LAS VEGAS AND THE GREAT RECESSION OF 2008-2014: KEYS TO INVESTMENT

WHAT IS BEHIND THE GREAT RECESSION IN LAS VEGAS, NEVADA? THE GREAT RECESSION OF LAS VEGAS HAS OPENED A CAN WORMS FOR THE UNOFFICIAL CAPITAL OF LAS VEGAS.  LAS VEGAS IS THE HEADQUARTERS OF A TRILLION DOLLAR WORLD WIDE EMPIRE.  (2011-2020)

WHAT ARE THE THREE KEY FACTS THAT HAVE EMERGED FROM THE GREAT RECESSION OF LAS VEGAS? 

1. LAS VEGAS  NON-GAMING REVENUE IS GREATER THAN THE GAMING REVENUE FOR THE LAST 5 YEARS.  THIS MEANS THAT GAMING REVENUE HAS STAGNATED AND GONE SIDEWAYS.  FOR EXAMPLE, IN ARIZONA THERE ARE 23 CASINOS AND LARGE THEMED HOTELS.  THIS LEVEL OF COMPETITION IS CALLED IMPERFECT COMPETION VS. THE MONOPOLY COMPETITION THAT RULED LAS VEGAS AS AN EXPORTER OF GAMBLING ORGANIZATIONS.

 LAS VEGAS IS FACING COMPETITION IN MANY STATES AND THIS HAS BROKEN THE MONOPOLY PRICING POWER OF THE HOTELS AND CASINOS OF NEVADA. THIS MEANS THE NEW LAS VEGAS, NEVADA HAS TO COMPETE ON A IMPERFECT ECONOMIC STRUCTURE WHERE NON-PRICING FACTORS  DRIVE THE GAMBLING MARKET. 

THIS IS WHY ENTERTAINMENT, GOURMET CHEFS, THEME RIDES, SPECIAL HOLLYWOOD SHOWS, SPAS, CITY CENTER ARE THE NON-PRICING GOALS OF THE CASINO BUSINESS. THE ONLY OPTIONS FOR THE STRIP IS CONSOLIDATION AND ACQUISITION OF OTHER CASINOS.  THE ECONOMIES OF SCALE HAVE REPLACED THE TRADITIONAL INDIVIDUAL OWNERSHIP AND WOW FACTOR  OF SAM BOYD.

2. THE SECOND FACTOR IS THAT THE FASTING GROWING DEMAND SECTOR IS COMING FROM INTERNATIONAL CUSTOMERS.  THE INTERNATIONAL CUSTOMERS WANT THE LAS VEGAS EXPERIENCE AND THEY NEED THE EXPERIENCE OF THE AUTHENTIC GAMBLING EXPERIENCE.  THE INTERNATIONAL CUSTOMERS ARE THREE TIERS OF CUSTOMERS:  HIGH INCOME, THE RISING UPPER CLASS, AND WILD MONEY FROM NEW BUSINESS SUPERSTARS OF THE THIRD WORLD.  THE JUNKET BUSINESS IS ALIVE AND WELL IN LAS VEGAS, NEVADA.

 THIS IS THE HIGH END OF THE MARKET.  THE LOW END AND MIDDLE END ARE NOT GROWING AND STEVE WYNN HAS REALIZED THAT THE ECONOMICS OF SCALE OF THE MIDDLE CLASS HAS BEEN PUSHED OUT OF THE MARKET. THE MARKET IS BEING EATEN UP BY TOO MANY LAS VEGAS STRIP COMPETITORS AND THE DOWNTOWN AREA. IMPERFECT COMPETITION MEANS THAT YOU CANNOT RAISE HOTEL ROOM PRICES AND OTHER SERVICES BECAUSE THERE IS TOO MUCH COMPETITION.

 WHAT HAPPENED TO THE BUS FULL OF CUSTOMERS THAT WANTED THE $20.00 WORTH OF QUARTERS?  WHAT IS THE 21 ST CENTURY MASS MARKETING TO THE DOMESTIC AUDIENCE? WHAT HAPPENS IN VEGAS ... STAYS IN VEGAS?  REALLY, THIS WILL NOT MOVE MA AND PA KETTLE OR THE SUBURBANITES WHO NEED TO FINANCE THEIR KIDS EDUCATION?  DOES STEVE WYNN BELIEVE THAT LAUGHLIN MODEL IS THE FUTURE OF GAMBLING?  DOES INDIAN GAMING MEET STEVE WYNN STANDARDS? WHO IS FOOLING WHO?  HOW CAN THE LAS VEGAS CONVENTION MASS MARKETING CAMPAIGN MEET STEVE WYNN'S STANDARDS?

