TigerSoft Freedom News Service    1/30/2009     www.tigersoft.com     Stock Market Predictions       

                              REPUBLICANS AND OBAMA SEEM BOUND
                              TO BRING ANOTHER DEPRESSION

                          (1) Obstructionist Republican Senators
                           Wage Class-Warfare To Protect
                      The 1% Richest Who Own 50% of America

                 (2) Obama Risks Destroying The US Economy
                 To Repay His Biggest Campaign Contributors,
                  Rather Than Create A True National  Bank.

                               A Guide To Obama's Orwellian "Double Speak"

                                                           "Good Banks" and "Bad Banks"

                                 1)      The really corrupt, bad banksCitigroup and Bank of America, are
                               treated like "good banks".   But the US Government Bank that will have
                               to buy all the valueless crap-mortgages will be called the "bad bank". 

                               2) "Toxic Assets" are the really worthless assets that the banks want to
                               sell to the US Government for hundreds of billions, because no one else will
                               buy them.

                               3) "Socialism" is bad, unless, of course,  it's for the rich!  Then its good. 

                               4) "Class warfare" is bad, unless, of course, it is waged as now by the rich bankers
                               against the poor.
                               5) "What is good for Wall Street is good for Main Street.  End of discussion.
                                Stop complaining!"

             OBAMA's TARP IS PART TRAP and 100% CRAP.

                  Obama's Treasury Secretary Geithner - Another Bank Puppet?  
                                        wpe14E.jpg (13565 bytes)
                             Now We See Why Goldman Sachs Executives  
                                Contributed So Much Money To Obama. 

                                           This is an unfolding story.  Look for updates here.

                                        by William Schmidt, Ph.D. -  Creator of Tiger Software.

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                       TARP IS PART TRAP and PART CRAP!

                              Over-hanging the market are fears that CitiGroup or Bank of America
                     will fail or need to be nationalized, as has happened in the UK to Northern Rock
                     and Royal Bank of Scotland.  Tonight, 1/27/2009, Bank of America and CitiGroup each
                     rose more than 9.3% in after-hours trading today.   The Obama Administration
                     seems willing to buy these banks' toxic (worthless) bad debts at above-the-market
                     prices and resist cheaper and a common sense nationalization.  This should send the market
                     up quite strongly.  Our untouched Peerless Stock Market Timing shows lots of Buys
                     since mid November. 

                          Blame The Aniquated and Unrepresentative US Senate
                               for The Coming of The Depression II.

                               Update 1/30/2009: the Republican minority have turned down the Democrats's stimulus
                     package.   This is desperately needed.  Layoffs are reaching the 1 million a month
                     level.   Private spending is dwindling.  Banks don't want to make loans.  And Republicans,
                     true to Hoover's memory, are repeating his arguments against increasing national debt
                     to provide jobs no longer provided by the private sector.  Their newly discovered
                     devotion to balanced budget is about as hypocritical as you will ever hear from any
                     band of rogues anywhere.  These Republicans put drunken sailors to shame between
                     2001 and 2006 with their reckless government spending and cut backs by the hundreds
                     of billions on needed taxes on the very wealthy.  Now they can conduct their "class warfare"
                     raids with near immunity in the Senate with fillibusters. 

                               Someday, the US Senate will be abolished, when folks see what a disgrace it is.
                     Wholy unrepresentative, inefficient and with no effective rules of closing long-winded
                     speeches by the plutocrats from thinly populated states, the will of the majority of
                     the people mean nothing.  They care not at all about the extreme hardship their obstructionism
                     causes the tens of millions out of work.  Minority "class warfare"from the top down rules
                     America. These rogues will do whatever it takes to protect the one percent that own 50%
                     of America!

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                                                                      A Botomless Pit           

                              The buying of "troubled assets" from banks at their pleasure and discretion
                     ensures that the banks will only sell the worst of their toxic debt to the US.  How will
                     these valueless assets be priced?  By whom? The banks want them priced at their
                     original faced value.  Will their be any transparency about the pricing?  No answers
                     from the Obama Administration yet.

