Ghost analyzes the inflated U.S. economy, warning that stock gains driven by layoffs and cost-cutting mask impending mid-spring downturns. He predicts a buyout frenzy similar to the 1990s, citing AOL's $315 million purchase of The Huffington Post, while advising investors to hedge against dollar devaluation with gold potentially reaching $4,000 per ounce and commodities like wheat. Ghost recommends specific plays in Skechers and small-caps over blue chips, urges diversification away from bank stocks, and criticizes the education system for creating debt-ridden graduates ill-equipped for a service economy where tangible assets remain the only true security. [Automatically generated summary]
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Love Hope Radio.
This is True Capitalist Radio.
True Capitalist Radio.
I am your host, the man they call Ghost.
The badass of business.
Give him capitalism or give him death.
That's it, period.
Broadcasting from his skylight office studios in beautiful downtown Austin, Texas.
You sound fruitier than a box of fruit loops, for Christ's sake.
And now, he'll take it from here.
Your host, the prognosticator of prognosticators.
The man they call...
Go B. What's going on out there?
Ghost is in the house.
Thank you for tuning in with me.
This is episode number 18 for all the folks that are keeping track.
I hope you like the new intro.
Plenty more where that came from, folks.
Like I said, I'm serious as a heart attack when it comes to this show, when it comes to business.
And I hope you are too.
Anyway, folks, before we tune in or go into or say into anything else, I'd like for everybody to please bookmark the official website of the True Capitalist Radio Show.
That's blogtalkradio.com slash ghost.
That's blogtalkradio.com slash ghost.
And of course, follow me on Twitter, folks.
The Twitter name to follow is Ghost Politics.
All one word, no underscores.
Well, well, well, we got a lot of things to talk about, don't we, folks?
You know, stocks are up yet again.
They are up yet again.
And once again, I, you know, am telling all investors and even traders to watch the markets.
This is just hyper-inflated from my perspective.
I think that, you know, a lot of people at this point in time are getting into the market looking at these earnings and, you know, from non-peripheral perspectives.
They believe that, you know, just because corporate earnings are good, they're not looking at the big picture.
You know, unfortunately, what people are failing to look at is the aesthetics of the American economy.
The only thing they're looking at at this point in time from investors and traders perspectives is the corporate profits.
And I think that we need to look deeper into the economy other than corporate profits.
Let's take a look at those corporate profits, shall we?
Corporate profits today.
All right?
Corporate profits today can only be summed up to the fact that these corporations have been cutting up their corporations.
They've been laying off people.
Don't you understand that?
That's why there's such high unemployment at this point in time.
And it's not just hitting menial labor.
I mean, it's hitting white-collar jobs.
It's hitting corporate jobs.
So let's take into consideration, folks, that the reason that we're seeing a lot of these corporate earnings is because they've trimmed the fat for the past several quarters, ever since the economic contraction of 2008.
Let's not also forget that these people that are employed at these corporations at this present time are happy to be employed.
All right, I mean, given this economic roller coaster that we are witnessing here in the American economy, these people are basically embracing the fact that, hey, I got a job.
I need to work my ass off.
I need to burn my candle at both ends.
I need to put it full throttle.
And they're getting about double, triple productivity on the current employers, or excuse me, the current employees that they have working for them at this time.
And you combine that with the fact that you've got, you know, what was the fourth quarter?
Of course, the fourth quarter is the holiday season.
You probably pretty much, you know, an imbecile could have said that the holiday season was going to bring at least a little bit of productivity in the profit sector.
But you just take all these factors into consideration, folks.
I mean, just because corporate profits are high doesn't mean that we're going to see Dow Jones Industrial Dow Jones Industrial 15,000 anytime soon.
Once again, I am sticking to the fact that even though we have a lot of people hopping in on the market, the reason they're hopping in on the market is they actually believe, you know, in my view, they're actually believing the hype.
And you've got a lot of people saying, hey, I better hop on this Dow Jones Industrial NASDAQ SP 500 bandwagon before I get left behind when Dow Jones Industrials hits 15,000.
I caution investors right now and traders that this is an apprehensive gain in my opinion.
All these games that are being produced in the markets today are just over speculation.
I think that there's just over speculation all around.
It's kind of reminded me of the 90s.
I wrote a little bit about it in a piece on my blog, ghostpolitics.blogspot.com.
That's ghostpolitics.blogspot.com.
I talked a little bit about how AOL is acquiring the Huffington Post, and we talked about it yesterday.
We had a few AOL investors that called in and weren't too happy at the new acquisition of AOL.
But of course, on the blog, I basically posted the clip of the interview of the AOL CEO Tim Armstrong, who was basically being interviewed after yesterday's trading, justifying and championing in this Huffington Post acquisition.
But in that blog, I basically allude to the fact that even though AOL is, you know, I don't know where they're coming from when it comes to this nonsense of $315 million for Huffington Post,
but the justification that he gave, you know, I don't know if it qualmed the scared reaction that it gave the investors of AOL because yesterday they were down 75 cents on that particular news.
Today, I believe they're down a little over a dollar, if I'm not mistaken.
Let me go ahead and look that up on the chart here.
But yeah, I mean, I believe, yep, they're down $1.41 at this point in time.
That's a pretty good loss of value in stock, given the fact that in the interview, Tim Armstrong alludes to the fact that there's supposed revenues at the end of the rainbow.
At the end of the rainbow, we're going to expect to see so many some odd dollars.
It kind of sounds like the 90s all over again.
And I think that's exactly what we're kind of seeing.
We're kind of seeing the poor man's 90s possibly butting itself out in the next two years, in my personal opinion, because what this ridiculous acquisition that AOL did with acquiring the Huffington Post is just a precursor in what my view is going to be the coming merger frenzy that's going to be happening within the next couple of years.
We have to remember, folks, that the reason AOL was able to just kind of crap out $350 mil and pay the Huffington Post, I mean, 30 times its annual cash flow, I have no idea.
But I think that, and I know there's people in there saying it's already happening.
I know that Pride International got taken over yesterday.
Today, we had Kinder Medicare or whatever the hell taking over rehab.
Hold on, let me get the exact news.
I mean, I wasn't lucky enough to take advantage of that play today.
The Rehab Care Group was acquired by the Kinder, the Kindred Group acquisition.
What the hell is this name?
I don't want to get it wrong.
Excuse me.
Kindred Healthcare Inc.
Kinder Healthcare Inc. bought out Rehab Care Group.
And if you happen to have taken advantage of that particular play, Rehab Care Group today rose $11.58 on that particular acquisition.
That's right.
I mean, if you were able to somehow speculate that rehab care was going to somehow be acquired or be attractive to be acquired and decided to get in on this a month or two ago, I'm telling you, cashed in today, it was the highest gainer from what I see in the markets.
There could have been some more, but as far as change is concerned, up 45%, 45.5%, close to 46%.
I mean, good God.
But once again, you take a look at all these acquisitions and you take a look at this blind, over-speculated nonsense that Tim Armstrong was trying to sell yesterday on this interview with the acquisition of Huffington Post.
I believe, folks, that we are seeing a buyout frenzy.
It's going to be buyout mania for the next two years.
So if I were a business owner right now, I would start thinking about possibly doing expansion on not necessarily a conservative level, but on a calculated level.
Because I believe that because of all these corporate profits, because remember, this is what's driving the markets upward.
This is what's causing seven days of straight gains in the markets, in the equities markets.
It's these profits that are coming out.
And of course, they're being blindly embraced by investors and traders throughout the markets, as we can see from the gains.
But if we look at the U.S. economy as a whole, unemployment's still high, jobless claims still high, job opportunities are low.
We look at the fact that the government is going to continue spending.
There's a lot of factors in here that don't look good.
And we look at the crux of those corporate earnings that are so good that are making this rally here in the market.
Those corporate earnings are based on chopped up companies.
I mean, they can't cut anymore.
I mean, they've cut, they've laid off people, they've renegotiated pensions, they've done everything they possibly could to get these profits.
And not to mention that the fourth quarter was going to bring profits anyway because of the Christmas holiday, Hanukkah, New Year's, all that crap.
So you know that you were going to get some profitability.
I'm cautioning every damn investor that's thinking that they should invest at these 52-week highs that you're seeing on the Dow right now.
I caution every investor, and I hate to sound like a freaking bear.
I hate bear investors.
Oh, you got to watch out.
You got to go into bonds and only get like 5% on your money over 30 years.
I'm not like that, but I'm sounding like that because, folks, just look at the data.
Look at the facts around you here.
I mean, if you're a day trader, good God, the volatility is there for you to gain some major liquidity.
But if you're an investor, I'd be very apprehensive in investing at this point in time, unless you've been long-term for the past five years on some of your equities.
I mean, other than that, I'm really scared about a potential just dramatic fall in all these markets.
I mean, because all these gains are based upon over-speculation, and anybody who's a sound investor knows it.
But, you know, once again, you know, you take a look at the acquisition, you know, getting back to the acquisition of AOL or the acquisition of AOL on the Huffington Post.
I believe that this is just a precursor.
You know, it's probably one of the most obvious precursors.
It's one of the most broadcasted, televised, highlighted, amplified buyouts that is probably going to just spawn more buyouts throughout the corporate field, throughout the business world.
Because why are they going to buy out?
Why are we going to have mergers?
Why is it going to be merger friendly for the next friendly merger frenzy for the next two years?
Because these corporations are sitting on all these profits, folks.
They're sitting on all these profits.
They're not doing anything with it.
And I know that people are pissed off.
It's like, what, over a trillion in capital right now?
They're just sitting on it.
But if you take a look at the fact that a lot of these corporations understand that they have to fulfill obligations to their stockholders and they have to maintain profitability to some extent,
they're going to start maneuvering some of these profits and trying to acquire profitable, small, mid-sized, large-sized, profitable companies so that it can boost up the bottom line for these over-inflated profits based upon gutting companies.
Let's be honest.
So inevitably, folks, I just think that we take a look at all this capital that corporate America is sitting on.
We take a look at the fact that the Obama administration is now talking about cutting corporate taxes.
They're going to cut corporate taxes.
They're talking about it now.
Yesterday, the president was talking in front of the Chamber of Commerce, basically calling certain corporate taxes burdensome.
Burdensome is what Obama called some of the corporate taxes, which is a far cry from some of the rhetoric that he's been spewing or he spewed during the 2008 elections.
But let me tell you, if the Obama administration restructures the corporate tax code and lowers corporate taxes, you're going to see the 90s, in my opinion, or at least a poor man's 90s all over again.
And once again, I think that these particular gains in the equities markets are just inflated.
I think that we need another quarter.
That's why I'm saying we're going to see a downturn.
And I've been saying it ever since I started this program, True Capitalist Radio.
We're going to see a downturn in the equities markets in mid-spring going into summer.
And once these downturns happen, because let me tell you, the second quarter results are going to start coming in, or excuse me, the first quarter results are going to start coming in.
Market Gains Are Inflated00:14:28
Excuse me.
And I'm telling you, folks, it's going to be a far contrast from what's going on right now in today's earnings equities frenzy.
So anyway, I didn't mean to make all that a prelude.
Want to let everybody know right now that if you're getting in on the hype, if you're one of these people that are like, hey, I'm going to have to invest all my eggs in the Dow Jones Industrials and the NASDAQ and the SP before they get in, before Dow Jones gets $15,000 and before I lose out on all that capital, well, I would take a step back.
I would definitely consider, if you have the capital to have about $20,000, $25,000 just laying around, the volatility in this market for day trading is unbelievable.
The opportunity to get major liquidity in these day trades is not only just highly probable, but it's, I mean, it seems to me like volatility is going to be the norm in today's markets.
I don't know if you see the choppy waves in charts of daily market activity, but these waves of activity, this type of volatility is what you want as a day trader.
And let me tell you, it seems to be the norm.
Once again, like I said, you know, I mean, good Lord.
I mean, we take a look at the stocks, for instance.
I mean, all this news, you know, corporate earnings, you know, mergers, acquisitions, a lot of this stuff is fueling these equities runs.
The Dow Jones Industrial was up 71, close to 72 points today, a change of 0.59%.
I mean, we're at 12,233 on the Dow Jones Industrial.
And once again, I caution investors, don't believe the hype.
I mean, this is all based upon, you know, cooking the books, man, in my view, of course.
S p is at 1324.
It went up 5.5 points at a change of 0.42%.
The NASDAQ went up 13 points at a change of 0.44, 47%.
Excuse me.
It closed out at about 27,97.
And let me tell you, these gains, you know, this continuous gain that we're going to continue to see in the marketplace here, once again, we're going to continue to see it because we're going to continue to see these earnings as they come out for the fourth quarter of 2010.
A lot of them are going to be up.
And why are they going to be up?
I hate to keep reiterating.
I hate to keep beating a damn dead horse here, but they're up because they cut the fat of their companies.
They laid off all the workers that they possibly could.
They cut everything they could.
And they compounded that with the expected revenue that's usually generated around holiday time.
So this is what all the investors in the markets today are running on when it comes to this gains in the markets.
I think this is running on fumes.
And if I were an investor that just got in, if you're one of these people that just got in on some of these 52-week highs today, you know, and yesterday on the Dow Jones, on SP, those types of exchanges, if you're one of these people that bought in on those highs, I'd be very wary about the legitimacy of your profitability in that position.
And I'd be very scared, all right, because I think that all this is running on fumes.
And at any point here within the next couple of weeks, I would say three to four weeks, we could probably see some major dramatic turns and see 100-point, 200-point drops in the Dow Jones Industrials, which will basically take one to the breadbasket to everybody who is buying in on this hype.
But anyway, folks, now that we talked a little bit about the index and the equities indexes and how they closed out today, let's talk about a little bit of the movers today.
Because there was so much volatility and so many gains that if you just sat on the sidelines and played with your pecker shaft, you weren't making money.
And there's a lot of money, all right?
There's a lot of money to be made up in this joint here.
And if we start looking at some of the major movers, American Express, we talked about their stock price yesterday and how they were on the plus side.
They're on the plus side again.
They were up $1.6 at a change of 2.37%.
They closed out at $4,588.
If you would have listened to me when we were discussing with the AOL investors that called in in yesterday's program, and that was episode number 17, the AOL investors that were real apprehensive talking about selling off and by the looks of the AOL stock today down at $1.50 and yesterday it was down 75 cents on the Huffington Post acquisition news.
You can tell they sold off.
If they would have listened to Ghost, because people, you could listen to the broadcast yesterday.
These people were like, what the hell do I do, Ghost?
I don't know what the hell to do.
Well, I mean, a safe bet, I said, was General Electric.
And if you would have listened to me, you would have gained 1.96% on your money today because it was up 41 cents, closing out at 21.28.
I still am a buy on General Electric, given the fact that not only did it get the government bailout and seems that any company that's working with the government seems to be profitable, but also the CEO of General Electric is Obama's business whipping boy.
He's the head of some board of, you know, some bureaucratic board for job creation or something.
So I'm definitely a buy on that.
IBM up $1.23, closing out at $166.
But IBM is always kicking some ass.
You know how the IBM is.
McDonald's earnings, once again, I mean, I don't know what else to say about McDonald's.
Is this not the perfect franchise model to base your business on?
I mean, you know, McDonald's is everywhere.
I mean, you know, they've been everywhere.
They've advertised everywhere.
They've shoved every kind of burger and every kind of food concoction in your face.
