taxpayer funds. The solution is to nationalize these industries. This goes for the airlines and banks. Otherwise, they’ll get bailed out again and again with your money.

The Big Three have had decades to correct their problems. But they’ve done nothing because management always knew they would be bailed out if needed. This needs to end here and now.

Below, I’ve posted excerpts from a couple of articles originally published elsewhere several months ago. I wanted to repost them to highlight the current problems with GM.

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Industries to Avoid, Industries to Buy (Published May 13, 2008)

Most of you are familiar with the history of the U.S. automotive industry. If you aren't, all you need to do is look at Detroit's decline since the 1950s when it once stood as a great city with a strong economy. Once the world's envy, the Big Three became embattled in a struggle between labor unions and foreign imports in the 1980s. Yet, with more than two decades to respond to competitive threats, the Big Three has shown nothing but disregard for consumer demand. Meanwhile, the bargains struck with the UAW have hastened the effects of free trade.

Today, the U.S. auto industry is fighting for a place in line with the airline industry for the next government bailout. At the best of scenarios, they will be bought out and restructured. As it stands today, the U.S. automotive industry is among the worst possible investments in the capital markets. In fact, it has held this title for many years, as the financial statements confirm. Market growth has been MIA, as have growth in dividends.

After the initial flood of foreign autos into the U.S., labor unions responded with demands for job security and higher wages at the worst possible time. The UAW was able to negotiate a jobs bank and other guarantees that provided full wages in the event of layoffs.

Soon after the oil crisis of the ‘80s, America became spoiled with very low oil prices; so low that the Big Three overlooked the fuel-efficient strategy of Japanese imports. Instead, they were focused on combating labor unions. A decade later, President Clinton signed NAFTA, which all but ensured the beginning of the end of American manufacturing.

Gradually, foreign autos became known for more than fuel-efficiency. Soon, styling and reliability combined with the toxic effects of unfair trade drew a larger market share. Early on, the Big Three realized it could not compete with the cheap labor overseas. But instead of meeting the competition head on, they chose the route of strategic retreat, which served as a clear indicator of defeat. Rather than improve auto quality and fuel-efficiency, their strategy was to take advantage of the explosive growth of America's consumer finance industry in the 1990s.

Soon, the Big Three came to resemble financial institutions more than auto manufacturers. In fact, their financing divisions grew so large that they accounted for most of their profits. By the mid-1990s, the Big Three was focused on making interest more than making autos. "No money down," and "zero percent financing" serves as the line by most U.S. auto dealers.

As well, they embarked upon a huge marketing campaign promoting big trucks and SUVs - something foreign peers had not yet addressed. Slick marketing ads promoting big trucks and SUVs served to make many consumers feel "tough." For many, it worked. But over the past several years, foreign competitors have caught up to the Big Three's marketing gimmicks. Now even Toyota makes large trucks.

With gas prices on a strong upward trend for several years now, the Big Three continue to run away from viable solutions. Instead of designing stylish, fuel-efficient autos, they are now producing hybrid SUVs as a solution to the oil crisis. The fact is that hybrids are for the most part a scam.

Consider these facts. Although there are a few exceptions, most hybrids only offer an additional 5 or 6 MPG, while costing thousands more. And you can't count on tax breaks since they are limited to the first 50,000 to 60,000 vehicles sold. As well, Bush phased out tax incentives for hybrids. Needless to say, it's a poor consumer decision to buy a hybrid given the poultry benefit and the uncertain risk of the new hybrid technology.

Now the latest scheme is Ford's offer to cap the price of gas to new buyers of their trucks for 3 years. The price has been set at $2.99/gallon, regardless where gas goes over this period for up to 12,000 miles per years. How many of you drive only 12,000 miles per year? Basically it's another gimmick to entice consumers to be stuck with a huge financial liability.

Let's do some simple math. Let's assume that over the next three years, gas averages $4.00 per gallon. That's about 700 gallons covered per year or about $2100 savings. We all know how auto dealers play games with prices and promotions; trim the price here and there a few thousand, while increasing the financing, etc. They manage to juggle the promotions so the net cost will be the same.

But since the average annual mileage driven in the U.S. is about 20,000 miles (metropolitan areas), you're still going to feel the pain of higher prices at the pump to the tune of over $1800 each year (assuming gas averages $4.00/gallon).

What are you supposed to do after three years? I suppose auto dealers will have a "loyalty program" for you to trade your truck in for another similar deal. Any savvy consumer knows the more frequently you sell an auto, the higher percentage of your lifetime auto costs go to sales commissions. Any way you look at it, the U.S. auto industry is a big joke. It's become an embarrassing reality that Americans have come to accept over the years. In contrast, foreign auto makers don't need to offer 0% financing because consumers are drawn to their autos for the right reasons – styling, quality, reliability, fuel-efficiency, and value.

But labor costs have also hit the Big Three hard for many years. Certainly their pension plans are hurting while GM and Ford report massive losses. And they've had to buy out thousands of workers who had guarantees despite plant closings. They still haven't fully dealt with the jobs bank liabilities. As a result they are paying thousands of laid-off employees NOT to work.

