Please Answer the Following

Ushering in a new era of change by supporting a bunch of delinquents, lobbyists, and criminals for cabinet positions, our president is off to a horrible start. Combine that with his belief in Friedman economics and the architects of our current banking system, and we are left wondering, what the hell is going to happen to us?

1. Why Geithner? As Jim Rogers points out, isn't he the co-author of TARP? Wasn't he the chief of the NY Fed the last 5 years while Wall St. was committing its most egregious crimes? The following quote from Eric Janszen of Itulip casts an even dimmer light on this turd:

"All of the Geithners’ mortgages - from big banks including Nationsbanc, which is now Bank of America; Chase Manhattan, which is now J.P. Morgan Chase; and Wells Fargo - carried adjustable-rate mortgages with the risk that annual rate increases could raise their interest payments to as much as 11.25 percent, though the couple tended to refinance or sell their homes before they faced a rate adjustment. They also took out second mortgages, now known as home equity lines of credit, borrowing a total of nearly $1 million in 2002 on their second Bethesda home, which they bought a year earlier for $1,085,000.

Don’t know about you, but I want my Treasury Secretary to either own his house outright or if he is going to hold a mortgage at least show that he knows a lot more about household finance than Gary Coleman."

2. Why not nationalize these zombies? Alan Grayson, a Florida Rep. who is seemingly in touch with financial lingo, grilled Citi CEO, Vikram Pandit this week. Where in the world could someone other than these clowns get $250 billion in insurance for $7 billion? Please watch the amusing show:

http://www.youtube.com/watch?v=A-DOwLnQ4nk&eurl=http://www.itulip.com/

3. Why didn't USO go up yesterday? Ahh, glad you asked. As I've been recommending these futures and buying them, I was alarmed yesterday as well as oil went up 10% and USO went down. Then I read this: http://www.bloomberg.com/apps/newspid=20601012&sid=a9Rbrv6mYbdQ&refer=commodities

Turns out that USO represents the price of oil in Cushing, Oklahoma. As inventories have risen there recently, the spot price has not managed its usual correlation with London crude. Until OPEC or the NYMEX steps in, this discrepancy may continue to widen. But, we've got 23 months for that to happen, so I'm not concerned.

4. Why are our leaders a bunch of morons doomed to repeat all of the same mistakes Japan made except that we don't have the intelligence or savings of the Japanese? Great question. This stimulus package is clearly not enough money to stimulate anything. On the other end, why are we encouraging more spending and more debt? Isn't that what brought us to this mess? Yes, but Geithner and company will not write this down and cripple our banks so that we can reset. This will send the market down and put his buddies out of business, in the same way that Paulson refused to do it. So we are destined for a series of meaningless policy changes and money printing that will make things worse. Consumer spending is 70% of GDP. Do you really think that we have any chance for growth this year?

Gold was up 3% this week. Saks under $2. Gannett under $4.50. Not too late to short newspapers to 0, just give yourself a little time. I requested that Itulip.com ask Jim Rogers how we can replicate his commodity index through ETF investing when they interview him next month. I will let you know if I get an answer.

And finally, congrats to Dr. Mike who has not only had the balls to buy double-inverse ETFs, but to leverage them with calls on forward month contracts! Now that's playing for the homerun!

http://www.itulip.com/