And yet they're still profitable.
They're still maintaining profitability.
I mean, their earnings came out this morning and they were profitable as hell.
And the stock, of course, it was already as expensive as it is.
It went through the roof once again.
It went up $1.91, a change of 2.60%, closing out McDonald's stock at $75.36.
I mean, give me a break.
You know, good Lord.
Good.
I mean, there's just a lot of gains in the markets today.
A lot of gains.
Travelers gained 1.22%.
Home Depot gained 1.53%.
We got a lot of gains in these markets, man.
These equities markets are kicking some ass out here.
But once again, it's a day traders market.
I would be apprehensive as an investor getting in at this point in time.
And the difference between an investor and a day trader, and believe me, you better get the definition appropriate when putting down and claiming your profits to the IRS.
An investor is somebody who is investing in the market for a long period of time, and they're taxed a lot differently than a day trader.
They're taxed a lot differently than a day trader.
Trader, on the other hand, can be taxed at a lower rate based upon the risk and based upon the interpretation of day trading equities as the products or the base products of a potential day trading operation.
I don't want to get into the whole tax and how to file taxes on all that.
I think you need to get an attorney and a tax guy.
I know people are like, ah, Jesus Christ, I don't want to pay these bookworms.
But hey, look, I mean, it's worth it, man.
It's worth it.
Anyway, I've got some Jack and no, not Jack, Johnny Walker.
And it's on ice here.
I've been sitting here blabbing.
Cheers, everybody.
Cheers out there.
Hopefully, you're sitting out there drinking, listening to the True Capitalist Radio Show.
Of course, folks, I'd like for you all to tweet out there if you're listening in live and let everybody know that you're listening to the True Capitalist Radio Show.
Put it on all the social networks.
Call your mammy, your daddy, and let them know because listening to this show is like making money.
But anyway, enough with the equities markets.
I mean, we all know that the equities markets at this point in time are up the anal passage and everything's good, everything's great.
Let's take a look at commodities because I've been saying, and I've been bullish, and I'm still bullish, and I'll always be bullish on commodities.
Well, even though yesterday most commodities were down, they were down, as I stipulated yesterday, because they were moving their gains from commodities and putting them in the gains in these ridiculous equities markets.
I mean, there are huge gains to be made.
So, you know, might as well move your positions that have already gained in the commodities market and put them in for larger gains in the equities market.
It makes perfect sense.
So, a lot of the reason why we saw a lot of downturn in yesterday's commodities markets was because of that fact.
But now, commodities markets bounce back.
These atmospheric disturbances, these cold weathers, these Arctic disturbances that are ruining crops, there's just a lot of factors in the weather that's driving these commodities up.
And if we look right now, everything's up.
Canola futures up 4.1, up about 0.67%.
$4.10 is what canola oil is up right now.
Coca futures, I know that Coca Futures have been taking a dive on those big, huge gains it was taking for the past week.
I know it's been down for the past couple of days.
It's back up.
It's back up to $25 at a change of 1.19%.
Coffee futures are still taking a header.
I mean, they were up yesterday, you know, was it a couple of cents, 25 cents, 50 cents, something of that nature.
And that's only because, you know, people were speculating that there was going to be some coffee buys post-Super Bowl after everybody, you know, had the chicken wings and the beer.
And, you know, they're rolling into a hangover, and the next morning they're going to go buy some coffee.
But coffee today, down $2.15.
Corn futures, down $1.
You know, they were the ones up.
Up.
They were the only commodity up yesterday next to wheat.
We're going to talk about wheat in a second.
Corn's down $1, so people are selling off those gains on corn and obviously put them in other investments.
Cotton, we're having some situation with cotton and the cultivation of it because of the Arctic atmospheric disturbances.
Cotton's up 78 cents.
I'd still eyeball cotton even at this rate.
We've got wheat futures.
Let me tell you, wheat is going through the roof.
If you would have been listening to True Capitalist Radio during episodes 1, 2, 3, 4, 5 and listen to the Ghostman here and said, go into the damn commodities market because of these atmospheric disturbances, you know as well as I, if you would have invested in wheat, you would have made some major cake, major cake.
You know, I mean, it's up $1,850 right now at a change of 1.94%.
And that's based on the past several days of $20, $18 gains.
I mean, that's just a consistent go on wheat.
Now, I'm not bullish on wheat because I think at some point we're going to start bottoming out on wheat.
But if you would have taken advantage, you would have capitalized.
I tell you that right now.
We got soybean futures up $9.75.
Oat futures are finally going back on those gains that they're getting because of the potential Arctic damage that the crops are taking there.
But it's down $1.50 today on gains that it's been taking for the past several days.
Rough rice, 37 cents up.
We've got wool.
Oh, my God.
I mean, you know, speaking of commodities, another commodity going up.
Wool up $18 today, a change of 1.53%.
Now, okay, now, I know that I'm continuously talking about me being right and, you know, me calling and prognosticating these things.
But look, folks, look, all right?
If you would have just listened to me yesterday, right?
If you were one of those AOL apprehensive investors and said I was going to sell off and what do I do, and you would have just listened to either the GE play that obviously would have made you some money today instead of losing money, keeping it in AOL, or if you would have just sold off and said, you know what, I'm going to go into precious metals because Ghost is bullish on precious metals.
Precious metals through the roof.
Although I'm not a buy on copper, I'm kind of, I mean, I think copper still has some gains.
I don't think there's much gains left.
I think that we're going to start bottoming out.
You know, I think that I'm priced at about $500, and we're going to start bottoming out around that price range.
But gold, silver, I'm bullish.
I'm bullish.
I'm bullish.
Anyway, for the copper futures, it was up $2 today off of an all-time high.
Was it yesterday or day before yesterday?
It's up $2.
Gold, folks.
If you would have just listened and said, yeah, you know what?
Today, I'm going off.
All right.
I'm going off and I'm going to go and, you know, I don't know, buy some gold at the pond shop.
I'm going to negotiate with the pond man.
And, you know, decided to accumulate some gold yesterday.
You are obviously raking in the dough today, and you're going to continue raking in the dough, folks.
I am bullish on gold.
Gold Bubble Warning00:08:14
I'm not trying to be a pump and dumper like all these ass clowns in the media.
But folks, I mean, we're going to get to in a minute.
You know, financial institutions, because of gold and the potential rise, and any financial person, anybody who knows business knows that these prices of gold are just temporary.
It's going to go up the ass.
Excuse my French.
And financial institutions are not going to start taking gold as collateral.
But we're going to talk about that in a second.
I'm bullish on gold.
I'm bullish on silver.
Gold today was up $16.40, a change of 1.22%.
I mean, no BS, man.
Silver up 97 cents at a change of 3.31%.
I'm bullish on precious metals.
And anybody who disagrees with me, I know I've been getting a lot of ass clowns who are saying, oh, you know, go say, you know, precious metals.
Well, you know, you can eat those profits right there.
Let me, you damn well know I'm cashing in on that.
You know, I'm profiting on both sides.
I'm getting certain equities and certain securities and futures in the realm of commodities as it pertains to gold and silver.
But at the same time, I'm accumulating physical gold and silver myself.
You know, when liquidating some of these positions that I'm doing in day trading or liquidating these positions and some investments that I'm selling off, you damn well better know that I'm investing in physical gold.
And I'm not basing that on, oh, yeah, it's going to be the commodity to trade when the economy collapses.
People are going to trade.
No, I'm not basing it on that.
All right, if the economy collapses, we're all screwed.
So gold ain't going to help you.
But what I'm saying is, is gold is a good play for the next two to three years.
I see gold going up 3,000, 4,000 an ounce.
Now, don't get me wrong.
I'm not going to say it's going to stay there.
I think it's a bubble.
America loves a good bubble.
We just got out of a housing bubble.
I think that we're going into a gold bubble.
And if you don't believe me, if you think that I'm just talking out of my dairy air, look at any news media channel and take a look at the advertisements that are flooding the airwaves, that are basically keeping the news media organization in business.
It's all gold firms, people selling gold, buying gold, all that other crap.
Let me take a sip of this Johnny Walker here.
Cheers, folks.
Nothing like Johnny Walker on ice.
But man, I mean, I hate to say it.
I mean, you take into consideration all those advertisements.
You take into consideration the accumulation.
I just think gold is going up.
Silver is going up.
I think copper, you know, I think the breaking point is somewhere around 500.
I could be wrong.
This is a helter-skelter market where the investor, really, you can tell by the roller coaster of gains and losses throughout the days, they don't know where the hell to go.
They don't know where the hell to go.
But anyway, I know that I've said in the past that gold is nothing but a shiny rock, and it is.
But hey, I'm going where the money's at.
I mean, if I'm holding some gold on my person, if I got a gold stash somewhere and prices hit $3,000, I mean, those are easy cash reserves.
$3,000 an ounce, I got a whole crap load of gold in my safe.
All I got to do is go to somebody and sell it either at market value or a little bit below it to get some actual liquid.
Maybe I want to take a trip.
Maybe I want to buy some threads.
Maybe I got plumbing problems.
These are the types of things you've got to worry about when it comes to saving your money and making sure that not only do you save it and put it like in your damn mattress or something, but it's actually going to gain value just sitting there.
And I'm telling you, folks, if you just sit on your money, put it in the bank and only get whatever the hell, 1.2% interest if you're lucky, or if you put it in your mattress, you're doing yourself a disservice because it's going down, folks.
The value of the dollar is going down.
And I'm not trying to be a hypersensationalist, but our government is not stopping spending.
It's not stopping spending.
You know, we're just continuously being fiscally irresponsible.
And this is what I'm saying.
I mean, it's just every day, you know, it goes by.
Every day goes by, the dollar goes down in value.
I know that it's hard for some people to believe, but that's just the way it is.
That's why I'm saying you have to put your money in a variety of different areas to shelter it, to hedge against inflation.
There's so many things to do.
Not just securities, not just commodities, not just playing the market, not just buying gold.
I talk about buying wine.
You know, I mean, you know, I know that people think that's a joke.
But, folks, you know, all the people that are making cash are rich bastards.
Don't you understand it?
They're rich bastards.
Now, they're going to be rich for the next two to three years.
All these people that are making capital, getting the fat bonuses, and people that are reaping the rewards in Wall Street, well, you know, these people want the best of everything.
They want the best champagne.
They want the best liquor.
They want the best.
Well, the wine, especially since we've got so many damn wine connoisseurs and snobs and ponytailed assholes that kind of swish it around their mouth as if they just dropped a load or something.
You've got so many of these wine connoisseurs.
There's such a big industry around it that if you were to go buy an expensive bottle of wine, $150 bottle of wine, you save it in the right environment, in the right temperature, you store it, in three, four years, that damn bottle of wine is going to be worth a hell of a lot more, not just based upon the marketplace of rich bastards wanting to drink a bottle of wine, but because of the devaluing of the American dollar.
So if the devaluing of the American dollar continues, whatever you put your money in today, the devaluing of the American dollar is only going to make that product or that commodity or that equity that much more valuable.
Don't you understand that?
It makes it that much more valuable.
So you can sell that bottle of wine or that piece of artwork or that gold for the price two, three, four, five, six times that you bought it for.
I mean, who the hell knows?
That's what I'm telling you, folks.
This is true capitalist radio.
We're not messing around here.
You know, it's all about making money.
All you people that are sitting here, you're going to, you know, give me the whole nonsense, the whole spiel that goes.
It's not all about money.
Don't you know it's about love?
It's about affection.
It's about if you continue to think that, well, then don't bitch and moan when your life is filled with debts, problems, habitual heartache, because you're not a realist.
Don't you understand that this system of economics is what creates this particular civilization that we live in?
Not only in America, but globally.
We have emerging markets embracing the economics model because it's the best way to distribute wealth.
The economic model distributes wealth to those that know how to speculate and those who know how to innovate or create.
You're not some collective bunch of malarkey here where everybody's kind of working 10, 15 hours a day for the people.
Oh, you're not getting paid.
You're doing it for the people.
That's what you're doing it for.
You're doing it for the people.
Screw that.
Small Caps Over Guaranteed Funds00:15:01
646-652-4869 is the number to call here.
But once again, I'm bullish on gold, bullish on silver.
If you would have listened to me for the past several weeks, you would have made some serious money on just these precious metals alone.
And not to mention the commodities that I've been telling everybody to get in.
Not to mention, you know, some of the stock plays that I've been talking about.
I mean, let me tell you, you know, when you listen to the true capitalist radio show, it's like making money.
Anyway, I want to hear from you.
I want to hear from you.
646-652-4869.
Are you in certain positions?
Do you need some kind of third-party perspective on certain situations that you're in?
I want to hear from you right now.
Give me a call, 646-652-4869.
Let's take a caller here, 1111.
You're on the air.
Yeah, that's you right there.
How's it going?
Pretty good.
This is Ken.
Last night I got my quarterly return for my retirement fund, and I got it divided up into thirds: 30% and the small companies, 30% in the large companies, 40% into guaranteed fund.
Well, my small companies over the last quarter made 15% return.
My large companies made 12% return.
My guaranteed only made up 0.5% return.
Yeah, anything guaranteed, you better expect that, huh?
Yeah.
So my question is: should I say screw the guaranteed right now?
So if I plan on working another 20 years and just throw it all into the small companies, because I can make 15%.
Well, over the last quarter, I made 15%, which means that I could possibly make 15% over this next coming quarter.
Okay, or were you thinking about another one?
That's one option.
Were you thinking about another option?
Dividing, you know, throwing it up into the large company where I got 12% over the return.
Over the five years, I made 26%.
And this is a mutual fund, correct?
Yes.
Okay.
Well, the guaranteed mutual fund or the guaranteed, is it all the same mutual fund, just different instruments?
Yeah, they let us divide it up at work over percentages, you know, how we want what percent to go into.
It's more like an annuity type thing.
I see.
And if you were able to let go of the guaranteed, the only option that you would have is to put it into the other two options based upon, you know, obviously this is a company compensation.
Yeah, there's two more options, but I mean, they're below the one of them was in the negative and the other one was like 0.02%.
I mean, it was the only two that really made anything was large companies, and they made 12%, and small companies made 15%.
So, I mean, well, you know, I think that, you know, since you're going with a mutual fund and you could sell off the guaranteed, which is not bringing you much yield, I would definitely eyeball, in your position, the smaller companies, given the climate that's in corporate America today.
You know, I talked about earlier that there's, you know, the dawning of a new buyout frenzy, a buyout frenzy that's about to happen in the corporate world.
And I think that small business or the small companies, small cap companies, will actually fan up rather well because of this profitability that the big companies are having.
And the big companies need to spend that profit.
They're just sitting on it.
And they're not going to reinvest in employment because there's no tax initiatives to do so.
They're not going to invest in any kind of American new production plant or any kind of true investment that's going to bring in true jobs.
So what are they going to do?
going to buy out companies to maintain profitability.
So do you expect that yield that has it gone up and down?
Does it fluctuate on the small cap mutual fund?
Over the last five years, it's averaged 12%.
I mean, last quarter was a great quarter, close 15%.
But over the last five, it's averaged 12%.
So it's good.
Yeah, you know, I would definitely make a play there, Ken, so that you can definitely have some more yields and have some more money to play with there for your, is this for your retirement, correct?
Yeah.
I mean, yesterday when I opened up the letter, I about crapped myself because I was so shocked at the return that I got off of it.
