The Bailout is a disaster.

 

Fannie, Freddy, AIG, and Investment Banks may have known something about mortgage investing.  Their objective, however, was to make Millions for the executives at a loss of Billions to the shareholders.  The CEO of WaMu was paid ~15 Million for 3 weeks of employment…  One Million dollars per day!

 

Bush, Paulson, Bernanke, and Congress (BPBC) know nothing about mortgage investing.  None of them have actually done it.  I have been doing mortgage investing (profitably) for 30 years.  Who you gonna call?

 

BPBC want 700 Billion for the Bailout because Dr. Bernanke says that 700 Billion represents 5% of 14,000 Billion in Mortgage Backed Securities which will default.

 

BPBC has it all wrong… 100% backward.  The 700 Billion in defaulted mortgages may be worth more (per mortgage) than the 13,300 Billion in 30-year mortgages which are held to maturity.  To wit:

 

1.  The 13,300 Billion in mortgages are yielding about 6% after servicing.

 

2.  The CPI is a government lie.  The actual rate of inflation is now 12%.

 

3.  The actual rate of inflation will go to 18% or more as a result of uncontrolled government spending such as the 700 Billion Bailout.  The government is going to print most of that money.

 

4.  A defaulted $150,000 mortgage can be foreclosed.  $90,000 can be recovered.  100 ounces of gold at $900 per ounce can be purchased with the proceeds.

 

5.  A performing $150,000 mortgage yielding 6% pays $900 per month for 360 months… A payout of $324,000 over 30 years.  This is roughly equivalent to receiving a lump sum of $162,000 after 15 years.

 

6.  A $900 ounce of gold today will be worth $10,800 after 15 years at 18% average real inflation.

 

7.  The defaulted mortgage is worth  $1,080,000 in gold after 15 years.

 

8.  The performing mortgage is worth $162,000 in cash after 15 years.

 

The defaulted mortgage is worth 6.6 times the performing mortgage. 

 

Do not believe Bush, Paulson, Bernanke, and Congress. 

 

Stupid is as stupid does.

Stop! Look! Listen!

  

Six years ago, Bush and most Solons were saying:  We must act now and act fast to prevent Saddam Hussein from obtaining nuclear weapons.*

Six months ago, Secretary Paulson was saying:  The banking industry and the financial system are strong.

Six weeks ago, Bush was saying:  The economy is basically sound.

Two weeks ago, McCain was saying:  The economic fundamentals are strong.

Now, Bush and most Solons are saying:  We must act now and act fast with $700,000,000,000 to prevent a total and catastrophic banking industry and financial system crisis.

Bush and most Solons were totally wrong in the past.  Why should anyone believe that they are correct now?

*Iraq’s WMD turned out to be chemical artillery shells which were identical to the chemical weapons which were used by both sides in WW-1.

WHERE IS THE FOCUS?

   

     

Why is it that most Democrats are focused on environment?  Why is it that most Republicans are focused on abortion?

 

Answer:  People are both ignorant-of and incapable-of discerning the multitude of serious problems.

 

If I were to carve a totem pole representing the serious problems facing the USA today, I would run out of pole long before getting to environment and abortion.

 

Examples:  An attack on Iran is inevitable.  Russia is getting touchy and is in bed with Iran.  The U.S. is incapable of concluding the wars in Iraq and Afghanistan. The free world has gotten tired of the U.S. wars and the USA itself.  The U.S. is incapable of staying-out-of and spending-money-on other people’s problems.  The U.S. economy is tanking.  Our solons were ignorant of it, ignored it, and/or facilitated it.  Massive inflation is inevitable due to the out-of-control spending and the printing of money.  Nuclear war is probably inevitable.  There is enormous dissatisfaction with our government and our corrupt political process.  Dishonesty, lying, omission, ignorance, and the changing of positions by solons has become the norm.  It is not beyond comprehension that some states may want to secede from the USA in order to govern themselves and their borders properly.

 

Were these problems confronted by Bush in his State-Of-The-Union address?  No!  Bush was concerned about the use of steroids by baseball players which resulted in a unproductive and costly congressional investigation in which people simply lied.

Advice For TSA

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These are Muslim Terrorists:

 

Muslim Terrorists

 

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This is an American Traveler:

 

American Traveler

 

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This is a Traveling Speaker*:

 

What, Me Worry?

 

* Constantly travels and reads prepared speeches.

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Profiling Hint for TSA:

EVERY AIRLINE TERRORIST IN 10 YEARS

HAS BROWN EYES!

I cannot fathom the superlative stupidity and ineffectiveness of the TSA

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NASA’S MOON-ICE PROBE BOONDOGGLE

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These are the words of NASA at http://science.nasa.gov/science-news/science-at-nasa/2009/24sep_moonwater/ :

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“As much as 1,000 water molecule parts-per-million could be in the lunar soil.  To put that into perspective, if you harvested one ton [32,000 ounces] of the top layer of the Moon’s surface, you could get as much as 32 ounces of water.”

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There is no recoverable “ice” on the Moon.

There is no recoverable “water” on the Moon.

There is 1 molecule of H20 per 1,000 molecules of Moon soil.