 THE NICHE MARKETS OF HAWAIIANS, LGBT, ASIANS, AND X GENERATION MARKETING ARE GROWING TOO SLOW FOR STEVE WYNN.  THERE IS NOT ENOUGH PROFIT IN THESE MARKETS.  THEY WILL BE A SOURCE OF FUTURE GROWTH BUT NOT AT MASS MARKETING LEVEL OF THE 1990'S. DOES STEVE WYNN WANT TO BUY BACK IS OLD FAVORITES OF BELLAGIO OR MIRAGE? NO! THE MARKET IS NOT GROWING AND WYNN PALACE IS $ 9 BILLION EXPANSION AND ESCAPE FROM DECLINING DEMOGRAPHICS.  DEMOGRAPHICS CREATES MARKETS AND MILLIONS!

3. WHAT IS THE SOLUTION FOR NEW GAMBLING INTELLIGENSIA?  THE NEW GAMBLING MANTRA IS CHINA.  THE CHINESE BANKING SYSTEM HAS DEPOSITS OF 105 TRILLION YUAN THAT NEEDS TO BE SPENT ON GAMBLING.  REMEMBER GAMBLING IS AN INVESTMENT IN CHINA!  THE MONOPOLY STRUCTURE REMINDS STEVE WYNN OF THE OLD DAYS OF MONOPOLY PRICING STRUCTURE AND CONTROL OF PROFITS.  THE CHINESE OFFICIALS ARE EVEN LIMITING THE NUMBER OF TABLES AT MACCAU CASINOS.

  THE DEMOGRAPHICS OF 1.1 BILLION CHINESE IS MUCH GREATER THAN THE AMERICAN DEMOGRAPHICS OF 320 MILLION.  THE CHINESE WANT THE BIG TIME CASINOS OF LAS VEGAS, NEVADA.  STEVE WYNN, VENETIAN, AND MGM HAVE EMBRACED THE NEW GAMBLING MANTRA OF SUCCESS. LET'S BE CHINESE FOR GAMBLING SAKE. STEVE WYNN HAS FOUND THE SECRET OF THE HOLY GRAIL OF BUILDING GAMBLING CASINOS?   THE SECRET IS THE CAPITAL STRUCTURE THAT INSULATES YOU FROM THE BUSINESS CYCLE. THE  GREAT JUNK BOND GURU MILIKEN HAS TAUGHT THAT USING BOND DEBT STRUCTURE WITH WELL DIVERSIFIED MATURITY STRUCTURE AND CASH RESERVES WITH COMPLETE PLAN BEFORE BUILDING IS THE KEY TO CASINO SUCCESS.  

WHAT WILL HAPPEN TO LAS VEGAS, NEVADA?  THE MARKET WILL EXPERIENCE AN INCREDIBLE RENAISSANCE AFTER THE DEFLATION ECONOMICS IS REPLACED BY INFLATIONARY ECONOMICS COMING SOON! THE CITY CENTER WILL EVENTUALLY BECOME THE NEW FLAGSHIP OF THE LUXE MOVEMENT OF THE GROWING WEALTHY ELITE OF AMERICA.

The Keys to the Shadow Banking System: STEVE WYNN: BIG GAMBLE IN CHINA! WYNN CHINESE PAL...

The Keys to the Shadow Banking System: STEVE WYNN: BIG GAMBLE IN CHINA! WYNN CHINESE PAL...: STEVE WYNN IS THE GAMBLING HERO OF A THOUSAND FACES! THE AMAZING STEVE WYNN HAS A VISION THAT WILL NOT STOP AND HE TRULY IS A LEGENDARY...

STEVE WYNN: BIG GAMBLE IN CHINA! WYNN CHINESE PALACE!

STEVE WYNN IS THE GAMBLING HERO OF A THOUSAND FACES! THE AMAZING STEVE WYNN HAS A VISION THAT WILL NOT STOP AND HE TRULY IS A LEGENDARY FIGURE OF THE WORLD OF GAMBLING!

STEVE WYNN NEW VISION IS TO CREATE A NEW LUXURY MEGA-THEMED RESORT FOR 2016 CALLED THE WYNN PALACE.