You know.
When do you plan on retiring, by the way?
Do you plan on retiring within the next three, four years?
No, are you going to work it all the way?
I look at about next 20.
I'm only 40.
Oh, okay.
Well, I think the small cap, I think the small caps are a pretty good deal for a mutual fund since you're in that current position with your company.
And the only real option is to just kind of parlay what you had in the guaranteed fund into the other large cap, small cap funds.
And I think small caps are looking pretty good.
Right now, large caps are all at their 52-week highs.
And well, not all of them, but most of them, the crux of them in the Dow Jones Industrials.
So small caps are looking pretty good.
I think they're good for the next at least three years because of the acquisitions that we're going to start seeing here on small cap stocks and maybe even large cap mergers.
Well, and we got the January quarter, those reports are going to start coming in.
So it goes good as far as the December Christmas sales and stuff.
It could really, even with the large companies, I could make a lot more than what I could in my guaranteed fund.
Absolutely.
And let me tell you, anytime you hear guaranteed in any kind of a fund, hedge fund, mutual fund, anything like that, you shouldn't even bother.
I mean, you might as well put your money in something completely different because the rate of return that you're going to get on that guaranteed fund is not going to be anything.
I mean, it's basically not even better than a bank.
You might as well just throw it in the bank.
The bad part about the bank is the proximity of the cash.
And if you've got an itchy ATM finger.
Yeah, and it's, you know, I put 40 there because I was thinking, you know, with the climate, didn't really want to risk losing my butt, but it looks like I'd made a mistake by putting 40% there instead of splitting it up 50 and 50.
Well, you know, it happens, you know, Ken?
I mean, you've got to do what you have to do as an investor.
I mean, you know, you live and learn.
Once again, I want to thank you for calling, Ken, but I would strongly advise you to get some of that or most of the fund that's going to the guaranteed money, which is only yielding you a very small percentage, and go right to the small caps.
I think it'll give you some pretty good gains in the next coming years.
And at the same time, I just see nothing but good things happening for corporate America.
And as those two or three years happen and you see those gains in small caps, I would start entertaining the idea for selling off what you made in the small cap fund and putting it in the large cap.
Because once the Bush tax cuts are over, once they're through and we have to reset these things to new tax rates and We have to also cut spending and a lot of things of that nature.
I don't know how small caps is going to fare out, if you will.
I think large caps and multinational conglomerates are going to fare out no matter what happens to the American economy.
But I'm bullish on small caps for the next couple of years because of all the corporate profits that are being just sat on.
I mean, a corporation is just sitting on a trillion dollars in profits right now.
And they're just waiting.
And I just think that in the next couple of years, it's going to be acquisition buyout mania.
Anyway, 200, you're on the air.
Propaganda and their team.
I've got these goddamn Howard Stern assholes calling me out, and I'm sick of it.
I'm sick of me.
That long-haired, prostate-infected, wrinkled piece of garbage is named.
I'm sick of hearing it.
All right, we get it.
All right.
You got me when I was mad when one of these Howard Stern jerk asses called me up.
I got a little haywire, and somebody obviously recorded it and is calling me up and saying, you know, playing it on the air.
Very funny.
Anyway, 408, you're on the air.
What's popping, Ghost, with Goofy Bone?
Hey, what's going on, Goofy?
How are you doing, man?
I know you called in yesterday about your AOL positions.
What did you end up doing?
Let me tell you what their update regarding the situation regarding that.
The only update that they could give me is a friendly merger.
That's all they gave you as an investor?
Did you contact investor relationships?
Charles Schwab, the Charles Schwab that I go to in downtown San Jose off Metro Drive, they could only tell me that it is a friendly merger.
A friendly merger?
I mean, $315 million?
I mean, that's a little bit more.
I mean, I wish I was AOL's friend, for heaven's sake.
I mean, if I mean, AOL, I mean, if you're friendly, why don't you, you know, $315 million over here if you're friendly about it?
I mean, give me a break.
Exactly.
Exactly.
So what I did was I listened to you, Ghost.
You know, I took all of that out, and of course, the little asshole charged me some money for that.
But I got 50 shares into GE, and I've been looking over the last past three months, and believe me, they are on a climb.
So I want to thank you, Ghost.
No, no problem.
I mean, you know, that's just, I was just giving you a safe bet, you know, since, you know, I mean, if you would have stayed in today, your gums would have been bleeding today.
I don't know.
Did you happen to catch a couple of those?
Did you catch a loss today in the sale?
Oh, I lost probably about $500.
Oh, that's good.
I mean, well, not good, but it's better than staying in there and losing even more, you know?
Yeah, so, yeah, but I mean, if you look within the last three months of AOL, I mean, it's going down.
And today it took a dump, a big dump.
So I listened to you, Ghost.
I had whatever left from that.
I put 50 shares in the GE at 2128, and it looks like it's just climbing.
No, it's going to climb.
I'm definitely bullish on GE, at least for the next year or two, because I don't know if you look at the stocks that were bailed out by our government.
They seem to be doing fairly well.
You look at GE, or excuse me, you look at GM, you look at the financial institutions that got bailed out, you look at everybody that got bailed out and stimulus package two.
All these people are faring very well.
They should be.
So safe bets, if you're somebody who's apprehensive about making like risky plays, safe bets would be, you know, these big conglomerates got bailed out.
They got recapitalized.
So you know they're sitting on capital, and you know that they're going to be able to reinvest that capital to make profitability.
It's easy when you start from scratch and you got a whole bunch of money.
So why not as an investor take advantage of our government being in cahoots with these corporations and why not capitalize on it since it's an easy play?
And I know there's people in the chat room saying that they're downgrading GE and all this other nonsense.
I'm not, man.
I think that the price point that you should start considering selling off is about $30 to $35.
And even then, I would look at the earnings, the profitability for those next quarters.
But the only reason I'm saying GE is because it's a huge multinational conglomerate.
It's got a whole bunch of assets it could sell off.
There's a lot of upside.
It's been down to about $15, $20 range for the past three or four years since 2008.
And I remember that stock before the economic contraction of 2008 being up around $50, $60.
Now, I'm not saying that we're going to see that again, but I definitely believe that $30 to $35 within the next maybe year or two years is not out of the question.
I would even say for the next year, $30 to $35 is not out of the question.
I got a question for you, Ghost.
Go for it.
Do you think I should invest in the because I'm in California, home of the prisons?
Do you think I should invest in the company that builds the prisons?
Well, I would have done that play a long time ago.
Unfortunately, California is having to cut back on their prisons.
Have they let out?
I know that some of them have let out their prisoners because of the cutbacks and because of the deficits that California is in.
I wouldn't necessarily go for those plays.
Go ahead.
Well, no, because the company is called GEO Group Inc.
And from the last past six months, they've been at a climb.
Actually, no, I'm sorry.
They've been on the ups and downs.
But I mean, throughout the whole year, they've been nothing but gains.
So I just wanted to throw that your way and see what maybe you thought of it.
No, I'm not down with prisons, man, or anything of that nature because we've already, I mean, I would have been bullish on them in the 90s.
But at this point in time, we're letting people go.
We're going to start decriminalizing a lot of activities that were usually big jail points, one of which is the decriminalization of marijuana.
We're going to lax on certain other type of ridiculous, frivolous, litigious issues.
And I think that we're going to start seeing less and less people in jail.
Skechers Earnings Analysis00:05:31
At least I hope.
If not, well, maybe I was just too optimistic or something.
I don't know.
Okay, I got one last thing to ask you, Ghost, and then I'll leave you alone for today.
I'm sorry to bother you, though.
No, go for it, man.
Can you pick another stock similar to McDonald's, but something around, I don't know, the $50 range?
Because McDonald's is, what, $75 a share?
Is there something that you could just pick out of the ghost hat and just say, hey, you know, I said this yesterday, and I'm going to say it again.
I'm looking at Skechers.
Now, let me go ahead and pull up the chart on Skechers really fast.
Skecher shoes for you folks that don't understand what I'm talking about.
And the reason that I'm bullish on Skechers is because you take a look at a variety of different factors.
Now, let me pull it up before I start talking here.
The Skechers.
Right now, it's priced at $23.43, which is a pretty decent stock right there.
I mean, it's not that expensive.
Is that expensive there, Goofy?
No.
What's the symbol on that one?
The symbol is SKX.
Okay.
And the reason I'm bullish on this one for the next at least six months to a year is because right now their earnings hasn't come out yet.
Their earnings actually comes out February 16th.
And if you take a look at the economic indicators for retail, all the economic indicators and look at all the earnings from all the retail stocks, they're all up and they're all rising.
They're all gaining profitability.
And right now, we're seeing Skechers just kind of hovering around ever since I guess about September, hovering around the $19 to about $23 range.
I mean, it hit about $25 in October, but I think that we're about to see another climb there.
And I think that the earnings are pretty good.
I mean, you take a look at they had a Super Bowl ad with Tim Kardashian.
And you take a look at all these factors.
I think that they're doing pretty well.
And I think that come February 16th, I believe that it could be a possibility for a good play and some good moves upward.
As you can see, today it was up 17 cents.
And it's because most retail stocks are taking a plus side.
So I would entertain the idea of Skechers.
That's just one that I'm throwing going out on a limb on for individuals that are listening in that don't have the money to go into these big blue chip stocks.
I would start making a play for Skechers because I think that could move, man.
Go, so well, what should I start at?
Should I just grab a 20 share or should I just get a 50?
I don't know.
Don't throw your eggs in one basket, but you definitely want to profit if it goes up pretty high.
And keep your eye on it February 16th, because I don't know.
I haven't seen the books for Skechers, but this is the whole game of the stock market.
You take a look at the economic indicators of all retail stocks.
You take a look at everybody who's in the retail game.
And you take a look at everybody had a good quarter for the fourth quarter, fiscal year 2010.
And February 16th, Skechers is about to release its fourth quarter fiscal year 2010 earnings.
And I believe that, I mean, even if they meet the streets' expectations, that the stock's going to go up because they've turned themselves in the second largest shoe company in America.
They're pretty good on their marketing capabilities.
They really made a lot of profitability on those exercise shoes, which, of course, are taking a downturn in popularity.
But at the same time, it built them a nest egg of capital to be able to reinvest in other opportunities within the shoe business.
People aren't going to stop walking.
So that's a pretty good play.
Anyway, thank you, Goofy Bone.
You have a blog or something you want to plug, man?
No, just Google Goofy Bone.
You can find me everywhere.
All right, man.
Let's go, David.
No problem, man.
And good luck to you on whatever you do.
I know that you were pretty upset yesterday when we announced that AOL was acquiring the Huffington Post and you didn't really know what to do.
And you kind of threw it on me and said, hey, Ghost, what do I do?
And I just said GE.
And I said, the reason I say GE is a safe bet if you're somebody that's not an investor is because, well, I mean, they're in bed with the government.
They got bailed out.
The CEO of GE is the head of some bureaucratic board that was appointed by the president for job creation.
So I don't see this company going anywhere.
I don't see this company going anywhere.
I mean, GE, for Christ's sake, General Electric.
And, you know, if you would have listened to me, if you were an AOL investor and sold off and kind of stopped the gums from bleeding, because if you would have held on to it today, I mean, let me see that damn chart one more time, please.
GE As A Safe Bet00:03:13
Can we see the damn AOL chart?
Here, let's put it up on top here.
I mean, it was down $1, it was down 1.41% today.
So it's 2090 right now.
2090.
And that's why I'm saying, I mean, you know, where is this going to go from here when you've got, you know, CEOs, you know, trying to claim that acquiring a leftist propaganda website for $315 million is somehow a good move.
And putting Arianna Huffington, which has, I don't know, I mean, can anybody look, anybody listening out there, can they look into the background or Google this broad and see if she's worked as any kind of creative content creator other than this Huffington Post propaganda machine?
Has she worked as a CEO, CFO, COO?
You know, has she managed anything?
I think not.
She couldn't even manage her marriage, you know, with all due respect to Ariana Huffington.
She was married to some right-wing conservative that ended up becoming some Ted Haggard toe-tapper.
All right?
And she divorced this idiot and then decided to become some leftist.
Now she's banging Bill Maher, of all people, who's been around the block more times than Sunday.
Once again, I remember Bill Maher out here in Austin, Texas.
And I remember him walking down the street with this 6'2 tall, ethnically ambiguous, trans-testicle-looking skankosaurus.
And that's basically his MO for hooking up with chicks is these types of disgusting, despicable, you know, whorebags.
And, you know, here Ariana Huffington is.
She's banging this ass clown.
Good God.
I mean, isn't this broad like 60 years old?
I sort of don't understand, man.
I don't understand.
Why exactly are you trying to be, you know, oh, look at me, I'm a cougar.
And, you know, I don't know.
I don't know.
I'm going off on a Tyree.
Let me calm down.
All right.
Let me calm down.
Anyway, let me take some calls here.
646-652-4-869-706.
You're there?
Yeah, Ms. Huffington actually wrote two books, and two people have come out and said that she plagiarized other people's materials in those two books, according to Wikipedia.
I wouldn't doubt it.
I mean, you know, I have never heard her say anything worthwhile other than the same propaganda I hear from talking heads on MSNBC.
I mean, I don't hear her saying anything of any kind of pertinence.
She hasn't done anything for the country.
She hasn't done anything with her propaganda other than divide the country.
She helped Barack Obama get elected, and now she's turning her back on him because, you know, I don't know, he's not leftist enough, so I don't get it.
You know, what the hell's going on with the AOL?
With Tim Armstrong, what the hell is he smoking?
I don't know, but you've got to give it to her.
I mean, she did a pretty good job raising some money.
Getting The Monkey Off Your Back00:04:43
Well, you know, great.
You know, she did a good job raising some money.
I think any chick can raise some money.
You know what I'm talking about?
In today's America, all a chick has to do is get on her knees and she'll raise some money.
I'm not saying that's what happened to Ariana Huffington here.
I'm just saying, though, I mean, you know, big deal.
But if you take a look at the history of the Huffington Post, she got $1 million upfront to start the Huffington Post.
And as it gradually progressed, she had $40 million in financial obligations fronted to the Huffington Post, for whatever, I guess, operating operations, expansion, whatever.
And now you've got AOL overspeculating, saying that, oh, you know what?
I think it's a great deal to pay 30 times the annual net operating cash flow.
Let's pay 30 times the annual cash flow, operating cash flow of the company, and let's go ahead and give it $315 million.
I don't know where that is a good business deal.
Somebody needs to tell me about it.
But did you have something to ask there, 706?
Well, he hung up.
Anyway, thanks for calling in, though, and telling us about that.
Anyway, we're in the second hour of the True Capitalist Radio Show.
I am your host, folks, the man they call Ghost.
And once again, I want to thank everybody for tuning in with me.
Folks, please check out the sponsors on any of the websites that have True Capitalist Radio content and yours truly.
But also, if you're suffering from credit, card bad credit, low credit scores, high debt bankruptcy, financial trouble, our main sponsor, Lexington Law Firm, can help you out.
Get a real law firm to get all these items off your credit score that's prohibiting you from getting a loan.
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Here you are.
You got capital in the bank.
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Lexington Law Firm.
We want to thank them for their sponsorship.
And also, we want to make sure that individuals that are listening to the True Capitalist Radio show and that are actually making some capital, that are actually making cash, we want the monkey off their backs, you know?
