Sunday, July 19, 2015

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...

Sunday, July 12, 2015

CHINESE STOCK MARKET COLLAPSE $ 3 8 TRILLION IN 30 DAYS!


THE GREAT CHINESE STOCK MARKET BOOM HAS SUFFERED A 1929 TYPE OF LOSS:   
 $ 3.8 TRILLION IN 30 DAYS.  THE CHINESE RETAIL STOCK MARKET HAS COLLAPSED AND THE MAJORITY OF THE 2/3 STOCK PICKERS DO NOT HAVE A HIGH SCHOOL DIPLOMA.

 THE MAJORITY ARE MARGIN INVESTORS WHO WANT STOCK LEVERAGE. THE MAJORITY OF INSTITUTIONAL INVESTORS ARE NOT INVOLVED IN THIS TYPE OF MARGIN SPECULATION.  THE AVERAGE POSITION IS ABOUT 15 DAYS. THE AVERAGE CHINESE INVESTOR HAS A RATIO OF 180% TO EACH DOLLAR INVESTED.

 THERE ARE ABOUT 10% OF STOCK PICKERS FROM THE COSTAL CHINESE CITIES THAT ARE INVOLVED IN THIS MARKET.  THEY DO NO HAVE THE FINANCIAL EDUCATION AND TOOLS TO BE SUCCESSFUL IN STOCK MARKET SPECULATION. THE CHINESE GOVERNMENT NEEDS TO START SMALL FINANCE ACADEMIES IN THE MAJOR CITIES. THEY NEED AN EFFECTIVE PROGRAM OF EDUCATION.

THE IMMEDIATE IMPACT OF THE STOCK MARKET COLLAPSE IS ON THE COMMODITY MARKETS AND SHADOW BANKING FINANCIAL SECTOR. THE COPPER SECTOR TENDS TO FOLLOW THE STOCK MARKET.

 THIS INDICATOR SHOWS A DECLINE OF ANOTHER 35% IN NEXT 90 DAYS.  THESE TWO SECTORS WILL BE EXPERIENCING MARKET DISLOCATION. THE NEED FOR A MARKET SHORT WILL BE THE ONLY WAY TO PLAY THIS MARKET.



THE CHINESE COMMUNIST GOVERNMENT NEEDS TO IMMEDIATELY PASS A (SMIP) STOCK MARKET INSURANCE PROGRAM.  ALL CHINESE STOCK MARKET INVESTORS WILL HAVE THEIR LOSSES PROTECTED UP TO 80% OF LOSSES. THE $ 320 BILLION MARGIN LOANS WILL BE PUT ON HOLD UNTIL THE COLLATERAL LOANS PAY THEIR ACCOUNTS.  THE OTHER 20%  IN LOSSES BY STOCK MARKET INVESTOR WILL BE GIVEN A TAX CREDIT OF 20%  BY THE GOVERNMENT.

  THE MONEY LOSS WILL BE GUARANTEED BY THE CHINESE BANKS WHICH WILL DEPOSIT A COLLATERAL LOAN IN THE CUSTOMERS STOCK MARKET ACCOUNT. THE STOCK MARKET COLLATERAL LOANS WILL BE BACKED BY THE FULL FAITH AND CREDIT OF THE CHINESE GOVERNMENT TREASURY BONDS. 




 THE CHINESE GOVERNMENTS GOAL IS TO CREATE A MARKET TYPE ECONOMY. THE ONLY WAY TO DO THIS IS TO SUBSIDIES THIS MARKET

. CURRENTLY, THE MINISTER OF FINANCE OF CHINA ANNOUNCED THAT THEY WANTED THEIR $500 BILLION PENSION FUND TO START INVESTING IN THE STOCK MARKET. THE USE OF THE SUGGESTED INSURANCE WOULD GUARANTEE GREATER SUPPORT FOR THE PENSION FUNDS. THE CHINESE FINANCIAL ESTABLISHMENT WANTS TO BE PART OF THE WORLD MARKETS IN ORDER TO MAKE THE YUAN A RESERVE CURRENCY OF THE WORLD.

