Category — Business

Some of my erstwhile friends think it is well worth working.

Every quarter century or so, a superb method of making money comes by. One has to be a target rather than a sting not to take advantage of it. The best part, it is legal.

Here’s the mechanism in all its simplicity.

After gathering all my capital together, I induce others to invest their money with me for which I promise to pay a rate of return agreed upon in writing beforehand. If necessary, I might bend the truth a bit to get sufficient funds such as pledging higher than current interest rates. However, with this unquestionable technique, that isn’t a disadvantage. Calling the investments something non-risky like money market funds or CD’s, anything that doesn’t alarm investors or regulators, allays fears.

First, I take some of this money and buy known winners to show a rate of return to the regulators and investors and giving me funds to pay the interest on current notes. As the word gets out and more capital comes in, I take the whole bankroll and put it on house flipping or a 300-1 shot in the 7^th at Yonkers to win. When the house or horse comes in I pay off the investors their deposits plus interest and I keep the rest.

Tell me this isn’t a fantastic enterprise.

I know, you’re asking, suppose the nag doesn’t come in. Who cares!!!

This is the wonderful part, the part that guarantees I cannot lose. With all that capital gone, I merely expect the government to require everyone in the country to give money until I have all MY capital back. Thusly I’m made complete again, allowing me to proceed anon with nary a worry.

Did I not say it is an indubitable formula for investing success. You win some…and you win some!

Is there anyone disagreeing with my plan? Do you think I is an out right rip off of consumers? So, tell me why.

Perhaps some of the liberals that comment here, can tell me what’s wrong with my idea. Or any other commenter for that matter.

Corporate Boat Race

American automobile company and a Japanese auto company decided to have a competitive boat race on the Detroit River. Both teams practiced hard and long to reach their peak performance. On the big day, they were as ready as they could be. The Japanese team won by a mile.

Afterwards, the American team became discouraged by the loss and their morale sagged. Corporate management decided that the reason for the crushing defeat had to be found. A Continuous Measurable Improvement Team of “Executives” was set up to investigate the problem and to recommend appropriate corrective action. Their conclusion: The problem was that the Japanese team had 8 people rowing and 1 person steering, whereas the American team had 1 person rowing and 8 people steering.

The American Corporate Steering Committee immediately hired a consulting firm to do a study on the management structure. After some time and billions of dollars, the consulting firm concluded that “too many people were steering and not enough rowing.” To prevent losing to the Japanese again next year, the management structure was changed to “4 Steering Managers, 3 Area Steering Managers, and 1 Staff Steering Manager” and a new performance system for the person rowing the boat to give more incentive to work harder and become a six sigma performer. “We must give him empowerment and enrichment.” That ought to do it.

The next year the Japanese team won by two miles. The American Corporation laid off the rower for poor performance, sold all of the paddles, cancelled all capital investments for new equipment, halted development of a new canoe, awarded high performance awards to the consulting firm, and distributed the money saved as bonuses to the senior executives.

Citigroup’s hopes for investment from Chinese bank hit a snag

NEW YORK: Citigroup’s talks with the China Development Bank to make a multibillion-dollar investment in the company have reached an impasse after the Chinese government spurned a possible deal, according to a person close to the situation.

While Chinese investment groups have bought big stakes in Wall Street firms like Bear Stearns and Morgan Stanley, the scuttled deal suggests there may be limits on how much the Chinese government is willing to invest in the Western banking system. The exact reasons for the breakdown are unclear, and it is possible the two sides may return to the negotiating table.

Citigroup is turning to cash-rich investors, including foreign governments, for a second time as it confronts mounting losses on mortgage-related investments. It hopes to raise about $10 billion, people briefed on the plan said Friday. [snip]

In the prior post on this subject, I mentioned how the Chicoms have bought into the US banking industry, along with the Arabs. Well, I think the Chinks just choked. There are limits; someone in charge of the yuans, woke up saying this ain’t chop suey!

Where did the $24 billion go? It wasn’t and isn’t paper profits like a stock purchase. This money changed hands many times. The 24,000 individuals getting the free career makeover will have time to look for the loot.

This isn’t a speed bump in Citi’s business, it’s what a pilot calls a mountain: “a vertical speed brake.”

Hits like this can finish off a business, if only because others shy away from getting caught in the slipstream. WHEN, not if, all lending slows down, the clanking you hear is the wheels coming off the tracks.

Citigroup’s Layoffs Could Reach 24,000 This Year

Citigroup plans to announce a writedown of as much as $24 billion and layoffs of up 24,000 due to subprime and credit-related losses, CNBC has learned.

The plans will be unveiled Tuesday by Citigroup’s new CEO, Vikram S. Pandit, after the banking giant reports fourth-quarter earnings. At the same time, Citigroup could also announce that it is cutting its dividend payment. [snip]

The MSM keeps talking about the deficit, never a peep about the national debt. (Deficits are a common condition in business)

Meanwhile, the Chicoms hold enough T-Bills to destroy our economy. Arab consortia are bailing out the banks, actually owning enough through loans to become shadow owners. The Social Security costs shortly finish off any spare change in our economy.