I mean, because bad credit's like a freaking monkey, you know?
It's a monkey on your goddamn back.
It's like a Coke addict, you know, just wanting another sniff of the white stuff in their disgusting, holy-ridden nostrils.
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I'm serious, man.
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You don't have to accept bad credit, you damn milky liquors.
877-663-2171.
Get the monkey off your back.
The Rolling Stones are going to be playing right now.
I'm going to play a song called Monkey Man.
While it's playing, go to the phone, 877-663-2171, and take the monkey off your back for heaven's sake.
Take it off your back!
Don't Accept Bad Credit00:03:57
This was, uh...
All my friends are gone.
There's nothing new.
Come on, go to Italian, film you, let us win.
But I've been sitting out and looking around there.
She let it tell you more.
I'm glad you are a monkey.
I was beaten by a boy.
I was galling out of gone.
It's how I'm like a broken head.
I always have an unlaying bell.
Dark on you.
I hope we're not humidifier or a drive of you for better.
Come on, come on.
I'm a broken.
I'm a broken land.
I'm a broken land.
I'm a broken.
Yeah, a little bit of Rolling Stones there, Monkey Man.
Hopefully, you made the call while it was playing because we're going to move on to something else.
JP Morgan Gold Collateral News00:02:21
You're listening to the True Capitalist Radio Show.
I am your host, the man they call Ghost.
And I want to thank everybody for tuning in with me.
Once again, if you would listen to me yesterday when I was talking about being bullish on precious metals, you would have obviously not only cashed in today, but are going to continue to cash in if you are buying gold, silver, copper, I think, still has some ways to go, but I think 500 is the selling point.
I think it's going to go down from there.
Just to prove to all of you that, you know, this gold is in hype.
You know, I mean, it is hype.
It's a bubble, but it's not hype for the next two to three years.
JP Morgan, JP Morgan is actually going to now start accepting gold as collateral for loans, folks.
This is actually going to set a precedent through financial institutions because now you can actually take a whole crap load of gold and they're going to have a division in some of these financial institutions, starting with J.P. Morgan, to basically give you an idea of what you can actually get a loan for based on the collateral that you brought forth in gold.
You know, I mean, this is what I'm telling you, folks.
You know, I know there was a couple individuals, what was it, a couple of weeks ago that asked, hey, what should I do?
I got about $2,000 or $3,000.
What exactly should I do with this ghost?
Well, I told people, buy gold, and just put it somewhere, get a safe, put it in a safe in there.
And if you can buy physical gold because you're not living in a secure area, well, then by all means, look at other options to be able to invest in gold because I'm telling you, I am bullish.
I am bullish.
I'm freaking bullish for the next three years when it comes to gold.
And JP Morgan utilizing, now accepting gold as collateral only proves that this is not a joke.
All right, this is not a joke.
Anyway, I'm drinking some Johnny Walker.
I want to go ahead and say cheers to everybody out there who happens to be sipping a libation of some sort.
Anyway, cheers, everybody.
Secured Debt Risks Explained00:06:48
Cheers.
646-652-4869 is the number to call.
And you see, this is why I tell people, even if you are not an investor, even if you're somebody that's, you know, that says, Ghost, I just don't know what to invest in.
I'm not good with stocks.
I don't know what to do.
You know, I don't know what to do.
I'm just, you know, I don't know whether to go left, way.
I don't know what to do.
Well, just invest in blue chip stocks.
I just strongly advise people.
If you're not going to invest in blue chip stocks, invest in gold.
Invest in something.
Just don't leave your money in the bank unless the bank is going to give you something.
You see, that's what banks are in business for.
Don't you understand that?
Banks are in business to lend you money.
Now, don't be fiscally irresponsible and get lent more money than you can pay like all these ass clowns did during the real estate crisis of 2008 and that are still pissing and moaning that it's the bank's fault.
It's the bank's fault.
They lent me the money and they knew I couldn't pay.
They lent me the money and they knew I couldn't pay the bill.
So it's their fault.
It's the bank's fault that I lost my house and I lost all my things.
It's their fault.
No, it's not, you loser.
It's your fault.
It's your fault for not being fiscally responsible.
Taking out secured loans is a serious issue.
It's a serious deal.
Your life is dependent on those damn secured debts.
You know, I mean, you know, credit card debts, hey, like I said, call Lexington law firm.
I guarantee you they could probably take most of your credit card debts off.
877-663-22171.
Not to be overplugging them or anything.
But seriously, secured debt, you can't take off secured debt, man.
You know, that's the difference between credit card debt and secured debt.
Secured debt means that there's money backing up the loan that they're giving you.
That they're utilizing the bank accounts of people that are holding savings in banks to give you as a loan, and it's secured.
And they're not going to go away like a credit card company.
I know that there's a lot of you assholes dodging credit card collectors and credit card companies and that sort of thing.
That's not what happens when you default on a secured loan.
When you default on a secured loan, they take whatever it is that you got lent away from you, henceforth the foreclosure.
If they can't take that away from you, they'll take all your crap.
They'll go into your house.
I mean, that's what you people don't understand.
Secured loans are a serious issue.
They shouldn't be taken like credit cards.
They shouldn't be taken lightly.
Because when you can't pay on them anymore for whatever reason, I mean, I think that you should sell your body before you go default on a secured loan.
But, you know, let's say you default.
They're going to come in and take your crap.
And they're going to take your garbage.
And if they can't get enough money from your crap, well, they're going to try to collect somehow.
But anyway, the reason that I'm harping on this is because I get a lot of emails from folks saying, why do you always tell them to take loans out from banks?
Why do you tell your listeners to do that?
Don't you know that you can get foreclosed on?
Don't you know that it's bad news?
That's not a good idea.
No, it's bad news for you because you decided to go out and be fiscally irresponsible.
I mean, even if you're a schmuck, even if you're somebody that just works a damn McDonald's job 40 hours a week and just gets paid menial pay, whatever the hell that is, all right, if it's just you, you can live in some small apartment, stack your chips, all right, stack your jam chips, either put it in a bank, put it in gold now, put it in stocks, put it in whatever,
accumulate a good $10,000 worth of gold or stocks or whatever the case might be, go up to the bank and say, hey, look, I want a loan for $20,000 or $30,000.
I've got $10,000 in gold and stocks for collateral.
And of course, the banker's going to negotiate.
They're going to say, well, we can't do that.
We can lend you $20,000.
We can lend you $25,000, so on and so forth.
And once you get that loan, why don't you just pay off your expenses for the next two years of your life, you idiots?
I don't get it.
You idiots go out and you get secured loans to take trips to Hawaii when it's the same beach and wherever the hell you go anyway.
I don't understand why people spend $15,000 to go to Hawaii when basically what they're paying for is the flight.
The flight, for Christ's sake.
What you should do is take that $25,000 that you get get from the bank as a loan.
$25,000, if you get a good interest rate, you got a decent banker, you could get a loan, a monthly loan payment for about five years, maybe about $500, maybe $400 a month, maybe a little lower than that, maybe about $400,000, $399,000, something of that nature.
But check this out.
You have that only financial obligation of paying off a loan.
Let's say it's $400.
$400 a month.
You get $25,000.
Take for the next three years, the next three years of your life, and pay off all your regular sustaining expenses.
That means rent.
That means electricity.
That means water.
That means phone, cable, these types of things, and pay them off completely.
Have it set aside.
Use this loan to basically not even pay bills for the next three years of your life.
The only bill that you're going to have to pay is the financial obligation with the loan.
I mean, pay your car.
Pay everything on this loan for the next three years.
And you know what else you can do?
All the capital that you're getting in from your menial job, you can save it or put it in the stock market or put it in gold or put it in commodities or buy wine.
Buy artwork.
Buy stuff that's going to increase in value, folks.
And before you know it, you know, you've just got one $400 payment each month and it's paying all your bills for the next couple of years.
Meanwhile, all the capital that you're making from McDonald's, it's all going into the bank or you're diversifying it in a variety of different financial instruments.
And you're living large on a goddamn McDonald's paycheck.
Protecting Your Pocketbook00:02:55
It's not that freaking difficult.
The only people that make it difficult are you, the people.
They make it difficult.
You want to know why?
Because they go out and they find some bimbo or vice versa.
Some ugly bimbo finds some idiot and they get bamboozled with the jive, with the big smile, with all the BS saying, you know, the whole garbage.
And guess what happens?
They have kids.
That's right.
They have kids.
And let me tell you, folks, I know kids are so adorable.
And, you know, oh, it's so cute when they take a poop and fart and burp and all this crap.
But they cost money.
All right.
And if you're not fiscally responsible to take on that kind of financial burden, then you shouldn't even be contemplating the idea of having children.
But is that something that goes through the minds of American people in today's America?
Absolutely not.
They're having children like it's going out of style.
You know?
They're having children like they're going out of style.
And this is hurting the pocketbooks of American people.
This is throwing obstacles in the way of people that want to be prosperous but can't because they weren't financially or fiscally able to have these children and now they've got to pay them off.
You know, they've got to pay them off and I mean it's just it's disgraceful.
And you know what you hear from these people now?
They want more entitlements because they can't get by in America because, oh, my kids.
You know, this is what you hear from them.
My kids, baby, you're not understanding.
My kids.
I need $5,000 a month from the government, baby, because of my kids.
You know what I mean?
This is all you hear all the time.
All the time.
That's why I'm saying, folks, even if I lost everything, tomorrow, if I lost everything tomorrow, I could go to McDonald's, get a job there, and within two to three years, I could be bawling again.
I kid you not.
It's just people out here, you know, they're living life like a bunch of Nimrods.
They're out here burning cash on $10, $12 Mai Tais for bimbos at the bar.
They're out here blowing their capital on Chinese electronical widgets that are way overpriced.
I mean, this is what's hurting people's pocketbooks, man.
And this is why I'm telling everybody who listens, whether live or in the archive, man, think smart when it comes to your money.
You can live large.
You can live lavish.
I know.
I get it.
I get it.
I get why people want to live in a badass place.
I get why people want badass things.
They want to look cool.
They want to feel great.
But you can do it without having to spend so much of your capital.
And you've got to think about your capital.
You've got to think about your money like it's the most important thing in your life because it is.
Don't you understand that?
It is.
ETF Loans And Leverage00:15:23
646-652-4869 is the number to call.
000.
You there?
Shut up.
Get them off.
706.
You there?
Yeah, I called earlier about Huckington.
My phone cut off.
I actually did have a question for you.
We were talking about the price of copper going up.
You're talking about the price of copper going up.
I was wondering if any kind of like Southern copper or Taseco mines, would they be good investments as far as copper?
Do I want to think in the right direction?
I mean, you know, if you can't get in on copper based on commodities, you go into other financial instruments that are related to copper or precious metals in general.
Mining companies, I think, are a great investment, a great long-term investment for that matter.
They're definitely eyeballs for acquisitions from big multinational conglomerates.
I mean, considering now that we have JP Morgan coming out publicly saying that they're going to accept gold as collateral for loans, I think that this is going to extend a lot farther than we think.
I think this may even go into as far as actual investment into mining operations to get some of these precious metals for more liquidity, more revenue.
So absolutely.
All right, I appreciate it.
No, no problem, man.
I mean, you know, that's the way you do it.
Good call, by the way.
Good question.
I mean, if you can't get in on some of these commodities prices, I mean, and don't be wrong, they're kind of high.
Some of these commodities, you've got to have some serious capital just to invest in.
But invest in some stocks that are doing some mining for some specific precious metals if you know that precious metals are going to be bullish, like I believe they are.
If you don't want to invest in stocks that are private mines, why don't you invest into what I was discussing yesterday, which is an ETF.
An ETF, for the folks that didn't tune in yesterday, is called an exchange-traded fund, which are funds basically put forth by certain exchanges that basically encapsulate an entire sector.
For instance, if you have a hunch that retail is on its way up, you would invest in a retail ETF or exchange traded fund.
This is like a mutual fund in the fact that they take the money and kind of put it in these stocks and they try to get gains, much like the first caller in the program had a mutual fund that gave him 15% on small cap stocks, 12% on large cap stocks.
That means that he's in a mutual fund that trades specifically small cap stocks in one fund, large cap stocks in another fund.
And they base their returns on the trade of those particular stocks.
Same thing goes for the ETFs, which is the exchange traded funds.
The only difference is that mutual funds only have a limited amount of return.
As you heard the caller in the first beginning of the program, the first hour, he's only getting fifteen percent, twelve percent on his return on both of those particular mutual funds, which isn't bad.
I mean, it's a hell of a lot better than keeping it in a bank.
And by the way, it's also I think a government excuse me, a work perk.
I think it's part of his retirement program that he has with his employer.
But the difference between a mutual fund and an ETF is an ETF is much like a share.
It's much like an equity, where you can actually day trade these things if you think that there's going to be volatility in certain sectors.
You can actually hold on to these things and sell them off at an instant as if they were a security.
Unlike a mutual fund, you have to sell mutual funds at the end of days trading.
You have to put in an order for a sale in a mutual fund at the end of days trading.
And by that time, you could have already lost some serious cake, to say the least.
So if you think, then you have a hunch that, hey, I think this sector is going to do good.
I think that sector is going to do good.
Health care, commodities, gold.
I mean, right off the bat, there's an ETF right here.
Symbol is GDX colon US.
The price right now is at $57.35.
It went up $1.23 today, a change of 2.19%.
And that was based upon the 16 in change upward price that the price of gold went up today.
I mean, the gold went up 16 in change on the plus side.
And if you would have held an ETF or an exchange-traded fund, you would have been able to capitalize on that sort of thing.
So I didn't mean to really get into the whole extensive dialogue about ETFs, but I think it's a definite idea.
You can get commodity ETFs, currency ETFs, stock ETFs, leveraged ETFs, which is a completely different idea, but I don't want to get into it here.
World ETFs, I mean, there's a lot of markets out there for ETFs.
It's a pretty good financial instrument if you're one of these people that has hunches about certain sectors.
I've got somebody who's private messaged me here.
They've said I can't call in, but I have a question.
How can you use stocks for collateral on a loan if you're using an online broker?
Will the bank freeze those positions or will you still have control?
Well, you know, unfortunately, you're going to have to freeze those positions when you put up stocks as collateral.
Because collateral means that you've got to keep it there and it's going to be kind of like in the bank's possession, but it's still technically yours type of a situation.
Each bank is different.
Each bank has their own ideas of how to dispense loans on equities collateral.
But I think in my personal from my personal experiences, is you're going to have to transfer those securities or those equities to the bank in question so that they can have actual possession of those particular equities so that you can actually take a loan out.
And that's been my personal experience.
I don't think that you can actually hold the positions from your online broker and negotiate with the bank and keep the equities in your online broker.
So you would probably have to transfer those stocks into your bank's in your bank's positions, and they will put a freeze on it and negotiate with you how much they'll loan you based upon the stock collateral you have in question.
But that's actually a good question for the person that private messaged me up.
Stocks are probably one of the best things to use as collateral when approaching a financial institution or a bank for a loan.
I mean, it's better than cash.
It's better than most things because if you've got a blue chip stock and you've got a whole bunch of shares in it, and let's say you accumulated for five years, you know, 500 shares or 1,000 shares of some blue chip like I hate to say Coca-Cola again, but Coca-Cola.
All right.
And let me tell you, you know, that 1,000 shares can get you a long way, and a bank will lend you more money, more money based upon an equities stock as opposed to an actual mound of cash.