There is ”as much as” 0.1% H2O in the Moon’s surface soil.

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Man is not going to be drinking Moon-water on the Moon.

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Man is not going to be breathing O2 produced by electrolysis of Moon-water on the Moon.

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Man is not going to be producing 2H2 and O2 by electrolysis of Moon-water for use as interplanetary rocket propellant.

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NYC MOSQUE

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Well, either you’re closing your eyes
To a situation you do now wish to acknowledge,
Or you are not aware of the caliber of disaster indicated
By the presence of a mosque in your community.
Ya got trouble, my friend, right here,
I say, trouble right here in New York City

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The NYC mosque protesters all proclaim:  “We’re not against Islam;  We’re not against Muslims;  We’re not against mosques.” … We simply don’t want this mosque near Ground Zero because it is an insult to the families of the 3,000 inocent people who were killed on 9-11 (by 19 radical Muslims).

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Wake up New York City! Does your sense of political correctness mandate your illusory rhetoric to the extent that you do not even realize what you are truly thinking and saying?

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Until the day arrives when ALL of “Islam” excommunicates and loudly disavows  ALL the Imams and Muslims who accept, permit, condone, or advocate violence and the killing of Infidels…  A part of Islam will remain the enemy in “War on Terror”.

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The Government Motors VOLT … guaranteed loser

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All about the Government Motors VOLT (except MSRP) is found at:

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http://www.chevrolet.com/pages/open/default/future/volt.do?seo=goo_|_2009_Chevy_Awareness_|_IMG_Chevy_Volt_

Phase_2_Branded_|_Volt_HV_|_volt

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The anticipated MSRP has climed to a $39,000 break even price.  Forget about the Government ever making a profit.  If the Government could break even, the USA would not have a $13,315,000,000,000+ national debt.  The U.S. Government will give a $7,500 tax credit  in order to get people to buy the Volt and lose more money.

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GM has a long history of automotive pink elephants, failures, and money losers.  The following GM disasters are from my limited memory alone. To wit:

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An early GM failure and money loser was the Copper Cooled Engine.

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GM followed up, decades later, with the air cooled Corvair.  The Corvair was “Unsafe At Any Speed” and made Ralph Nader famous.  The Corvair would spin out on a curve.  The Corvair also had a fan belt which made two 90-degree bends in two different planes, and broke frequently.

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GM spent millions screwing around with the Wankle rotary engine just to determine that there was no advantage to producing it.

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GM converted a SI (spark ignition) gasoline engine into a CI (compression ignition) diesel engine.  GM installed its light weight diesel in its top vehicles… Caddy and Olds.  The engine would fall apart and was a disaster which made the Caddy and Olds brands a joke.

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Since 1911, every electric car has been a money loser.  GM came out with the EV-1 and sold it in California where everyone drives 75+ MPH.  The EV-1 proved again that an electric car is a loser.

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GM will now produce the VOLT.  Vast government funds were provided for electric car development.  WOW… The Volt goes 40 miles on a 10-hour 120 VAC charge.  GM will buy the batteries from a South Korea company.  WTF?

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IF GASOLINE IS AVAILABLE, THE GM VOLT WILL BE A LOSER.

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THE ONLY THING WE HAVE TO FEAR IS…

Out-of-control government spending,

Out-of-control government expansion,

Out-of-control government regulation,

Out-of-control state bail-outs,

Out-of-control tax increases,

Loss of state’s rights,

Loss of personal freedoms,

Loss of constitutional protections,

Unending Islamic jihad,

Unending Islamic terrorism,

Unending “nation-building” wars,

Unending foreign aid to Pakistan,

Unending industrial outsourcing,

Incompetent government bureaucracies,

Incompetent government administration,

Incompetent government Czars,

Incompetent government employees,

Incompetent and corrupt Congressmen,

International oil embargos,

Devastating domestic unemployment,

Inevitable socialistic welfare state,

Inevitable thermonuclear warfare, and

Inevitable HYPERINFLATION!  To wit:

http://inflation.us/videos.html

WHO IS THE USA FIGHTING IN AFGHANISTAN?

WHY can’t the USA win in Afghanistan?

HOW can the Taliban (living in the Pakistan mountains without toilet paper) fight the USA for 9 years with an unlimited supply of arms, ammunition, and sophisticated IEDs?

The USA has been fighting IRAN and PAKISTAN.

The Taliban, who are living in the mountain wilderness areas of Pakistan, do not have the ability to make or to buy supplies of arms, ammunition, and IEDs.

WHY has the our government NEVER told us the obvious truth about the unending and unwinable War in Afghanistan?

The USA can never win a war in which we refuse (or are too stupid) to  identify the enemy.  Wikileaks.org is illuminating…..

– Iran is waging a covert campaign against US-led forces in Afghanistan by providing money, arms, training and safe haven to Taliban insurgents, the files alleged. A report to the US Embassy in Kabul from the Afghan Foreign Ministry said Iran was trying to expand its influence in the country.

– Pakistan was actively collaborating with the Taliban in Afghanistan while accepting American aid, the files claimed. US documents said representatives from Pakistan’s Inter-Services Intelligence met directly with the Taliban to organize insurgent networks fighting US soldiers.

