Best of the Week
Most Popular
1.Putin’s World: Why Russia’s Showdown with the West Will Worsen - John_Mauldin
2. Stocks Bull Market Grinds Bears into Dust, Is Santa Rally Sustainable? - Nadeem_Walayat
3. Gold and Silver 2015 Trend Forecasts, Prices to Go BOOM - Austin_Galt
4.Gold Price Golden Bottom? - Toby_Connor
5.Gold Price and Miners Soar on Huge Volume - P_Radomski_CFA
6.Stock Market and the Jaws of Life or Death? - Rambus_Chartology
7.Gold Price 2015 - EWI
8.Manipulated Stock Market Short Squeezes to Another All Time High - The China Syndrome - Nadeem_Walayat
9.Gold, Silver, Crude and S&P Ending Wedge Patterns - DeviantInvestor
10.Is the Gold And Silver Golden Rule Broken? - Michael_Noonan
Last 5 days
Gold Stocks to Shine in 2015 - 19th Dec 14
Why Alibaba Stock Shares Are a Screaming Buy - 19th Dec 14
China, Dollar, Japan, Europe Burning Questions for 2015 - 19th Dec 14
U.S. Economy is in a Sweet Spot! - 19th Dec 14
US Dollar and the Gold Fairy Tale - 19th Dec 14
Show Me The Money (Flow)! Tracking Money-Flow Through Value Shifts In Stock Markets - 19th Dec 14
The Commodities Market Is Not Dying, It’s Just Hibernating - 19th Dec 14
The Price Of Gold And The Art Of War - 18th Dec 14
Euro Succumbs to ECB QE Expectations and FOMC - 18th Dec 14
John Williams: A Downhill Run for the U.S. Dollar in 2015 - 18th Dec 14
Outrage at Taliban Islamic Fundamentalists Massacre of 132 Pakistani School Children in the Name of God - 18th Dec 14
How Inflation Changes Retirement Benefit Choices - 17th Dec 14
The Real Reason It's Tough to Beat the Stock Market - 17th Dec 14
Russian Currency Crisis and Debt Defaults Could Create Contagion in West - 17th Dec 14
How to Profit From Russia's Stock Market Crash - 17th Dec 14
Russia Crisis - If You Put Your Money in the Bank Will You Get it Back? - 17th Dec 14
Crude Oil Price Crash, U.S. Employment and Economic Growth - 17th Dec 14
Opposing Forces At Play In Gold and Silver Precious Metals Complex - 17th Dec 14
Wall Street Will Always Find An Excuse For Not Raising U.S. Interest Rates - 17th Dec 14
Torture, Terror And Elite Schizophrenia In The UK - 16th Dec 14
Eurozone Conflict Will Bring a Major Stocks Buying Opportunity - 16th Dec 14
Viewing Russia From the Inside - 16th Dec 14
Gold and Silver Stocks Bottom - Are We There Yet? - 16th Dec 14
The Financial Industry Pigmen Win Again - 16th Dec 14
Crude Oil Price Epic Blowout - 16th Dec 14
Asian Stocks Markets: Sand In The Gears Of The Bull Market - 16th Dec 14
U.S. Dollar Trend Forecast 2015 - Video - 16th Dec 14
Silver Price Bottom? - 15th Dec 14
Gold Price Base Building Bullish Pattern - 15th Dec 14
Stock Market Probable Pop-n-Crash Today - 15th Dec 14
Stock Market Time for a Bounce - 15th Dec 14
Stock Market Euphoria: The Mother of All Ponzi Schemes - 15th Dec 14
Gold - The Weight of Time as Trend - 15th Dec 14
U.S. Dollar Collapse? USD Index Trend Forecast 2015 - 14th Dec 14
The Rushing Stocks Bear Market and How to Prepare - 14th Dec 14
Gold and Silver Dreaming of a White Christmas - 14th Dec 14

Free Instant Analysis

Free Instant Technical Analysis


Market Oracle FREE Newsletter

Dramatic Stock Market Selloff

Another Victim of America’s Ponzi Scheme Economy (Part 2)

Politics / US Economy Jul 08, 2009 - 04:21 AM GMT

By: Mike_Stathis

Politics

Best Financial Markets Analysis ArticleToday, America’s “New Economy” is based exclusively on services - primarily financial and technology-based services, with a whole slew of attorneys and consultants to support transactions and legal agreements.


But there are other service industries as well. Over the past few decades, as America's economy has transitioned from old to new, millions of manufacturing jobs have been sent overseas. Many of these jobs have been replaced with blue collar service jobs like landscaping, valets, nannies, maid services, pet services, massage therapy and fitness trainers. Today, each represents a large and growing industry in America.

Others have enrolled in for-profit colleges hoping to transition into another career. Little do they realize, most of these “new job opportunities end up being dead-end jobs.

The fact is that economic and career opportunities are shrinking by the day in America; all due to the system of unfair trade advocated by politicians who have been bought off by industry lobbyist groups. 

Which would you rather have; a manufacturing job with a nice stable salary, healthcare, disability, and retirement benefits? Or a job parking cars for tips.

If you’re a teenager or college student, you might opt for the later. The work is easy and you get several employee benefits - you get to see “hot” girls and drive “nice” cars. But those of us in the real world would prefer a stable job with a salary and employee benefits. 

America's "New Economy" high-tech cities are primary based in California. In contrast, the financial powerhouses reside in New York City, Boston, and Chicago.

But as you might already know, New York has been in decay for many years, as has Chicago. And even the high-tech capital of the world, California is facing bankruptcy, as are most states and cities. 

http://www.reuters.com/article/marketsNews/idUSN1927832320090319

(Readers of my July investment newsletter will note that I made specific warnings regarding California municipal bonds.)