Because traditionally, what you could do is accumulate about $10,000, $25,000, $30,000 in cash and do the same thing with the bank and use your cash as collateral.
But financial institutions and banks know now that the devaluing of the American dollar is happening.
So they're kind of less inclined to give you a decent loan at a decent rate using cash as collateral, even though they'll still do it.
But that's why you have institutions like JP Morgan that announced today that they are going to open up their collateral acceptance into gold.
So if you have gold, for instance, you can put that up as collateral also.
I believe you still would receive dividends, Sloppy Foot Work, who asked a question in the chat room.
Would you receive dividends if you put the equities up for collateral?
I mean, as far as I know, you can.
It depends on the financial institution also.
But don't let these damn banks screw you.
Remember, you're having them, excuse me, let me stop stuttering.
I'm trying to answer all these PMs here.
A lot of people asking questions.
You have leverage because you have something they want.
They need these types of securities and equities on their portfolio sheet so that let's say we have another collapse again, an economic collapse, these equities can be utilized as legitimate collateral to fall back on if the debtor can't pay the debt on a consistent, timely basis.
And it's a lot better than almost anything else.
I mean, this is why the real estate market went down the tubes, because the banks would give loans to people based upon the real estate value of the house.
And because the real estate market had never declined since like 1908 or 1920, whenever the hell it was, since it never declined, there was never a collapse in the housing market.
The financial institutions and everybody else believed that the real estate markets would continue to go up.
No one ever thought that the crash would happen and it would devalue homes to a degree that the banks couldn't even sell the homes to recoup 5%, 10%, 20% of what they loaned out.
So that was a serious situation there.
So this is what banks take into consideration now.
They like blue chips.
You can see they like gold now.
They like bonds, especially treasury bonds.
That's another reason why people invest in bonds because they love bonds, securities as collateral.
Banks will take pretty much anything that can be sold off and has security.
At this point in time, banks do not have, or excuse me, cash does not have security, you know?
I've had a lot of questions here.
I'm John.
I want to answer them all.
Why don't you give me a call if you have a question?
646-652-4869.
I know a lot of people are interested in possibly getting some loans.
And let me tell you, they're loosening up those purse strings on the loans out there.
So if you do have collateral and you have accumulated some kind of asset, whether equities, bonds, gold, anything of that nature, you can actually put this up as collateral and the bank is going to be lending some money.
Just don't be fiscally irresponsible with the damn money.
Don't be an idiot and go out and go to Vegas or blow it on the crafts table or something of that nature.
I mean, invest.
If you're getting a big loan, either pay off your sustenance, your personal sustenance, your car, your house, and make sure that's paid off for at least a couple of years, and then start thinking about splurging if you want to take out a loan for that fashion.
But if I were you, I would take out a loan just to buy more securities or to put more in investments.
Give me more spread around of my portfolio.
Also, a possible business or a foreign real estate investment also sounds pretty well.
Anyway, thank you for the question there, Sloppy Footwork.
That was a pretty good question.
And once again, if you do have an online brokerage account, you should talk to them also.
Talk to them and see if they're not loaning some money.
Because believe it or not, you've got certain financial institutions that trade stocks, online traders, I'm not going to name names, that are actually banking.
They actually have a banking aspect of their trading brokerage.
And if you happen to have one of these brokers that have a banking wing of their operation, you can actually talk to them about a certain loan.
But don't fall in love with your first offer.
Go around, talk to banks.
That's their job.
That's what they're there for.
Give them a call.
Tell them what you have.
Tell them what you got.
Ask them what they can offer you.
And if they're not offering you anything worth the crap, well, then don't do it.
If they're not offering you a decent interest rate, even though interest rates are low as hell, they're not offering you a decent one.
Don't do it.
If they're not offering you a decent loan on your collateral, don't do it.
And let me tell you, if a bank says that all we can do is give you the value of the stock, you tell them to piss off.
That's what you can do.
You tell them to piss off.
Do not accept these banks trying to sucker you in anything.
There are so many financial institutions that would love those assets on their books.
So don't sit there and take it.
I know that people are saying banks suck, and they do.
But that's why you have to be a shrewd person in understanding your position when it comes to bringing stuff to the table.
If you're just some schmuck going to the bank looking for a car loan, yeah, they're going to treat you like an asshole and charge about 15% interest on a stupid car loan or something.
But if you're somebody that actually has maybe a small amount of capital in the savings account, you can put forth some equities as some collateral.
You've got gold reserves.
You've got a diversified portfolio, whatever.
These banks will talk to you.
And especially, especially if you've got a lot of money in a savings account.
If you have a lot of money in a savings account and they're treating you like a piece of dog crap, I mean, I challenge you to s tell the banker, whoever the hell you're talking to, that you want to withdraw all your cash.
And if it's over $25,000, $30,000, you're going to get the guy that's usually just sitting in the back pushing papers, the big wig that's in charge of the branch of that particular bank coming out from the back saying, excuse me, why exactly are you taking out all this money?
Student Loan Debt Trap00:03:35
I mean, is there something we can do?
Oh, my God.
I mean, you know, and then you can tell them, look, you know, I just wanted to come in.
I wanted to get a loan.
These people are treating me like, you know, third-rate, homeless dog trash, and I really don't appreciate it.
So I want to take my money out.
You know, I want you to give it to me.
I don't go to another bank that will accept the fact that I've got some pretty good capital to put in some savings and that are willing to give me a loan because I'm worth it.
I've got money.
I've got capital.
People having capital in today's America is very rare today.
You know what I'm talking about?
Anyway, speaking of no people having capital, U.S. jobs openings declined to a three-month low.
Yeah?
U.S. job openings decline to a three-month low.
That means there's not enough jobs going on out here.
Jobs are becoming scarce.
That's why I keep telling the kids that are in college right now and that are in debt, watch out.
I mean, start paying off that debt because you're in bigger trouble than those that are in credit card debt.
Student loan debt is unlike any other debt instrument that's out here today.
You can't default on a student loan.
They're going to come at you for the rest of your life, docking your pay, because we nationalized the student loan program.
Now it's the government that's going to come after you, and they have every access to your paychecks and to your personal information.
So if you happen to try to get a job, well, they're going to be right there making sure they get a good percentage of your paycheck so you can pay off that student loan that they lent you so you can be all you could be in this American dream, huh?
I mean, you had a better shot at taking that $30,000, $40,000, $50,000, $60,000 you got in student loan debt, throwing it in the market, or throwing it in some business venture, opening up a coffee shop, opening up a bar, whatever, and had a better opportunity of profitability and grown as a business, as a person, than you did going and blowing all that money at college only to see some 18,000, 19-year-old tail for about three or four years,
and that's about all you're going to reminisce on for the next 50 of your life.
You know, is the 18-year-old Tail used to tag back when you were in college.
And now I've got about $50,000, $60,000 worth of debt of college loans backing me up.
But I remember that college tale, huh?
Some good stuff there.
646-652-4869.
Let's take some callers here.
111, you're on the air.
It's a song.
It goes boom boom, boom, Duke is tard.
Get off, you idiot.
Give me a break.
No lulls whatsoever, for heaven's sake.
I mean, you know, is that all you got, man?
I mean, be comical for heaven's sake.
If you're going to call up and disrupt the show, why don't you be a little comical about it, huh?
Why won't you make us laugh?
Why don't you give us some lulls for heaven's sake, huh?
Anyway, once again, folks, not to get back to the market, but I know that people are really hype about all these gains that are happening.
And once again, I am apprehensive.
Mark my words, I'm apprehensive in all these gains that are happening.
I'm apprehensive.
Day Trading Volatility Warning00:15:19
And let me tell you why, folks.
Look at the economic climate in America.
The job openings declined to a three-month low in America.
The government is blowing more and more of our tax dollars.
I read today that Obama wants a $56 billion speed rail in America or something of that nature.
You've got all these spending packages.
I think Obama said today that he's going to kind of help people or help states.
Excuse me.
He's going to help states with dishing out unemployment because there's a lot of states that are default and can't dish out these unemployment payments to these losers that are just kind of sitting on their fat asses watching Maury Povich all day shoving food down their gullet like garbage disposals, claiming that they can't get jobs when there's jobs plentiful out here.
It's just not jobs they like.
So this is what I'm talking about out here.
You look at these factors.
You look at unemployment close to 10%.
You look at the devaluing of the American dollar because of our government spending.
You take a look at the fact that governments are going to have to start tightening their belts.
So that means renegotiating pensions for people that are used to collecting $100,000, sitting on their fat asses, being a state-funded employee.
You're going to have to put pay freezes and cut jobs on federal, state, and municipal employees.
You're just going to have to do it.
There's just too much deficit going all around.
It's not just the federal government in debt.
There's states in debt.
There's municipalities in debt.
If you're in the bonds market, especially the municipal bond market, you know what I'm talking about.
I'm not a particular big bond person myself, but I know they've been taking a hit because you don't know if these damn states are going to file for bankruptcy.
And I made a comment about that, that that's a way for the states to get by with not even paying anybody anything anymore.
I know that these union people are just trying to put it to the state that it's their obligation to pay these people $100,000 a year after they retire until they croak.
But that's just not economically feasible under any circumstance.
I mean, none whatsoever.
It's not fiscally viable.
But because these unions and they got politicians backing them up, I mean, you know, the state is kind of at a, it's kind of against the wall.
So, you know, I would not be the seat.
I would not be surprised to see states filing bankruptcy and just reneging on their damn pension funds.
You know, not even paying them.
Say, I'm sorry.
You know, and once again, I defined this on a show previous.
I'm going to redefine it again.
I think that the states have a legitimate case.
I'm not a lawyer.
I'm not an expert at this stuff, but I do like to read.
I do like to interpret things.
I think that the states could basically justify in a business court of law that the pensioners from any kind of state pension were unsecured creditors because that's the only type of business situation where you have this type of fleecing, for lack of a better term.
I mean, where do you work where you can retire with your last year's pay and keep that retirement at an increase of 8%, 10%, depending on certain states?
You're going to increase 10% each year you're alive while you're retired, and you're just getting this damn, you know, the last year of your paycheck every year till you die.
I mean, what kind of situation is that?
How does that work?
I mean, what company do you have to work for to get that?
It's not existent.
It doesn't work.
No companies do that.
That's why the federal and state and municipal employees are living in another world.
They're not even living in our reality right now.
They think that everything's gravy because their stupid bureaucratic bookworm position is still in power.
It's still getting paid.
But I'm telling you, folks, right now, they're going to have to start cutting.
They're going to have to start cutting.
And you take that into consideration.
You take a whole, I mean, just all the economic factors just do not look good.
The only thing fueling this market rally in the Dow Jones, the SP, and the NASDAQ is earnings.
That's it.
Earnings is the only thing keeping this rally alive.
And I'm still, if you were somebody that's buying in on some of these stocks that are at their 52-week highs, I'd be very concerned.
I'd be eyeballing those stocks as much as possible.
I'm not joking.
I'd be eyeballing those stocks as much as possible because I see a downturn, and it could happen in an instant.
You could see 200 to 300 point drops on the Dow Jones Industrials within one day.
I mean, okay, let's play devil's advocate here, okay?
Let's say, okay, corporate earnings are through the roof.
Corporate earnings are great.
That's what's fueling the market.
Well, what's fueling the corporate earnings, ass clowns?
What's fueling the corporate earnings?
Well, the cutting, the cutting that the corporations did so that they can maintain profitability.
Remember, a lot of these companies' gums were still bleeding up until summertime.
And if you listen to me back then, I was telling people back then in the summertime of 2010 to get into the market when the Dow Jones was 9,000.
It couldn't get any worse than that because the corporations, first of all, they were always sitting on capital.
Secondly, they cut their companies in half.
I mean, they cut pensions, they cut employees, they streamlined operations, they did everything they could to cut.
Okay, so they can't cut anymore.
And you combine that with the fact that the fourth quarter of fiscal year 2010 was obviously going to be on the plus side, given that that's the holiday season.
And, you know, everybody's putting away their pennies, you know, in their piggy bags to spend it at the holiday season.
So this is why you're seeing these particular gains in the equities markets.
It's not because this is a great economy.
And I hate to sound like a bare investor, but if you're a day trader, I think that this is a great time for you.
Easy liquidity.
You can make some serious capital.
But if you're an investor buying in, you know, you're one of these people that are like, oh, man, the market's back.
I got to get in on that Dow Jones Industrial so I can get in and before it's all gone.
And no, no, no, no.
I'm telling you right now, folks, you're going to see a downturn in this market, in this equities market, you know, at least by mid-spring, if not going into summer.
Okay?
And where are people going to go?
They're going to go into the precious metals.
They're going to go into the commodities.
You know, they're going to go into other aspects to hedge against inflation, to hedge against all the factors that are involved against capitalists in today's society.
There's a bunch of factors involved deterring capitalists.
The devaluing of the dollar, the high rise in food costs and commodities costs, oil costs, the downgrading of real estate costs.
Go on and on about all the variety of different factors affecting capitalists.
So, when approaching, all right, when approaching this market in America, approach it very gingerly as an investor.
As a day trader, I think it's gravy.
You know, I mean, I've been day trading myself.
I've been doing a lot more day trading than I ever thought I ever would be, but I base that on the volume of the market and the volatility.
I mean, good God.
All right, I got Peter Berger on saying that he's got a half a million invested in the Australian stock market, mainly banks, with a few roughies.
Should he diversify?
Absolutely.
I think he should diversify, although bank stocks are always a secure stock.
But as we saw with the economic contraction of 2008, banks are not security.
It's not just, it's not going to be there forever.
Unless you're one of these two big-to-fail companies that are in bed with the government and get recapitalized on taxpayer dollars.
But I would definitely diversify.
You know, commodities is something, and I still think commodities, folks, even though we've taken major gains within the past year in commodities, I still think it's undervalued.
I still think commodities are way undervalued.
I think fortunes will be made in the commodities markets within the next two to three years.
I mean, we're already starting to see a lot of gains.
I'm starting to see a lot of gains.
What do you think I'm drinking every day, you know, drinking bottles of Johnny Walker Blue?
I mean, you know, the commodities market keeps going up and up.
I mean, have you seen whole wheat, for Christ's sake?
I mean, wheat is so expensive.
I mean, McDonald's has got to raise the price of its freaking burger because it's so damn expensive.
I mean, I feel bad for people that are out here, you know, you know, looking for something to eat, you know, looking for some bread.
I mean, you know, wheat is through the roof.
It's one of the highest.
It's the highest it's been of all time, except for what was it?
I think it was 2007, 2008, we had a similar situation on wheat also.
You know?
So, you know, definitely diversify.
I would look at commodities.
Obviously, gold is looking good and precious metals are looking good.
I would diversify in multinational conglomerate stocks, particularly stocks since you're in Australia, particularly stocks that particularly stocks that are heavily invested in Asia since you're an Australian.
But definitely buy commodities.
Commodities are in the house.
I am so bullish on commodities, it makes me sick, man.
But the equities market, if you are, Bergeron, Peter Bergeron, if you have enough money to liquidate to get about $20,000, $25,000 since you have about $1,500 invested in some Australian stocks, I would consider day trading because I think that volatility is going to be the norm in today's markets.
You can get about $25,000, believe it or not.
Put it in some of these really high-base day trader accounts.
