Financial Wisdom By Kalidas

Ref: 10-004 of February 5, 2010         Download from ScribD or from Download Pool>> Article

Only a day before I have warned in Indian Stocks Observatory “Serious currency wars are going to be major feature in second quarter of 2010. BEWARE”. And it turned out to be true within a day. Now watch the following event which happened in quick succession on Thursday night:

1. Dow Jones cracked to close at 10,002 (- 268; -2.68%) S&P 500 at 1,063 (-34; -3.11%)
2. There was turmoil in the currency market. All major currencies went down against USD. That is, only USD went up. Look at the numbers here:
   
3. Gold & Silver prices went down by huge margin:
   
4. Oil Prices too dropped to $ 73.19 (Down – 3.79%)
5. 
6. NOW, look at the US Dollar Index known as USD Index. It went up to 79.96 (+2.23; +2.87%)
7. Wild rumors were spread that GREECE was about to default, next in line was PORTUGAL followed by SPAIN. What have they in common? They all belong to (1) Euro Zone and (2) They are all corrupt countries (3) except for Spain, other two were very small countries.
8. Another rumor was spread that United Kingdom (Britain) might be degraded as it had highest debt level vis a vis its GDP
9. In short, the scenario was created that only US$ could go up, all other assets will go down. Thus, an impression was created that SELL all assets and BUY only US Dollar
10. This is a repeat scenario of Asian Crisis when it was started from Thailand, a small Asian country, then Indonesia, Korea, Taiwan – all had one common feature – they were all corrupt countries. Thailand was used as “Pilot Project” how the world was going to react, so that future strategies could be refined.  During Asian crisis, all assets were going down, stocks, bonds, currencies, gold, silver etc but only one asset was going up, that is, US Dollar.  It was like a scenario when you are locked into a room with 7 doors closed and fire was ignited. There was only one outlet – a window named US$
11. 10.  The Asian Crisis was timed to synchronize with the birth of Euro.  US feared that Asian Reserve lying with Fed might be diverted to Euro, so the crisis was initiated. When Thailand needed $ 25 billions, Japan, China, Malaysia, Singapore etc contributed $1 billion to $ 5 billions. In Fed book only book entries were passed – Debiting Donor and Crediting Thailand. The funds remained with Fed – it did not move out to the treasury of ECB

Who is buying US dollar anyway?
At least at the time of Asian Crisis, there were not much of economic difficulties for US. Today, however, consider the following:

• US lost almost $ 1.9 trillions in 2009 in bailing out the banks, brokers and insurers
• Citigroup, JPMorgan, General electric, Goldman Sachs, Morgan Stanley, Merrill Lynch, Wachovia Bank, Wells Fargo,  AIG, Lehman Brothers, Bears Stearns were all bankrupt or nearly bankrupt.
• 7 millions jobs have been lost in last 2 years.
• AIG, Fannie Mae, Freddie Mae are all teetering on collapse.
• The entire economy is in the state of collapse.
• Bankruptcies galore.
• All auto companies and airline companies are nearly bankrupt.
• Housing market is dead
• Credit market is dead. No one is lending to no one.
• 70% of State governments are bankrupt.
• There is no yield on Bonds – it is kept nearly Zero.
• Most IPO for even $ 100 to 300 millions have been postponed or failed. In that case, how Bank of America, Citigroup could collect over $ 100 billions in public offering?
• Pres. Bush spent $ 700 Billions, Obama $ 787 Billions, Health care will cost trillions, and new stimulus package will cost another $1.9 trillions in 2010. They are simply nuts.

In such scenario, who in right mind will invest even $10,000 in United States and buy dollar. If people do not buy dollars who is that invisible God giving almost $ 2 trillions? No one knows. All are bluffing – Governments, Obama, Geithner, Bernanke, Senators etcetera. It is obvious that politically affiliate banks like JPMC, Citigroup, and Goldman Sachs appear to be the biggest buyers.

How GOLD was whacked yesterday by $ 41or nearly 4%?
Gold always goes up in Asia and goes down in USA? See yesterday’s picture:

It will be seen that on Nymex the Gold was trading at $ 1111 whereas as on New York liffe it was trading down at $ 1074 in very small volume of just 6 Mini gold contracts, causing panic. What these SEC, FBI, CBOE are doing out there? Are they still mis-managing whole business of supervision, control and regulatory mechanism? Or they have all syndicated with the authorities?

