European Recession, Russia in Trouble, China’s Housing Market, Oil Perspective, Warren Buffett and More!
Posted on: Sep 13th, 2008 | By Ian Mathias | Filed under Politics & Economics
Elsewhere in the world of billionaire decision making, SEC filings show that Mexican mogul Carlos “Slim” Helu bought 6.4% of The New York Times Co. Slim, arguably the richest man in the world, made most of his money in telecom, but has a history of buying against the grain. Take a look at a five-year chart of NYT, and you’ll see he’s certainly not going with the crowd on this one:
His previous U.S. investments include Saks, Altria, MCI and Global Crossing.
“Bill Gross,” writes a reader, “along with a cartel (domestic banks, foreign banks, domestic pension funds, foreign pension funds, foreign central banks and SWFs) blackmailed Paulson and Bush into the Freddie/Fannie takeover. ‘Either give the FNM and FRE bonds Treasury AAA backing,’ they said, ‘or we will send your GSE and Treasury yields through the roof.’ Paulson faced the American public with his tail between his legs, acting like the takeover was a choice, while Gross showed up on CNBC with a big grin on his face, knowing full well he colluded in the cornering. What a patriot… what a sin!”
“Amazing how you seem to consistently pay homage to Bill Gross,” writes another. “He’s a self-serving, whiny suck-teat, but you can’t seem to get enough of him. I used to find you entertaining, but you’re boring me now!!!”
The 5: Whoa… easy. We just call ’em the way we see ’em. We typically pay attention to anyone with over $800 billion under management. They tend to move markets.
Second, whether or not you agree with Gross (in some regards, we don’t), he’s got a nice batting average over the last year… This time in 2007, he called for a 10% drop in home prices, the worst asset deflation since the Great Depression and a unwinding of “financial structures and derivatives that have yet to be discovered by the public.”
Also, in the past 12 months, he warned presidential candidates of the debt crisis, acknowledged that inflation is out of control in the U.S. and forecast the specifics of the Fannie and Freddie bailout. And if he made a buck in the process, we find it hard to hold it against him.
He’s been wrong, too — for sure. But we’d rather present it all to you and let you think for yourself. By the way, how can you — literally — exclaim you’re bored? That’s funny.
“I hear all this bickering,” writes our last reader, “from readers about the Fannie/Freddie bailout and our current state of financial affairs. Sure, you can blame the Fed, the Congress, the president (and you’re right — it enabled this to happen for decades), but the fault lies with you all!!
“You, the American voter, continue time and again to re-elect these corrupt malcontents into office! Nancy Pelosi, Barney Frank, Ted Kennedy, Harry Reid, Charles Schumer, John McCain, etc., are all career politicians! George W. has served two terms! You, the people, keep re-electing career criminals to rob you of your life’s savings and destroy all hope of prosperity for your grandchildren. You, the people, in your apathy and ignorance shoulder ALL the blame for this mess.
“Why should career politicians change their ways? They have a great racket going. They are lining their pockets to the tune of millions. Until the people send a message by voting out at least 85% of the incumbents in Congress, NOTHING WILL CHANGE!”
Thanks for reading,
Ian Mathias
The 5 Min. Forecast
They can fix they economy for sure, they paid off their deficit of $4 trillion in 2006, they don't have the debt to worry themselves like the US does. I know a lot of people living and working in Russia, the news is not as bad as you hear it.