Saturday, January 28, 2006

The Old Shell Game - Now You See It! Now?~

When you gamble in a casino, all of the numerical odds are in the favor of the house. If you are at a roulette wheel and there are 50 numbers on the wheel and 4 gamblers are placing bets. 46 of those numbers are for the house except red and black and the house has a 50/50 chance on colors. Since the majority of all numbers in play at any given moment are covering the house, the house will always rake it in. All customers are losers more than winners and the house wins. The slot machines are not called "One Arm Bandits" for nothing and big losers are called "High Rollers".
Insurance Companies are just like a casino, in the respect that they always try to keep the numbers in their favor. Let's say I have an insurance company and I have 100 customers with late model autos. Now, let's say I make approximately $2000 for an annual premium off each customer, that's $200,000 in income annually. Now, the average customer does not want to have a wreck or file a claim but, let's say 5% of my customers have a claim filed and one was a total and I had to pay off a $20,000 bank lone. That's only $30,000 and I've still made money. In reality Insurance companies have thousands of customers and more money coming in than going out and more people not filing claims than filing. The cash flow is always in the favor of the house. Our illustrious Congressmen and Senators have given the books away to the highest bidder and the Insurance companies are now able to invade your privacy and ask you for your Social Security number, so they can check your credit records and pass their own judgement on John Q. Citizen. Even though they are not giving you any kind of credit, they are looking for a reason to increase your premium. This is a blatant display of presumptuous arrogance in order to stack the deck in their favor. I do not give insurance companies my Social Security number because I'm not asking for credit.
Brokerage houses operate the same way. They are like a bank. They know that on the average, all the daily numbers on the exchange fall more than they rise. That's why you see a small number of winners on the stock reports. Now, lets say I walk into Merrill Lynch with $10,000 and place my bet on the General Motors of Wigets (GMW) $26.80 a share. They are going to charge me a fee and let's say the stock was all over the place that day. All the way from $25.50 to $26.80 during the 6 hours of trading and the only time it hit $26.80 was at 1:00p.m. and it closed at $26.10 at 3:00p.m. The posting to me for the trade that day will be at it's highest mark. Now Merrill Lynch doesn't actually buy the stock certificates they just give me a piece of paper stating my transaction. Now they are hoping that the stock will go down and that I'll get disillusioned with it over time and sell all my shares for $8,000 therefore the brokerage house makes money. A bad day on the market is a good day for the brokerage house. The name says it all. If you had the ability to pick more winners than losers you could get rich. So, let me give you some advice about investing. Do not ever park your hard earned cash in volitile stocks and equities for the sake of greed in order to make money, you will lose. Only park your money in debt instruments only where the concept is "I loan you my money, you give me my money back plus interest" capital preservation. There are some good "Bond" mutual funds that pay 10% or better. The brokerage houses are very much like a casino, the numbers on any given day are always in favor of the house.

The Texas Oil Cartel

Does it make sense to you that the price of "Natural Gas" here in Texas should increase over 400% during the winter season of 2005-2006 when we all know that we have more natural gas than anything else. The "Bush Dynasty" which is now spread over the whole U.S. has set forth a corporate spirit of greed and un-wholesomeness that is breaking the economic back of America. George Bush Jr., George Bush Sr. and the Texas Oil Cartel, along with their old buddies "Halliberton" and "KBR" (Dick Chaney's Companies) have devised a plan of "Rape", "Loot" and "Plunder" that is on an epic scale. The oil companies (all of them) are posting phenomenal record profits. The E.P.A. and the E.E.O.C. (ran by presidential appointees) are in effect useless concerning complaints against oil refineries, chemical plants and industrial america in general. The "Republican Party" has (yes the same one that gave you the N.A.F.T.A. aggreement) has adopted a full "Mexican Government" mentality that the rich should be richer and the middle class american can go to hell. The working class has less and less spendible discretionary cash and the signs are all over. Car makers shutting down and laying off thousands, department stores closing and going out of business, Americans having to work longer years because the Federal Government has spent Social Security money on welfare programs that were bottomless pits. The Bush Dynasty has sent a message to all of the capitalistic corporate blood suckers in America that wanted to replace every american worker with a Mexican National, that the gate to riches is wide open, let's bleed this sucker for all it's worth. The national debt is now in the trillions and the Republican Party is laughing all the way to the bank.
K.B.R. (kellog brown & root) and Halliberton, (the old oil service companies) along with Dick Chaney have parked record profits through their Cayman Island offshore bank accounts from federal contracts that were not open for competitive bids. If a rich and powerful man has more money than he could possibly spend in his lifetime, when is enough, enough? The two party system in America has failed the nation and has completely sold out the American worker.

Organized Crime

Back during the industrialization of the United States and the 20's and 30's (post great depression era of 1927), if a man wanted to borrow some cash for a short period of time, he would often seek out a loan officer of the local mob. These individuals were commonly known as "Loan Sharks". They were merciless to their clients and at the time it was illegal to loan money at extorted rates. This practice was considered to be "immoral", and "unethical" "organized entrapment" and their clients were refered to as "Victims" of organized crime. Well, welcome to the land of the over taxed and the under paid American. Banks and Insurance companies have bribed their way into "Congress" and the "U.S. Senate" and have greased the nervous palms of low down politicians to have their favorite laws passed so that "Organized Crime" could move out of the alleys and into corporate offices. During this process the typical tax paying "American Citizen" has been sold out. A person or business that does not deal with you in a fair and ethical way does not deserve your respect because he has no respect for you. To an immoral psycho-path that has no feeling of remorse when he commits a crime, your just another piece of meat to him. If you are paying 18 to 23 percent on your credit cards with late fees you will never be able to pay off your debt to the "Loan Shark" and once he starts making the interest off of you, he wants to keep you paying until you die.