Also look at the data alongside on left. April 2010, where most positions have been rolled over, the Open Interest is huge – 301,656 contracts or 30.165 millions of Ounces = $ 32.182 billions (= Rs 1,480,372 crores)

There is no recovery, but they go on brain washing investors that US has “job less“recovery. It is like “Condom Economy” with lot of stimulants like Viagra, and other aphrodisiacs, where one can have sex but no babies.

The fact of the matter is that the United States is in final stage of cancer. All companies go on giving lower estimates first and then show having beaten them to prove that the economy is growing @ 5.7% in December Quarter.

ALLIES – Europeans and British people are betrayed:
The Europeans and Britain under Tony Blair sacrificed thousands of their soldiers and citizens in fighting hand in hand with Americans. Same Americans are now trying to wreck their economy by attacking their currencies in “Asian crisis” style. The American rating agencies and TV media are constantly spreading mischievous news that those countries are in trouble. The Motive: to prevent China from diverting its $800 billions reserve to Euro zone or HM Treasury of British government.

Will European Union survive?
This is a serious attack on European Union. The Americans want to break up the EU but the Europeans are just stupid not to read the writings on the wall. Look at the sequence – Iceland, Greece, Portugal and now Spain. Britain is the next one to be attacked. They were all loyalists to Americans one day. But the fact is “MONEY TALKS”. Every friendship is dispensable in love and war. Even Saddam Hussein was heroic friend of United States, who was finally hanged after destroying his beautiful Iraq in the name of WMD and democracy.

When the Europeans and British realize this hidden truth? They are really slow thinkers. It could be too late. Or it is possible that they may ask for return of Gold physically. That is when the test will come. That is the time when the Gold may rise to heroic heights. It will happen.

It looks like that the Slumlords at the top (not ordinary honest Americans – they do not know anything) do not like their No.1 status being challenged by other nation. Even Obama said that. If they can not maintain their status by competition, they will destroy or decimate other nations to remain at top. They did it while busting Japan when Nikkei rose to 38000 +. It is not even 25% today in spite of all touted GDP growth story. Two US based brokers arrived in Japan and used their financial skill in futures and options (F&&O) to destroy the Japan. However, until today and may be tomorrow or day after, the Japanese are not going to learn. They are just “robots”. This is why I never study “Japan”, nor venture into it.

It is said that you get betrayed from one whom you trusted.  The Europeans and British people will learn after a few years that they were betrayed by the nation whom they trusted most and for whom thousands of their citizens/soldiers sacrificed their lives in Iraq and Afghanistan. Tony Blair will bite his lips and nails when he reflects on what he did. He will get into asylum ultimately.

Compare Tues -Wednesday and Thursday events:
Many were asking me whether it was time to buy Gold after having been fallen to $ 1085 level.

On Tuesday and Wednesday
The Gold rose by 3%, enticing real gold investors to resume position.  Yen also weakened. Almost all precious metals rose during these session, commodities rose, US$ index weakened, Euro and Sterling Pound also rose.  The gold appeared to rise in paper, probably on other exchange NY Liffe (I am yet to study this Exchange) this was done deliberately.

On Thursday
Very next day, Gold was shattered from $ 1111 as explained above. In short, the major players, notably large affiliated banks, who were bailed out last year, and prominent broker cum bank, shorted the gold and almost all currency and commodity futures at one go – result almost all precious metals lost over 4%, base metals also. Obviously they carried out the attack at behest of authorities. This was classic PUMP and DUMP game.

The US$ index rose, Yen rose, Can$ also rose (but Aussie$ fell steeply). This means that Japan has agreed to continue with $ T Bills purchases and China did not.  The idea was to terrorize the investors in gold, especially large central banks in Asia like China and India, to prevent them from getting away from dollar into euro, pound or gold, most favored assets amongst Asians.

Please note that the people who caused this crash control exchanges, markets, media (like all business channels), and financial newspapers by feeding them the information they should receive.

In this electronic age of computers and broadband TV, the beautiful damsels go on churning out the stories of economic recovery – what they call – Jobless recovery – and any bad news being reported as “better than expected” to push up the markets when required.

What could happen today (Friday):
It is certain that all markets will suffer “route” today but manageable. The US markets could also go down first, and then these wily players in New York – banks and prominent broker cum bank, Buffet’s favorite, will come out of no where about 45 minutes to 1 hour before close and reverse the trend on every exchange – NYSE, NASDAQ, CBOE, NYMEX, COMEX etc. They will buy the calls when the markets down in morning session, selling puts bought on Wednesday and Thursday.  Please note that no logic is going to work for few days – we are in the middle of covert WAR.