It's remarkable they’ve been able to stay in business this long. If this weren't enough, the biggest labor costs of the Big Three come from healthcare benefits. For each auto that rolls off the assembly line, GM is already in the red by over $2200, most for healthcare benefits; the remaining for pension payouts.

So how is it possible the Big Three has been able to survive this long? After all, they have unmanageable labor costs while their products continue to ignore consumer demand. If it weren't for their financial units they may have been gone long ago. Perhaps the main reason why the Big Three has continued to exist is because they’ve been able to sell cars to government entities, police departments, corporations, and car rental companies.

Have you ever wondered why for so many years it was impossible to rent a Japanese car at one of the big car rental companies? Only recently have they been made available, but only sparingly. According to the Detroit News, Enterprise Rent-A-Car alone accounts for about 7% of the Big Three's auto sales each year. Imagine if these purchase contracts weren't struck with car rental companies, police departments and other government bodies.

When you have a certain amount of guaranteed auto sales from government entities, car rentals and corporations, it doesn't exactly create a sense of urgency to address consumer demand. Certainly, the previous deals stuck with the UAW, as well as the unfair trade laws have made the U.S. auto industry a losing proposition. However, the management has been lazy and irresponsible, focused more on protecting their jobs and ridiculous compensation packages.

General Motors on the Hot Seat (July 3, 2008)

The recent Merrill Lynch research report on General Motors should not be treated with any urgency, although I agree with the overall assessment of a potential bankruptcy. But I would also add Ford into that picture. As you will recall, we heard the same thing from analysts less than 3 years ago only to see GM’s share price more than double over the ensuing two years

However, much like a sustained bear market, both GM and Ford continue to make lower highs and lower lows, both in their business performance and stock price, increasing the probabilities of a permanent meltdown unless radical changes are made soon.

Due to the difficulty and timeliness of needed changes, I am doubtful that each of the Big Three players will be around in eight years without government assistance, which appears likely.  

Part of the problem is that U.S. auto makers no longer rely on sales driven by REAL consumer demand. A very large portion of sales from the Big Three come from the combined orders made by police departments, other government entities, corporations (drug reps and other sales reps), and car rental companies. These are virtually guaranteed sales so there is not much pressure to make the best, most desired autos possible, as defined by consumers.

In response to diminished quality, rather than promoting the appeal of their auto lines as the main selling point, they emphasize “lucrative” financing deals to exploit the consumption epidemic that has infected most US consumers. As a result, the Big Three now resemble financial companies more than auto makers.

This focus on consumer financing helped keep the Big Three afloat for many years. But now the effects of the credit crunch are causing much of the stress on performance. While this recession is still in the early stages, we already see cost-cutting measures for government entities at all levels. Corporations are keeping cars for longer periods. And consumers who have the money (or available credit) for auto purchases are seeking out more reliable and more fuel-efficient Japanese autos.

The Big Three continue offering cheap gimmicks to lure customers – hybrid SUVs, $2.99/ gallon gas for 3 years, $0 down, 0% interest, etc. In contrast, Japanese auto makers surge forward to address consumer demand. They continue to give consumers what they want. That is precisely why there are waiting lists for the Prius and other fuel-efficient autos. When you view the prospects of the Big Three from these considerations alone, the picture looks frightening. Of course, labor costs are another, much bigger issue.

Early in the decline of the U.S. auto industry, ridiculous demands from the UAW set up cost issues that would haunt the Big Three for many years to come. Over the past several years, as the globalization trend has strengthened, the effects of UAW demands have magnified – U.S. auto workers want and expect too much, while the overseas labor market does same job for less money with very few if any COMPANY-SPONSORED benefits. 

This represents the core disconnect found within U.S. manufacturing. Current free trade policies, by necessity force manufacturing overseas due to the much lower labor costs offered by foreign competition. U.S. companies are simply unable to compete with foreign competitors who do not bear the high costs of healthcare and pensions. In most nations, the government pays for healthcare and pensions.

Until healthcare is made universal or free trade is made FAIR TRADE, America will continue to lose what little manufacturing jobs remain. Without a radical restructuring of free trade policies, U.S. companies will have no choice but to send jobs and entire manufacturing facilities overseas to escape the enormous costs of healthcare. This is NOT a political issue. It is an economic issue.

If America wants to stop its gradual and permanent decline, these issues must be addressed with real solutions. America must produce more of what it consumes rather than sending money overseas, creating huge trade deficits. 

Ultimately, leveling the playing field through some type of REAL healthcare and free trade reform will not ensure long-term viability of the U.S. auto industry. The Big Three have faced a tremendous amount of brand name destruction for many years, and deservedly so. Among many of the changes needed, a radical management shakedown must occur if they expect to survive; and I mean radical.

The management and board of these companies must be replaced; not by some insiders who are accustomed to bureaucratic waste and phony inspiration. The industry needs younger, motivated, experienced and creative minds with a track record of REAL success in virtually any industry. These would be business leaders willing to take the majority of payout in stock rather than cash; guys who are willing to hold the stock for at least ten years instead of dumping it in two. They should seek out sharp, entrepreneurial visionaries, similar to Lee Iacocca, Steve Jobs, and Michael Dell.  

