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The most profitable economic hit in history

I was speaking with Dennis Bernstein of Flashpoints about our show, Community Business, which we do each Wednesday night. We were talking about Solari Audio seminar, “The REAL Economic Hit Men”
I mentioned that one of the myths about economic hits is that such events are something that happen in poor countries or poor neighborhoods. The reality is that economic hits have been happening broadly in the U.S. and globally all along.

The Bear Stearns deal that we have been covering in these pages is an example. I expressed to Dennis that I thought one aspect of 911 was as an economic hit. Indeed, I consider 911 the single most profitable act of piracy (or covert operation) in history.

Dennis suggested we talk about it on the show tomorrow night. I promised I would publish a list of my articles and essays on 911.

My first article on 911 was published on September 17, 2001. I kept publishing for several years until two things happened. First, I started providing investment advisory services and my time became focused on the financial and commodities markets and client portfolios. Second, the growth of so many strong, capable researchers, including experienced architects, engineers, academics and scientists, meant there was little new I could add. I had helped the Scoop and Unanswered Questions networks hold the space that the official story did not align with the facts. It was time for the baton to be passed.

Of the contributions I made to the 911 Truth effort, one of my favorites was introducing our attorney, indeed one of the finest attorneys I have ever known, Carolyn Betts, to assist in the preparation of the Citizens Complaint and Petition filed with Elliot Spitzer’s office when he was Attorney General.

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You Can’t Take it With You

I just saw an excellent presentation by Kathryn W. Mirree, J.D, called The Top Ten Charitable Planning Ideas for 2008. The seminar was presented by the Planned Giving Council of Greater Memphis and Community Foundation of Greater Memphis. Other than raising money long ago for the New York City Food Bank and my secondary school and university, I have traditionally shied away from philanthropy. The feisty author of GiftHub.org has persuaded me that an investment advisor should understand the state of philanthropy, the role of charitable giving in estate planning and how community foundations operate. I always welcome an opportunity to learn more about how life and money flow around me.

Before delving into the top ten ideas, Mirree gave an overview of the state of U.S. charitable giving. Here are a few points to chew on:

  • Sources in 2007 totaled $295.02 billion, of which $222.89 (75.6%) came from individuals.
  • Of this $295.02 billion, religious organizations received $96.82 billion or 32.8% and education received $40.98 billion, or 13.9%
  • According to IRS statistics in 2005, only 31% percent of those filing tax returns claimed itemized charitable deductions, giving $181.6 billion to charity.
  • The Boston College Social Welfare Research Institute estimates the intergenerational transfer of wealth expected to occur between 1998 and 2052 as a range from a low of $41 trillion to a high of $136 trillion.

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Loaded for Bear?

Bernanke Lunched with Dimon, Rubin Before Bear Rescue
By Scott Lanman - Blomberg.com (12 May 2008)

Federal Reserve Chairman Ben S. Bernanke lunched on March 11 with a Who’s Who of Wall Street leaders, including JPMorgan Chase & Co.’s Jamie Dimon three days before the central bank rescued Bear Stearns Cos. from bankruptcy.

Other guests included Goldman Sachs Group Inc. Chief Executive Lloyd Blankfein, Lehman Brothers Holdings Inc. CEO Richard Fuld, Morgan Stanley President James Gorman, Citigroup Inc.’s Robert Rubin, Blackstone Group CEO Stephen Schwarzman, and Merrill Lynch & Co. CEO John Thain. Alan Schwartz the CEO of Bear Stearns, was not listed among the attendees.

. . .

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UBS Issues Shareholder Report on Write-downs

Investor Releases
Zurich / Basel, April 21, 2008, 07:00 AM

UBS announced today that it has issued a Shareholder Report detailing the key facts relating to the firm’s positions and losses in the U.S. subprime residential mortgage sector through December 31, 2007. This Report, which provides an overview of a report which was submitted earlier to the Swiss Federal Banking Commission (EBK), is available on UBS’ website at www.ubs.com/agm.

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Earthquake in Chengdu

China is Hit by 7.8-Magnitude Earthquake Near Chengdu
By Aaron Sheldrick & Eugene Tang - Bloomberg.com (12 May 2008)

China Earthquake Information - USGS

From Wikipedia: http://en.wikipedia.org/wiki/Chengdu

Chengdu, located in southwest People’s Republic of China, is the capital of Sichuan provinces and a sub-provincial city. Chengdu is also one of the most important economic centers and transportation and communication hubs in China.

Financial Industry
Chengdu is now building itself to be the financial hub for Western People’s Republic of China and has successfully attracted major international financial institutions, including Citigroup, HSBC, Standard Chartered Bank, United Overseas Bank (Singapore). Oversea-Chinese Banking Corporation (Singapore), ABN AMRO, Bank of East Asia, BNP Paribas, etc.