THE GULF OIL SPILL DICHOTOMY

When the Macondo blowout happened, it was because the BOP had not shut down the well.

Then Tony Hayward said the cause of the blowout could not be dicerned until the BOP was examined to determine why the BOP had not shut down the well.

When the oil flowed into the Gulf at 1,000, then 5,000, then 18,000, then 25,000, then 35,000, and then 60,000 barrels per day, It was because the BOP had not shut down the well.

BP was criticised for modifying the BOP because the BOP had not worked.

BP was criticised for short cutting testing of the BOP because the BOP had not worked.

BP was criticised for a hydraulic leak in the BOP because the BOP had not worked.

BP was criticised for ignoring rubber seals comming out of the BOP because the BOP had not worked.

THE DICHOTOMY IS THAT BP, DOE, AND ALL THE EXPERTS ARE AFFRAID TO SHUT DOWN THE WELL IN TWO SECONDS LIKE THE BOP SHOULD HAVE DONE 88 DAYS AGO.

THE WORST CASE SCENARIO FOR THE MACONDO BLOW-OUT

First Tony Hayward said:

The “worst case scenario” was to wait for the relief well.

Then Tony Hayward said:

“The ultimate solution relies now on the relief well… which is in August.”

Hayward has been wrong on the efficaciousness and extent of every kill procedure, every oil recovery procedure, every damage assessment, and every clean-up attempt. Hayward is oblivious to the “Worst Case Scenario.”

Now comes J. Marvin Herndon:

http://en.wikipedia.org/wiki/J._Marvin_Herndon

In the videos below, Herndon talks about the reservoir pressure being 68,000 psi to 100,000 psi. If the reservoir pressure is over 15,500 psi (13,000 psi mud plus 2,500 psi water), there is very little chance of killing the Macondo with 13,000 feet of mud up to the BOP.  When the relief well fails, and it probably will, we can then start contemplating the real Worst Case Scenario.

Herndon talks about the possibility of a volcanic steam eruption and the resulting tsunami which could travel for miles inland.

Herndon predicts that methane hydrate (SG = 0.9) probably exists in the flow from the reservoir, and that the methane hydrate (fire ice) can burn without oxidizer.

Herndon also makes reference to the existence of TWO pieces of drill pipe inside the BOP and explains how it happened.

Part 1 — http://www.youtube.com/watch?v=FSuuAFBPwh0&annotation_id=annotation_734196&feature=iv

Part 2 — http://www.youtube.com/watch?v=BSLtKML1Low&annotation_id=annotation_77981&feature=iv

THE BP RELIEF WELLS MAY NOT WORK.

Assume that the distance from the relief well

intercept to the top of the BOP is 13,000 feet.

Assume that the injected mud has s.g.= 1.5 g/cc.

The mud will provides ~0.75 psi/foot of head.

The maximum back-pressure obtainable from

the injected mud is 13,000 x 0.75 = ~9,750 psi.

The sea water pressure at the BOP is ~2,500 psi.

The maximum back-pressure obtainable from the mud

plus the sea water is:  9,750 + 2,500 = ~12,250 psi.

Thus, if the oil reservoir pressure is over ~12,250 psi,

THE INJECTED MUD WILL NOT STOP THE OIL FLOW.

The BP CEO testified that the oil reservoir pressure

was between 11,000 and 12,000 psi.  The CEO and BP

have been LOW on every number they have provided.

Plus:  Oil, Methane Gas, and Methane Hydrate will dilute

the mud and reduce the mud’s available back-pressure.

The oil flow may not be stopped by the relief wells until

the oil reservoir pressure decays significantly.

WAKE UP AMERICA! You can’t take the truth.

“I will say that I am not, nor ever have been, in favor of bringing about in any way the social and political equality of the white and black races, that I am not nor ever have been in favor of making voters or jurors of negroes, nor of qualifying them to hold office, nor to intermarry with white people; and I will say in addition to this that there is a physical difference between the white and black races which I believe will forever forbid the two races living together on terms of social and political equality.

And inasmuch as they cannot so live, while they do remain together there must be the position of superior and inferior, and I as much as any other man am in favor of having the superior position assigned to the white race.

I say upon this occasion I do not perceive that because the white man is to have the superior position the negro should be denied everything.”

Abraham Lincoln on 9/18/1858.

The Fifth Lincoln-Douglas debate.

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The good thing about Abe Lincoln was that he spoke the truth about what he believed.  Lincoln spoke in no uncertain terms.

The sad thing about America is that we can’t take the truth about

Abe Lincoln or anything that is not Politically Correct.

I was not taught the truth about Lincoln.  Our children are not taught the truth about Lincoln.  Americans can’t take the truth.  Political Correctness is not truth.  The truth is not taught, or printed, or reported, or discussed, or debated when the truth is not politically correct.

Are Americans better people because we can’t take the truth?

Are Americans more capable of dealing with issues because we can’t take the truth?  America has concluded that maintaining ignorance is preferable to discerning truth.

One example of ignorance is to make the ‘I have a dream’ speech

in front of the Lincoln Memorial.

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