While private equity firms might look to purchase GM and Ford, I cannot see this happening under the current credit crisis unless they are sold very cheap. Even then, these deals would be difficult to consummate. Investors are shying away from the hidden risks of the highly leveraged credit bubble. Very few institutions would have interest in a buyout because the risk exposure is in the tens of billions and expected to worsen as the economy weakens. We already see a meltdown of private equity and leveraged buyout deals over the past two quarters.

I could only see a potential sale to foreign companies (or U.S. firms looking to broker the deal) willing to take on these risks in exchange for immediate positioning in the U.S. auto market. Such risks could be justified by a trade-off resulting from the cost savings realized by a cheaper labor market and the desire to elevate their market position overnight (such as Tata Motors or a Chinese auto maker).

While some type of foreign carve-out is possible, I would say the more likely outcome will be a government bailout. A bailout could also occur once GM or F was taken private as well, but only if manufacturing jobs were guaranteed to remain on American soil. The U.S. auto industry is, has been, and will continue to be one of the worst industries to invest as long as America continues to support policies that result in unfair trade. 

For those of you who feel prices for GM and F look like a great deal at current levels, I’d like to remind you of the tremendous liabilities faced by each company. Remember, they resemble banks more than auto makers, with huge amounts of unknown liabilities. High oil prices, high inflation, muted median wage growth, and consumer stagnation are certain realities over the next few years, at minimum. That said, do GM and F represent any short-term trading opportunities? That is certainly a possibility. But I for one would not want exposure trading fundamentally miserable companies with potentially huge liabilities, especially during the high market risk that remains.

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Too Little, Too Late

Even now, as the Big Three line up for their piece of the taxpayer pie, management is still rolling out more mobile homes on wheels. But now they are more fuel-efficient, thinking that better gas mileage is the only thing Americans want. I find it ironic that the Big Three finally rolled out some hybrids just when gas prices came back down. In addition, consumers have neither the cash nor credit to buy autos. The Big Three have a long history of doing too little too late. Maybe the Big Three’s focus on SUVs and big trucks will benefit them soon. As more Americans continue to lose jobs and homes, many just might begin to live in these mobile homes.

Creating Dynasties Using Your Dollars

Until then, it appears as if your tax dollars will go towards paying the outrageous compensation of executives who have a consistent track record of destroying shareholder value. Let’s have a look at Alan Mulally, CEO of Ford Motors. In 2007 his compensation placed him 79th among U.S. CEOs, earning a whopping $21 million, or nearly 500% more than the median compensation for consumer durables according to Forbes. Despite the worst performance in decades, it’s estimated that Mulally will receive a total payout of over $12 million in 2008; not bad for just two years as CEO of one of the poorest run companies in America. Michael Bannister, Chairman and CEO of Ford Motor Credit and Lewis Booth, CFO of Ford are expected to take home over $7 million combined this year; not bad for a performance that couldn’t be worse.

Of course Mulally is smiling and clapping. I’d be all smiles too if I was paid a ridiculous sum of money for running a company into the ground. In my view, this is nothing short of shareholder fraud. And if the latest bailout for the Big Three is passed, one could argue that he could be brought up on charges of taxpayer fraud. Taxpayer funds absolutely CANNOT go towards executive compensation. Of course, as partners in this crime, Pelosi, Reid and others who would approve this scam would also be guilty.

General Motors’ CEO Richard Wagner has even less of an excuse after heading the company since 2001. While his salary is quite a bit lower than Mulally’s, he still makes Forbes top 500 list at over $2 million and a 5-year average of nearly $5 million.

My Proposal

Prior to any bailout consideration for the Big Three whatsoever, the executives of each auto maker should be fired. These clowns had their shot and they blew it, much like those before them. I have a message to Mulally and Wagoner – I wouldn’t let you bums run a lemonade stand if I had one. You’re complete idiots.

Sure, they might use the excuse that the “old brass” of these companies restricts their abilities to execute and devise winning strategies. If that were the case, they should resign. Skilled leaders with real talent and integrity would walk away. They won’t be bought. Now I know why Ross Perot was pushed away from GM. He was too smart to fit in with the “old brass” mentality. Mr. Perot serves as a reminder that in America, if you’re really bright and creative, you stay far away from the corporate BS. You go off on your own.

Once again, prior to any consideration of a bailout, all previous executives should be canned. And all companies receiving taxpayer funds should place the new executives on a salary of $1 per year. Hey, if they don’t want the job I’m sure there are thousands of more capable leaders willing to take it for the challenge alone. Forget stock option compensation as an alternative unless they are held to a 10-year minimum exercise date. Taxpayers should protest in mass if this bailout goes through, especially if these losers are permitted to retain their position.  

Mainstream Media: A Reminder

Once again, you’ll get nothing less from me than the cold, hard truth as I see it. This is precisely why the mainstream media continues to censor me despite the fact that I’ve proven to be the leading authority on the economic crisis. The media is only concerned with protecting its political and financial agendas. You can imagine how upset their corporate sponsors would be after hearing the cold, hard truth from the leading authority who has no agenda other than to help combat widespread consumer and investor exploitation.