 THE USE OF A GOVERNMENT SUBSIDY IS AN EFFECTIVE TOOL TO BEGIN A STOCK MARKET INVESTMENT SECTOR. THIS IS THE COST OF DOING BUSINESS IN THE CAPITALISTIC WORLD. THE CHINESE GOVERNMENT HAS NO REAL CHOICE WITH ITS NEED TO CREATE AN OFFSHORE CHINESE BANKING SYSTEM. THEIR ULTIMATE GOAL IS TO CREATE GLOBAL LIQUIDITY WITH THE CHINESE YUAN.






Saturday, June 27, 2015

The Keys to the Shadow Banking System: THOMAS PIKETTY'S 10 NEW RULES FOR INVESTING IN THE...

The Keys to the Shadow Banking System: THOMAS PIKETTY'S 10 NEW RULES FOR INVESTING IN THE...: THOMAS PICKETTY'S CAPITAL IN THE TWENTY-FIRST CENTURY HAS OPENED  UP A NEW PARADIGM FOR INVESTMENTS. THOMAS PICKETTY'S  WORK HA...

THOMAS PIKETTY'S 10 NEW RULES FOR INVESTING IN THE 21ST CENTURY!


THOMAS PICKETTY'S CAPITAL IN THE TWENTY-FIRST CENTURY HAS OPENED  UP A NEW PARADIGM FOR INVESTMENTS. THOMAS PICKETTY'S  WORK HAS CREATED NEW ECONOMIC FRACTALS FOR UNDERSTANDING THE CHANGING ENVIRONMENT FOR INVESTORS.


 WHAT ARE THE 10 NEW RULES FOR INVESTMENTS FROM 2015- 2099?

1. ALL INVESTMENTS IN THE WORLD WILL BE GOVERNED BY A SIMPLE FACT  THAT R  > G.  WE ARE ENTERING A BRAVE NEW WORLD OF SLOW GROWTH FROM 1% TO 1.5% FOR NEXT 84 YEAR. THIS WILL BENEFIT THE HOLDER OF CAPITAL AND THE AMERICAN 1%. WE SEEK A RETURN OF THE PROPERTY CLASS IN AMERICA.

2. THE GREATEST ADVANTAGE INVESTMENTS FOR THE FUTURE ARE BASED ON R = CAPITAL RATE OF RETURN IS THE PRIME MOVER.  ALL FINANCIAL ASSETS AND REAL ESTATE ASSETS WILL GROW FROM 5% TO 10% PER YEAR. CAPITAL WILL GROW AT MAGICAL RATES AND CREATE WEALTH DYNASTY IN AMERICA.




3. THE BIG LOSERS IN THIS FRACTAL UNIVERSE WILL BE LABOR AND  LABOR RELATED INDUSTRIES THAT WILL GROW AT 1% FOR 84 YEARS. THE FACT IS THAT WAGES AND SALARIES WILL STAGNATE MUCH LONGER IN THIS ENVIRONMENT. THE TRAGEDY OF ADJUNCT PROFESSORS AND INSTRUCTORS IS DIRECT OUTCOME OF THIS NEW WEALTH IDEOLOGY. 

LABOR UNIONS WILL NEED TO REVISE THEIR ROLE WITH NEW DOMINANT CAPITAL DECISION MAKERS.  LABOR RATES OF RETURN CANNOT REALLY BE IMPROVED BY EDUCATION OR TECHNOLOGY. LABOR IS INFERIOR TO CAPITAL.

4. COLLEGE EDUCATION MARKETS WILL BECOME HIGHLY STRATIFIED AND BE DIVIDED INTO FOUR STRATIFIED MARKETS TO REFLECT THE DOMINATION OF GLOBAL CAPITALISM. 



