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alstry (35.35)

Show Me Da MONEY!!!!!!!!!!!!!

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June 16, 2009 – Comments (26)

The Obama administration has turned back pleas for emergency aid from one of the biggest remaining threats to the economy -- the state of California.

Top state officials have gone hat in hand to the administration, armed with dire warnings of a fast-approaching "fiscal meltdown" caused by a budget shortfall. Concern has grown inside the White House in recent weeks as California's fiscal condition has worsened, leading to high-level administration meetings. But federal officials are worried that a bailout of California would set off a cascade of demands from other states.

With an economy larger than Canada's or Brazil's, the state is too big to fail, California officials urge.

"This matters for the U.S., not just for California," said U.S.  Rep. Zoe Lofgren, who chairs the state's Democratic congressional delegation. "I can't speak for the president, but when you've got the 8th biggest economy in the world sitting as one of your 50 states, it's hard to see how the country recovers if that state does not."

The administration is worried that California will enact massive cuts to close its deficit, estimated at $24 billion for the fiscal year that begins July 1, aggravating the state's recession and further dragging down the national economy.

http://www.washingtonpost.com/wp-dyn/content/article/2009/06/15/AR2009061503249.html

As I told you.....you will be hearing over and over again....we are simply out of money.....unless of course you are a Wall Street Bank....then rich uncle Ben has all you need even if you cut off credit to the citizens!!!!

The Governator faces some incredibly difficult decisions.....if he cuts off welfare.....will there be tent cities sprouting up in Beveraly Hills as thousands look for a safe place to set their new homes???

$24 BILLION is a BIG number!!!!   and likely to get bigger!!!!

Prepare!!!!!

26 Comments – Post Your Own

#1) On June 16, 2009 at 10:49 AM, carcassgrinder (36.10) wrote:

I'm gonna have that retirement house in San Diego after all!!

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#2) On June 16, 2009 at 11:06 AM, alstry (35.35) wrote:

car,

The bigger question is whether you will want it by the time you can afford it?????

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#3) On June 16, 2009 at 11:15 AM, jddubya (52.61) wrote:

Why oh why can't you address one rant before continuing to another?  As has been suggested before, you continue to evade the questions put forth to you.

Answer the questions Mr. Domous.

http://caps.fool.com/Blogs/ViewPost.aspx?bpid=213086&t=01002130057764754273

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#4) On June 16, 2009 at 11:30 AM, SolarisKing (22.17) wrote:

Jddub, i have tried to tell fools:

   Trying to get Alstry to tell you which stock to pick is like asking a guru which medicine to take for a hangover. He is going to anwer obliquely with good advice, like. . . .

"Wake up in the morning early, and take a walk. Eat lightly, and avoid decadance". 

That's why he and RonChapmanjr keep anwering that way. Because a guru has no advice for your quick easy hangover medicine.

-solaris

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#5) On June 16, 2009 at 11:36 AM, alstry (35.35) wrote:

jd,

Alstry has only answered this question no less than 5 dozen times since he has started blogging.

The ONLY responsible action our government and central bank can take is restructure debt so that it no longer suffocates our economy. 

There are idiots out there like Krugman and others advocating debasing our currency by simply monetizing the debt.  It is one thing for a backward bunk third world country to engage in such behavior.... as the consequence is relatively contained.  It is something very different for the world's reserve currency.

Basically much of the world's wealth, savings and debt instruments, are demoninated in dollars....and if we devalue the dollar....we are basically stealing from anyone who holds dollars or dollar demoninated assets.

It is one thing to steal from the American citizens....it is very different to steal from every major nation on earth.  If you think the world is going to sit by and watch America debase its currency so its citizens can live on welfare and not produce much......you have a very different perspective of human nature than us at the Institute of Alstrynomics.

As far as Alstry sees it.....restructure or die is the slogan for the day.

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#6) On June 16, 2009 at 12:22 PM, cashkid79 (93.34) wrote:

Maybe now would be a good time to introduce some (additional) new marijuana taxation legislation out west???  I'm no activist for legalization, but - I always maintained that it was simply a matter of time before some big moves regarding change in the government regulation of the controversial cash crop came into play...

And honestly, I don't even mind the lack of productivity habitual smokers might increasingly tend to exhibit as long as OVERALL any new MJ regulations would benefit our economy long-term... Pharma companies might lose some market share to the "cannibas cure all" (could also gain some, hypothetically) - definitely should be a carefully weighed decision - medically, socially, and especially, financially...

I'd like to see numbers showing with reference what MJ clinics in Cali did to help and/or hurt state financials over the last decade - anyone know of the latest on reports from proponents as well as opponents of movement toward MJ legislation reform to promote economic growth through increased measures of legalization and taxation? 

cashkid79

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#7) On June 16, 2009 at 12:28 PM, mliu01 (< 20) wrote:

Obama will flex his skinny arm on gubernator.