Unlike others out there, I’m not trying to sell you gold. Nor am I marketing an investment fund or firm. Unlike others, I’m not a perma-bear. I simply report my unbiased analysis with the mission to help everyday investors. Yet, you see who gets the most media exposure – those with terrible track records and those who seek to take your money. That is precisely why 99.99% of the people get steamrolled during bear market periods. They listen to the mainstream media while the select few profit from the misguided herd mentality. 

As a final reminder, you should NEVER EVER trust or listen to ANYONE on the televised media…no exceptions, even if they are bearish because these guys are either perma-bears and have been for years, or they’ve recently changed faces. Either way, THEY HAVE NO REAL CREDIBILITY. Once you bother to examine their motives and track record you will realize this. You would be advised to turn the channel anytime you hear anyone provide commentary about the economy or stock market. Otherwise, you will only have yourself to blame when you lose more money.

Always remember that perma-bears have even less credibility than perma-bulls since the market eventually trends upwards. But of course, perma-bulls will be disastrous to your portfolio during bear markets. Also keep in mind that bearish commentators seen on television are trying to sell you gold, get you to invest with them, or like Buffett, Rogers, Gross and other high-profile investors, they’re trying to alter the market psychology for their benefit. The others represent the guys who have recently changed faces, hoping you will remember them as one of the few who were “ahead of the curve” when the fact is they were gloating over the “great economy” a few months ago, denying a recession and proclaiming unprecedented “buying opportunities” month after month. If investors had better memories, they’d realize this. 

Mark my words, real experts with no hidden agendas will never be found on TV. The day you see a financial professional on television bash the media for their role in deception and manipulation, please let me know. Always remember, those who go on TV and refuse to call the media out are just as guilty as the rest of the crooks.   

 

This article was originally written in 2008 as a followup to the material I first wrote about pertaining to US trade policy in my banned 2006 book, America's Financial Apocalypse.  This book was not only the ONLY book in the world to have accuractely forecast nearly every major event related to the blow up of the real estate bubble and stock market, but also detailed numerous wide ranging topics that promised to adversely impact the US if not corrected, including the nation's healthcare system, soaring college costs, pension underfundedness, Social Security and of course, US trade policy. 

See Also:

Free Trade And The Suicide Of A Superpower (Part 1)

Free Trade And The Suicide Of A Superpower (Part 2)

Free Trade And The Jewish Mafia

Ford As A Crystal Ball For America

Ford: Playing Its Last Hand?

GM Lines Up for Its Take

Washington's War Against America's Middle Class

Video: Educating A Libertarian Hack From Harvard

7 Myths About US-China Trade and Investment 

The Scam Called Globalization

The Dirty Secret about Hedonics & Globalization

Thailand, Globalization and Real Estate Economics

America. What Went Wrong? (Part 1)

America. What Went Wrong? (Part 2)

America's Second Great Depression

NOTE: Mike Stathis predicted the precise details of the financial crisis in his 2006 book, America's Financial Apocalypse.

The Jewish Mafia REFUSED to publish this landmark book because it exposed the widespread fraud committed by the Jewish Mafia.

Instead, the Jewish Mafia published useless marketing books written by their broken clock tribemens (like Peter Schiff's useless book which was wrong about most things and was written a year AFTER Stathis' book).

Stathis also released a book focusing on strategies to profit from the real estate collapse in early 2007.

The Jewish media crime bosses prefer to simply ignore those who speak the truth and threaten to expose them as the best way to hide the scams from the public.

In contrast, the Jewish media crime bosses continuously promote Jewish con men and clowns who have terrible track records as a way to enrich them all while steering the audience to their sponsors, most of which are Jewish Wall Street and related firms. Figure it out folks. It's not rocket science.

 

View Mike Stathis' Track Record here, herehere, here, here, here and here.

 

 

Membership Resources

 


 

__________________________________________________________________________________________________________________

Mike Stathis holds the best investment forecasting track record in the world since 2006.

View Mike Stathis' Track Record here, herehere, here, here, here and here.

 

 
 

 

 


So why does the media continue to BAN Stathis? 

 

Why does the media constantly air con men who have lousy track records?

These are critical questions to be answered.

You need to confront the media with these questions. 

Watch the following videos and you will learn the answer to these questions:

You Will Lose Your Ass If You Listen To The Media

 

  

 

 

  

__________________________________________________________________________________________________________________

 

 

Print article

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These articles and commentaries cannot be reposted or used in any publications for which there is any revenue generated directly or indirectly. These articles cannot be used to enhance the viewer appeal of any website, including any ad revenue on the website, other than those sites for which specific written permission has been granted. Any such violations are unlawful and violators will be prosecuted in accordance with these laws.

Article 19 of the United Nations' Universal Declaration of Human Rights: Everyone has the right to freedom of opinion and expression; this right includes freedom to hold opinions without interference and to seek, receive and impart information and ideas through any media and regardless of frontiers.