                              What they are saying is that these toxic assets will go into into a Government
                     owned "Bad Bank", the banks will get hundreds of billions and this is somehow supposed
                     to promote financial recovery.   How?  Will it really?  Paulson's TARP succeeded
                     only in wasting vast public sums on undeserving banks and scaring investors, while
                     underscoring how blatantly crooked the Bush Administration was and how stupidly and
                     selfishly banks have been run.   What Obama is proposing looks like more of the same.  When
                     this new TARP II bank bailout fails, and I believe it will, for the reasons discussed
                     below, Obama's credibility  will drop sharply.  Then where will the leadership that
                     is need to produce a recorvery going to come from?

                               Incredibly, the Obama administration is developing plans to pour hundreds
                      of billions of taxpayer money into banks beyond the $700 billion bailout Congress
                      already has approved. 
The International Monetary Fund just reported that bank losses
                      in the U.S.and Europe already have topped $1 trillion and could reach well over $2 trillion.
                      ( Source. )


                              In another year, two trillion dollars will be wasted on corrupt private banks.  What a plan!
                      But that's what Obama wants.  So many things need doing.  But Obama wants another trillion
                      for private banks.  Obama says that private industry is the "engine" of American
                      job creation.  He said this despite the fact that almost 1.2 million jobs were lost in the private
                      sector just in November and December 2008.  Obama's loyalty to the private banks seems
                      very clear. They heavily sponsored his campaign,  Clearly Obama is no spokesman
                      for public employment.  But that is what is needed.  Millions need jobs now.   The money would
                      be better spent coming as loans from a national "good" bank.   That would fill the void and
                      restart the economy.  Obama's plan will please the stock market long enough to let professionals
                      unload the shares they bought between 7500 and 8000.  But Obams's is no lasting solution.   When
                      the public sees how Obama has wasted a trillion on banks, the stock market will be in very big

                              Does the chart below of the DJI starting at the end of September 2008
                     show a calmer or more stable market?   Hardly.  No clear explanation has ever been
                     given about how giving a trillion dollars to banks helps Main Street America, except
                     that this will enable to make bank loans again.  This is absurd reasoning.  We the tax-
                     payer are giving banks a trillion dollars so that they can make more loans to us when
                     they chose to, but charge us a high interest rate in the bargain!  

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                                   US FEDERAL RESERVE AND TREASURY DISGRACED
                                 BY PAULSON, BERNANKE, GREENSPAN and GEITHNER

                                 I have written long and hard criticism of Bush's Treasury Secretary
                      Hank Paulson and Federal Reserve Chairman Bernanke.
                     A few months ago, when you Google "Paulson" "crook" "corrupt"   you found
                     only my Blog and two or three others.  Not so now.  He is held in contempt by
                     even professional investors. from Rogers to Soros.  He is a quote that I saw today.
Famed money manager Jeremy Grantham says that the continuing credit crisis...
                               is largely the fault of poor leadership at the Federal Reserve and U.S. Treasury
                               (and)   a small clique of financial policymakers that now includes new Treasury
                               Secretary Tim Geithner....Reviewing the last two years, of course, it's a misplaced
                               trust in the competence of our leadership, from the very top...They were cheerleaders,
                                all of them. And they encouraged reckless leverage and low-quality debt. 

                             "Grantham said that Geithner, who was president of the New York Federal Reserve
                              Bank, current Fed Chairman Ben Bernanke, and even former Fed Chairman Alan
                              Greenspan, as well as former Treasury Secretary Hank Paulson, must share the blame.
                              They made no effort to resist it in any way. Even jawboning would have been a great
                              advantage over nothing .. And Bernanke couldn't even see the house bubble. On our
                              data and Robert Shiller’s, it was a three-sigma, one-in-100-year event. After 100
                              years of being flat, it soared after 2000. You could not miss it. And right at the peak,
                              October '06, Bernanke said — quote— 'The U.S. housing market merely reflects
                              a strong economy
'.  What was he looking at? Where were his statisticians? These
                              are the guys we picked out of millions to lead us in a crisis. And they can't see a
                              three-sigma bubble? Every single bubble of that kind has broken." 
                                      ( http://moneynews.newsmax.com/streettalk/bernanke_disgraceful/2009/01/28/175906.html )