US economy grew @ 5.7% – says President Obama:
If the size of economy is $ 14 trillions, 5.7% growth means that the economy generated extra GDP of $ 800 billions; where from, when 7 million Americans lost job? The $ 800 billions rise in GDP is equal to entire GDP of India. Did US with 300 millions of unemployed and under employed Americans created additional assets of $ 800 billions in worst economic environment that was created by 1 billion people of India in growing environment?

Come on, President Obama. Go back to Primary school and learn some simple math. OR if this is your deliberate move, better dress up in Halloween outfit.

And is the size of US economy really $14 trillions? When I left the field of stock broking, the US economy was estimated at little less than $ 8 trillions. If we take today’s figure of $ 14 trillions as current size, there is a growth of $ 6200 billions or 80% over last 6 ½ years. That is, the annual growth rate is 12.3%, faster than even China and India with almost 3 to 4 times US population.

Conclusion:
Only bankrupt persons will show off. They become extravagant spender in their last days. It is almost certain that “United States is technically bankrupt”. The Tsunami has arrived, just a few hundred miles away. Its all over, will be the verdict of the world after a few months. Next few months will bring the world closer to WORLD WAR III.  When the war starts world over, the first casualty will be Internet and electronic banking. Look at Google and China. Go for GOLD and SILVER in physical form, not paper contracts, passbook gold or ETF.

I was right in forewarning all the readers to sell 80% to 90% by 21 Jan 2009 remain in cash, saying that “next 15 days up to 9^th February are extremely heavy for United States. They were prophetic words at that time. They are now becoming reality much sooner than expected.

Look at Toyota as indicator – anything can happen at any time within 2 or 3 days
look at Toyota. A simple problem like a mole was made into mountain. It will recall 7 million vehicles. If every repair cost them $ 1000, it may lose $ 7 billions besides production loss for over 6 months. Its sales will plummet. The company may suddenly sign off into oblivion. TOYOTA was a “King of Auto” for several decades. It took just 2 days to destroy them. They say that they will make money. Yes, they surely will if they can print money like Federal Reserve of United States.

Let the final act of war be allowed to play it out. It will take a while but not so long enough. Be prepared. You may not have to wait too long for really long term investment. India, not China, will be the biggest beneficiary of this crisis. Hands Down.

Kalidas (Anil Selarka)
Hong Kong, February 4, 2010         Ref: 10-004

Blog site: http://www.anilselarka.com Book web: http://www.subprimeresolved.com

Ref: 10-003 of 24 Jan, 2010            PDF Download from ScribD or Download Pool Sidebar>>Articles

Dear Readers,

The correction has started precisely on the date we mentioned – 21^st January, 2010. We predicted it more than a month ago.  Now, the situation has taken turn for the worse.  The trigger was provided by President Obama’s proposed clamp down on the banks proposing far reaching regulatory actions to rein in the banks in terms of their size and activities. A separate article will appear within a few days titled – OBAMA WAR with INTERNAL TERRORISTS

Dow has lost over 5% in 3 days. S&P has dropped to 1093, slightly above critical level of 1083. I do not care for technical indicators. My forte is fundamentals. The core fundamentals are worsening.