This publication (written, audio and video) represents the commentary and/or criticisms from Mike Stathis or other individuals affiliated with Mike Stathis or AVA Investment Analytics (referred to hereafter as the “author”). Therefore, the commentary and/or criticisms only serve as an opinion and therefore should not be taken to be factual representations, regardless of what might be stated in these commentaries/criticisms. There is always a possibility that the author has made one or more unintentional errors, misspoke, misinterpreted information, and/or excluded information which might have altered the commentary and/or criticisms. Hence, you are advised to conduct your own independent investigations so that you can form your own conclusions. We encourage the public to contact us if we have made any errors in statements or assumptions. We also encourage the public to contact us if we have left out relevant information which might alter our conclusions. We cannot promise a response, but we will consider all valid information.


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In August 2009, Mike Stathis posted a reward for the first person who could prove that there was a financial professional that could match his track record before, during and after the economic collap...

ANOTHER Security from Our Recommended List Gets Bought Out

Today, WellPoint (WLP) announced a $4.46 billion buyout offer for Amerigroup (AGP), causing shares to soar by 38%. Since being added to our recommended list just over two years ago, shares of AGP have...

Is it Too Late to Make Money from Our Video Series?

We have received several inquiries recently from investors wondering whether it’s “too late” to purchase the video series we have been highlighting because they have seen how we nailed so many of thes...

We Predicted the Market Correction AGAIN

Here, we provide readers with a glimpse of our market forecasts between February and April 2012 demonstrating once again that we are the best market forecasters in the world. As many of you recall,...

Market Guidance from March 2012 Dividend Gems

Originally Published on March 13, 2012, Dividend Gems Opening Statement   In late January the Federal Reserve Bank announced that it intended to keep short-term interest rates at current...

Dividend Gems Destroys the S&P 500 Index AGAIN

Last week, we showed how the Dividend Gems Recommended Securities List was holding up through the current market correction, from the time the May issue was released, through June 2. The performance o...

Another Huge Winner in a Few Weeks

The winners keep on rolling in. The chart below shows the past 12 months of a stock I have loved for several years.  Like many of my past small and mid cap growth stories, this one was un......

Another Security from the Intelligent Investor Soars

On April 5 before the U.S. market opened, we released the monthly issue of the Intelligent Investor; about 70 pages discussing everything from domestic and global economics, to currency, gold, silver,...

We Pin-Pointed the Past Two Market Tops and Bottoms

What is you knew when to sell the stock market in May and when to buy it back? If you knew this information, you wouldn't even need to know a thing about securities. All you would need to do is sell w...

Dividend Gems Holds Up as the Stock Market Collapses

Over the past several months we have been publishing the spectacualr outperformance of the securities in the Dividend Gems Recommended List.  Here, we show the performance of each of th......

Where is the Stock Market Headed?

How much more will the stock market decline? Should you sell? When should you buy?

Dividend Gems Continues to Smash the S&P 500 Index

While the 10-year U.S. Treasury Note continues to languish in a sea of global uncertainty, all while short-term interest rates remain at dangerously record-low levels, more than 200 U.S. listed securi......

Stock Market and Economic Overview

Approximately three months weeks ago the U.S. markets began to correct. We warned about this first correction in the May issue of our firms paid research publications.

Debt Ceiling Resolution Smashes HMOs and Healthcare REITs, While Boosting other REITs

On Friday, Amerigroup (AGP) reported disappointing earnings partly due to an account error. However, after adjusting for this issue, earnings still came in considerably lower than consensus. The...

LinkedIn Engaging in Illegal Business Practices

I'll be short about this because I have better things to do than devote my time to useless companies who boast a basic website as their main asset. For several years now, LinkedIn has blatantly v...

Dividend Gems Outperforms Again

As the market has sold off over the past month, the Dividend Gems Recommended List has once again outperformed. Below are charts representing EVERY security in the Dividend Gems Recommended List so yo...

Market Pulse and Earnings

The market has been boosted recently by strong earnings from INTC and others. This latest round of earnings has largely dampened any negative sentiment that may have been rising due to so-so earnings,......

The Impressive Performance of Dividend Gems

We wanted to take this opportunity to remind you about our newest investment newsletter, Dividend Gems.

Market Pulse

Just some quick thoughts, nothing set in stone here. Earnings are starting to come in a bit "ify;" not so great, but not bad. Expectations are key.   Starting to see a few m...

Trader's Notes and Forward Catalysts

Wednesday, March 2nd: US (Fed’s Beige Book, MBA Mortgage Applications, Challenger Job Cuts, ADP Employment Change); EuroZone (Euro-Zone PPI); Latin America (Brazil rate decision).  Thursd......

Does AVA Investment Analytics Have Insider Information?

In the November 2010 issue of the Intelligent Investor newsletter, our Chief Investment and Trading Strategist, Mike Stathis added Atheros Communications (ATHR) to his recommended list. At......

Trader's Notes and Forward Catalysts

(website issues are being addressed) Funds Flow Out of EM Equities and Into Bonds Emerging market (EM) assets showed mutual fund outflows of $1.4 billion in the week to 23 February 2011, with inflow......

Dividend Gems Shines As the Market Corrects

As many of you know, we just launched the first issue of our newest investment newsletter in February called Dividend Gems. Given the recent correction in the market, we wanted to show the perf......

