When we acquired the book bindery in 2006 it was only a hand-book bindery (hard back). Bill and I turned it into a semi-automatic. Not everything could be done with home-made equipment. Only an minimum investment of 2million would do to make it fully automated and if we did that we'd only have 2 competitors nationwide. Still, at one point, we were looking into it as we were doing so very well. Intuition suggested I stay away from loans even though the government would have made it easier and backed the loan. Then the political changes that rendered manufacturing and small business growth mute for reasons I won't go into (because all political is crap imo). What I found interesting was the attitude of people in the industries that utilized our services and products. They wanted it fast, fast, fast and didn't understand the work utilized coupled with the need for accuracy in hand performance. We, literally, had to make our deadlines but without the reliance of accuracy given by machines. In many cases if a mistake was made the entire job had to be done at least half way through for all books into question. Individuals didn't mind so much, but the businesses would not accept it. I remember noticing that huge gap in understanding. Only we understood this meaning of real "work" while everyone else such as the local newspapers who were making phone calls and pushing buttons to have their ads changed and their print ran somewhere else on multimillion-dollar machines while we were still doing things the old fashion-way and the oil workers complained from being forced to work overtime. Customers got mad and nothing we said seemed to make a difference. They refused to understand why we could not comply to an entirely automated world. Heck, even the new hot foil stamping machines look and perform much the same as they did forty years ago and they even utilize the type-sets Benjamin Franklyn's printing era used. In addition to these old methods we had no central heat and air. We remained poor while working but were so very happy. Still, it wasn't this that put us under as it was the economy and outside political forces. Even though a bindery had been in our stupid little city for more than 25 years and even though customers would drive 100s of miles to drop off their cherished bibles to be repaired and large publishing companies were contacting us to have some unique work done, the stupid city I live in has their mind and hearts set on another oil boom like in the past and in direct and indirect ways they ran our business out of town which would have been great were it not for the economy that began to tank for us in 2009. They'll never have their easy and quick money through oil ever again but refuse to see it. Now, truth: The problem is really big and not little, me thinks. The attitude becomes pervasive on an individual scale but (for various reasons), truly, it's the get rich quick schemes that are creating an inequality and an air of potential to making money out of thin air. Look at that chart above. What it realizes: Someone is making a ton of money off the reality that people across the globe are going to be dying of starvation within the next year because of the corn and grain shortages. They've been BETTING ON IT. The acceptance of this immoral behavior is, I believe, the crux of the pervasive ideology that one "need not work hard to make money" because there is no moral obligation to consider. It's been glamorized, sought after and the most heavily lobbied and politically supported greed (and now graft) in existence. In fact, it's killing us all. Today's charts made me cry. Trading is not immoral - betting is. Every single one of the Arab Spring uprisings can be connected to a spike in food prices because of shortages or otherwise and it didn't work in many places. Yemen is now looking like Ethiopia starvation. And this market activity is LEGAL. There is no rule of law in the market right now otherwise. The creme de le creme has been manipulating the bank figures - the same ones the middle class bailed out in 2009!! Customer's money in segregated and protected accounts are literally disappearing by crooks all over the world. I'm at home learning to garden because it's wholesome and good, but really I'm doing it because I believe we must. And I no longer believe the problem stems from greed and corruption. I know it is. And so many of them are also betting on the fact that we blame each other so we're not looking at them. They won that bet too, No mobs. The verbiage carried by Draghi (European equivalent of Ben Bernanke) and Bernanke is, essentially, "We'll be intervening soon." meaning they will be forced to buying out bond or printing more money to help the economy which is coming to a halt right now. That means more inflation on top of these horrible increase of prices. And it's not just Bernanke saying this because the problem is GLOBAL. While the U.S. is struggling