• Bernanke’s extension as Fed chief, once considered almost a done deal, is now in serious doubt.  If he is reconfirmed, there may be a short reprieve for the market.
• The future of Treasury Secretary Timothy Geithner is also in doubt.  The AIG dossier is becoming murky. The testimony of Paulson with Geithner in relation to AIG affairs is due on Wednesday, 27^th January, 2010.  It means that the Senators know something ignominious more than the investors are aware of.
• There are indications that the Senators have finally realized the extent of damage done by Henry Paulson of Goldman Sachs and Ben Bernanke from Fed.
  • President Obama’s pathani demand  “We want our money back” alludes that the $306 billions non fund based guarantee given for Citigroup’s worthless debt at behest of  Paulson – Bernanke combine are maturing into real fund based liabilities.
  • Read with massive profit of Goldman Sachs, and Citigroup’s insistence to cancel out the “loss sharing agreement with the Fed/Treasury”, the Senators and the President Obama appear to have realized the “foul play” and “Criminal conspiracy” against the State. Many frauds may come to light. It could have massive effect on Wall Street. Even Warren Buffet could become controversial. His days are beginning to have “U” turn for long.
• Two days – Saturday and Sunday, have passed since the President Obama disclosed his plan to rein in the banks, their size and their disapproved activities. The era of $25 billions of profit for the bank is gone for ever.
  • The earnings of almost all banks will be downgraded by the Analysts up to 30% to 80% that could collapse the prices of major money center banks. The entire banking structure globally will be re-assessed on severe downside. Bank of America, JP Morgan Chase, and Wells Fargo could face the burn of third degree.
  • There will be further lending squeeze from these banks raising real market interest rates.
  • If these banks can not make double digit billions of dollars of profit for next 5 years, , they will never be able to recover the past losses.  Nor will they be able to raise new capital due to poor earning prospects.  Fed/Treasury window will be shut for good.
  • In short, some major banks could become officially insolvent.
  • Goldman Sachs and Morgan Stanley may surrender banking license to avoid above restrictions.
  • The global banking giants operating in US such as Barclays, Deutsche Bank, UBS and Credit Suisse may have to realign their business. UK and Europe too could adopt similar measures with similar effects. UK and Europe always play monkey game.
• SEC is preparing for some tough times ahead. Bloomberg reports on 23/Jan that “Concern that short-sellers accelerate stock declines may prompt the Securities and Exchange Commission to adopt a rule next month aimed at curbing bearish bets when equities are plunging.”  It adds that “The regulation would require the trades be executed above the best existing bid in the market when shares fall 10 percent in a day,” In short, alarm is on.

Massive collapse is about to set in from Monday onwards.  It is scary.  It was inevitable; we were merely waiting for the trigger. President Obama provided it. He is not to blame for what he proposes. It is the way he has presented them and timing thereof. He is under extreme pressure to perform that is telling on him for his expediency.

• The markets may lose anywhere from 5% to 15% in short time (< 1 month), and 15% to 50% in medium term (< 4 months) if the short term correction takes place.
• Margin calls will exacerbate the downside.
• Mutual Fund redemptions could cause massive slides.
• Money could become scarce overnight. Overnight Call rates could zoom and stay there for unduly long time forcing short term rates to rise. My previous article “Maturity Mismatch’ may become reality as projected.
• Monday could be the beginning of Tsunami wave, category 7. So many things could happen swiftly in short time.
• Massive losses to investors will become a hard reality.  What they lose this time may not be recoverable in next 3 to 7 years.
• The only reprieve will come when the Bernanke is allowed to continue his job. While he has lost all credibility and should not be confirmed, it is in the interest of the market that he continues for a while (temporary extension) until his successor is chosen. If he loses the job, one may be waiting for him at Goldman Sachs.

This time, protecting capital is more important than the earnings. If you have capital left, there would be earnings one day.  It is not necessary to make money in every trade every day. It is enough if you made good money some time rather than a little money every time. We therefore suggest the following from Monday onwards.

There could be huge meltdown. All markets may go down Minimum 3 to 7 days continuously in varying degree.

US Market:

1. Dow may lose another 14% (1400 to 1500 points) and then rest before going down again.
2. If S&P goes below 1083, it will be bad sign for technical analysts. In my view that it will be breached.
3. NASDAQ may outperform DOW.
4. Buy Put options on S&P 100 known as OEX-100 and Nikkei 225. These are very volatile.
5. Do not trade S&P 500, it is less liquid and does not move fast.
6. SELL short or Buy puts on ADRs of Wipro (trading at 43% premium) and ICICI Bank (-3%) and HDFC Bank (+15% premium). The heavy premium is usually lost in meltdown. Further, one can keep short position in US market on any equity or ADRs for about 12 months by paying suitable margin. Check with your US broker first.
7. Think of accumulating undervalued stocks like MTNL with Zero debt where discount will rise due to meltdown making it attractive. Stronger rupee tend to add more value in $ terms.
8. Indian ADRs could develop more discount than shown today, making them more attractive.  Some counters are better bought as ADRs than underlying equities in India. If you have choice between domestic share and ADR, prefer ADR of liquid counters. (large cap stocks)
9. A strong buy opportunity may emerge in FCCB (Foreign Currency Convertible Bonds) of Indian companies that may be hammered in meltdown. Their yields may rise, premium contracts or even trade at discount. They being denominated in $, stronger rupee will give better return than underlying shares in India. Watch out for them. Go only for well known battered counters in info tech, pharmaceuticals and telecom sector. This is for only wealthy investors having $ 1 Million or more investment budget. Not suitable for local investors due to larger size lot involved

10.  There could be political and social upheavals. Since hundreds of billions of dollars are at stake, and jobs being lost with increasing intensity, violent political removal at high level at many places is likely. This time for a change, the war will be within United States. Law may take a back seat.

