This does not add up?

November 26, 2008

The total on the whole bailout package is up to 8 TRILLION DOLLARS. Wow! Now lets briefly go over what has caused this to happen. Here are just the few;

- Bad Mortgages 

- Bad Unsecured Debt

- Corporate Debt that can no longer be written off.

So you see that the bases of the Crisis  is bad debt and consumers spending money that they do not have. 

Here’s my point, all week the US Government is discussing options to ALLOW and LOOSEN up qualifications for the general public to be able to obtain loans for auto, homes, and personal. WHAT! This is just flat out the most ridiculous decision! Like Jim Cramer said, “THEY KNOW NOTHING”!

How bout this;

- Tighten up on credit spending. (Our economy should not successful due to debt, but because of assets).

- Establish a third party handling the spend for corporate companies to control the bailout spending.

- Revamp the Sarbanes Oxley

That is just a start. Hope you can some what agree with this. Thank you for your time!

Joe Sobieck

Pros and Cons of a Diversified Portfolio

November 17th, 2008

Having a diversified portfolio is having many stocks from different industries and creating security in your portfolio or 401k. Here are a cumulative of pros and cons I have put together to consider diversifying your portfolio.

Pros

1. One or a few poorly performing stocks do not significantly reduce the overall portfolio performance.

2. It requires less active management, with fewer buy and sell decisions, and attendant lower costs.

3. Performance is highly correlated with broad indices, either market or sector, and thus does well in a general up market.

4. Performance will be no worse than the broad market or index.

Cons

1. An excellently performing stock does not significantly improve the performance of the portfolio, and thus large potential gains are missed.

2. Performance is highly correlated with the broad market or sector, and thus does poorly in a down market.

3. Performance will not be better than the broad market or index.

 

Thank you for your time.

Where do you find positive in this mess?

Novemeber 10th, 2008

 

I am not kidding. This is a snap shot of this mornings front page of www.cnbc.com. Where do you find positive in the headlines below?

 

 

Cnbc.com Front Page on November 10th, 2008

Why is the economy weak when Americans are being some what responsible?

November 6th, 2008

 

Today I am proud for the American Consumer. People are being consurvative with their spending. It may not because of personal choice. Could be factors of possibly losing their job or because debt has caught up to them. Either way, I hope this continues for the next year. In the next year, even if 25% of Americans managed their finances properly, I believe that the economy could be stronger than it has in the past 15 years. I am pretty embarassed that the strength of the economy is based upon credit and over spending. In a year we could all figure out a happy balance and will would actually see some consistancy for the economy. Which I could say I have never really seen in my life time.

Downside for the time being; unemployment rates rising, stock market sell-offs continuing and etc. I am not afraid of the unemployment factors due to the simple fact that there are all ways industries need experts and there will all ways be some sort of work to ride out the hard times. Also, I am an individual that sees opportunity in any crisis. The reason that unemployment is so scary, is for those who have their paychecks racked up in overspending and debt. 

This is a necessary, and I am sorry for those who have had to become a victim of the Economy Crisis. You can all prevail because you are an American. Americans need to keep the momentum going day in and day out, and being able to be successful in any situation. United We Stand! 

 

Thank you for your time,

Joe Sobieck

Consumer Spending Down… Unemployement on the Rise

Friday October 31st, 2008

 

Happy FRIDAY all! 

With the reports coming in for companies Q3 finishes, it is reported that this is the best looking quarter for the times to come. Of course Exxon Mobil broke a new record for the best gain in a quarter, but we all knew that the oil industry has been robbing the American people. 

If you have not started seeing the results in slowing consumer spending, you will not have to look to far in the upcoming months. Personally restaurants in my area have been closing, and small odd and end shops too. I talked to a good friend of mine, who is in the Quick Service Industry. He said, “the company is comping sales all ready this year and I have not seen a decrease yet”. “People are cutting back on their spending, but still have a busy life and need a quick meal that is easy on the wallet”. He continues, “Even though we are comping sales, the company is not quite to project goals”. For those of you who do not know what “comping sales” means, is that they are banking profit margins ahead of the previous year.

Unemployment is really going to depend on the performances of Q4 and the Q1 of 2009. Like I said earlier, this quarter was supposed to be the best looking reported from here on out. There are many companies adjusting projections, and reporting losses. Not big losses, but it is the recession. Commodity companies like; General Mills and McCormick are going to keep on the up side due to families cooking more at home. 

Now, I am not going back on my word and I am still searching for individuals to support my outlook. As for the Nation, we MUST remain positive, and I am continuing to search for opportunity in a time that looks like its going to get worse before it gets better.

“There’s a difference in Playing to Win and Playing not to lose”, America we have nothing more to lose.