COLLEGE EDUCATION WILL MIRROR HIGH DEGREES OF ECONOMIC INEQUALITY. . THE NEW HIGHER EDUCATION RULES WILL CREATE A NEW ECONOMIC CASTE SYSTEM. THE POLITICAL REALITY IS THAT HIGHER EDUCATION WILL NOT CHANGE THE ECONOMIC INEQUALITY BUT WILL REINFORCE THE IDEAS AND VALUES OF THE 1% IN AMERICAN SOCIETY.

 FIRST, THE ELITE COLLEGE WILL OFFER THE HIGHEST RATES OF RETURN FOR LABOR.  THE COMBINED ENDOWMENT VALUE OF THE TOP COLLEGES IS $400 BILLION AND THE AVERAGE PARENTAL INCOME OF HARVARD COLLEGE STUDENTS IS $450,000.00. COLLEGE SUCCESS IS BASED ON PARENTAL INCOME. THE MOST OUTRAGES TUITION ARE NEW BARRIER OF ENTRY FOR THE LOWER INVESTING CLASSES.



THE UPPER CLASS EDUCATION WILL CREATE GREATER SPHERES OF INFLUENCE AND POWER THROUGH INHERITED WEALTH. THE SAD FACT IS THAT THE NEW MINORITY IS THE MIDDLE CLASS AND WORKING CLASS. THEY WILL BE PRACTICALLY ELIMINATED FROM ATTENDING THESE COLLEGES.



SECOND, THE STATE UNIVERSITIES WILL OFFER A SMALLER RATE OF RETURN FROM JOBS WITH SMALLER LIFETIME SALARIES.  THE PRIME MOVER IS THE STUDENTS LOANS AND ESCALATING TUITION RATES. THE SAD FACT IS THAT THERE IS NO INHERITED WEALTH AND POOR PARENTAL INCOME.

SOME COMMUNITY COLLEGES WILL MAKE THE TRANSITION TO THIS LEVEL OF INVESTMENT RETURN. THE NEW  UPPER MIDDLE CLASS WILL BE SMALLER AND WORK HARDER TO ACHIEVE SMALLER AND SMALLER PIECES OF THE ECONOMIC PIE.

THIRD, GREAT MASS OF COMMUNITY COLLEGES AND PROFIT COLLEGES WILL OFFER THE SMALLEST RATES OF RETURN FOR DOLLARS INVESTED. THE COMMUNITY COLLEGES OFFER LOWER TUITION COSTS IN EXCHANGE FOR LOWER COMPLETION RATES AND GRADUATION RATES OF 7%.



   THE ONLINE COMMUNITY WITH 80% FAILURE RATES WILL BECOME SIMILAR TO MAIL ORDER EDUCATION OF THE 1950'S. THE NEW MIDDLE CLASS WILL DOMINATE THIS CATEGORY.

FOURTH,  THE NEW ECONOMIC OUTCASTS WILL BE THE HIGH SCHOOL GRADUATES WHO WILL BE ELIMINATED FROM HIGHER EDUCATION IN AMERICA. MANY WILL VOLUNTARILY DROP OUT SEEKING LOWER CLASS JOBS.





 THEY DO NOT REALIZE THAT THEY LOWERED THEIR LIFE CHANCES BY 80%. THEY HAVE LOWEST RATES OF INHERITANCE AND PARENTAL INCOME.

 THE LOWER CLASSES WILL GROW LARGER AND WORK IN STAGNANT JOBS FOR THE NEXT 84 YEARS. THEY WILL RECEIVE ON THE JOB TRAINING AND 30 DAY TRAINING PROGRAMS. 



THE HIGH TURNOVER IN LOWER CLASS JOBS WILL BE BASED ON NEW TECHNOLOGIES OF ROBOTICS, ARTIFICIAL INTELLIGENCE, NANO INDUSTRIES AND EFFICIENT TECHNOLOGIES. 


THESE NEW TECHNOLOGIES WILL BE USE TO EXPERIMENT WITH THIS INCOME POPULATION.  THIS POPULATION WILL GROW LARGER AND CREATE GOVERNMENT ENTITLEMENTS FOR LOWER CLASS INCOME REPLACEMENT VIA MINIMUM WAGES, ETC.

