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The Ultimate Sell Signal: Resignation of top GAO David Walker

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March 01, 2008 – Comments (9)

 

If you are buying stocks in the US, you should know by now the US dollar is collapsing (it was the front page of the WSJ today). American Hero David Walker former Head of U.S. Government Accountability Office (GAO) can provide you the background:

David Walker on 60 Minutes:

David Walker Joins Peterson 

Americas Financial Future (Part 1) 

 

The ultimate sell signal By Bill Donoghue, MarketWatch
SEATTLE (MarketWatch) -- The resignation of America's unheeded and under-funded chief accountant and watchdog, along with the billion-dollar bullhorn he's been given, are the ultimate sell signals for America's stock investors.  David Walker, comptroller general of the Government Accountability Office (GAO) has since 1998 been the objectively informed and outspoken critic of America's balance sheet. He has criticized supporting Iraq's dysfunctional government, pork barrel spending by Congress, unrealistic "universal health care plans" we can ill-afford or support, the escalating risks of huge deficits, fiscal vulnerability to hostile foreign governments, and a lack of will to reform our government

9 Comments – Post Your Own

#1) On March 01, 2008 at 2:00 AM, abitare (35.58) wrote:

The ultimate sell signal By Bill Donoghue, MarketWatch

What does this mean for investors?

This sounds to me like the ultimate sell signal on America. As the next president is just under a year away from having the operational authority and consensus to take any definitive action, the Bush administration will have to act. In a highly charged election year such as this, controversial new economic proposals are unlikely to even be discussed. When the nation's best-informed watchdog resigns and few are acting on his recommendations on his "Fiscal Wake-Up Tour," it's time to reconsider over-optimistic domestic stock investments and look elsewhere, or bet against the U.S. market. Domestically, good choices to short U.S. stocks are ProFunds Bear BRPIXProFunds:Bear;Inv BRPIX , ProFunds Short Small-Cap (SHPIXProFunds:Sh SC;InvSHPIX) , and ProFunds Short NASDAQ 100 (SOPIX)ProFunds:Sh OTC;InvSOPIX) . Another strategy would be to use ProFunds UltraBear (URPIXProFunds:UltraBear;Inv URPIX, ProFunds UltraShort Small Cap (UCPIX) ProFunds:UltSh Sm-Cp;InvProFunds:UltSh Md-Cp;InvUIPIX) -- all of which are leveraged to earn each day twice the percentage their indexes decline. Similar funds can also be found through Rydex Investments and Direxion Funds. If you invest half as much in the three leveraged funds, you can use the other half to invest in foreign-stock and commodity-sector exchange-traded funds, which are showing strongly positive trends. Consider streetTRACKS Gold Shares (GLDstreetTRACKS Gold Shares ETFGLD) , iShares S&P GSCI Commodities-Indexed Share Trust
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#2) On March 01, 2008 at 2:46 AM, cluelessmorgan (91.10) wrote:

"aggravated short-termitis" Peterson calls it.  Wisdom of the old and wise.

Pretty straght talk from the comptroller.  Why don't people get it?  Why doesn't Congress get it. 

Imagine putting a young teenager in charge of your personal checkbook, accounts and bills, give him a bunch of credit cards, now sit back and turn on the boob tube, forget about it all.... and put that on a national scale, and thats what we have today!!  Congress/President simply do NOT know how to budget.

 

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#3) On March 01, 2008 at 3:14 AM, Tastylunch (29.29) wrote:

Who ever said Congress was smart cluelessmorgan?

At any rate when your only concern is how you will look four -six years from now (when you are up re-election) since politics is your sole employment, you are probably going to make lots of really bad long term decisions to make sure you get the results you want in the short term . It's not that polticians don't see the problem , they just don't care. Even the politicians could see this coming decades away.

As soon as we get selfless polticians in office we'll fix this.

I wouldn't hold my breath waiting for that happen though. 

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#4) On March 01, 2008 at 9:11 AM, xthecritic (50.06) wrote:

this is a market correction but let's not get carried away the sky is not falling yet

even the 60 minutes piece says that we face an issue "sometime over the next 30 years"

 

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#5) On March 01, 2008 at 9:19 AM, floridabuilder2 (99.24) wrote:

eventually the budget needs to be balanced and it can be done... just look at some of the clinton years

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#6) On March 01, 2008 at 9:38 AM, abitare (35.58) wrote:

Sorry I did not post the orginial 60 MInutes Interview:

There are some in Congress that do get it Ron Paul:

CNBC Ron Paul grills Bernanke, traders cheering 2008.02.27

 

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#7) On March 01, 2008 at 9:45 AM, abitare (35.58) wrote:

Serving her thirteenth term, Kaptur is currently the most senior woman in Congress and in the House of Representatives; she ranks 32nd out of 435 members on the seniority list.

DOES NOT GET IT! 

 

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#8) On March 01, 2008 at 3:51 PM, EScroogeJr (< 20) wrote:

Nonsense. The crisis is entirely artificial. It will enough to run away from Irak and to do away with Bush's tax cuts for billionnaires to balance the budget without even addressing the other monstrous disproportions that we have.

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#9) On March 01, 2008 at 4:09 PM, abitare (35.58) wrote:

EScrooge,

For a guy with such a low CAPS score, I would advise you to listen, watch more and NOT pontificate total nonsense. You should at least watch the video before you annouce such nonsense. 

Specifically, what did the billioniare Peterson or 

David Walker say that you can disprove or dispute? 

Let see, do I believe you or Yale Professor Shiller?

Or do I believe you or Specbear? 

You or billionaire Jim Rogers? 

Gold, silver, oil has tripled, the dollar is in free fall, but EScroogeJr  says "The crisis is entirely artificial."

Escrooge CAPS score: 30.91 

Rank: 31629 out of 45838
Score: -861.77 (-31.56)

I will place my bets with the winners. Thanks for the reply.

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