I'm not talking about your traditional investment, you know, commercialized investment firms.
I'm talking about these firms that you don't necessarily hear about that only let you have an account if you have 25 Gs and that directly wire you in up to the millisecond into the market so that you can day trade it.
You know, I mean, you just heard day trading.
I mean, volatility, in my opinion, is going to be the norm of our markets.
It's just going to be the norm.
And I think that you can give yourself a lot of liquidity, a lot of liquidity if you consider day trading and give yourself about $25,000.
And as a matter of fact, I mean, I'm not trying to be a tax expert here.
I'm not trying, so this is for educational and entertainment purposes only.
But if you have a let's say you want to be a day trader, well, if you have $25,000, day trading accounts, true day trader brokerages, will actually give you four times that amount on margin.
Four times that amount on margin.
So $25,000, that's $100,000 they can give you on margin.
Now, of course, that comes with its risks.
I'm not trying to say that everybody should just go out and do that.
But you turn $25,000 into $100,000 on margin and start day trading like a son of a bitch and start paying off that margin call every time you profit.
I'm telling you, folks, you can make some serious money in day trading, especially with the volatility that's happening here.
Especially with the volatility that's happening here.
Cheers to everybody out there.
Cheers.
Let me drink something.
And like I said before, all right.
Well, I don't want to say any day trading firms at this point in time because they haven't advertised.
I hope you understand that.
But if you do a YouTube search, I think that would provide you a better idea of understanding certain platforms that engage in this type of day trading activity where you open up account, you throw $25,000, and you can just use that $25,000 capital and get liquidity based on your own capital.
You do not have to go margin.
But the option's there.
These particular day trading brokerages love day traders.
And they know that day traders need a lot of capital to get lots of liquidity.
So that's why, as opposed to investors who get, I don't know, I don't ever really trade on margin when investing.
I only trade on margin when I'm day trading.
But I believe that if you're an investor, I think you get about, what is it, 50 to 100% on your money or something.
You get double your money on margin, if I'm not mistaken.
But if you're a day trader, they'll give you four times the amount of cash that you put in that account.
So if you're really confident about your day trading skills, you should start looking into something like that, and you can make some major capital.
Major capital, major liquidity.
And that's what the market's about.
That's what day trading is all about.
Day trading is about getting the liquid that you get from the rake, I like to call it, of selling the stock.
You look at these movers, and there's a lot of volatile stocks that go up and down, man, throughout the day.
You buy in at one price, very low, and then as it goes up, you sell off.
You need a lot of money so that you can buy like 1,000, 2,000 shares so that every time it moves a penny, maybe two pennies, maybe 50 cents, it moves up, you're making serious money.
But the thing about day trading is you've got to realize that you may overspeculate and you may take losses.
And don't stay in positions that look like they ain't going back up, man.
You know, that's the bad part about day traders, man.
You know, you're taking a little bit of a loss and you're like, no, it'll go back up.
It'll go back into crap just keeps going down.
I mean, that's where you lose some serious money also.
I mean, you know, when you lose 50 cents a dollar on like 2,000 or 5,000 shares, for every $1 your shares go down, that's $5,000.
Invest In Equities Instead00:04:25
You know?
That's $5,000.
So, you know, there's risks in every financial instrument.
Risk in every idea when approaching investing.
But there's also a lot of upside, man.
You know, that's the whole part of being a capitalist.
I know all this, you know, to the novice investor, to people that are listening in saying this sounds very complicated.
I understand that.
It is.
But you don't have to be such an integral investor.
Why don't you start at a snail's pace?
Once again, I hate to continue to harp on this, but I just strongly advise everybody, man.
Please, even if you're just doing some schmuck job, put some money aside and buy something that's going to give you more money just having it sit there like an equity, like gold, like some wine, bottles of wine in your wine cellar.
I mean, you know, let's champagne.
You buy a $250 bottle of 2001 Crystal today, you save it about two or three or four years.
That $200 is going to turn into $500, $600, $1,000.
I mean, do you understand?
That's how you have to think about spending your capital, man.
That's the only way you're going to stay rich.
There's no such thing.
I know that the American people have gotten sold by Hollywood.
That there is an actual possibility for somebody to just strike it rich and just to live like a complete slob doing nothing for the rest of their life.
That doesn't exist.
That doesn't happen, man.
That doesn't happen.
There is no such thing as making so much money that you don't have to worry about anything.
I mean, you're going to have to work for the rest of your life, man.
I mean, why do you think Warren Buffett, you know, he's damn got a foot into the grave, and this idiot is still up 12, 15 hours a day making deals, buying stocks, worried about his company.
You know?
I mean, don't you understand that?
I mean, you cannot sit here and say, yeah, I'm going to go for the big score, baby.
I'm going to go for the big scull, baby, and I'm going to cash in, and I'm just going to sit high for the rest of my life, baby.
I'm going to go over there.
I'm not going to do nothing.
Bull crap, man.
All right?
Bull crap.
So, look, if you all, let's say you're just not an investor.
You just like listening in because you like the way I talk crap or something.
Please, from the bottom of my heart, as a true capitalist, even if you don't understand this stuff, go out and buy something.
Set aside money, buy some gold, put it in the safety deposit box, put it in a safe, buy as much as you can, set aside $200, $300 a month, and buy that.
If you don't want to do that, buy some equities.
Buy some blue chip equities.
I know that people, some asshole yesterday, trying to pump and dump penny stocks was saying that I'm selling pipe dreams because I'm telling people to invest in blue chip stocks because they're so expensive.
Who cares if they're expensive?
I mean, they're blue chip stocks.
They're part of the Dow Jones Industrial.
Dow Jones Industrial is just a little over 30 companies.
That's all.
When you look at the Dow Jones Industrial Index, it's only a little over 30 companies.
So if you invest in anything there, and even if it fluctuates up or down, remember, you're not an investor, I mean, or a professional investor.
You're just putting money away so that it can be saved for a rainy day.
Because a stock is better than a bank.
It's better than putting it in your savings account.
Let's say you put away $200, $300 a month and you purchase whatever blue chip stock.
In three, four, five years, you're going to accumulate a lot of stock, and it's going to be worth a lot of money.
You can use that stock, go up to a bank, and say, hey, look, I've got these stocks here, and I want a loan.
What can you do for me?
And they're going to give you a big fat-ass loan.
And what do you do with that loan?
Well, you flip it.
You either invest some more, either you invest in a business, real estate, invest in more stocks, equities, invest in more plays.
It doesn't matter.
It doesn't matter, man.
Art Galleries And Stock Loans00:05:18
Good God.
Man, there's a crazy kid that says you only got $100 in liquid.
What can you do with that?
Well, you know, you can go and get yourself a age of 18.
You can go get yourself a gift card, like a Visa gift card or a MasterCard, you know, and get yourself an eBay account and start selling crap on eBay.
And I know that people are like, hey, hey, look at him.
He's saying, you know, just sell stuff on eBay.
Are you kidding me?
I make a lot of money on eBay, too.
I'm not an avid seller or anything, but I mean, hey, if I come across some old stuff, and because I'm down here in Texas, boy, we got a lot of antiquers out here.
We got a lot of old folk.
We got a lot of old folk out here that kind of die off.
And the kids have estate sales and garage sales.
My wife loves going to that crap.
They have all this stuff, all this old nonsense.
And if you know what you're looking for, you can make some serious money.
Now, let me explain a story, an eBay story that I personally had.
I had a whole bunch of Roseville pottery.
And for all you folks that aren't familiar with Roseville Pottery, it's actually, you know, an American-made potter that is really sought after, that was around during the 30s and 40s.
Really huge market.
Now, how did I know it was a huge market?
Well, I read about it.
All right?
I saw this crap.
I looked on the bottom.
It said something and had it in it.
So, you know what?
I saw it.
All right?
And you know how much I made?
I had a set of some bookends and some vases and just a whole bunch of it.
You know how much I made on a purchase of like $100 of a box of Roseville crap.
You know how much I made?
$2,000.
$2,000.
You know, just another buy, you know, because I go with my wife.
My wife loves doing this stuff, so I have to go with her.
I mean, I got to go and pay the bill, basically.
But she loves going to these types of estate sales, auctions, that sort of thing.
I got a little piece of garbage, little pottery.
I mean, it was the stupidest little piece of garbage I'd ever seen in my life.
And it was a bulb, I guess, like a bulb jar made out of some kind of glazed ceramic made by a potterer named Nicodemus.
Now, I've never even heard of a Nicodemus.
I don't know who the hell this guy is, whatever.
But all you got to do, it's the internet.
You look on the bottom, it signs something, you look it up on the internet, and it'll tell you, you know, pretty much what the hell the thing's worth.
This little piece of crap, you know, my wife bought it because it looked pretty.
She bought it for like five bucks.
Okay.
I sold that son of a bitch for $578, man.
Yeah, man.
Woo!
But anyway, that's eBay.
And not only eBay, look for other auction sites.
Look at Craigslist.
Go out to some garage sales.
I hate to be harping on some kind of American picker-esque economy.
But folks, you know, who do you think buys all these expensive antiques and these expensive pieces of material that are an old antiquity of America?
Well, the rich people, assholes, rich people look for this kind of stuff because they want these elegant pieces in their homes.
That's why these things go for so much cash.
You know, so, you know, for a crazy kid out there, go out there and read a little bit about some stuff.
Read a little bit about, you know, what there's a market for.
There's a market for everything.
Like I said, there was a market for wine.
If you invest in a bottle of wine today for $150, five years from now, it could be worth about $500 to $600.
Same with artwork.
Go up to some real legitimate art gallery and buy a piece of art and make sure that you get all the documentation of that because you can liquidate that piece of art based upon the price that you paid for it at the time.
And if the artist happens to grow in market favorability, the damn piece will go up.
I mean, these are the types of moves and these are the type of plays that you have to think about, man.
Go up to, if you happen to live around some farms, why don't you go up to some producer, drive out there to the country and say that you know somebody who produces watermelons or I don't know, fruit, produce, whatever the hell it is.
Get yourself a permit in your local municipality, some little street vendor permit, sit on the side of the road and sell watermelons at about six, seven bucks a pop.
Real Estate Plays In Egypt00:06:59
I'm not joking, man.
I mean, this is what you've got to do.
If you're starving and you want to be your own man, you want to work for yourself, you don't want to work for the man, you've got to start thinking about ways to make capital, ways to make money, man.
You've got to start thinking about it, man.
You can't just sit there, play with your pecker shaft, and hope that money's just going to fall in your goddamn lap.
It's not going to happen.
It's not.
Anyway, let me get into something else because we're kind of running out of time here.
We did talk a little bit about the AOL Huffington Post deal.
I want to talk a little bit about this stupid Google executive, this asshole named, what the hell is his name?
Wally Whale Gonim.
Gonim.
Whale Gonim.
Apparently, and if you folks don't know who he is, and let me spell out this asshole's name in the chat room for the folks that are like, who in the hell are you talking about, Ghost?
Here, let me spell out this idiot, Whale Gohim or some crap like that.
Here, here's the name right here.
This guy apparently was the mastermind behind the whole uprising of the Mubarak regime in Egypt.
According to reports, this whale goem, Gonim, whatever his fruity ass name is, this guy is a Google executive that basically utilized the internet and its communication capabilities to rally a bunch of people in the middle of that little town square.
And before you know it, everybody was looking at everybody else, and everybody just started going along with the program, and then it was on TV.
And then, I mean, this guy was supposedly the guy behind all this.
And this is a Google executive, which is something I find particularly disturbing.
I find it particularly disturbing that a corporation like Google, you know, actually has the audacity to meddle around in the political civility of a geopolitical area.
You know, I think it's a disgrace that this whale Gonem in the media is being touted as some kind of a hero out here.
He's being touted as some kind of a hero when we've got this guy, Julian Assange, who's being sought after for the death penalty for leaking out some information that is probably highly interesting to the American people.
I mean, it's in the American people's interest to know some of this crap that's being going on behind the scenes.
And yet, you've got some rabble-rousing techie, you know, who's being paid by Google over here, while Gonem, whatever the hell is his name is, you know, going out here to Egypt.
He's supposed to be the Middle Eastern executive out there or something, rallying all these people to destabilize Egypt.
I mean, I think this is serious implications for corporations meddling around in areas that they don't need to be meddling around in.
I mean, just imagine all the investors, and we had a couple investors call up, folks, in past shows.
Just imagine people that invested in that emerging market of Egypt.
You know, we had a person call up and say they had some kind of a health food store over there, and they thought it was going to be a good deal.
They never thought that Egypt would ever go under civil unrest.
They talked to the locals.
The locals said that everything was gravy, the whole nine yards.
And then you've got this asshole, what's his name again?
Whale Gonem, whatever his stupid name is, sitting over here rabble-rousing.
Well, anyway, the Egyptian authorities took him into custody, and apparently they blindfolded him and fondled him around or something.
Apparently, he wasn't tortured, even though the son of a bitch should have been waterboarded for this ridiculous nonsense that's happening in Egypt.
But anyway, you know, anyway, he gets released today.
And what does he really do?
What does this asshole do?
He goes out and continues to rabble-rouse the Egyptian people, even though it looks like calm.
It looks like everything is trying to go back to normal in Egypt.
You know, shopkeeps are trying to, you know, brush up their messes from the looting, and everything's trying to go back to normal.
And then you've got this Google asshole, you know, this idiot, Whale Gonem, still trying to rabble-rouse.
And not to mention, folks, that when Egypt tried to shut down the internet, Google was there to agitate the situation even more by allowing the Egyptian people to call in their tweets and call in their private messages.
You know?
I mean, I'm serious.
I mean, you know, calling in the tweets.
So, I mean, the only reason I bring this up, folks, is because, I mean, what if I was an investor in Egypt and I had a venture or a piece of real estate or some kind of interest in Egypt because of one Google executive asshole, you know, who Google is obviously embracing and endorsing and putting on a pedestal.
You know, investments are lost.
Society is in disarray.
I think that the Egyptians have thrown themselves back at least 20 or 30 years.
It's just, it's a disgrace, man.
You know?
I think it's an utter disgrace.
And I think that Google should be ashamed of itself.
You know, I think Google needs to just worry about collecting people's information like they're used to and worrying about categorizing people into products as opposed to going out here and overthrowing governments.
I think you're going a little too far there, Google, you milky licid pieces of crap.
All right?
I think you're way out of line embracing this asshole out here who's rabble-rousing in an emerging market.
I mean, they're rabble-rousing in an emerging market out here, and who suffers the most for it?
The Egyptian people.
I mean, don't you understand that these idiots in Egypt are in the middle of the desert?
They're in the middle of the desert.
You know that Egypt is the country that buys the most wheat from America.
And then we wonder why wheat prices are going up the roof.
They just bought a whole chunkload more of wheat recently.
It was yesterday I announced this.
They bought a whole bunch of more wheat because it all got looted and destroyed in these stupid riots.
You know, I mean, you know, they had to replenish the banks with capital because people were making a run at the banks for money out there in Egypt.
Government Assholes And Politics00:04:04
I mean, it's just disgusting, man.
I mean, don't you understand, capitalists?
I'm talking to all capitalists out there.
We cannot have civil disorder.
I mean, we just can't do it.
I don't care how, you know, much for the people.
For the people, we got to do it for the people.
Look, I mean, I would much prefer to be in some authoritarian rule.