   THIS IS THE YEAR OF THE MONKEY, 2016. THE LUCKY NUMBERS ARE 1-7-8 AND LUCKY COLORS ARE WHITE,  GOLD AND BLUE. THE BEST FRIEND OF THE FIRE MONKEY IS THE DRAGON. DRAGON PEOPLE WILL MAKE DR. WYNN A SUCCESS.

HE HAS TRULY UNDERSTOOD THE IDEA OF SCHUMPTERS CREATIVE DESTRUCTION. THE RADICAL APPLICATION OF CREATIVE DESTRUCTION TO THE CASINO INDUSTRY HAS CREATED A POWER HOUSE OF GROWTH FOR LAS VEGAS.

  HE HAS CREATED A THOUSAND POINTS OF LIGHT FOR INVESTORS AND HE WILL NOT DISAPPOINT AGAIN.  DO NOT BET AGAINST WYNN FOR HE HAS INCREDIBLE MASTERY OF THE GAMBLING MARKET.  THE 26 MILE HONG KONG BRIDGE TO MACAU WILL BE COMPLETED IN 2015. 

 THIS MARKET IS NOT GOING AWAY AND WYNN KNOWLEDGE IS THE  INCENTIVE  FOR INVESTORS. THE  ENTIRE CHINESE BANKING INDUSTRY IS SOMEHOW INVOLVED IN THIS NEW PLAY FOR CASINO BUILDINGS IN CHINA.

CURRENTLY, ABOUT 1% OF THE CHINESE POPULATION HAS BEEN GAMBLING AT MACAU. THE POPULATION OF 1 BILLION INDIVIDUALS WHO HAVE A PASSION TO GAMBLE  IN MACAU. THE NEW GAMBLING MODEL OF MACAU IS TO CREATE A FAMILY  ATMOSPHERE. THE IDEA IS TO MAKE THIS A RESORT DESTINATION CITY.

MOREOVER, THE TOP CHINESE DEVELOPERS ARE PLANNING TO USE CUBA AS THE NEXT GAMBLING MODEL IN THE AMERICAS. THE IMPLICATIONS ARE VAST BECAUSE THE OLD MAFIA CASINOS ARE  NOW BECOMING CHINESE RUN CASINOS. IT WOULD NOT SURPRISE MANY GAMBLERS THAT DR. WYNN  COULD START A CHINESE GAMBLING CORPORATION AND OPEN UP A LUXURY PALACE IN CUBA!

STEVE WYNN STOCK IS CURRENTLY AT $103.34. FROM A $220.00 HIGH. THE ENTRY POINT TO BUY THIS STOCK IS $77.77. THE EXPECTED RETURN IS ABOUT 30% PER YEAR FOR 10 YEARS!   

 THIS IS THE PLAY OF THE DECADE FOR GAMBLING INVESTORS.  I WOULD RECOMMEND AN OPTION PLAY AND STOCK PLAY FOR WYNN AND LOOK TO RECORD PROFITS FROM THE COMPANY.  REMEMBER, DR. WYNN IS A HIGH-QUALITY MANAGER WITH A HIGH-QUALITY MANAGEMENT TEAM. YOU ARE BUYING THE BEST AND BRIGHTEST IN THE GAMBLING MARKET.

CHINESE STOCK BONANZA! BUY AND HOLD THESE STOCKS!

THE CHINESE BANKING INDUSTRY HAS A DEPOSIT BASE OF 104 TRILLION YUAN!!  RED CAPITALISM IS GOING TO BE A MAJOR FORCE IN THE BANKING COMMUNITY FOR THE NEXT 25 YEARS.  WHAT ARE THE KEY STOCKS TO BUY?