Commentary on Recent Market Activity and Global Events

We will be releasing a commentary written by our Chief Investment Strategist, Mike Stathis some time this evening for subscribers of the Intelligent Investor and Market Forecaster newsletters. Mike......

Two Additional Recommendations

Mike has added 2 new stocks to his recommendations contained in the Intelligent Investor, one soft line retailer and the other from high-tech. Subscribers who did not receive this brief report, pleas......

4-Day Gains of 30% for 2011 and 2010 Performance

A couple of days ago I showed you how a stock I had been in and out of for over a year had performed since recommending another entry point in the January 2011 newsletter.

Newsletter Stock Recommendation Soars More Than 25% in Just 3 Days

Just a note to those who haven't signed up yet for the newsletter. In just three days since the newsletter was released, one of Mike's most highly recommended stocks soared by more than 25%.  Hav......

Ireland Bailout Talks Timed to Save the Global Markets

I'll be brief here. If you retrace the events over the past two years and you are familiar with the market activity, you will come across one recurring trend; the timeliness of bailouts and other meas...

A Great Time to Buy?

Buy you ask? Yes. Not stocks, unless you’re talking about oil. And unless you’re the best of the best of traders you’ll probably want to buy the oil trusts, but only if you b...

ALERT: Close All Accounts With Charles Schwab ASAP

I want to warn those of you who have accounts with Charles Schwab to close your accounts immediately. The situation involves errors in order entry for which Schwab refuses to acknowledge or correct.

Filtering Through the Noise

Early last month, the Commerce Department released the latest GDP data. For Q2 of 2010 the GDP growth came in at 2.4%, missing the consensus estimate of 2.5%. The Commerce Department also released it...

Interview with Mike Stathis Released

Effective immediately, and for a limited time only, we are offering readers a transcript of a recent interview given by Mike Stathis, the Chief Investment and Trading Strategist of...

More Lies from Greenspan

Today, the criminal PR arm of Wall Street, CNBC, interviewed Alan Greenspan hoping to draw a big audience of sheep using the "big name" tactic. Forget Greenspan is the single person most r...

A Blast from the Past

I hate repeating myself over and over. Who doesn't right?   Well, it's especially cumbersome to repeat oneself when the only form of communication you have is writing (albeit with extr...

Which Company Faces the Highest Risk of a Slowing Growth Due to the Deep-Water Drilling Ban?

I'll be concise here. The White House's recent 6-month ban on deep water drilling could send ripples throughout the industry, specifically for oil exploration firms that have a large amount of ul...

Which Country Has the Largest Percentage of Governent Debt Due to Net CDS?

I've added this question to the website poll to the left, so I want to encourage you to take a stab. Before you place your vote, I will go ahead and tell you the answer is NOT Greece. So y...

Brief Market Notes

I wanted to give you an overview of what I see today and explain how you should view things, emphasizing the need to understand your own investment strategy, because I know that those who read th...

New Market Forecast + Update on BP

As subscribers to the AVAIA newsletter know, the special report released on May 9 was quite accurate. In short, anyone who had access to the special report could have avoided up to an ...

Update on British Petroleum

A couple of weeks ago, I released a report discussing how I was able to get in on Merck for big gains, while virtually everyone else left the company for dead after the Vioxx scandal played out. /arti...

More Misguided "Forecasts" from Peter Schiff

In the past, I have addressed the errors made by Peter Schiff's analysis of the economy and healthcare.  For those of you who are still behind the curve and actually think Schiff...

Huge Market Sell-off. What Should You Do? Buy, Sell or Hold?

Subscribers to the AVA Investment Analytics newsletter will be receiving a special report that discusses forward direction of the market, as well as analysis of selected securities. Thi...

How to Catch a Falling Knife (Yes it Can Be Done)

In the Wall Street Investment Bible, I discussed other securities I that had a good chance of bankruptcy down the road (e.g. Blockbuster and Sirius Satellite). Regardless what ultimately happens...

The Dow Takes Everything Down With It, EXCEPT

Rather than a sigh of relief, Greece's bailout signals more to come from Eastern Europe.  And rather than a more peaceful Greece, it the EU-IMF bailout is likely to result in major riots and...

The Real Story of Monsanto

Okay folks. I've been working on the May newsletter over the past few days and one of the securities submitted for analysis was Monsanto. I've actually meant to do some write-ups on the controversial...

More Smokescreens from the SEC

I don't want to waste anymore time on this than I have to. Let me just say that the SEC's latest bogus attempt to prevent another securitized asset blow up is a complete joke. The SEC ...

A Lesson in Market Forecasting

Before I begin, I would like to say that most of you will need to actually study this article. You will need to read it and reread it. You will need to look at your own charts of the Dow.....

Bloomberg to the Rescue, Delivering "News" to Investors

Here's an article discussing the fact that JP Morgan and Citigroup escalated the collapse of Lehman Brothers by increasing the collateral and altering terms and conditions for lending.

Where is the Stock Market Headed?

The past six trading days has not been kind to the market, despite some rather good earnings reports from AMD, GOOG, and many other companies one might expect to not be faring so well. However, one of...