on its own the European economy is weighing it down very heavily in intricate ways that is non-reversible, non-negotiable. Not a one of us lives our lives in a way that is not intricately connected to activities on foreign shores though we may never stop and think about it. When and where it stops is debatable but the fact that it will is inevitable. When certain sections (not all because the global economy is wonderfully resilient) are hit, cut or rendered helpless it will become systemic like a contagious virus. Draghi and Bernanke are making subtle and cunning moves keeping the sentiment-driven market afloat by making statements of empty rhetoric or acting physically in matters such as printing money. Mostly, they keep touting words in the air that make a shift in the market not unlike a debtor stating "The check is in the mail." all in an effort to hope the economy will merely peter out unless of collapsing like a system of dominoes. In comparison to the rest of the world the MF and PFG money scams are a cake walk in comparison to the rest of the world that remains completely ignorant while corruption and graft moves continuously outside of open-media sources. At least we have the ability to "know". The Yemenis? Not so much. They can only blame their regimes. Mark my words. Unless internet access becomes unobtainable the members of this forum will grow exponentially within the next 12 months. We're already seeing it happen, but not one of us actually talks about why. But what is it going to be? "To each his own." because some political alliance has taught us that people are just too lazy and selfish Or are we going to band together and help each other like they did in the depression recognizing all the while the corrupt politicians and bankers are (literally) making off with our hard-earned money and our neighbors have naught to do with it. I guess I need to buck up to the reality of the answer and just go file for disability. Thanks bon

And that is exactly why the WSJ story today said that the bailout would slow, but not eliminate the financial decline. But time is what is needed, and it was the only way to get it. The government is the lender of last resort. NOT acting is what caused the 1929 Great Depression and Japan's 1989 recession/stagflation. The dollar had been strengthening, but will now weaken due to the bailout. Returns on equities will strengthen in time, but growth will be slow. For those who are railing against Wall St. and saying that we should go back to "banking local", there is a relevant article in the WSJ today on the difficulties small banks are having, with a high likelihood of several quarters' earnings completely wiped out. This means little or no local lending will take place. Consolidation in bad times is the name of the game. In times of crisis, Cash is King, as Warren Buffett so ably proves time and again. This is why he's been investing so heavily in the last year as the bears rule, after gradually stockpiling cash starting at the height of the last bull market. And BTW, Buffett, like Bill Gross of PIMCO, has already said they are willing to help the government dispose of these securities without management fee, and are eager to get the chance to purchase a good amount of these securities. IOW, the government could buy these securities, tack on their own handling fee, and resell them at a decent profit because these shrewd investors have run the numbers (unlike many politicians, apparently) and know there is gold to be mined amongst the dross.

Remember the old saying in the stock market, "Sell in May ...and go away!"?? Good advice again this year, it seems. Though October has brought bad news, on several occasions, over the years, one would have thought that to be an improbable scenario this year, what with a big election in the offing ... but it was true again this year. Anyone game for some financial shenanigans? You should have a five to ten year time horizon for such a project as this, but it could work out in as low as three years. Canadian dollar was at par a few months ago, now about 85 cents U.S. buys a Canadian dollar, as people whose money'd fled the U.S. earlier, returned after the recent govt. support: does "BBB" now stand for "Broke Bankers' Bailout"? A recent survey says Canadian banks are among the solidest of the industrialized world, and much of the Canadian market is based on resource stocks, which have taken a hit lately ... but does anyone think that petroleum stocks are going to stay down for the long term? Other resources, including gold, either. Have certificates for some of your mutual funds that you plan to hold for a long time issued, likely at no fee, or some individual stock certificates, usually at a fee here of $50. or so each. Use your certificates, and CDs (preferable, as their value stays constant) if available, as collateral for a fully-secured loan at your favourite (i.e. low-rate) lender. If your