 

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#8) On June 16, 2009 at 12:29 PM, Londamania (66.17) wrote:

But if we were actually going to do that, wouldn't we simply print the $24B needed here and happily move on the next state to cry default?  The fact that we aren't doing that goes directly counter to your posts recently about hyperinflation...the statements here combined with recent statements to Congress about needing to pay as we go going forward all go against the hyperinflation fears.  Yes we have printed a butt load of money more than most of us think was wise...but there is no indication we are going to print more for things like this from here on out - we are living with less as we need to.  So CA is going to default and some other states too...and it will tank the stock market when it does - how much isn't clear.  But hyperinflation as you go on about here is not going to happen because the government contrary to what you insist is not stupid. At least not now - it was for the last 8 years.

And the reason this is being done is because unless CA (and other states) fix their root cause problems this will just happen again next year - and the administration knows that.   It's time for everyone to live within their means and that is going to be painful...but it is not going to cause hyperinflation.

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#9) On June 16, 2009 at 12:33 PM, cashkid79 (93.34) wrote:

or maybe i just get too much junk email propoganda from old college buddies regarding pot...or maybe it's' just a good time to diversify more heavily into the FOREX market...

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#10) On June 16, 2009 at 12:47 PM, Recover22kplan (45.85) wrote:

#4 FYI -Regarding hangover medicine, I don't claim to be a guru but "Alka Setlzer Plus MORNING RELIEF" will indeed cure a hangover in 20 minutes or less if taken as directed. If you are brave enough to venture into Tiajuana Mexico, they have a terrific hangover pill that also cures arthritis pain - it illegal to transport across the border "full disclosure" - but it works

As for CA, I live in beautiful Southren California all I can say is the weather is great - the budget crisis.....not so much. My daughter just lost her job as a preschool teacher because the State has not paid the school she worked at for over a month.

Have a nice day : )

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#11) On June 16, 2009 at 1:11 PM, jddubya (52.61) wrote:

#4, #5...

The point I'm trying to make is that alstrydomous is just what the name implies (as related to nostradomus), a forecaster of sorts.  Doomsayer by any other name.

Ok, so I get the forecast.  I understand the doom, the gloom.  I don't understand 'prepare, don't fear'.  If Alstrydomous could take it one step further to help those that follow him, or even help those that bash him, to understand just what the hell "prepare" means when the 'end of the world as we know it' is coming, then maybe Alstrydiculous could actually help to change the world.

Again, I agree that there is doom in the future, and I, honestly, am probably better prepared than most, but it is so absolutely stupid to not harbor some fear.  Read the other blog I referred to above.  dickseacup is spreading the alstry word and says that when he spreads the word he gets an apathetic answer... so I simply must inquire (taken from the other blog)"

dickseacup said: 

It is looking dim. I'm doing my part to try and make those around me aware of what is likely coming. Most of them just shrug and say, "Nothin' we can do, is there?" I guess giving up before it gets started is something. D'oh

I said: 

Exactly what are they supposed to do?  How, exactly, do YOU respond to the "Nothin' we can do, is there?" question?  If you're spewing doom with no hope then you're wasting your time.  If you're spewing doom with some hope then you need to insert whatever hope/solutions somewhere into the rants.  Better yet, rant about what needs to be changed and how "we, the people" can change it, then explain what happens if "we, the people" continue on our historically apathetic ways.

So, IS THERE SOMETHING WE CAN DO??????????????????

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#12) On June 16, 2009 at 1:17 PM, alstry (35.35) wrote:

I got arrested in Tiajuana once....it took all the cash I had to bribe the cops so I could cross back to get to La Jolla where I was staying.....

The joke was the American boarder patrol officer laughed so hard when I told him how much I had to pay.......he said he had never heard someone get fleeced so hard......

Moral: ....never be a flashy American driving a convertible in Tiajuana....what really pissed me off more than anything else is I thought I got a good deal springing free....you live and learn as the years go by.....

That is what makes CAPs so great....we are all learning as a community together.

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#13) On June 16, 2009 at 1:27 PM, alstry (35.35) wrote:

jd,

Please read #5....how many times do I have to tell ya??????

You see the light....but you hear the train......open up to new opportunities....they are coming your way......Prepare!!!!

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#14) On June 16, 2009 at 1:55 PM, FreundInvesting (29.31) wrote:

 jddubya

I don't know what you're looking for -- maybe specific stocks? Here ya go: SRS and FAZ until the economy recovers. Then once the panic reaches its zenith (you'll know it when you see it), buy solid companies that have a large international presence: Coca Cola, JNJ, McDonalds, MMM, etc...

At least that's how I see it, and how I'm playing it.