5. THE DEVELOPED WORLD WILL GROW FAST THAN THE UNDERDEVELOPED WORLD. THERE WILL BE  HIGHLY STRATIFIED RATES OF RETURN FOR USA, CHINA, JAPAN AND EUROPE. THE THIRD WORLD WILL ACHIEVE MUCH LOWER RATES OF RETURN. THE INVESTMENT WORLD WILL SHUT DOWN FOR THE THIRD WORLD. THE LABOR POOL OFFERS THE LOWEST RATE OF RETURN. 

6. THE RISE OF GAMBLING INDUSTRIES AS A FORM OF SUBSTITUTION FOR CAPITAL  FORMATION AND INVESTMENTS. THE RISE OF CASINOS, LOTTERIES, SWEEPSTAKES, AND GAMES OF CHANCE ARE THE ONLY WAY TO RAISE LARGE AMOUNTS OF CAPITAL IN SHORT TIME FOR THE MASS OF AMERICANS.

  MANY SEEK TO INCREASE THEIR INCOMES FROM GAMBLING ACTIVITIES BUT HAVE 95% FAILURE RATES FOR INVESTED DOLLARS. ONE BUSINESS WAS OFFERING SYNDICATED LOTTERY TICKETS AT 1 CENT A TICKET VS. THE USUAL COST OF $1.00 PER TICKET BUT THEY HAD 100% FAILURE RATES ON EACH PENNY INVESTED IN MEGA-JACKPOTS.



7.  THE BUSINESS CYCLE WILL REFLECT THE LOW GROWTH ENVIRONMENT BY LONGER PERIODS OF DEFLATION AND INFLATION. THE FEDERAL RESERVE CAN ONLY RE-DISTRIBUTE FUNDS AND BE THE LENDER OF LAST RESORT. THE FEDERAL RESERVE MAKES THE RULES FOR THE 1% AND ESSENTIALLY DEFINES THE COST OF MONEY AND INVESTMENT OUTCOMES.

8. THE RISE OF THE LUXURY REAL ESTATE INVESTMENTS WILL GROW AT A STAGGERING RATE AND OFFER INCREDIBLE RATES OF RETURN. THE FAST MOVING REIT SECTOR WILL OUTSTRIP ALL INVESTMENTS DURING INFLATION.



9. THE BEGINNING OF THE CAPITAL TAX ON WEALTHY AMERICANS.  THE POLITICAL REALITY IS THAT CAPITAL TAX WILL REPLACE THE FLAT TAX.  THE CAPITAL TAX WILL EVENTUALLY BE THE POLITICAL DIVIDING POINT BETWEEN REPUBLICANS AND DEMOCRATS. THERE IS NO WAY TO SOLVE AMERICAN WEALTH INEQUALITY WITHOUT SOME TYPE OF CAPITAL TAX.  IT WOULD BE SMARTER TO AGREE TO SMALL CAPITAL TAX EARLIER THAN LATER.

10. THE HIGHEST RETURN PER DOLLAR INVESTED IS TO MARRY INTO WEALTH AND USE INHERITED WEALTH TO RECEIVE INCREDIBLE RATES OF RETURN IN THE INVESTMENT MARKETS. THE SPORTS SYSTEM ENCOURAGES HIGH DROP RATES FROM HIGH SCHOOL AND COLLEGE TO PLAY PROFESSIONAL SPORTS. THE LURE IS HIGH INCOME AND CAPITAL FORMATION OVER PLAYING SPORTS FOR FREE OR ATTENDING THE HIGHLY STACKED AMERICAN HIGHER EDUCATION!

Saturday, March 21, 2015

Oil Traders Alapa Regiment "Let us drink from the water of Wailuku"!