lender is willing to lend up to 50% of the value of the underlying asset, consider borrowing up to possibly $30.00 per $100.00 of equity (which means that if the value of those assets drops by 40% to $60.00, you will still be covered 2:1). When the amount of your loan goes to over 50% of the current value of the underlying asset, the bank comes to ask you for either more collateral (stock, mutual fund certifs., CD, etc.) ... or to pay off some of the loan to restore the 50% loan level, called a "margin call" - and that's today ... tomorrow at the latest. I don't want to get one of them, and never have. If you don't have extra collateral on hand, or cash to pay down some of the loan ... don't crowd the margin level! Such extra assets are more likely to be available to folks nearing retirement, as it's probable that they have various investments, and more of them, available to use as collateral if needed. As in gambling, the gal/guy with the good hand who has surplus assets can keep raising as s/he feels appropriate. Maybe buy some quality U.S. stocks whose price has been beaten down recently, plus some Canadian stocks ... oil and gas, pipeline, minerals, rail, possibly a bank ... and some gold? These are some representative Canadian stocks: I'm not saying that they're the best choice. Suncor (SU.TO) has a substantial position in the tar sands with Syncrude, share price 59, 60, 55 at mid year, 26 in early Oct., now about 25. Putting money into development of more cost-effective ways to pull the oil out of the sand, it pays 0.20, 0.75%. Petrocan (PCA.TO) was 54, 52, 48 at mid year ... 23.70 early Oct., now 25. Pays 0.59 - 2.29%. Nexen (NXY.TO) was 38, 36, 34 ... 14.01 early Oct., now 16.46, 19.14 ... 18.90 last Fri - now 17.95. Pays 0.15 - 0.84%. En Cana (ECA.TO) (one of largest suppliers of natural gas) was 89, 83, 78 ... now 55, 61, 58.15 (Fri) 56.94 (Tue). Pays 1.431 - 2.51%. ________________________ Some companies turned into unit trusts several years ago, agreeing to pay out about 85% of earnings, and avoid tax ... but when some big cos. (e.g. Canada's largest phone co.) planned to do that ... the gov't cut them off at the pass ... said they'd all have to turn into corporations by 2011.(1) Canadian Oil Sands (COS-un.TO) major player with Syncrude in the tar sands, containing more oil than in Saudi ... in 1st qtr. '08 was 32 - 46, in 2nd qtr. was 40 - 54, in 3rd qtr. 38 - 54, as low as intra-day 23 in early Oct., now 26.76. Pays $3.55, 12.6% ... possible revision downward? Pengrowth (PGF-un.TO) was 18.13, 17.93, 17.70 ... 9.62 early Oct., now 12.00 ... annual payout over $2.00 per unit - but don't count on that level being maintained. I own a few units ... thinking of buying more. Enerplus (ERF-un.TO) was 46, 44, 41 ... 25.50 in Oct. ... now 28.28 ... pays about $5 (about 18%) annually per unit - probably also due for adjustment downward, due to oil price drop. Their rep is to speak to an investment group in our city tonight, so I've been doing some checking. __________________________________ Potash (POT.TO) (potash fertilizer, in major ongoing international demand to increase agricultural yields) 213, 223, 211 in summer ... 102 in early Oct., now 95 - 97 ... payout about 0.421, about 0.43%. Check their multi-year chart. Teck Cominco (TCK-B.TO) (base metal miner-processor) I bought at 35 early Jan, was 50 in May, 45, 41 in summer, 16.36 early Oct., 11.28 last Fri (payout 1.00 - about 8.75%), 8.75 Tues. (payout over 10%): I've been thinkig of buying more ... watching it closely. Several of our major mining companies bought out, owned offshore, shares no longer avail. to us ... I figure that this one may be a candidate ... especially at low price per share. That usually causes share price rise of 10 - 25%, even 35% overnight. TD Canada Trust (TD.TO) (one of our 6 national banks) was 63, 58, 58, 60 in summer, 52 early Oct., now 55.86 maintained its value about the best during the U.S. sub-prime problems ... they run a smart ship ... paying about 4%. CN Rail, one of our two major national railroads, recently bought substantial U.S. trackage ... shares not avail. in Canada - cf. CNI on NYSE. Enbridge (ENB.TO) (major pipeline) 44, 44, 43 ... early Oct was 35, now is about 40 (I've owned it about 14 years, turned 75 to upwards of 480 during that period). Pays some over 3%. TransCan. Corp. (TRP.TO) (major pipeline, plus) was 38, 37, 38 ... 