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#15) On June 16, 2009 at 2:20 PM, SolarisKing (22.17) wrote:

Thanks, , FreundInvesting (99.82)

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#16) On June 16, 2009 at 2:23 PM, Recover22kplan (45.85) wrote:

Wow, Al you you were brave.....driving a convertable into Tiajuana, Geez ...did you get the funky mexico car insurance for a day

Speaking of trains (#13) and tent cities, I recently traveled north on Amtrak there are so many tent communites along the route, Beverly Hills might be the only tent real estate that would be available, altough you'd be missing out on bathing in the LA River

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#17) On June 16, 2009 at 2:32 PM, jddubya (52.61) wrote:

Freund -

Thanks! I'm already in FAZ - also bought some solid companies in november and march (ge and hun for example), also bought alot of speculative stuff, siri, wwon, xoho.  I can afford it - as I mentioned somewhere here I'm probably going to get thru this storm relatively unscathed, but that's because I'm not one of the many that are underwater on their mortgages or unemployed (actually, I am unemployed at the moment, but I wanted to take a month off, collect some unemployment and then get back to work - jobs for me as a software developer are plentiful.  Maybe not within walking distance of home, but the opportunities are there)

I think what I'm looking for is for Alstrydiculous to spread some hope along with the "prepare, don't fear".... I mean most people understand the economy is bad and may get much much worse - that horse has been beaten to death here on CAPS.  To be prepared, to me at least, means that your debt is already paid down and you're actively looking for ways to reduce one's own spending.

Others take the path of preparing for something akin to a catastrophic failure to the tune of hoarding food, water and the like.  I don't care for the extreme nature of some of the recommendations in this camp, but prudent planning is something to be considered... having a reasonable supply of stuff won't hurt.

It's much too late for the majority of the citizens that are a part of this maelstrom to prepare, whether stockpiling or working 2 jobs to get by....I think most should be looking out long term... 7 years actually (or whatever time it takes for a bankruptcy to stop affecting your credit)

Thanks again Freund, for your response!

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#18) On June 16, 2009 at 3:02 PM, Recover22kplan (45.85) wrote:

Now that I think about it.....Who leaves La Jolla to go to Mexico and Tiajuana no less...What were you thinking.

#12 Speaking of learning as a community, Mexico, advise and unrelated to stock picking - Never try to poach (steal) & smuggle lobsters or (#6) marijuana from Mexico when you can already aquire these things legally with a permit (lobsters) and prescription (marijuana) in beautiful California.

No real moral to the story other than you could get killed or jailed in Mexico for no reason.

 

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#19) On June 16, 2009 at 3:04 PM, alstry (35.35) wrote:

jd,

Alstry has a very postive outlook.....but one step at a time.

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#20) On June 16, 2009 at 3:06 PM, Recover22kplan (45.85) wrote:

I forgot to add that in all things I mentioned in #18 "Show me da money" applies

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#21) On June 16, 2009 at 3:27 PM, Recover22kplan (45.85) wrote:

If I were to say something smart today I would say, "You gotta have da money to live right in California" ...oh well I am done with writing my nonsense - I hope that I haven't offended anyone. I apologize to Al for clogging up his blog - I am a real fan of your blogs

Have a great afternoon ; )

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#22) On June 17, 2009 at 10:28 AM, FreundInvesting (29.31) wrote:

 jddubya

Glad to hear you're set from a job perspective. Making sure you're employed is the #1 most important thing right now. And yes, paying down debts is very important as well. In deflationary times, these 2 things can make or break you.

So yeah, if you were looking for what to do outside of stock picking, i think you nailed it. As for advice Alstry would give, I surmise he'd agree with both of us. I'm not entirely sure what he would invest in, though.

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#23) On June 17, 2009 at 10:47 PM, topsecret09 (34.83) wrote:

I stayed In Beverly Hills throughout the month of January,and the first couple of weeks In February.... There are already tent cities In BEVERLY HILLS ! I kid you not. Californias biggest problem Is Illegal Immigration. The state Is going bankrupt because It Is spending BILLIONS on NON-CITIZENS. Instead of cutting services to Illegals ,terminator will Instead close down schools,close 80% of our State Parks,and release convicted felons from jails and prisons....   Caleeeefornia Is a well done steak, stick a fork In It and It will break.  Jim   Fresno Ca

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#24) On June 18, 2009 at 12:58 PM, guiron (20.21) wrote:

One of California's major problems is how the budget is voted on, requiring a 2/3 vote (which is politically very difficult), and voter referendums (see this for one example). Get rid of those two problems, and CA can start getting back to normal, though it will take a while. I moved out in 2005 and may move back if housing gets cheap enough, but they gotta get those two problems fixed first.

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#25) On June 18, 2009 at 1:08 PM, jddubya (52.61) wrote:

#24

Just to clarify - tax increases require a 2/3 vote, "fee" increases require only a simple majority.

You'll notice that they are basically the same type of income generators, just named differently...

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#26) On June 22, 2009 at 11:20 PM, AdirondackFund (< 20) wrote:

Alstry, they're all broke, even the FED.  Why do you think they gave them increased powers of regulation?  It was to secure their capital...unlike before when it was more profitable to leave the capital unsecure and make willy nilly loans on the Government tab.  You poison an economy the same way you poison a person or a stock.  You give them whatever they want and then watch them choke on it.  Kinda like the green shoots barage we just went through.  Oh yeah, now on a Monday it looks like a Bear, but a month ago it looked better than Ken Griffey, Jr. at age 24.  Rifin topped a month ago, while the Banks were offering shares, and it never occurred to anyone, except Jesse Livermore from his grave screaming "SELL,SELL". 

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