1. CIHHF .........................$2.29 PER SHARE
2. CAOVF ........................$2.92. PER SHARE
3. CILJF.............................$2.92 PER SHARE
4. BACHF.........................52 CENTS
5. IDCBF ..........................68 CENTS
6. CICHF ..........................77 CENTS
7. ACGBF .........................49 CENTS
8. PIAIF (INSURANCE) ..................................$9.32

THE CHINESE BANKING INDUSTRY MAJOR GOAL FOR THE NEXT 10
YEARS IS THE CREATION OF AN OFFSHORE FINANCIAL MARKET.
THIS NEW AGENDA IS TO ALLOW BANKS TO EXPAND AND TO
COMPETE IN THIS NEW MARKET.  THE SECOND PART OF THEIR
AGENDA IS TO CREATE INTERNET PLATFORMS FOR THEIR
EXPANSION INTO THESE MARKETS.  JACK MA IS THE POINT MAN
THAT HAS CREATED THE ALIBA YU'E BAO MONEY MARKET FUND.
HE HAS BEEN GIVEN PERMISSION BY THE BANKING COMMUNITY TO
SHAKE UP THE MARKET FOR INNOVATION.  THE AMAZING RISE
OF JACK MA IS INCREDIBLE AND HIS MONEY  MARKET FUND OFFERS
THE FOLLOWING RETURNS WITHOUT EARLY WITHDRAWL PENALTY:

1. A 1 YEAR ACCOUNT PAYS 3.3%

2. A 3 YEAR ACCOUNT PAYS 4.8%

3. A 5 YEAR ACCOUNT PAYS 5.7%

THE AMERICAN MONEY MARKETS CANNOT COMPETE AGAINST THESE RATES. THE AVERAGE CHINESE PERSON HAS FIVE CHOICES: 1. REAL ESTATE; 2. GAMBLING INVESTMENTS; 3. STOCK MARKET 4. JACK MA'S MONEY MARKET FUND; 5. TRADITION CHINESE BANKS.  CURRENTLY 82% OF CHINESE BANKINGIS ELECTRONIC BASED AND MOBILE ORIENTATED.  THE CHINESE LIBERALIZATION OF THE FINANCIAL SECTOR WILL RADICALLY ALTER THE LENDING POLITICES OF THE BIG 4 CHINESE BANKS AND THE MINOR CHINESE BANKS HOLDING CRAZY LOAN PORTFOLIOS.

THE CHINESE BANK EXPLOSION: 104 TRILLION IN YUAN!

THE CHINESE BANK EXPLOSION HAS HIT THE WORLD WIDE ECONOMY.  THE CHINESE BANKS HAVE A TOTAL OF 104 TRILLION YUAN ON DEPOSIT.  THIS IS THE LARGEST BANKING SYSTEM IN THE WORLD!

WHERE ARE THE INVESTORS?  THE CHINESE GOVERNMENT HAS MADE A MOVE TO CREATE THE FIRST WORLD WIDE OFFSHORE FINANCIAL MARKETS.  THE CHINESE ECONOMIST HAVE FIGURED OUT THAT THE WORLD NEEDS CHINESE MONEY! THE BRITISH HAVE BECOME THE FIRST TO BORROW MILLIONS OF YUAN.  THE IDEA OF AN OFFSHORE FINANCIAL CENTER IS THE FIRST STEP TO AN AMAZING INTERNATIONAL BANKING SYSTEM TO CREATE YUAN AS THE WORLD MONEY RESERVE.

HOW WILL THIS HAPPEN? FINANCIAL CRISIS WILL MAKE THIS HAPPEN IN THE DEFLATIONARY WORLD OF CASH SHORTAGE.  THE CHINESE ECONOMIST HAVE CREATED THE FIRST ARCHITECTURAL FINANCIAL PLAN FOR THIS NEW CONCEPT OF OFFSHORE FINANCIAL MARKET.

THE CHINESE BANKING COMMUNITY PLANS TO USE THE E COMMERCE MODEL DEVELOPED BY JACK MA'S ALIBABA YU'E MONEY MARKET FUND.  THE FUND WILL OFFER HIGHER INTEREST RATES AT 6% AND WILL ALLOW INSTANT WITHDRAWL USING THE INTERNET AND SMART PHONES.  THE IDEA IS TO USE JACK MA INTERNET DEVELOPMENT TO BECOME THE VANGUARD OF INNOVATION TO USE HIS IDEA FOR THE NATIONAL OFFSHORE INTERNET FINANCIAL MARKETS. THE CHINESE GOVERNMENT WILL BE ABLE TO COMPETE WITH OFFSHORE FINANCIAL MARKETS ON THREE LEVELS:

1. GOVERNMENT LOANS
2. INSTITUTIONAL LOANS
3. BUSINESS AND INDIVIDUAL LOANS

THE INCREDIBLE FINANCIAL MARKETS IN SOUTH AMERICA, AFRICA AND SOUTHEST ASIA WILL OFFER INCREDIBLE LENDING OPPORTUNITIES.  THE NEW MARCO POLO'S WILL BE THE CHINESE BANKER.  THIS WILL ALLOW WONDERFUL WAYS TO MAKE MILLIONS ON COMMISSIONS AND EQUITY POSITIONS WORLDWIDE.  THE WORLD MARKETS FROM A PURELY TECHNICAL POINT OF VIEW IS THE VISION OF AN OFFSHORE BANKING  CENTER FOR CHINA. THIS IS THE BEGINNING OF THE LIBERALIZATION OF CHINESE FINANCIAL SYSTEM.