                                               GEITHNER IS A WALL STREET PUPPET

                                Obama's Geithner tells us that this time TARP payments will not be wasted
                     on bonuses, extra lobbying, million dollar offices and private jets.  There will be a new
                     public transparency he assures us, in order to get the $350 billion released to his clients,
                     the big banks.  But why should we believe him?   Why should we think these banks
                     will make any more loans?   Why should we think this huge sum will stimulate the
                     economy any more than the first $350 billion in TARP payments?  Even if there
                     is a short-term rally, the charts for CitiGroup and Bank of America look terrible.
                     They look like it is only a matter time before they go to zero! 

                              As the head of the NY Federal Reserve, Geithner,  acquiesced silently and
                      ineffectively while CitiGroup increased its bad loan and totally mis-managed their
                      leverage after 2005.  In addition, he did not protest the first round of non-transparent
                     and wasteful TARP payments.  The notion that he will suddenly be tough on banks
                     seems very fanciful.  Small wonder the bank stocks are now starting to bounce, as
                     the Treasury prepares to release the second half of the TARP payments.  Geithner
                     has consistently opposed nationalization and been an advocate of making the banks such
                     a superb bargain for private investors that the government will not need to do more. 
                     Wall Street again wins out over Main Street.  No one asks if there are not better uses
                     for the $350 billion.  We still have NO GUARANTEE that this second round of
                     payments will free up credit and get banks to make loans.  A national bank would do
                     this immediately and without administration by the same over-paid bank executives
                     that have made one bad decision after another as the housing bubble emerged.   All
                     those Goldman Sachs campaign contributions to Obama were not wasted! 

Robert Reich's Recommendations for A Good "Bad Bank"   Jan 19, 2009
                                "It looks increasingly likely that a big chunk of the TARP II funds will be used to set up
                         what's being called an "aggregator" -- or "bad" -- bank to buy up the bad assets that continue
                         to hobble the balance sheets of private-sector banks. That's what Hank Paulson and Sheila Bair
                         suggested Friday. Obama officials-in-waiting seem to view the idea favorably.
                                "A Bad Bank is surely better than the piecemeal, unpredictable, and opaque approach
                         of TARP I. But in order that the Bad Bank not turn into another giant taxpayer-financed boondoggle
                         for the benefit of shareholders, creditors, executives, traders, and directors of the banks that got
                         us into this mess in the first place, any Bad Bank purchase of their toxic assets ought to carry
                        conditions similar to the ones I suggested recently for dispensing TARP II funds. Until the
                        taxpayer-financed Bad Bank has recouped the costs of these purchases through selling the
                        toxic assets in the open market, private-sector banks that benefit from this form of taxpayer
                        relief must (1) refrain from issuing dividends, purchasing other companies, or paying off creditors;
                        (2) compensate their executives, traders, or directors no more than 10 percent of what they
                        received in 2007; (3) be reimbursed by their executives, traders, and directors 50 percent of
                        whatever amounts they were compensated in 2005, 2006, 2007, and 2008 -- compensation
                       which was, after all, based on false remises and fraudulent assertions, and on balance sheets
                       that hid the true extent of these banks' risks and liabilities; and (4) commit at least 90 percent of
                       their remaining capital to new bank loans." Source 

                           A NATIONAL BANK IS A MUCH BETTER SOLUTION      

                                 A publicly owned bank would be able to make all the loans needed very quickly.
                        The public would benefit.  It could not be run worse than CituGroup or Bank of America.
                        CEOs.   The US Government need not be a "barren whore", as those who think that
                        private capital is the only legitimate capital and source of jobs.  Who do you think
                        created the Atom Bomb or built all the highways we drive on or the huge hydroelectric                  
                        power plants?  We'll see how the UK model of nationalized banks fare, while trillions
                        and trillions will go into the American banks for profit system waiting for the housing bubble
                        to play itself out. 