 

Thank you for your time.

Joe Sobieck

How are Companies “Hiding” Their Losses?

October 30th, 2008

 

Regardless of the Sarbanes Oxley Act of 2002, Corporate Companies are able to still hide their debt and losses to the general public. Why do I bring this up? Lets take a look at AIG. AIG’s loss/debt of 120 Billion Dollars just suddenly popped up overnight. Think about this, What would the outcome have been if Lehman Brothers did not go Bankrupt? This event was the “green light” for any other business to expose their debt/losses and ask for help to prevent a Great Depression 2. How much longer would it have taken til this Crisis had surfaced? Now, there was some concern about AIG in back in May when they issued 20 Billion in stock and reassured its investors of their cushion.

How are Companies “Hiding” their debt/losses? How are Companies able to get by with calling it “an accounting error”. I would like to see individuals being held accountable and punished by the extent of the law if there are more “accounting errors”. If it was not for Lehman Brothers exposing their troubles and going belly-up, it would be quite sometime until this surfaced. If that was the situation I do not believe that the US Government would have been able to bailout the situation. The US Government is having a hard enough time trying to get the economy back at the 700 Billion Dollar price tag. Could you imagine if this was over a Trillion Dollars? 

 

Thank you for your time…

Joe Sobieck

Has greed crumbled America’s best CEO’s moral compass?

Wednesday October 29, 2008

 

Is it not enough that CEO’s receive an amazing salary? What is the influence on getting bribes, bonuses, or handouts? How do those individuals look at themselves in the mirror, and you know they do? Take for example, Occidental Petroleum’s CEO Ray R. Irani, is going to have a compensation of over 509 MILLION Dollars in the next five years. Meanwhile, these same CEO’s that make such a great living, have their hands out trying to get a piece of the Federal Bailout Funding. It is reported that even though there are some policies to protect the funding from going to the Executives, there maybe ways around that.

I’m sorry, I cannot fathom the situation. Nor do I want to believe that money and special interest runs the nation and is able to bend a(n) extremely influential individuals moral compass. I do not charge half of the value of my services due to the fact that money is not why I live or work. I completely enjoy what I do and the crooked extras are not necessary. I agree that these individuals should be punished and set an example of, or the US may see a never ending cycle of Successes followed my hard-hitting recessions. 

 

Thank you for your time!

Joe Sobieck

What is it going to take to get some sunshine on the Global Crisis?

Monday October 27th, 2008

This is just getting so old and tiring. The Feds have meeting after meeting and they are actually putting together plans to help out this Global Financial Crisis. While these processes get put into effect, businesses are frozen and standing around clueless as how to find opportunity or help improve the situation. These are the same companies asking for Government assistance, but will not even reach to help in this recession or take intative. These corporate companies are looking out for number one to only protect their personal interest. Thats fine, but has anyone thought about getting involved with issues outside of their own? Maybe like; a target market, or even the general public. Since they would have the most impact on how a business will survive in these times.

Time for me to take it home, SUCK IT UP CORPORATE AMERICA! Embrase today, find possitive, and stop thinking about your own personal interest and just maybe you might end up more successful than before this crisis happened. Think about it; any interest reduction by the Government, or Federal Bailout, or even when Bush get up to speech about this to seek hope, nothing has worked. Take this into your own hands, look outside the window instead of the mirror the next time you ask yourself, “What can we do to get this situation taken care of”?

Thank you for your time.

Global Financial Crisis… I see opportunity.

To all who care,

Hello all, It is October 24, 2008. Looking at the markets in front of me; some foreign markets are down 10%, gas is about to open at a 17 month low, overnight trading has been frozen due to the 5% decline in the NYSE. 

I maybe one individual looking at this major crisis, watching the media over exploit this issue like it is the only topic to talk about. It the only topic they see to make money off of. I look at this “Crisis” and ask, “what can I do to help”? Who controls the markets? Who effects the financials? Who can turn this around? I look at this and go, “every individual who touches money”. 

Yes, when this sell off calms down, it will be buying opportunities of a life time. I do not want to wait for that. I believe that someone as myself, could really put a positive turn on this issue. I am not saying I could fix this. I see opportunity in this “Crisis” and I have for the last couple of weeks when Short Selling was frozen til October Third.

If there is anyone who reads this and somewhat agrees with me, I would like you to contact me. My email is jsobieck@gmail.com. I would like to get a community of people together and maybe figure out how we can at least help the world find positives. I am so sick of the negativity that keeps coming out of the media’s mouth. Lets create a plan, an influence, and put day light on a Friday that was quoted, “fasten your seatbelts, this will be market opening that America will never forget”.

 

Thank you all for your time.

 

Joe Sobieck