31 in Oct, now 35 ... payout about 4%. Check stocks' info at Yahoo-> Finance, near top left enter symbol in small dialogue box, "Get quotes" to get much current info ... or give company name to get symbol. Chart at lower right shows price movement today and clicking on letters under the chart allows viewing charts over several days, months and years. At some below top left, clicking on "Historical prices" allows one to view daily open, high, low and close prices, plus dividend payouts, back several years for some stocks. Also daily volume ... which is often quite a lot higher when stock price near a top or a bottom. When stocks are at bargain prices ... if I can borrow to invest, fully secured, at 4.75%, paying interest only monthy and deductible ... and earn 4% (taxed at very low rate) ... and I gain the value of inflation ... that looks like a worthwhile opportunity. So - prices drop some more, later? If they stay down for a while, I may whimper a bit, as I could have bought later and enjoyed the substantial runup over the next few years ... but suppose the market is near bottom now? Not much use showing up at the station after the train has pulled out! Best to buy on several occasions as one believes the market to be nearing bottom, as it's volatile, then, making several false starts back up. I hope that you're all enjoying fall. I was picking some mature peas and beans yesterday plus radish pods for seed, moving some squash into the barn, lifting some beets ... and my fingers were doing some complaining, as it was a few degrees above freezing. More beets, turnips and carrots to lift today. Broccoli seems to be minimally affected by frosts, still producing (mainly small sized) florets - but that'll soon be through. ole joyful P.S. Want a real gamble? Our major phone co., Bell Canada, covering 2/3 of total Canadian population in Ontario and Quebec, more or less widows' and orphans' stock, wanted to go unit trust, then gov't. changed rules to block them. Then BCE (BCE.TO) made a deal with a major pension plan and buyout artist, backed by billions of loans from several banks, to buy out shareholders at $42.75 and go private ... when stock price in low 30s ... stock price went to about $39., but somewhat below the offering price, and usually price jumps to right up near the offer price. That was just before the U.S. subprime mortgage barnyard byproduct hit the fan, which problem led to this issue's huffing and puffing, lawsuits by current bondholders, etc., and several delays in the time for the deal to be consummated. Stock price continued around 39 - 40 through the end of '07. I'd bought some at about 28 a couple of years ago,and felt that, with the deal to go through in a few months, to buy some more about 38 last Christmas looked like a good idea. Early in this year the stock price began slipping, and the date of completion was postponed ... plus the company decided to suspend paying dividends. Stock was just over 35 at the end of June, recovered to 40s in August, then down again to 33 in early Oct., recovered to about 37 now ... with deal to have been completed in early Nov. ... that's ... of this year. One of the backers is the Royal Bank of Scotland, which recently received an infusion of credits from the Bank of England ... so are they going to be willing/able/allowed to complete a substantial deal ... in the (former) colony ... any time soon? Price closed at 37.90 Tuesday Nov. 11 ... want to take a chance on the deal completing, at the originally agreed price of $42.75, any time soon? o j

Do you think we have high inflation midwestguy and do you think it will continue? If the answer is yes then the desire to buy (demand) and a fear of selling (supply) will keep prices moving up. With the Federal reserve's refusal to tighten lending and fight inflation they're supplying the fuel for the fire in the housing and stock markets right now, and may continue for years. But what if the federal reserve stopped propping up the market for U.S. treasuries to keep rates low and stopped buying mortgage backed securities (MBS) as they're aggressively doing now? (fact stated in last fed meeting) Well you'd see a rapid rise in Treasury rates along with mortgage rates..... and you'd also see a big drop in demand for MBS's which by the way supplies the money for new mortgage loans, and loans would dry up. Housing prices would fall like a rock, consumption would nearly dry up causing an economic contraction and deflation. (And we got a little taste of this last year.) Thomas Jefferson said over 200 years ago (1816) that the banking establishments are more dangerous than standing armies are to the country and he was so right. Along with Treasuries and MBS's the federal debt payment would sky rocket putting America and everyone in it on the brink of bankruptcy and total collapse. Not to long ago I thought we were heading into a period of contraction and deflation before covid just on the generational demographics, consumption and birth rate. But now with the expansion of the federal reserve's balance sheet by another $5 trillion (crap they buy to prop up markets with wet money(printed money)) I'm not sure of a direction and this period in time is something never witnessed in America but was seen in other countries in the past (Germany after world war I and we all know how that went). If it's hyper Inflation, deflation, stagflation or total collapse I do know each will reduce your chance of getting a house going forward.