The Keys to the Shadow Banking System: HOW TO PROTECT YOURSELF AND PROFIT FROM THE OPEC E...

The Keys to the Shadow Banking System: HOW TO PROTECT YOURSELF AND PROFIT FROM THE OPEC E...: THE GREAT OIL DEPRESSION OF 2014- 2020 HAS STARTED AN INCREDIBLE DEFLATIONARY COMMODITY TREND.  THE COLLAPSE OF OIL PRICES SO QUICKLY HAS...

HOW TO PROTECT YOURSELF AND PROFIT FROM THE OPEC ENERGY COLLAPSE!

THE GREAT OIL DEPRESSION OF 2014- 2020 HAS STARTED AN INCREDIBLE DEFLATIONARY COMMODITY TREND.  THE COLLAPSE OF OIL PRICES SO QUICKLY HAS CREATED A REVERSE FLOW OF MONEY FROM OPEC TO THE REST OF THE WORLD. IT'S THE OIL STUPID!

WHEN OIL WAS PRICED UNDER $2.00 A BARREL 70% OF OIL NEEDS OF THE AMERICAN ECONOMY WAS CONTROLLED BY FIVE COUNTRIES IN 1960:
1. IRAN 2. IRAQ 3. SAUDI ARABIA 4. KUWAIT AND 5. VENEZUELA,

HOW DID IT ALL START? IN 1973 THE 35TH OPEC CONFERENCE IN VIENNA DECIDED TO CHARGE $5.00 A BARREL AND 1974 THE PRICE WENT TO $7.00 A BARREL. BY 1981 THE PRICE OF OIL JUMPED TO $40.00 A BARREL. THE PRICE WENT DOWN TO $10.00 A BARREL IN 1986. AFTER THE GULF WAR PRICES SOARED TO $30.00 A BARREL AND THEN IN 1998 ENDED AT $10.00 A BARREL. THE PRICE OF OIL CLOSED OUT THE 20TH CENTURY AT $25.00 A BARREL.

WHAT DOES THIS MEAN? THIS MEANS THAT FAILING OIL PRICES PRECEDED ECONOMIC GOOD TIMES AND STRONG STOCK MARKETS. WHAT IS THE RELATIONSHIP BETWEEN OIL AND STOCK MARKET?

 WHEN OIL ROSE BY 100 PERCENT OR MORE OVER 12 MONTH PERIOD DURING THE NEXT 18 MONTHS EXPERIENCED A 13% TO  27% DECLINE IN STOCK MARKET!

WHENEVER OIL PRICES DROPPED OVER A 12 MONTH PERIOD DURING 18 MONTH PERIOD THEN THERE WAS A 30% MAXIMUM GAIN. THIS IS 30: 1 RATIO OF FABULOUS GAINS IN THE STOCK MARKET! THE STOCK MARKET WILL BEGIN ITS GAINS ONCE THE OIL BOTTOM HAS BEEN ESTABLISHED.  THIS MAY BE A 6 MONTH PERIOD AND BOTTOM WILL BE WHEN OPEC MEETS IN JUNE OF 2015.

WHO ARE THE MAJOR OIL PLAYERS TO SHORT THE MARKET? THE MAJOR OIL PLAYERS ARE EXXON, CHEVRON, ROYAL DUTCH ETC. THEY DO WELL WHEN OIL PRICES RISE AND THEY DON'T DO BADLY WHEN OIL PRICES FALL.

THE SECOND GROUP IS THE OIL SERVICE COMPANIES WHO ARE DRILLERS AND DIVERSIFIED SERVICE COMPANIES. THEY HAVE NO INVENTORIES TO MAKE THEM RICH WHEN THE PRICE GOES UP AND THEY WILL BE HIT HARD BY FALLING PRICES.