                                Not surprisingly, some say that CitiGroup originated the verbiage used back in
                        2007: that they are the "good bank" and a bank taking on their bad, toxic, valueless will then
                        be the "bad bank".

                   Campaign Contributions To Obama from Wall Street Bankers      wpe14C.jpg (2633 bytes)
                                                     Goldman Sachs  $955,000
                                                     JP Morgan         $642,000
                                                     CitiGroup            $633,000
                                                     UBS                     $505,000
                   See also -
Thursday, June 26, 2008  Obama's Accepts Millions From "Subprime" Tied Contributors 

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"Obama’s Chief of Staff Pick Took Campaign Contributions from Wall Street"
                                           Friday, November 07, 2008  By Fred Lucas, Staff Writer

President-elect Barack Obama’s choice for White House chief of staff is one of the
                        biggest recipients of Wall Street money in Congress, according to a Washington, D.C.-based
                         “money-in-politics” watchdog group.   The Center for Responsive Politics has issued a report
                        highlighting millions of dollars in campaign contributions that Rep. Rahm Emanuel (D-Ill.) has
                        raised from individuals working in the hedge fund industry, private equity firms, and large
                        investment firms.    Emanuel has raised more money from individuals and political action committees
                         in securities and investment businesses than from any other industry.

                            This comes after a presidential campaign that saw Obama frequently criticize Wall Street
                        and blamed lack of government regulations for the economic crisis that hit the country in mid-September.
                        Emanuel, a former Clinton White House aide, is chairman of the Democratic Congressional
                        Campaign Committee and received much of the credit for the Democrats winning a majority in
                         the House of Representatives in 2006 – the first time in 12 years.

                           For his own 2006 re-election campaign, where he faced no serious opposition, Emanuel
                         raised $1.5 million from the investment industry. His other sources of contributions came from
                         lawyers, who gave $682,900, while people working in the entertainment industries gave $376,100.
                        (Source: http://www.cnsnews.com/public/Content/article.aspx?RsrcID=38963 )_

                                                                            More on Geithner  

                                "In March 2008, Mr. Geithner brokered the deal enabling JPMorgan Chase
                    to acquire Bear Stearns, with the crucial help of a $29 billion loan from the Fed. At the
                      time, critics said that the terms of the deal were too generous, and that Mr. Geithner,
                      with no experience in private banking or finance, had been too reliant on Wall Street
                      leaders to show him the ropes

                             Giving a trillion dollars will not save these banks.  Their losses from falling housing
                    prices could easily be tow or three trillion, says NYU Professor Nouriel Roubini. 

                             Compare the high Insider Selling (red Distribution) charts of CitiGroup and
                    Bank of America with now defunct Washington Mutual or Indy Bank in the US
                    or the UK's nationalized Northern Rock or Bank of Scotland

                   CITIGROUP (C) - (C) 2009 www.tigersoft.comwpe140.jpg (68837 bytes)

              BANK OF AMERICA (BAC) - (C) 2009 www.tigersoft.com                 
 wpe142.jpg (69423 bytes)       
            WASHINGTON MUTUAL (WM) - (C) 2009 www.tigersoft.com  
                             TigerSoft's inventions, the "Accumulation Index" and "Closing Power",
                       show you what insiders are doing with their own money.  Forget
                       what they are saying, watch whether they are buying or selling,  It
                       is vital to your investment survival that you understand the degree
                       to which the stock market is rigged by insiders and market professionals
                       against the unwary investor. 
Step #1, memorize below what a stock
                       looks like on its way to bankruptcy.  WAMU and IndyMac Bank illustrate
   Google "TigerSoft" "Bankruptcy" to see many other examples.

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                  INDY BANK (INDY) - (C) 2009 www.tigersoft.com

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     UK's NORTHERN ROCK - (C) 2009 www.tigersoft.com

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        UK's ROYAL BANK OF SCOTLAND - (C) 2009 www.tigersoft.com                               
 wpe147.jpg (52924 bytes)      CLOSING POWER                                                                                            
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