Indian Markets:

Indian growth story could be dented but will remain intact than China. India is still safest place to invest. With US, Europe, UK, Japan and even China taking massive blow, India, Indian economy and even Indian Rupee (if made convertible) could become real alternative to US dollar.

Nevertheless, holed in the habit of taking cue from the Dow and Asian markets, SENSEX may tumble by 14% in a few days (2400 points). Huge margin calls from Wednesday onward could push it down further by another 1000 points. The market may reach 13,400 first, rebound for 800 pts in dead cat bounce rally, followed by sharp drop down further by 2000 points. In short, the market may lose 4600 points within one month. Even if the market recovers during intraday, it may close down near the close. Not many would want to keep their position open overnight.

However, there is a caveat. Indian budget due in February could provide relief or act as mild buffer against further sharp fall. It all depends how Government of India responds. The interest rates may be lowered, not raised to contain inflation, and Income Taxes could be lowered for Corporate and Individuals that may provide fillip to the Indian markets. This is however conjectural. Rely more on facts than rumors or opinion. Financial expediency will prevail over political one.

1. Stock financing banks like ICICI, HDFC, Axis Bank, SBI could tumble more due to proposed changes in banking law in United States.  They will not be able to carry out their investment banking activities as before. They could be the index draggers. Do not touch them for another 1 month even with remote pole. Swap them into neutral stocks like IDBI Bank or IFCI who are domestic oriented.
2. Stay on short side.
   1. If you do not want to sell down your portfolio, insure it by buying Out of Money Put option of NIFTY for February or March, if available.  Do not speculate, use it as hedge. The markets could have wild swings that could boost or bust the speculators.
   2. SELL 50% of remaining stocks held. You may have already sold 70% by now from the peak, if you have followed this column. What you may have is remaining 20% exposure.
   3. Possible exceptions are recovery play like Spice Jet. Ispat Industries and Dish TV who have returned to profits already or will return in one quarter.
   4. Finish your selling through out the day, taking advantage of intraday recovery. Even if the Asian markets recover during the day, continue selling. You may sell some Spice jet too if you are sitting on good profit, with a view to buying back later.
   5. Stocks like ITC and Hindustan Lever may perform better than others.
   6. SELL or reduce Mutual Funds (except LIC linked) by 70% and retain cash.
3. Focus on buying only after 3 days of fall only the following stocks. (1) Spice jet (<56)  (2) Ispat Industries (<23), (3) Dish TV (<41) , (4) Petronet (<71), and (5) Evinex (<3.65), (6) IOC (<270), (7)IFCI (<43), (8) UCOBank (<48), (9) LIC Housing Finance
   1. Avoid Oils, Metals, Ores, Infrastructures and all other high PE stocks. Also avoid story stocks like PSU on privatization list.
   2. Avoid oil producers; prefer State Owned Refineries like IOC, HPCL, BPCL, MRPL etc. Avoid private refiners like Essar Oil and Reliance.
4. Buy more of Gold, Gold ETF and Silver.
   1. Some may say that if Gold falls below $1065, there could be a meltdown. Do not buy those stories.  Gold rise most in uncertainty.
   2. Silver is generally stronger than Gold nowadays. Use major fall in their prices as strong buy opportunity.
   3. No targets are given because you will be in hit and run market for several days.
5. Please note that this article is meant for regular delivery based investors. Some hedging operations are mentioned to protect their portfolio.
6. Short term investors active in F&O segment may conduct their activities on their own impulse. This article is not meant for them.
7. When the markets correct as above, it will provide strong platform to build Long Term Portfolio of any amount as suitable to investors. Investments made in steep correction time will provide better return than properties.
8. Defer buying property for investment purpose until March 2010.
9. If you are keen on investing into property for investment purpose, not for self use, better look out for commercial properties from March/April. Read my all articles on “How to invest series….” again.