I don't want to be in authoritarian rule.
If you look back in the archives when I was political, I mean, I was screaming my damn head off and trying to inspire the people to go out there and participate politically, but they didn't do it.
So at this point in time, what I'm saying to the capitalists out there is just don't even worry about politics anymore.
What you need to worry about is certain municipalities and state governments that are interfering with your business from progressing, you know, or certain stupid bureaucratic municipal laws that are taxing your business to death.
You know, these are the kind of things you have to worry about and influence.
But as far as going out and thinking that we're going to have some great Congress and Senate that's going to be so considerate and know what to do and things are going to be great, I mean, you got another thing coming, pal.
You got another thing coming.
I mean, look, here's Chuck kicked the American people in the ball, Schumer, for the 11th or 12th time that I played this.
This is a man who's been in public office since 1975, and this, this is how he describes the three branches of the American government.
Play that damn tape.
So I would urge my Republican colleagues, no matter how strongly they feel, you know, we have three branches of government.
We have a House, we have a Senate, we have a President, and all three of us are going to have to come together and give some.
Yeah, shut it off.
Get them off.
Now, do you see what I'm saying, folks?
These are the assholes representing us as a supposed American people in the political system.
Do you think that we're going to have anything done when assholes like this who are supposed to be making legislation and passing tax laws and all this other nonsense?
When he actually thinks that the three branches of the American government are the Congress, the Senate, and the Presidency.
I mean, do you actually think that we're going to get anything done?
So that's why I'm saying, all you capitalists out there, all you capitalists out there, don't even worry about the damn governments that you live in anymore.
It doesn't matter if you're living in socialism or so-called quasi-socialism, communism.
A capitalist can capitalize under any system.
And this is a call to all you capitalists out there.
Do not accept anything less.
Do not accept anything less.
This is about continuous growth.
This is about capitalist understanding that we're the ones with the balls.
We're the ones that throw up the money for future innovation.
We're the ones that throw up the money for future business growth, for new services, for new products.
Not the government.
The government doesn't produce nothing but bureaucratic nonsense and over-inflated budgets and ridiculous pension.
It's disgusting.
It's disgraceful.
I'm sorry.
I mean, I know that people are listening and saying, oh, here he goes again with Chuck Kick the American people in the ball Schumer.
But listen to that idiot.
He's been in public office since 1975, and this idiot thinks that the three branches of government are the Congress, the Senate, and the Presidency.
And if you think that we're going to be able to accomplish something with assholes like this in government, give me a freaking break.
I mean, give me a freaking break, man.
Anyway, 646-652-4869 is the number to call here.
Once again, I'd like for everybody to please follow me on your Twitter.
Ghost Politics is the name to follow.
Ghost Politics is the name to follow.
And on top of which, folks, I'd like for everybody to please comment on anything that you see on the blogs.
Ghostpolitics.blogspot.com is the official blog or on the official website.
Black History Month Tribute00:13:35
BlogTalkRadio.com/slash ghost.
Anywhere you see true capitalist content, any content from Ghost, why don't you comment?
I like to hear the comments.
Unless it's just a bunch of flapping your fat Cheeto stained fingers, insults, you know, I don't want to hear it.
But I'd like to hear inspiring words from folks.
So, you know, make sure to comment.
Anyway, folks, I know that it's Black History Month, folks, and I have been playing black artists every day in February to commemorate Black History Month.
Yesterday, we played Birdman.
Actually, I think we played the big timers or something, number one stunner.
I know there's a lot of black people emailing me up saying that I'm a racist prick because all I'm doing is playing nothing but a bunch of ghetto music that's making black folks look bad.
And maybe there's some validity to that.
So what I'm going to do today is play something by a black artist.
I'm going to take a little break here.
And before I take a break, before I take a break, anybody who's listening out there that has low credit scores, high debt bankruptcies, or other financial trouble, if you've got stuff on your credit report that needs to be taken off, call these guys, Lexington Law Firm, 877-663-2171.
All right.
877-663-2171.
Give them a call and discuss with them about your financial situation.
This is an actual law firm.
This is not some fly-by-night telemarketing operation that you see late at night calling themselves a credit repair business.
This is an actual law firm that can help you out if you have a bad credit, if you've got financial trouble, if you've got a high debt bankruptcy and you need some help so that you can get loans again and start living large like the ghost man over here.
877-663-2171.
Give them a call.
But back to the artist that I'm about to play.
The reason I am going to play this is not only do I need a break and I need to refill on the Johnny Walker blue in my glass year, but this is to commemorate Black History Month because this is February, folks, and we all know Black History Month is in February because it's the shortest month of the year.
Oh, no, I'm just joking.
I'm just kidding.
Anyway, here we go.
I am going to play a song that the black people love.
I mean, they just, Whenever they hear this song, they just, you know, they just kind of cream in their pantyhose.
You know what I'm talking about?
I mean, they just got to go out and dance, you know, like it's 1999, so to speak.
All right?
And they, you know, they just start following the chicks cry to this song.
All right?
So, without any further ado, this is another contribution by a black American to American society to commemorate Black History Month, folks.
I'm going to take a break.
While I'm taking this break, and if you got financial trouble, call Lexington Law, 877-663-2171.
But right now, I'm about to put on a song that I'm sure Black America loves, and I'm sure that they would vouch for like they were gangsters from the hood.
Here's a little bit of Prince, huh?
A little bit of Prince?
Oh, yeah.
Oh, yeah.
Look at the brothers.
Look at the brothers.
They're woo-woo-woo-woo like Arsenio Hall right now.
There it is.
I bet you the brothers are, you know, sipping on some four O's to this one, man.
Black America.
We're celebrating Black History Month.
Here's Prince.
Here's Prince, Purple Rain, baby.
Anyway, folks, the reason that we are playing Prince is because it's Black History Month, and we're trying to play a black artist every day for the month of February to commemorate, all right?
To commemorate Black History Month.
And I was getting a lot of flack from people because all I was doing was playing, you know, a bunch of gangster rap, which a lot of people are thinking is, you know, somehow racist or something.
They also think that I'm being racist because I put that YouTube video on my website, blogtalkradio.com slash ghost down there at the bottom.
You know, they think I'm racist because of that, but I'm not racist.
All right?
And I'm not racist.
So, you know, to you know, ease the tensions coming from those that are getting a little antsy about, you know, some of the, I guess, songs that I'm playing to commemorate white, excuse me, Black History Month.
I mean, look, that was something else for you, okay?
That was a little bit of Prince.
All right, he's black.
You know, he's different.
You know, he's definitely not rap music.
Definitely not any of that hip-hop gangster rap, drinking a forty ounce, sagging your pants to the back of your ass kind of crap.
You know?
But the only reason why I played Birdman yesterday, and for all you folks that don't know yet, Birdman, you know, for all you assholes that are claiming that I'm a racist, Birdman is my role model.
Brian Birdman Williams, the owner of Cash Money Records, that's my role model there.
It should be every black person's role model.
Although I'm not black, but I think it should be every black person's role model.
And why is that?
I mean, don't you understand that Birdman, you know, two months ago just bought himself a $2.5 million Bugatti?
A $2.5 million Bugatti.
Do you know that he bought himself a $1.5 million watch?
I mean, you know what I'm talking about?
I mean, this is what I'm talking about.
These are the type of lives that black America should be aspiring to.
But the only thing is, is that they don't want to aspire to that.
They don't want to do the work that it encompasses to do that.
So if you're going to be a black person, well, I guess you have to be a black person if you're a black person.
I'm sorry, that was kind of racist.
But if you're a black person, okay, it's Black History Month.
If you want some role models to act like that would be comparable to something that can make you look good in society, if you don't want to do Birdman, if you don't want to act like Birdman, you don't want the jibe of Birdman, whatever, another black American that every black person should model themselves by is Bryant Gumbel.
Bryant Gumbel is a man that every black person should be mimicking, that sort of thing.
So let's not BS anymore about the Black History Month stuff.
Capitalize On Collectibles Trends00:15:38
I'm going to take some calls here.
If you're listening in, 646-652-4869, I want to hear from you folks.
I want to hear from you.
We're getting about 30 minutes left in the show.
And I think we just talked about pretty much everything on the agenda today.
I know that I made some comments about the Google executive that inspired this ridiculous uprising in Egypt.
I just want to end with saying that the implications of Google having power to be able to destabilize emerging markets, it's very dangerous.
And I think that the emerging markets that are out now need to realize that, hey, this is serious.
This is not a joke.
And I don't think that there should be any kind of leverage that Google has on any emerging market because that's dangerous.
One thing I wanted to bring up, if you happen to have a Swiss bank account or a bank account off the Cayman Islands where you're putting all your under-the-table money, the IRS said today that they're willing to give amnesty to anybody who's out there who's hiding money in Swiss bank accounts or that's hiding money in the Cayman Islands, Costa Rica, anything of that nature.
Now you can go to the IRS and tell them, oh, yeah, no, I've been hiding $10 million on the off-shore account.
And now I just want to claim it now.
They're going to let you claim it.
They're giving amnesty to tax cheats now, just as long as you come forward and fess up to it and pay the taxes and penalties.
You're not going to go to prison.
I guess somebody should have told that to Wesley Snipes before he actually went to prison there, right?
But that's what I'm saying.
That's why I'm saying, man.
Anyway, 646-652-4869 is the number to call.
I want to hear from you.
Goka Goku.
Hey, what's up, Ghost?
Hey, what's going on, man?
How you doing today?
Hey, I'm doing good.
How you doing?
No, man.
Just chilling, man.
I mean, I'm definitely reaping the rewards of the market gains, commodities gains.
You heard the show yesterday.
I was bullish on precious metals.
Precious metals going up the roof today.
It's going to continue going up the roof.
I'm feeling great, man.
I'm drinking.
That's what I'm doing.
Speaking of the show yesterday, the caller that called in about making shirts with your logo on them, I think that's a great idea.
You guys should do something about that.
And sign me up.
First one to buy.
I'll get one of those words to school.
You know, spread the word.
True capitalist radio.
Spread the word.
Give me a little bit more.
No, I agree.
I agree.
I want to thank you, Goku.
Let me tell you, we're building it slowly but surely.
I don't know if you were listening at the beginning of the program.
We actually got a new intro.
Yeah, I heard that.
I hope you heard that.
Nice.
Well, we're going into that direction.
We're also getting some guests.
We actually tried to contact somebody from AOL to speak upon this Huffington Post acquisition.
And we've heard from them, and we're in negotiations to try to see if they'll come on.
We've also emailed a whole bunch of other people as potential guests.
So there's going to be some serious business happening here on the True Capitalist Radio show.
And not to mention, I've got some other tricks up my sleeve.
There's a bunch of other stuff that I've got in the works.
It's still going to be a crazy show.
It's still going to be unpredictable.
But at the same time, you're going to learn something and make some serious money.
That's the only difference between me and all these other schmucks out here that are trying to be radio show hosts or shock jocks or milky liquors or whatever they're trying to be.
If you listen to the True Capitalist Radio show, you're going to make some money.
You're going to learn how to make money.
You're going to learn how to invest.
Well, at the same time, maybe get a little entertained or something.
Yeah, of course, of course.
Thanks for the advice.
I'm crazy kid in the chat, by the way.
I only have 100%.
Oh, hey, thanks a lot there, Goku.
Yeah, no kidding.
I think that you should consider, hey, going on eBay, selling some stuff that you've got, or going out and buying stuff from garage sales.
Walk around.
I mean, I know this sounds silly, but believe it or not, you can actually find some serious cake in some of these garage sales, especially or estate sales, either one, especially from old people that die.
Old people that die, you know, their kids don't know what the hell to do with all the crap that they've accumulated for 80 years.
So what do they do?
They have an estate sale and they sell it for pennies on the dollar for what it's worth.
And you can go there and accumulate as much of this stuff as possible and sell it on eBay, sell it on Craigslist, sell it on all those internet outlets.
There are markets for these types of things out here.
There's a market for everything.
You know, there's a market for old documents.
You know, there's a market for people who collect old bus station time sheets.
I mean, there's just so much market for everything.
People collect things, and you want to capitalize on that.
You want to capitalize on everything that you possibly can, Goku.
You know, you got to think about, okay, I got $100.
Is there something in school that I can sell to these people that these people like?
Maybe I can buy some raw materials and create something and just kind of sell stuff on the side for a couple of bucks a pop.
I mean, that's how Branson, the guy who invented Virgin Records, started off.
That's a hell of a businessman, also, even though he's a damn limey bastard.
But a hell of a businessman, he basically in college made mixtapes of certain artists that he liked.
This, of course, was in the 70s.
And he sold these mixtapes to classmates in his college dorm.
And before you know it, Virgin Records was made.
And, of course, this is a true businessman that just doesn't sit on his ass and do nothing.
He parlayed the Virgin Record stuff or the Virgin Record profits to Virgin Mobile, to Virgin Airlines, to Virgin This, to Virgin that.
I mean, the guy's making some serious cake.
And that's why I'm saying, Goku, you should always think about money, man.
I mean, if all else fails, at least you got cake to either get you out of a bad situation if you happen to be in a country that goes under unrest.
You've got money to at least, you know, make yourself live lavish, even though everybody else in the damn society is living like a damn derelict.
You know, at least you got money so that you can at least simulate certain scenarios that should be common stance in life, but because of this ridiculous social arena that we're working with in today's America, you now have to make money to make your scenarios possible.
That's stupid, but that's just the way it is.
Like, family isn't family anymore because if you happen to make a little bit of cake, these family become like vultures.
You know, friends aren't friends anymore because if you make a little money, these friends are like vultures, you know, just moochers.
So, you know, this is why I'm saying, Goku, you know, if all else fails, money.
That's where it's at.
Money, acquiring money, and acquiring assets.
And as long as you learn that, Goku, I'm telling you, by 30 years old, you can be a millionaire.
But don't be stupid because there's a lot of temptation out here, Goku.
There's a lot of temptation from women, or if you're a homosexual, men, even men.
I mean, there's temptation everywhere.
And there's exploitation.
There's a whole bunch of different factors that can completely derail you from your objective of making some serious capital.
Some chick that you banged that you didn't even expect to be in your life, but because she gave you the skins at some party or at some club or something, this bimbo's pregnant, and now you have a financial obligation of at least, and that's at the very least, $250 a month.
And of course, if you're making serious capital, well, you know, that woman's going to take your ass to court and make sure that she gets at least 20, 25% of that capital to raise her kid.
Her kid that you gave her.
You gave me a kid, baby.
That's not fair.
You need to pay me for giving me a kid.
Giving you a kid, even though you were the one that spread your legs open and allowed me to penetrate you, you silly slut.
I'm the one that gave you a kid.
Anyway, sorry, Goku.
I don't mean to talk that way.
I mean, seriously, it's a joke, man.
Do not be tempted by materialism.
Materials will always be there.
Don't be tempted by the latest fad because fads come and go.
Don't be tempted by the latest electronic widget because in six months it'll be broken.
What you need to worry about is butter.
I mean, excuse me, screw butter, guns, like the big stuff, man.
Gold, silver, copper, stocks, bonds, commodities, businesses, actual assets like artwork, wine, antique furniture, antique pieces, artistic furniture pieces.
I mean, these types of things.
You've got to worry about every time you spend money.
Every time you spend money, you want to hope that you get some money back after spending it at some point in time.