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Volcano in Chile


Chilean Volcano Erupts ~ View all photos in the series

Chile Volcano Forces Evacuations
BBC News (2 Jan 2008)

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Money & Markets

Libor Rate Faces Shakeup As Credibility Is Doubted
By Ben Livesey & Gavin Finch - Bloomberg News (13 May 2008)

Is Inflation Really Understated? (No!)
By Barry Ritholtz - BigPicture (8 May 2008)

Boom in ‘Dark Pool’ Trading Networks is Causing Headaches on Wall Street
By Scott Patterson & Aaron Lucchetti - Wall Street Journal (8 May 2008)

Pastors Called to Defy IRS Censorship Rules
By Bob Unruh - WorldNetDaily.com (9 May 2008)

An Update on the Dollar
By James Turk - GoldMoney.com (12 May 2008)

The Global Slump Has Begun As Poison Spreads
By Ambrose Evans-Pritchard - London Telegraph (12 May 2008)

Global Free Market For Food and Energy Faces Biggest Threat in Decades
By Ambrose Evans-Pritchard - London Telegraph (5 Oct 2008)

Chinese Firms Bargain Hunting in U.S.
By Don Lee - Los Angeles Times (5 May 2008)

Growing Deficits Threaten Pensions
By Davaid Cho - WashingtonPost.com (11 May 2008)

The Shrinkable But (so far) Unsinkable Dollar
By Peter S. Goodman - New York imes (11 May 2008)

Beijing, Riyadh Will Call Shots on Ailing Dollar
By Liam Halligan - London Telegraph (11 May 2008)

Citing Copper and Zinc Costs, House Votes for Return of Steel Penny
By Brian Faler - Bloomberg News (8 May 2008)

IMF Worries That Commodities May Not Be a Bubble
By Krishna Guha, et al - Financial Times, London (8 May 2008)

A Weak Dollar and Sluggish U.S. Economy Accelerate Toyota’s Retreat to Emerging Markets
By Jason Simpkins - MoneyMorning.com (8 May 2008)

Hubris, Denial, and the Financial Services Culture
By Yves Smith - Naked Capitalism (2 May 2008)

Tennessee Sales Tax Growth Drops to 47-year Low
By Andy Sher - TimesFreePress.com (30 Apr 2008)

Confessions of a Two Month CEO Blogger
George F. Colony’s Blog (14 Apr 2008)

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Geopolitical

Massachusetts Police Get Black Uniforms to Instill Sense of ‘Fear’
FoxNews.com (24 Apr 2008)

White House Issues Policy on "Controlled Unclassified Info"
By Steven Aftergood - Secrecy News (12 May 2008)

House Passes Bill That Will Let the RIAA Take Away Your Home for Downloading Music
By Cory Doctorow - BoingBoing.net (9 May 2008)

Lebanon On The Brink
By Franklin Lamb - Scoop Independent News (10 May 2008)

Forfeiture Profits - States’ Sharing
US Department of Justice Report

New Inflationary Epoch
By Doug Noland - PrudentBear.com (9 May 2008)

Financial Times Admits Currency Market Intervention Via Its Own Pages — And Invites More
Financial Times, London (8 May 2008)

Defying Bush, House Passes Broad Housing Bill
By David Stout - New York Times (9 May 2008)

Pressed Freedom
By Kevin Cullen - The Boston Globe (8 May 2008)

Bush Signs Bill to Take All Newborns’ DNA
By Steve Watson - Infowars.net (2 May 2008)

ACLU Wins Challenge to Patriot Act NSL Provision
ACLU Online (9 May 2008)
Click the image at right to watch the video.

Global Warming Hysteria: The Pendulum Has Swung
Press Release: New Zealand Climate Science Coalition - Scoop Independent News (8 May 2008)

"If It’s Aliens . . .They’ll Come and Get Me!"
WLTX.com - Monroe County, Tennessee (May 2008)

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Food & Health

Experts: Twisters Getting Larger, Deadlier
By Ashley Phillips - ABC News (12 May 2008)

Best Places to Live in Rural America
Progressive Farmer

Urban Farmers’ Crops Go From Vacant Lot to Market
By Tracie McMillan - New York Times (7 May 2008)

Superdelegate Puts His Vote Up For Sale
CBS Channel 13 - Sacramento (7 May 2008)

Reminder to Submit Applications for Sustainable Agriculture Standards Committee
Leonardo Academy

The Global Agricultural Boom: No Bubble Here
By Michal Pento - Seeking Alpha (18 Apr 2008)

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Life

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What’s Up in Alabama?

Largest US Municipal Bankruptcy Looms in Alabama
By Joe Mysak - Bloomberg News (11 Apr 2008)

Break-ins Plague Targets of US Attorneys
By Larisa Alexandrovna, et al - TheRawStory.com (1 May 2008)

FBI Raids Special Counsel Office, Seizes Records
By Ari Shapiro - NPR.org (6 May 2008)

U.S. Securities & Exchange Commision - Litigation Release No 20545
SEC vs Langford, Blount, et al - Case No cv-08-B-0761-S (N.D. Ala., filed April 30, 2008)

~ See the Complaint.

SEC Bond Case Says Swaps Aren’t Beyond Law
By Joe Mysak - Bloomberg News (6 May 2008)

..

It’s Official, Alabama is the Soviet Union
By Larisa Alexandrovna - The Huffington Post (5 Apr 2008)

Did Ex-Alabama Governor Get a Raw Deal?
CB News (24 Feb 2008)

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Unclear

The chances of the Clear Channel $20 billion buyout closing look even more uncertain as the parties prepare to go to trial.

"Law and Order" Court Preps for Clear Channel Trial
By Leslie Gevirtz - Reuters (9 May 2008)

Clear Channel’s Murky Outlook
By John Simons - Money.CNN.Com (9 May 2008)

The company’s earnings, while shaky, aren’t terrible. But its efforts to march through the economy’s slowdown are overshadowed by a private equity deal that is likely doomed.

View previous blog posts on this issue: (1) (2) (3) (4) (5) (6)

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