Wednesday, December 17, 2008

Here and There

Thank G-d, I am not the only person speaking out about political nobility in our Republic.  This link was front page, upper left on  MSNBC dot com this morning.

I sincerely hope Governor Paterson comes to the right decision.  

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Although I have met Bernie Madoff several time over the years (I am an NASD member), I do not know him personally.  However, I almost feel that I do.  You see, I live in a wealthy enclave in South Florida where one of the local private schools had difficulty keeping up with the white collar indictments of its volunteer board members. 

Financial wealth is ephemeral at best.  All currencies eventually go to zero.  Financial markets crash.  Wars are fought.  Sh-t happens.  But once material competitiveness takes hold the infection is chronic.  I was at lunch yesterday with a friend and investor who was telling me about a family member who had a run of good fortune.  In short order, the he and his wife were driving 6 figure cars (on lease), a humongous house, full time domestic health, and, get this... his wife was taking their 10 year old daughter for facials (what does a 10 year old need with a facial?  Sorry, my working class slip is showing... I don't know what anybody needs with a $75 facial).  My friend's family member is in commercial REAL ESTATE.  Guess what his career looks like now?  This is the kind situation that leads people to STEAL, LIE, and CHEAT.  

So here was good old Bernie on his yacht, getting $50 pedicures (mind you, this is a MAN we are talking about here), and paying $400 for private golf lessons... all with money he stole from people he had befriended.  Bernie refused to admit when he was wrong.  Refused to live within his means, and destroyed his family as well as himself in the process.  You may not be sympathetic to the people he harmed, but that's not the point.  

“This town isn’t about class or culture,” said Laurence Leamer, a Palm Beach resident since 1994 and author of “Madness Under the Royal Palms: Love and Death Behind the Gates of Palm Beach,” which will be published in January. “This town is about money. Bernie was revered because he had money. If you lose your money, you’re finished.”

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"If you did not accept the invitation to the wedding, don't go to the funeral" is an old Wall Street saying.  Yes, the market loved yesterday's rate cut, and; yes, the US$ is falling which might help the equity markets... but I did not go to the wedding (the recent rally), so I am not buying into the rally now.  I have been long Gold and Silver and energy equities (Oil is not helping me at the moment).  Patience.  Patience.  The Fed did not lower rates to ZERO because the sun is rising over our shoulder.

Doesn't mean that I am right, but that is what I am doing.

Good Luck.

Mentatt (at) yahoo (d0t) com

3 comments:

oOOo said...

I believe your concern is genuine, but the problems being faced right now are soooo much bigger than one person as you point out so well in most of your other posts. A wise man once said 'don't stress the small stuff', and really this seems to be small stuff.
peace

oOOo said...

The previous comment actually relates to the previous two posts, not this one, sorry if there was confusion.

Dan said...

Might as well hang it up, when Bob is your uncle life is easy. Seriously though, here lately it has been so bad I have been inclined to say the worse the better; these clowns won’t get it until they are thrown down.