So that's why I say to everybody who blows their cash on all these electronic widgets, why bother?
Why bother?
I mean, I don't get it.
These people that are buying $500 iPhones that are being manufactured in China for $5 a pop.
I mean, why bother for this crap?
It's going to be garbage in six months.
They're going to have the new one anyway.
And this is what I'm saying.
Don't be caught up in trends either.
Like, oh, I've got to get Amber Crumby and Finch.
Oh, yes, I'm so good looking.
Look at me.
I look like half a fruit bowl now.
Look at it because everybody's doing it.
Don't do it.
Who cares if you're going to school in threads, in tacky pants, dicky worker pants?
Who cares?
Who cares?
You know what matters is, in the end, after you turn 18, Goku, you're already going to be ahead of the game worrying about how to make capital and save it and then flip it.
These idiot kids that are going to graduate with you, they're worried about what damn college is going to accept them so that they can indebt themselves $40,000, $50,000, $60,000 before they even enter into the employment market, which consists of nothing anymore.
This employment market in America consists of nothing other than possibly being some bigwig at TGI Fridays or something.
I mean, this is a service industry-oriented economy.
There's no such thing as a big job, and I'm going to get a big job that's going to pay me $150,000.
Those jobs are scarce, man.
And if you can find one, you're going to have to live in a market that's going to make that $150,000 seem like peanuts because of the price of living and the price of real estate, so on and so forth.
So that's why I'm saying, Goku, man, don't, you know, think about these plays.
You know, you listen to this show a lot.
Think about what I'm saying.
You know, you could open up fake stock accounts, you know, play stock accounts, play commodities, futures accounts.
Learn from this stuff and learn why things became profitable.
Learn indicators.
Learn all this stuff.
A lot of these idiots, when they send you to business school, they want you to learn these stupid formulas.
Like that's really going to get you somewhere.
Some stupid mathematical formula.
Okay, now this is what you do.
You take FB 712.
Hey, buy low, sell high.
And how do you base buy low, sell high, Goku?
Well, you look at the economy.
You look at if people are working.
You look if people are manufacturing everything.
You look at GDP.
You look at how the government is spending our money.
You look at all these different factors.
You look at profits from corporations.
You look at the median income for private America.
You look at all these factors, man, and then, only then is when you make your investment or day trading decisions.
You know what I'm talking about, man?
Yeah, I know what you're talking about.
I mean, I'm sorry to go on and on about that, man.
But, you know, I know that there's a lot of young people like yourself that are listening in.
And I know that they're listening in because they realize that they're not going to get the badass job that mommy and daddy got.
Mommy and Daddy got 40 years or 30 years into a corporation or into some company, gave them some great pension, gave them great job security, and there is no job security in today's America.
So when you go in and get a career, there's no such thing as a career in America today, unless you're going to be a hairdresser.
There is no career in America today.
So you have to worry about making the money.
And once you get the money, that's when you get the power.
You know the saying?
Yeah, I know the saying.
And don't stop, Goku.
When you're living large and you've got a couple of million, don't stop.
Keep going.
Keep going, man.
Anyway, thanks a lot for calling, Goku.
Have you got your blog yet, man?
No, not yet.
I just want to say thank you for the advice.
And Peter, Peter in the chat, thanks to him for the advice, too, he gave me.
That's pretty cool.
That's what we're here for.
What's that?
No, if you just keep me updated on those shirts because I can wear those to school, get more people to go to your website and get them educated on what to do, how to make money, not spend their money, like I said, on stupid Arabic crime fish, however the hell you say that.
Who cares?
I mean, really, I mean, don't go with the trends.
Just do your own thing.
Don't follow the crowd.
That's it.
No kidding.
Don't follow trends is probably the most important advice that a child could get, even though these kids aren't going to get it because of their simplistic minds.
I think it's no coincidence why our kids are so stupid, given the fact that they think that their whole life, their whole existence revolves around this social environment that is school.
I mean, school provides the most horrific, disgusting social environment for a child.
And not to mention that these damn teachers ain't teaching them a damn thing.
They're more like prison guards now, you know, as opposed to actual teachers.
You know, before I let you go, Goku, I actually heard of a story from a teacher in Texas.
And we're having a lot of cutbacks out here in Texas because, you know, we're fiscally conservative.
And even though we ran a deficit last year, we're not going to go into our $9 billion in reserves that we have as a state budget to go and pay off and offset some of these deficits.
No, we're going to cut spending.
And the first place Texas is cutting, the freaking school districts and the teachers.
And let me explain why.
You look at California, who invests all this money into these schools and whatnot.
You take a look at their prison system and see that the ratio is kind of the same.
Kids With Vicodin Not Breakfast00:03:33
I think that's not a coincidence.
And secondly, these people in America today, most of these people in America, and this includes some Texans, most Texans too.
These people don't care about their children.
A teacher told me that during this whole winter blast that we're having down here in Austin, Texas, I mean, it snowed for Christ's sake, that students were still coming to school in shorts, and that some of these students that couldn't afford, or so-called couldn't afford jackets, were coming to school wrapped in a blanket.
One kid that this particular teacher that I had this conversation with told me was that the kid didn't have breakfast, but the kid had his daily Vicodin ready to go and popped it in there before he left for school.
I mean, this kid's not getting breakfast, and yet he's getting Vicodin.
And why is he getting Vicodin?
Well, because some doctor, some idiot doctor gave him Vicodin for some stupid pain that he has in his teeth or in his crotch or wherever the hell he's got it in.
And they're giving this kid Vicodin.
And I think that by looking at that scenario, that just goes to show you what America is at this point in time.
When kids are going to school with Vicodin in their system as opposed to breakfast in their system, it goes to show you where we're headed as a country, man.
And that's why when I look at these gains in the Dow Jones Industrials, SP 500 and the NASDAQ, I am apprehensive at these gains because even though we've had high profits in the corporate earnings, I think those earnings are based upon a lot of cutting that these corporations have done, and they can't cut anymore.
So right now, these quarters that are around right now, the first and second quarter for fiscal year 2011 are going to be a telling point on whether those profits in fiscal year 2010, fourth quarter, were just a bunch of inflated numbers that were basically cooked up by books and cutting pensions and cutting jobs and streamlining systems and that sort of thing.
So anyway, Goku.
I don't want to take too much every time, but I see that every day in my school.
People come to school in shorts.
And now, I mean, it's freaking like 30, 40 degree weather in shorts.
And yet these kids, they come up to me and they're like, oh, do you eat breakfast?
I'm like, yeah, I eat breakfast.
I have the and yet I asked them, did they eat breakfast?
They said, no.
Yeah, and yet they have the latest cell phone, which is, I mean, does it make sense?
And they have like the latest clothes, but yet they can't afford a breakfast to eat.
It's just it's sad.
It's sad.
It is sad.
It's pathetic.
They're spending money on what they don't need rather than what they do need to survive and all this other crap that they don't need.
And it's just pathetic and sad.
And nobody's teaching these kids.
I mean, remember, the reason they're like that is because they're imbecilic parents.
You know, their imbecilic parents actually think that this is great parenting and they're sending these kids to school in like 20-degree weather in shorts and a blanket because they didn't set aside enough money for buying this kid some clothing for the winter.
It's a disgrace, Goku.
But I hear you.
Anyway, you want to give any shout-outs, man?
Student Loan Debt Is Life Long00:04:03
Nope.
Just that's it.
Give a shout-out to you, I guess, Ghost.
Hey, man, thanks a lot, man.
Thanks a lot for calling.
We appreciate you call every day, man.
Thank you, man.
Yeah, no problem.
All right, you take it easy.
Let's go ahead.
We got nine minutes left.
Let's take some more calls.
We got the switchboards lit up a little bit.
214, are you there?
Hey, what's going on, Ghost?
It's stroke.
Oh, hey, what's going on, man?
Good to hear from you.
Yeah, man.
I was just listening into the show.
I couldn't agree more with some of the advice you were giving.
Something that a lot of people mistake nowadays.
They think knowledge is power, but the knowledge they're getting from their school is useless knowledge.
And I think the main thing people need to realize is that they need to develop a skill early on in life, a skill.
I think once they have obtained that skill, they might be able to make something of themselves.
But I just hear too many stories about people doing the college, doing their little book reading.
And I just hear them just digging themselves into a ditch with money problems down the road.
And I mean, it's serious money problems, Stroke.
What's that?
No, I say it's serious money problems, too.
It's something you just can't walk away from, like credit card debt.
I mean, you're tied to these things for life.
And if you can't pay off this debt, you know, whatever it is, $40,000 or $50,000, I think, is the average median for a BS or BA.
If you can't pay that debt on a timely fashion, those interest rates are going to accumulate.
And not to mention that the government now owns all college loans now.
You can only go through the government to get a college loan.
And now they all own the college outstanding debt as well.
So you cannot go and evade this particular debt like you would a credit card.
I mean, they're in tied with your social security number.
I mean, this is the government, man.
And, you know, what sucks is that if you, if you YouTube college, college loan story or something of that nature you know, you know you use some key words you'll actually see people with posts and video blogging, talking and showing their checks that they're getting from some menial job and how it's being docked at least fifty percent to sixty percent because of their ridiculous student loan man.
So I agree man, it's serious.
Yeah, and I saw some of those.
Uh, I saw while I was, you know, with the financial aid, and I think they're one of the main ones that come down to giving out loans to students.
And a lot of these financial aid people that you know give you the loans.
They're just trying to make money for themselves.
You know they work on commission so they don't care, you know, if you're ever going to be able to pay it off.
They just care about making money for themselves.
And I just think it's criminal, that's big time criminal.
Strope, are you kidding me?
That's why I've been yelling on here for about five years for kids that are listening in, man, do not listen to the hype unless you're going to get your college completely paid for or partially paid for and you're willing to work while you're in college, and even then I question whether or not you should even go to begin with, because you know, what are you really learning other than how to chug a beer out of a beer bong?
And you know how to you know manipulate, through excessive linguistic pressure eighteen, nineteen year old girls to have sexual relations.
I mean, that's the only thing you learn in college.
The professors aren't teaching you crap.
It's the same thing as as as the public education system.
It's just bubbling in answers.
It's spitback knowledge.
It's answer A B, C or D or match the the letter or you know.
It's these ridiculous, non-cognitive type of test taking ideas that are supposed to be gauging where our students and our children are as far as their mental capacity is concerned, and I think it's that.
It's ridiculous.
Takeovers And Profitable Stocks00:06:23
Man yeah that's, that's exactly true.
Yeah, because I see you only got five minutes left, I'm gonna let you out, but it was good talking to you, Matt.
Hey, good talking to you too.
Hey man, keep peddle hunting, man.
We've been, you know, we've been airing those out.
Man, those are, those are funny as hell.
Yeah, and you're doing a service, by the way, I sure that.
All right, stroke man.
Thanks for calling bro, and you be safe, and BWC and all that man, let's.
Let's go ahead and take another caller here, shall we?
We've got five minutes left.
Four, two zero.
You on the air.
My name's Harvey and that's Grab your toilet, stupid idiot.
Shut up.
Anyway folks, I want to thank everybody for tuning in with me.
This has been another edition of the TRUE Capitalist Radio show and for the folks that have been listening in for the past three hours, I want to thank you especially.
You're the reason why I do this program, but once again, we talked about a lot of different issues.
We talked about how stocks are rising again on earnings, and we talked about how or at least I talk about how earnings is kind of a.
I think that they're blinding the investors into believing that, that this is just a bull market and everything's going to be great.
But if you look at the economic factors, you look at high unemployment, you look at what we talked about today, three-month low of job openings, you look at the fact that our government is continuously spending, spending more and more tax dollars, devaluing the dollar.
You take a look at the real estate market, which hasn't seemed to rebound considering all these stimulus packages and tax credits and all this other nonsense.
You take a look at all these economic factors.
It makes no sense why these stocks are so much as high as they are.
I mean, if you're a day trader, you're making serious liquidity.
But I would hold on to that liquidity until this market corrects itself.
Unless these profits are real.
I don't believe they're real.
I think that the reason that we have high corporate profits is because they've been cutting jobs.
They've been laying off people.
They've been streamlining their systems.
And this is why you have profitability.
Not to mention that these earnings that are coming out in the past couple of months are fiscal year 2010, fourth quarter, during the holiday season.
So of course they're going to be up.
So I would be very wary as an investor investing in this particular equities market.
Although there's a lot of liquidity to be made if you're a day trader.
We talk about how JP Morgan is now starting to accept gold as collateral.
Oh man, and you know what?
Yesterday, folks, I told everybody I'm bullish on precious metals.
I've always been telling people I'm bullish on gold.
And if you'd been listening to me, you would have probably made some money.
Not only that, you got some equal or you got some collateral now to go up to JP Morgan and ask for a loan.
That's right.
I mean, I think it was two weeks ago a young gentleman called me up saying he has $3,000 or $4,000 to invest.
What should I get?
I told him to get some physical gold.
If he listened to me, he can go to JPMorgan right now and get a loan utilizing that gold as collateral.
I mean, that's serious business right there.
We also talked a little bit about the AOL Huffington Post deal.
I also wrote about that on my blog, ghostpolitics.blogspot.com.
And we talked about how that's a haywire deal.
But I feel that this particular AOL $315 million purchase of Huffington Post is definitely going to spawn a takeover frenzy.
And as we see, we've seen a couple of takeovers this week.
I think that we're going to continue to see buyouts and takeovers because these corporations are sitting on over a trillion dollars in profits.
And they're just sitting on it.
They're not doing nothing with it.
So they know that they've cut their companies down to the bone and they have to maintain profitability for the stockholders.
So what do they do?
They go out and buy companies.
They buy profitable small caps.
They buy profitable large caps.
They merge.
So for the next two years, it's going to be the age of the buyouts, folks.
And be looking out for that as well.
And I think that this AOL Huffington Post deal, even though I think it's a grotesque idea of business, I mean, the worst business deal of all time, it is going to spawn, in my personal opinion, buyouts galore.
And if you happen to be in some profitable small cap, large cap stocks, this could be you.
This could be you I'm talking to.
If you're an investor, this may capitalize your pocketbook if you happen to have a company that's going to be bought out.
And of course, we talked about that Google executive, that Egyptian idiot, who cares.
But anyway, folks, I want to thank everybody for tuning in with me.
I'm going to be here again tomorrow.
I'm here every day, Monday through Friday from 4 to 7 p.m. Central Standard Time.
Remember to follow me on Twitter.
Ghost Politics is the name to follow.
I give a bunch of stock tips and stuff throughout the day's trading.
Also, add to your favorites the official website, blogtalkradio.com/slash ghost.
And please spread the word about the True Capitalist Radio Show.
Spread the word.
Use the audio widget that's available underneath the player and post that thing everywhere.
All right?
Retweet tweets.
I mean, go out there and spread the word about the True Capitalist Radio Show.
Anyway, folks, it's been a great show.
I hope you learned a lot.
I hope you're going out there capitalizing, making some money, and balling to you falling, baby.
I'm out of here.
Long live the capitalist movement, and thank you very much for tuning in with me.
I'm out of here.
A Napa guy knows the only way you'd give a freshly minted driver a brand new car is if he promises to never drive it.
Instead, let him grind the gears and knock over the neighbor's mailbox in something a little more suited to his skill level.
And with over 400,000 parts and a little Napa know-how, he can safely drive something that's nearly as old as he is.