THE THIRD GROUP IS THE INDEPENDENTS LIKE THE ONES IN NORTH AMERICA.. HIGH RISK AND LOW REWARD WITH FALLING PRIES.  THEY ARE WAITING FOR RISING PRICES BUT SHARPLY RISING OIL PRICES SEND THE ENTIRE ECONOMY INTO A DEFLATIONARY SPIRAL.

WHERE SHOULD YOU BE IN THE MARKET?

1. TREASURY BONDS
2. SELECTED INCOME PRODUCING SECURITIES
3. CONSUMER STAPLES AND GOOD
4. DOLLAR AGAINST THE YEN
5. SELECTED HEALTHCARE PROVIDERS AND MED. OFFICE BLDG
6. RENTAL APARTMENTS
7. TECHNOLOGY ENHANCERS
(SEE THE 2015 PORTFOLIO FOR EXAMPLES)

THE UPTAKE OF THIS SCENARIO IS THAT AN INFLATIONARY ECONOMY IS BORN ON
THE COLLAPSE AND WILL BEGIN A NEW INVESTMENT ROTATION FROM 2016-2020. THIS WILL BE CONFIRMED BY THE GAINS IN THE MARKET.

Juggling Dynamite with Park's Late Show

Juggling Dynamite with Park at the Late Show!  Park has now discovered the coming deleveraged winter of deflation!  Gary Shilling is the master of the show with his great opus The Age of Deleveraging and has been the main attraction since 2008.  Park's late show is about the collapse of oil market and discovery that 50% of Oil Industry is based on the quicksand of $130.00 a barrel of oil. The problem with the late show is that the movie is over and this is a repeat of a the last movie.  Are we really going to believe that the government and federal policy has been a failure?

Does she believe that the  19th Century market will automatically cleanup the 20th Century Keynesian pump by destroying everything in the economy? Does she really believe that the Herbert Hoover fan club is still an active club? The fact that trillions have been put in savings and international banking makes the final belief of power cleaning as suspect to the nature of real financial dirt.  She needs to tell us something we don't know and that the movie is really over! By the way, the next movie has already started and the reel has been changed-- we are going into a completely different financial environment. Yes, Ms. Parks Franklin D. Roosevelt has been elected President in the 1930's and yes there is government intervention in economics.

The Keys to the Shadow Banking System: OPEC COLLAPSES! NEW OIL PRICE $40.00 A BARREL!

The Keys to the Shadow Banking System: OPEC COLLAPSES! NEW OIL PRICE $40.00 A BARREL!: The age of deleveraging has finally hit the the Oil Empire of OPEC. Essentially, OPEC has gone through a defacto collapse of its ability t...

OPEC COLLAPSES! NEW OIL PRICE $40.00 A BARREL!

The age of deleveraging has finally hit the the Oil Empire of OPEC. Essentially, OPEC has gone through a defacto collapse of its ability to control prices.  The great inflationary run up of the 1970's has created a situation where demand was greater than supply; and now supply is greater than demand in 2014.  The worst case scenario is a barrel at $40.00 and the best best scenario is at
$60.00 a barrel. This is now creating secondary collapse in the equity industry by devaluating the oil inventories and creating lower stock prices to all oil industry related stocks. The third level of collapse is the credit markets and the lost of credit rating by major companies.  The fourth level is the collapse of individual companies which will result in mergers, acquistions and bankrupt oil companies. The fifth level of collapse is political instability to OPEC countries with further geo-political problems with these companies. The sixth level of collapse is OPEC financing and borrowing capacity on all of its projects that will create massive unemployment, poverty, and half-completed industry projects.The seventh level of collapse is the changing of the government and its leadership in these key OPEC countries which will demand more social and political reforms. The 8th level of collapse is the massive withdrawl of funds from international banks, European Banks, and American banks.  Numerous re-capitalization projects will result in OPEC cashing in their treasury bonds and treasury notes in the hundred of millions of dollars.  The 9th level of collapse is the replacement of oil reserves by the US dollars as the money reserve of final resort. The deflationary forces are creating dropping prices, and large amounts of capital that is not being used by the business and consumer markets.  OPEC spending spree has come to an abrupt end and will end up being OPEC 3 in 6 years until 2020.  The 6 years will seem like 20 years to the OPEC countries.

