Wednesday, December 17, 2008

Wednesday Financial Hump Day Report! 

The "Oracle of the Ozarks" Angry Sam Owen Says: Quit Yer Bitchin!

Word from the Washington Post is that autoworkers are "angry." Why should they be angry? "It isn't fair for the feds to bail out Wall Street but not Detroit," they say.

Henry Ford's dream of a car for the everyman has been achieved. The assembly lines have worked their magic and we are currently inundated with cars. Even the imports are piling up at our ports.

There is simply no demand. According to The CIA World Factbook, as far back as 2005 there was one car for every 2 human beings in the US. The paradigm of behemoth factories cranking out car after car is dead.

"Let them fail; let everybody fail! I made my fortune when I had nothing to start with, by myself and my own ideas. Let other people do the same thing. If I lose everything in the collapse of our financial structure, I will start in at the beginning and build it up again."

- Henry Ford. February 11, 1934
Bankruptcy measures would allow these companies to flush out the crap that is clogging up the gears and save the stuff that works. The same thing that should have been done with the banks. Let the losers go belly up and get out of the way instead of plundering the treasury and destroying the dollar along the way.

How 'bout the Fed's new lending rates? $2.50 for every grand you borrow. Sign me up for a few G's, might buy me a Big Mac when that ol' hyperinflation kicks in. Keynes would be proud.

Fed Chairman Ben S. Bernanke and Treasury Secretary Henry Paulson said in September they would meet congressional demands for transparency in a $700 billion bailout of the banking system.

Yeah.. sure guys.

Guess that's why it's called the "TARP". The whole thing is covered up.

The Freedom of Information Act obliges federal agencies to make government documents available to the press and public filed suit Nov. 7 under the U.S. Freedom of Information Act requesting details about the terms of 11 Fed lending programs.

Their refusal to disclose may once and for all end the argument about whether the Fed is or is not a federal agency.

Investment tip o' the day:

Eli lilly (NYSE:LLY)

Currently trading at $35.32

Pharmaceutical manufacturer best known for its widely popular antidepressant Prozac.

Shares in this company are set to go through the roof as massive doses of Prozac are given to world economies to prevent global depression.

-- Angry Sam