Blast from the Past: Real Estate Then and Now

This is just a reminder to those who don't know about me. 

WaMu Insider Trading & Naked Short Selling

A couple of weeks ago, I wrote a piece discussing allegations of insider trading and illegal naked short selling of Washington Mutual, involving the banking cartel and potentially their hedge fund cli...

General Electric: Look Out Below

For years, investors boasted what a great company General Electric was. Even CEOs marveled at the company's ability to consistently deliver strong earnings growth despite its massive size....

WaMu: One Year Later and Still No Indictments

This September 25th 2009 marked the one-year anniversary of Washington Mutual’s seizure, by the Office of Thrift Supervision (supposedly) as a result of insolvency (supposedly). Last year, on O...

Evidence the SEC Ignored WaMu's Request to be SAVED

Hopefully, you have read my recently released SEC complaint alleging insider trading and illegal naked short sales involving the banking cartel, as well as criminal involvement of former SEC ...

America's Financial Apocalypse: What Can YOU Do as an American?

My advice is to find some people who you trust; those with proven track records, those who are not tied to the television shows. Figure it out. You are only going to be misled by the mainstream med...

Blockbuster Then and Now: Lessons for Traders and Investors

It’s extraordinarily rare to find a book that provides specific securities analysis, enabling investors to profit based upon the recommendations. One of the reasons this is such a rare event is...

This COULD Be the Wake Up Call

Just off the press, UK Prime Minister Gordon Brown has warned about the critical juncture of the economy and has warned about spreading the propaganda of a recovery.  http://finance.yahoo.......

Easy Money in Healthcare 'Till September

I don't know if anyone read the two posts I made on Monday about healthcare and HMOs, but they were lost when the site was hacked since I did not have a backup that recent.  Anyway, in cas...

Get Your FREE Copy of Cashing in on the Real Estate Bubble

That's right, I said free. I'll even pay for shipping.  All you have to do is help yourself.  Okay, so what does that mean?  

How to Get a Free Copy of my New Book, America's Healthcare Solution

I've been working feverishly trying to complete my healthcare book. It's been a very difficult challenge juggling this project off-and-on for three years. 

The Case for Market Timing

To those of you who say it's impossible to time or forecast the market; to those of you who keep wasting your time reading and watching the clowns positioned as so-called "experts" by the me...

eBay's Slow and Painful Death Spiral

Despite a big boost in shares in after hours trading, Wednesday's (disappointing) earnings for the online auctioneer represent a continuing trend that will not be broken anytime soon. Yes, t...

AMD Earnings Confirm the Realities of the Economy

Today after the bell, Intel's only major competitor AMD reported disappointing earnings, missing by a large mark. This confirms what I discussed in the recent report released to newsletter subscribers...

Play the Trade, But Don't Be a Sucker

I ran across this ridiculous headline on Yahoo! Finance (which is nothing more than the CNBC of the Internet) and I wanted to make a few comments. 

Ford: Playing Its Last Hand?

 An article from the Huffington Post today claims that Ford is "secretly" in talks to sell Volvo.  First, let me say that this is another example of the media trying to create the perceptio...

June Update

The following report was released on June 10th as a follow-up to subscribers to the June newsletter.    

Attention Traders....Wake Up Richer on June 20!

ATTENTION TRADERS: Options go on sale next week! Starting June 15, Bernie Schaeffer is releasing 10 hot trades targeting gains of +100% or more. And each trade will close by June 19. 5 Days 10 HO......

KKR Finds a Sheep Warehouse to Dump its Trash

 I ran across an interesting announcement that bodes well for Fidelity and KKR. But I’m willing to bet it will be a bad deal for unsuspecting Fidelity investors.   Kolberg Krav...

Hedge Fund Shame

Early last year, I made a prediction that seemed obvious, given what I knew about the banking system and the fate of the stock market. I predicted there would be thousands of hedge funds shutting down...

Market Update

Just a note about my postings. Some of you may be wondering why I have been making so many posts about the media, while ignoring the market and economy.  The reason is two-fold. First of all, u...

Vultures Galore!

In the recent past, I have cautioned investors against becoming prey to the vultures seeking to exploit your desperation, panic, fear and in some cases, ignorance of what the future of the capital mar...

SEC Shame

Many of you who have followed me and read my most recent books (The Wall Street Investment Bible/2009 and America’s Financial Apocalypse/2006 & 2007) know that I feel the SEC is beyond...

America's Financial Apocalypse

America’s Financial Apocalypse       How to Profit from the Next Great Depression    (also attached as a PDF below)     Part I: America’...

America's Financial Apocalypse: A Crystal Ball for the Next Decade?

I'm getting quite bored watching the latest economic headlines surface. Bored you say?  Yes BORED.

Beware of the Vultures

The economy is bad and getting worse. And it certainly isn't going to improve by much for a long time. Sure, the government will fool many with it's bogus data. But at the end of the day, millions wil...

The Stress Test Scam (Part 2)

Printing more money won't solve America’s problems; quite the opposite. It's going to damage the economy further. And these effects will be lasting. You will see them soon. At the very least, we...