The Keys to the Shadow Banking System: THE GREAT DEFLATION GULF! 25% RETURNS11

The Keys to the Shadow Banking System: THE GREAT DEFLATION GULF! 25% RETURNS11: The great deflation gulf is now spreading as the world wide deleveraging continues to create new opportunities in the world of investmen...

THE GREAT DEFLATION GULF! 25% RETURNS11

The great deflation gulf is now spreading as the world wide deleveraging continues to create new opportunities in the world of investments. The top deflation investments for the last year from 2012-2013 has been:

1. DJ. US SELECT HEALTH CARE PROVIERS INDEX AT 35%
2. DJ DIVIDEND SLECT FUND AT 29%
3. DJ US SELECT OIL AND GAS EXPLORATION INDEX AT 27%
4. S AND P INFORATION TECHNOLOGY INDEX AT 26%
5. S AND P CONSUMER STAPLES AT 23%
6. YEN CURRENCY FUNDS AT 21%

The Keys to the Shadow Banking System: DEFLATION AND WORLD MONEY SUPPLY!

The Keys to the Shadow Banking System: DEFLATION AND WORLD MONEY SUPPLY!: THE PROBLEM WITH THE WORLD WIDE DELEVERAGING OF THE WORLD ECONOMY IS THAT THE MONEY SUPPLY CAN EXPAND THE GAP.  WORLD WIDE DEFLATION IS...

DEFLATION AND WORLD MONEY SUPPLY!

THE PROBLEM WITH THE WORLD WIDE DELEVERAGING OF THE WORLD ECONOMY IS THAT THE MONEY SUPPLY CAN EXPAND THE GAP.  WORLD WIDE DEFLATION IS THE DRIVING FORCE AND LARGE SUPPLY OF MONEY DISTORTS THIS WORLD EQUILIBRIUM OR NEW NORMAL.

AT THE LAST COUNT, THE THE COLLECTIVE ASSETS OF THE WORLD'S LARGEST THOUSAND BANKS TOTALLED $96.4 TRILLION. THE 10.9 MILLION HIGH NET WORTH INDIVIDUALS HAVE A COMBINED WEALTH OF $42.7 TRILLION AND IS GROWING AT 10 % A YEAR.  THERE ARE CURRENTLY 1,210 BILLIONAIRES WITH A TOTAL NET WORTH OF $4.5 TRILLION. CENTRAL BANKS CONTROL THE MONEY SUPPLY AND CLASSIFY THIS WITH MO, MB, M1, M2, M3. 

THE WEALTH OF NATIONS HAS TOTALED AROUND $150 BILLION NOT INCLUDING CENTRAL BANKS ELECTRONIC CREATED MONEY WHICH COUNTERACTS WORLD WIDE DEFLATION.  THE PARADOX IS THAT DELEVERAGING IS THE NEW NORMAL AND STILL HAS 5 YEARS LEFT TO REDUCE WORLD WIDE INVENTORIES.  CONSEQUENTLY, THE STOCK MARKET RALLIES ARE WEALTH RALLIES AND NOT ECONOMIC MARKET RALLIES.  THE WORLD OF STOCK MARKET WEALTH CREATES THE ZERO SUM WEALTH OF THE ECONOMY BUT CREATES THE REAL GROWTH OF WEALTH BY DYNASTIC FAMILIES.

Twillight of Crude Oil! OIL AT $40.OO!