In ancient Hawaiian history, the Alapa Regiment were the elite guard of Kalanipuu who were in charge of the invasion Maui.  The 800 men marched into Maui with the boast "Before the day is over, we will drink of the waters of Wailuku and the next day we will rest in the shade of Hekuawa." The Alapa Regiment invade into the bottom of the Iao River. Chief Kahekili of Maui planned a trap them and destroy the Alapa 800.

Chief Kahekili used his 2,500 skilled slingmen of "Smoke Head" and "Red Coconut" divisions. Chief Kahekili the true ruler of all the Hawaiian Islands told his men, "No quarter, Kill them all."  All but two survived the fish net trap.

The oil traders or commodity funds have placed a crazy long bet of 500,000 contracts that oil will go higher and that deflation does not exist.  The economic assumptions of higher oil prices are like the Alapa Regiment who were totally destroyed by the market.  The problem with incomplete intelligence is that it leads to a massive destruction of your position.

Tuesday, March 17, 2015

The Keys to the Shadow Banking System: GOLDMAN SACHS IPO GSBD NEW SHADOW BANKING BONANZA!...

The Keys to the Shadow Banking System: GOLDMAN SACHS IPO GSBD NEW SHADOW BANKING BONANZA!...: GOLDMAN SACHS HAS A NEW INNOVATIVE TOOL FOR THE FUTURE OF BANKING: FINANCING THE BILLION DOLLAR MARKETS OF SHADOW BANKING! GOLDMAN SACHS...

GOLDMAN SACHS IPO GSBD NEW SHADOW BANKING BONANZA!



GOLDMAN SACHS HAS A NEW INNOVATIVE TOOL FOR THE FUTURE OF BANKING: FINANCING THE BILLION DOLLAR MARKETS OF SHADOW BANKING! GOLDMAN SACHS REALIZE THAT THIS MARKET IS GROWING FASTER AND FASTER AND THE BANKS CANNOT COMPETE IN THIS AREA.  THE IS AN UNDER-SERVICED MARKET THAT WILL BE GROWING IN THE NEXT ECONOMIC CYCLE.

GOLDMAN SACHS HAS TESTED THIS MID-LEVEL MARKET AND REALIZED THAT THIS IS A GOLD BONANZA FOR THE FUTURE.  THE SHADOW BANKING MARKET IS SEGMENTED INTO THREE AREAS: (1) CORPORATE MIDLEVEL AND CORPORATE LOW LEVEL BASED ON REVENUE; ( 2) THE INDIVIDUAL MARKETS AND SMALL BUSINESS MARKETS AND (3) HIGH RISK CREDIT FOR INDIVIDUALS EMPLOYED OR VERIFIED INCOME.

 THE US BANKS HAVE ABANDONED THESE MARKETS AND THE SHADOW BANKING MARKETS ARE NOT RECEIVING THE MONEY THEY NEED.  CONSEQUENTLY, THEY ARE BEING SERVICED BY PREDATOR LENDERS AND UNDERGROUND SOURCES OF FINANCING.  THE INNOVATIVE AMERICAN CORPORATE SECTOR CAN MAKE A FORTUNE PROVIDING FUNDS TO THESE FAST GROWING MARKETS.

THESE MARKET ARE SIMILAR TO CHINESE MARKETS WHERE CHINESE GAMBLERS WERE PAYING HIGH INTEREST RATES FOR GAMBLING CAPITAL: BUT WAS REPLACED BY AMERICAN CORPORATIONS OFFERING HIGH BUT REALISTIC RATES OF RETURN.
THE US BANKS ARE MISSING OUT ON BILLIONS OF DOLLARS OF EXTRA REVENUE AND NEW MARKETS TO EXPAND THEIR MARKETS.  THEY NEED TO DESIGN FINANCIAL PRODUCTS FOR THESE MARKETS!

GOLDMAN SACHS IS GOING AFTER THE CORPORATE SECTOR MID-BUSINESS BETWEEN $5 TO 75 MILLION.  THE IPO WILL SELL FO $20-21 A SHARE THE NAME OF THE COMPANY IS GSBD. THREE CHEERS FOR GOLDMAN SACHS!