10.  Buy equities only when you strongly feel like selling gold or silver. At that time, one may buy equity or properties. Prefer “Ready to Possess” properties than properties under constructions from unknown developers who might close their shops suddenly and run away. This time around, avoid farm properties, and prefer commercial or residential properties in major metro cities or towns having population over 30 lakhs (3 Millions; +/- 20%)

Will the markets go the way as projected? I will be happy if I am proved wrong. The trouble is that I am often proved right than wrong. But do not take me for granted. Try to be rational and make your own calculated guess and decision.  There is not going to be time for analysis.

A question may arise, whether this crisis was solvable?  The answer is yes. For every problem there are multiple solutions. My father taught me once “For every problem, there are 10 solutions – just go out and find it”.  I therefore wrote the book “SUB PRIME RESOLVED” which provided comprehensive solutions. If US-A does not go the way I have suggested, the nation is set for gloom, doom and total collapse. It may not exist in present political form.

I also made several attempts to offer solutions to the US Administration as under. However, there was no response. No regrets. I did my job and would let them do theirs.

First, when I offered solutions to President Bush in August 2008 before crisis began.  However, he or his stooges in White House ignored.  My letter to President Bush is already in the repository and read by the readers. The real trouble started precisely three weeks later in September 2008.

Second, I offered similar solutions to Senator Obama while he was campaigning for Presidency.  There was no response. But I can understand that.

Third, when my book “SUB PRIME RESOLVED” was published in June 2009. I wrote to President Obama, the First Lady Michelle Obama and Vice President Joe Biden. No response either.

Fourth, when I wrote similar letter to ex-President Bill Clinton and Jimmy Carter;  they too did not care to respond.

Fifth, when I sent my book “SUB PRIME RESOLVED” to Sen. McCain, and Bobby Jindal, Governor of Louisiana and Chris Dodd, Chairman of Senate Banking Committee.  However I did not receive any reply or courtesy acknowledgement.

Sixth, when I wrote a letter to the President Obama very recently with similar letter copied to Vice President Joe Biden, Senator Christopher Dodd, Chairman of Senate Banking Committee, and Timothy Geithner, the incumbent Treasury Secretary. Again there was no reply or acknowledgement.

I threw a challenge to President Obama that if my solutions could not extract the United States from the severest financial crisis and make it healthy again within 9 months, I repeat 9 months, he can sign “Death Warrant” against me with my and my family’s full written consent.

Seventh, when I wrote to the Chair of FDIC (Federal Deposit Insurance Corporation). Again there was no reply or acknowledgement.

I wonder why we send our children to USA for higher education such as MBA when those expensive institutions do not even teach basics of Courtesy, Management and Administration to upcoming business and political leaders in United States itself. They keep their minds closed and ask us to keep ours open.

The Americans are suffering from “Superiority Complex”.  The past successes have gone to their head. They appear to feel that only they know everything, forgetting that the knowledge knows no bounds. It can spread anywhere. We are in internet age, America’s  own invention.

The White House may be thinking that this Kalidas, Anil Selarka or whoever he is, must be a crazy, egoistic, pseudo bastard.  When our Nobel Laureate economists, financial gurus and management experts in United States are not able to think of one solution, how on earth this Kalidas could have multiple solutions from Hong Kong 5000 miles away? Throw him into the dustbin for good.

There is one way Americans can come out of troubles learning from Americans only if they prefer.  Hand over the country to IBM executives. They know how to think, conceive, design, plan, implement, execute and bring positive result. They think out of the blue box. It was IBM who invented “Personal Computer”. Many years ago, the company was in shamble spending billions of dollars in advertisements.

However, they read the writing on the wall in time and did not take long to “dump” it by shifting to services and software solutions. There used to be IBM logo everywhere in the past.  The striped blue logo is rarely seen anywhere now; and yet, they are everywhere like God.  Look at them today – they are fast, nimble, profitable and as efficient as any coveted American enterprise ought to be.

President Obama has to take three decisions.

1. Dump GDP theory. (the way IBM dumped and got out of PC business)
2. Dump Goldman Sachs and quarantine every Goldman emission in Fed and Treasury (and everything should be fine in US and globally)
3. Pump Gold. (bringing back monetary stability by re-standardizing dollar)

Kalidas (Anil Selarka) Ref: 10-003 of 24 January, 2010 (Sunday)
Hong Kong

Personal Blog:     http://anilselarka.com
Book Web       :     http://www.subprimeresolved.com

Disclaimer:
Readers, before you proceed:
This article is released on Sunday so that you have enough time to deliberate on information available from various sources. This is for your informational purpose only. Consult your professional broker, banker or investment adviser before acting or taking any decision. No liability of any kind attaches  to the author.