THE DELEVERAGING OF THE WORLD ECONOMY HAS FINALLY HIT THE ACCELERATOR PEDAL!  OIL IS THE ULTIMATELY FINAL RESERVE OF THE WORLD ECONOMY.  THE OIL COMMODITY HAS BEEN USED AS A POLITICAL AND ECONOMIC WEAPON BY OPEC.  THEY HAVE BEEN ABLE TO STOP THE DELEVERAGING FROM 2008 TO 2014.  THE IDEA THAT OPEC CAN CORNER THE MARKET IS NOW BEING EMPIRICALLY TESTED BY THE WORLD WIDE SUPPLY GLUT.  THE SAUDI FLOOR IS AT $10.00 A BARREL AND CURRENT PRICE OF $80.00 ALLOWS A FLEXIBLE PRICE CUT OF $70.00 PER BARREL.  THE REAL EQUILBRIUM PRICE FOR OIL IS AT $35.00 A BARREL AND THIS PUT PRESSURE ON WORLD COMPETITORS ESPECIALLY IN THE UNITED STATES. THIS WILL NOT STOP USA PRODUCTION DUE TO FREE MARKET GENIUS OF AMERICAN INGENIUITY. THE WORLD WIDE EFFECT WILL ALLOW FOR LOWER PRICES AND NEW NORMAL ALLOW GASOLINE PRICES TO REACH AN EQUILIBRUIM PRICE OF $2.25 PER GALLON. THIS WILL NOT CHANGE THE 5 YEARS LEFT ON DEFLATION AND RE-EVALUATION OF ALL ASSETS ON THE BASIS OF A DEFLATIONARY INVESTMENT RUBRIC.  The D.I. rubric will create a new normal for the stock market at Dow of 10,000 and Gold at gold production cost at $1,104.00.  The interest rates will fall to 2.4% and housing inventory will result in a $30,000 deduction from housing prices. The Federal Reserve needs to put pressure on Commerical Banks to lend money on collateralized loans at low rates.  The artifical creation of demand for Bank money is the new normal in banking.  The Commerical banks need to create new  loan products for the business and consumer community.  These new loans and new credit cards need to increase the demand for Bank loans. Banks need to enter a new type of pay day loan collateralized by wages and salaries and use this to increase credit lines to 150% of collateral value. The same marketing strategies that created demand for real estate needs to be tested in selected markets and create realistic payback schedules for Business and Consumers.

STOCK MARKET COLLAPSE AT 15, 859!!

The stock market eclipse weekly decline of 333 points and this could go to 800 points in
the next two weeks.  Some the technical indicators suggest that we could experience a weekly
decline of 800 PTS!!

00 points for the next two weeks. The Close for Oct. 31, 2014 at 15,859.

The Keys to the Shadow Banking System: STOCK MARKET BOMBSHELL: CAPE INDICATOR RED LIGHTS ...

The Keys to the Shadow Banking System: STOCK MARKET BOMBSHELL: CAPE INDICATOR RED LIGHTS ...: According to Dr. Shiller, the new cape indicator is flashing a red light and signals a major drop in the stock market.  Dr. Shiller is using...

STOCK MARKET BOMBSHELL: CAPE INDICATOR RED LIGHTS AMERICAN STOCK MARKET!

According to Dr. Shiller, the new cape indicator is flashing a red light and signals a major drop in the stock market.  Dr. Shiller is using three bell indicator to warn for caution and the market could hit a soft spot which will result in 8% to 20% drop in market value.  His analysis seeks to find a rational based on three warning signals.  He argues that this is not a conclusive signal but like a gambler waiting for the winning lotto numbers -they may never come in even with a hundred years of data.  Each drawing is independent of each other and the long run you may hit the gambler's fallacy of sufficient data.  Can we wait for a 100 years of data? No, and
his three point hit or miss is the best data.  

What is Dr. Shiller solution: INVEST IN GREAT BRITAIN.  INVEST IN EWU, DXPS, DBUK, OR FKU, EWUS, QGBR --THESE ARE ETF.  THE FUTURE IS IN GREAT BRITAIN AND HIGHEST RETURNS WHEN THE NEXT INFLATIONARY WAVE HITS THE STOCK MARKET BEACHES!

THE ROLLING STOCK MARKET TOP 18000= 2014

THE ROLLING STOCK MARKET TOP HAS DEFIED THE ODDS AND STARTED WITH A JULY ALL TIME HIGH OF 17000 AND NOW IS READY TO HIT 18000 BY THE END OF DECEMBER, 2014. THE NEW UNEMPLOYMENT STATISTICS AND MID-TERM ELECTION WILL RESULT IN A RECORD STOCK MARKET CLOSE.  THIS IS IT! WE HAVE ENTERED INTO A NEW JACKPOT WIN FOR THE SUPER-RICH AND INSTITUTIONAL INVESTORS. WHAT A TURN AROUND FROM 2008.  I WAS AT THE VENETIAN HOTEL AND CASINO AND TRIED TO PERSUDE THE STAFF OF THE VENETIAN HOTEL TO INVEST IN THEIR OWN STOCK AND MANY SAID NO.  THEY HAVE NO IDEA OF THE MISTAKE THEY MADE AND MR. ADELSON IS A BILLIONAIRE WITH A BRILLANT FLAIR FOR THE EXTRAORDINARY!  WOW THE MARKET IS BRING EVERYTHING BACK TO LIFE; RESURRECTION TIME.