Most people realize that America's largest cities have been in decay prior to the current economic meltdown. For well over a decade, "white flight" has been responsible for the overdevelopment of suburban America. Many of these regions have sought to isolate themselves from the larger nearby cities. To achieve this economic and societal independence, they’ve built sports stadiums, airports, expensive schools and museums. 

But these projects were financed largely by city taxes - property taxes, sales taxes and other taxes. What I am speaking of is a bubble in many small suburban areas across America that no one mentions. And it's in the process of imploding.  

President Obama is already discussing what to do with the glut of ghettos and slums that continue to grow by the day.  This just might be his best idea yet.
http://www.telegraph.co.uk/finance/financetopics/financialcrisis/5516536/US-cities-may-have-to-be-bulldozed-in-order-to-survive.html

Don’t be fooled by the Washington hacks. America's Second Great Depression is still in its early stages, so hold onto your hats and try to stay afloat, because I don't see anything getting better on a permanent basis until real solutions surface. 

As I detailed in America's Financial Apocalypse, the two most important of these solutions are a radical restructuring of free trade policies and overhauling the healthcare system. 

Of course there are many other changes needed. America's pseudo-free market system must be reassembled with a solid foundation of regulatory authority and accountability, so that the financial, energy and other industries provide as much benefit for consumers as for the wealthy elite. All lobbyist activities must also be banned. Finally, the Federal Reserve must be forced to surrender its control of monetary authority.

Contrary to popular belief, not a single one of these issues have been (and most likely will never be) addressed sufficiently by Washington because our leaders are under the control of the Federal Reserve and corporate America. And while corporations certainly aren’t happy with the current healthcare system, it gives them an excuse to send jobs overseas. 

Rather than huge manufacturing industries reminiscent of America’s “Old Economy,” the “New Economy” is characterized by high-tech firms big and small. But many of the jobs from this industry have been outsourced overseas, from Dell Computers and Amazon.com to Microsoft and IBM.

The “New Economy” is also characterized by huge financial institutions which scavenge off of consumers and corporations. This does nothing to create net productivity. The only productivity the financial industry creates is when it dumps off toxic investments to foreigners. But as we know, this represents securities fraud.

As you might imagine, most of America’s largest financial services firms also make extensive use of outsourcing.  In America’s “New Economy” it has become exceedingly difficult to point to just one large corporation that has not outsourced jobs. Advocates of free trade claim outsourcing has created higher living standards, lower prices for consumers and better jobs for Americans. You decide.  

As it stands today, America’s Ponzi scheme economy is in midst of collapse. Instead of providing real solutions, Washington insists on picking up the pieces and putting them back together. President Obama has backed away from his promises to restructure free trade. He also promised to hold all those responsible for the real estate and banking Ponzi scheme accountable, but has done nothing. Furthermore, his healthcare plan will not offer the kind of solution needed to restore America’s previous economic strength.

Finally, rather than diminish the control of the Federal Reserve, Obama’s strings have been pulled by Emanuel, Summers and Geithner to grant the Fed as the dictator of the U.S. financial system. This is an extremely dangerous move that will lead to nothing other than disaster.

We cannot permit Washington to reassemble this broken Ponzi scheme while placing even more power in the hands of the perpetrators because it will collapse again, causing much more devastation than we see today. 

This is the reality of America.

2

By Mike Stathis
www.avaresearch.com

Copyright © 2009. All Rights Reserved. Mike Stathis.

Mike Stathis is the Managing Principal of Apex Venture Advisors , a business and investment intelligence firm serving the needs of venture firms, corporations and hedge funds on a variety of projects. Mike's work in the private markets includes valuation analysis, deal structuring, and business strategy. In the public markets he has assisted hedge funds with investment strategy, valuation analysis, market forecasting, risk management, and distressed securities analysis. Prior to Apex Advisors, Mike worked at UBS and Bear Stearns, focusing on asset management and merchant banking.

The accuracy of his predictions and insights detailed in the 2006 release of America's Financial Apocalypse and Cashing in on the Real Estate Bubble have positioned him as one of America's most insightful and creative financial minds. These books serve as proof that he remains well ahead of the curve, as he continues to position his clients with a unique competitive advantage. His first book, The Startup Company Bible for Entrepreneurs has become required reading for high-tech entrepreneurs, and is used in several business schools as a required text for completion of the MBA program.

Restrictions Against Reproduction: No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without the prior written permission of the copyright owner and the Publisher. These articles and commentaries cannot be reposted or used in any publications for which there is any revenue generated directly or indirectly. These articles cannot be used to enhance the viewer appeal of any website, including any ad revenue on the website, other than those sites for which specific written permission has been granted. Any such violations are unlawful and violators will be prosecuted in accordance with these laws.

Requests to the Publisher for permission or further information should be sent to info@apexva.com

Books Published
"America's Financial Apocalypse" (Condensed Version)  http://www.amazon.com/...

"Cashing in on the Real Estate Bubble"  http://www.amazon.com/...

"The Startup Company Bible for Entrepreneurs"   http://www.amazon.com...

Disclaimer: All investment commentaries and recommendations herein have been presented for educational purposes, are generic and not meant to serve as individual investment advice, and should not be taken as such. Readers should consult their registered financial representative to determine the suitability of all investment strategies discussed. Without a consideration of each investor's financial profile. The investment strategies herein do not apply to 401(k), IRA or any other tax-deferred retirement accounts due to the limitations of these investment vehicles.

Mike Stathis Archive

© 2005-2014 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

Free Report - Financial Markets 2014