The Stress Test Scam (Part 1)

I haven't made any comments about these so-called stress tests for the banks because it was obvious (to me anyway) it was just the latest PR scam devised by Larry Summers (carried out by his puppet, G...

Swine Flu: A Follow-up on Trading the Hype

Last week I released a piece that no other (qualified) financial professional was willing to expose because (in my opinion) they don’t want the masses to know how event-driven media-hyped tradin...

Signs of a Continued Rally?

It's been a while since I made any posts about the market because there hasn't been much to discuss. A few weeks ago, I mentioned that the 8200 level was fairly significant and represented a pivo......

Swine Flu Panic: Trading the Hype

I wanted to discuss this whole swine flu hype that’s been blown out of proportion to illustrate how the media creates illusions from what would seem to be valid information. This also relates to...

Sirius Satellite: Seriously Down, and Going Lower

It’s a bit funny to see that the SIRI stock pumpers are still at it, despite facing nothing but absolute humiliation after making ridiculous claims and clinging onto their delusions of grandeur...

Bank of America's Lewis: Another Scapegoat

The news of Andrew Cuomo's letter to Congress revealing that former Treasury Secretary Paulson threatened to fire Bank of America's CEO Ken Lewis and oust the board if they tried to block the Mer...

It's Time to Face the Facts (Part 2)

Fact #5. Most of the Lost Jobs Will Not Return What no one seems to understand is the fact that these job losses are not temporary. Most of them simply aren’t coming back. I’ll guarantee...

How the Media Uses Buffet to Make Money

In the previous part of this article we saw how what Buffett invests in doesn’t matter to you. Let’s look at an example how the media uses the Buffett name to make money. I’d like to...

Tax Day Tea Parties: Americans Fooled Again.

I decided to check out a couple of these so-called tea parties so I could confirm what I already knew.  Let me just say this.  I was disgusted by the naive nature of those in attendence...

The Price of Honesty

You might recall a recent article I wrote called "Madoff in Perspective" where I point out that the real Ponzi scheme is being ignored - that orchestrated by the financial industry.  I also make...

Did You Get a Raise Last Year? CEOs Did.

WASHINGTON (Reuters) - More U.S. chief executives got pay raises than had their pay cut in 2008, a year when billions in taxpayer dollars went to prop up struggling companies and millions of workers...

Where Do We Go From Here?

I failed to post anything about the market rally on this site (since it's still not 100% up and running). But I did make a couple of brief posts elsewhere a couple of days ago. Basically wha...

Mark-to-Market Isn't the Problem

It seems as if many have been fooled by those supporting the banks. The general argument that has been made is that mark-to-market accounting has been largely responsible for the banking mess since it...

Fair Value is Here, But Watch Out Below

The stock market (the DJIA) is now very close to fair value from a long-term perspective (if that even means anything to an individual investor, which it may not). Those who read America’s Finan...

America's Financial Apocalypse: 2009 Update

Posting When It Matters I want to thank those of you who've patiently waited during my apparent hiatus. I certainly wasn't on vacation. I don't take vacations. As I've said in the past, I'm not one ....

An Offer the Big 3 Can't Refuse: $50 Million per Mile

NOTE: Mike Stathis predicted the precise details of the financial crisis in his 2006 book, America's Financial Apocalypse. The Jewish Mafia REFUSED to publish this landmark book because it...

Market Guidance: Past, Present and Future

Despite the strong closing bounce off the new intraday low of around 7400 reached on Friday, it’s likely the Dow has further downside. These lows may not occur for another 12-18 months.

Yang + Yahoo! = Yikes!

This is the first time I’ve written anything about the Yahoo-Microsoft deal because I typically don’t allow myself to get distracted by noise. In fact, I’ve been receiving numerous e...

Risks of the Proposed Bailout: Part 3

Blind Man’s Bluff Most of us have played Blind Man’s Bluff as children. It’s such a popular game among kids that several versions now exist. In case you don’t remember, here&r...

Risks of the Proposed Bailout: Part 1

Bailout or Not. Depression is Upon Us McCain, along with Paulson, Bernanke, Bush and others are using scare tactics hoping to rush the approval of this historic banking bailout plan. Threats of a &ld...

The Death of Wall Street. Part 2

Searching for Sanity Wall Street’s business model is broken. The high stakes game of Russian roulette which Wall Street never seemed to lose, is taking them down one by one. Commercial banks ar...

Bailouts Disguised as Buyouts

  Bank of America’s buyout of Merrill Lynch seemed laughable to me - that is until I realized the full picture. With a $50 billion all-stock deal valued at $29 per share, at first glance...

The Death of Wall Street. Part 1

Although not yet official, the verdict is on the way. Bear Stearns led the death march a few months ago. Now, Lehman’s bankruptcy filing signals the halfway mark of what will end up being the de...

The Plain Truth

I Repeat… I continue to be amazed by so many out there, from the pundits with their agendas to the so-called experts who zoom in on every grain of short-term optimism with an electron microsco...

Fannie and Freddie

Now we come to the Fannie/Freddie bailout. This is certainly a true bailout; not because taxpayers are on the hook for potentially $5.3 trillion, but because there was a moral hazard established once...

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