Laid_Back_Farmer's Blog

Today the Federal Reserve, the "Private Institution" that is in charge of maintaining a stable economy and keeping inflation under control here in the US, lowered both the federal funds rate, and the discount rate by 0.50%. This cut is viewed by many including myself as a "bailout" of the rich who encouraged risky lending and are now seeing their bond portfolios get hit by big losses because there was so much worthless credit paper in the debt instruments they were pawning off onto the world, that "banks would not even loan overnight to other banks to allow for balancing of the reserve requirements, and mortgage lenders could not sell the mortgages they originated to free up funds to write more mortgages".

What the fed did today by lowering the interest rates is put a tax on every individual that buys goods that are valued in US dollars as the US dollar lost a little over 1% of it's value today after the fed announced the rate cuts, Oil and Gold shot up in price, with Gold hitting a 27 year high. Going forward the US dollar will continue losing value not only against other major currencies of the world, but also against the commodities that trade in dollars....Think OIL, which converts to gasoline, electric, plastics, etc.  By 3:00 PM EST today, the green paper in your wallet, checking account and savings account was worth 1% less than it was at 2:00 PM EST...and it's gonna keep on getting less valuable.

http://www.bloomberg.com/apps/news?pid=20601012&sid
=aPUFfDsoBB7w&refer=commodities

A prime example of a fat cat that was bailed out today is CountryWide CEO Angelo Mozilo. Good ole Mr. Suntan himself pumped and dumped CFC stock to a tune of  over 200 million US dollars since January while CFC stock went from $42.11 on January 3, 2007 to $19.88 today, hitting a low of $15.00 on August 16, 2007. Along the way, there was the Bank of America buyout rumor that rallied the stock to $45, then there was the clown Cramer on CNBC trying to predict a buyout by Merril Lynch which sent the stock rallying yet again earning Mr. Suntan, Angelo Mozilo even more profits on the shares he was dumping! http://www.thestreet.com/_yahoo/funds/stoptrading/1035
1554.html?cm_ven=YAHOO&cm_cat=FREE&cm_ite=NA These calls by Cramer and the rest of the talking heads was nothing more than a pump up of the stock price so that their friends with big money invested could sell their stock!  Look at the charts for the dates these statements were made and the stock price action after these calls. http://www.thestreet.com/_yahoo/funds/stoptrading/1033
7828.html?cm_ven=YAHOO&cm_cat=FREE&cm_ite=NA>

Look at Mr. Suntan sell: http://finance.yahoo.com/q/it?s=CFC

(as the stock drops...here's the chart:  http://www.StockSharePublishing.com/ChartLib/CFC_09_1
8_20_37_1190162250.png )

Now Mr Suntan is griping that the fed needs to cut rates even more so that he can keep his ponzi scam going longer and make more fees off of refinancing people out of the interest only, Alt-A, No Doc and ARM's that he and others like him sold them which they shouldn't have qualified for in the first place...but in order for him to do that, he needs the housing bubble reinflated so that the people don't owe more than their house is worth. Thus, in rides Uncle Ben today with a fed rescue for the rich, a tax on the ordinary citizen by devaluing the dollar, and guranteed inflation on the horizon!

By Christmas you will realize that good ole Uncle Ben is truly the Grinch that will have stolen Christmas...unless you're Mr. Suntan or one of his rich buddies that needed a fed bailout so you could go on fleecing the sheeple with their own money! In that case, it was Christmas in September!

As for me...I rode CFC down since February playing the ABC structure that unfolded along the way, with it having surpassed my ABC expectations, and rode the Hommies (Home Builders) , SPF, TOL, CTX, BZH, KBH down since the Toll CEO, Robert Toll's hommie pumping comment; "We're dancing on the bottom or just above!" back in December of 2006, which was followed by BAC and C upgrading the hommies. Of course Robert Toll as well as other execs at the hommies were in the midsts of selling off their stock at the time of those comments and upgrades like Mr. Suntan and not unlike the Enron execs just before its collapse. 

Went long Gold when the arseclown Kudlow and Steve Forbes tried to jawbone the price of Gold down on August 27, 2007 as I outlined in this e-mail to some of my investment friends:

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Sent: Monday, August 27, 2007 7:16 PM

Subject: It's Official...The Buy Signal On Gold Has Been Given!

 

 

 

 

 

On my way home this evening I was listening to the old has been neo-con PR man, Larry Kudlow, on my Sirius radio…He was bashing Gold with Steve Forbes and other guests trying to give the argument that when the fed lowers interest rates, the dollar will get stronger and the price of Gold will go down! They are trying too hard to jawbone the price of Gold down…that tells me they are afraid that once the Jeannie is outta the bottle, there is no putting it back in! The derivative contracts on the big institutional Gold shorters is about to blow up in their face, and they are throwing everything at it, including an “old has been” to try and keep the price suppressed!

 

 

 

 

As most of you know, I prefer the South African miners over the others and am going long HMY, GFI and DROOY…Watch the breakout in the Gold equities unfold before your eyes over the next 4 weeks! Might be time to unbury some and cash it in on this next top.

 

 

 

 

Warmest regards,

 

 

 

 

Tim

 

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In a closing note, don't take these events lightly as they effect you more than you can imagine. Alan Greenspan made some very valid points concerning the deficit the present administration has allowed to occur. Someone will have to pay for that sooner or later, and it will be you and I as well as our children and grandchildren, and possibly their grandchildren. Stay in the know on what is going on, so when you are being fleeced, at least you'll know you are being fleeced! A good reference site for how the US dollar is doing and how bad you are being taxed by it's depreciation is www.kitco.com . Sgroll down to the bottom of the page there to see the up to date exchange rates.

Kind regards,

Laid Back

PS: I only wish Dr. Ron Paul had a chance to win...he is what we need to get back on the right track!