FinReg passed. This is economic suicide...

FinReg passed. The people who are happy must hate America. They must know that this bill is a socialist charter fostered on them by the global elite.

This isn't a financial regulation bill, it's economic suicide. Remember a few months ago, when Ron Paul had a great deal of momentum behind him in trying to get the Federal Reserve fully audited? Why did he push so hard for that? It was because that private banking concern, which controls our money system, is the reason our currency is worthless. The United States is in a depression. And while the bankers get rich, some middle class America are turning to eating dog food.

The FinReg bill just gives them almost total control of all things economic, right down to deciding which businesses it sees as "necessary to take over" for the good of the economy!

This bill just handed them the keys to every city and every business in America. But that's not all. It creates a new army of regulators, none of whom we elected, to oversee and make value decisions about virtually every facet of business.

It also gets into things that should be major news on every network. But we know those in power that run the main stream media will never let the "real news" out. Inside this 2300 page monstrosity are all kinds of hand outs, political gifts, and back door politics.

The bill will create some 20+ "offices of minority and women inclusion" at the Treasury, FED and other government agencies, to make sure they employ more minorities and women and grant more federal contracts to more businesses owned by these two group.

It also includes a measure to make it easier for environmental groups, unions and other activist organizations that hold shares to put their representatives on the boards of directors of every company in the America! This is the so-called "proxy access" provision. So, if you're an environmental extremist and you don't like the way corporation ABC is letting it's people drive autos to work, you now have a free pass to that company's board, so you can start to change things to the way you want. Of course you did not help create that company, but now you have some control over it!

It also creates an agency called the Consumer Protection Agency that can monitor, in real time, any company that it wants to. This includes even non-financial companies. And guess what? There is no provision in the bill for challenging that action. This bill gives the Fed direct access to any companys' trade secrets.

This paves the way to a massive amount of corruption on inside information because there is no oversight committee assigned to keep an eye on the watchers. Basically it lets outsiders in, so the information can go right back to the Federal Reserve, which can determine if they want that business to survive, or if it must be taken down.

FinReg does nothing except expand the Fed, so they can take over whom they want and destroy whom they choose and expands more governmental control into every aspect of your financial life.

A 401K is becoming a tool for survival...!!!

If we toss together a huge salad made up of retiring boomers and people pulling 401K's to survive.. and then chop up some real ugly economic news such as no jobs, more housing foreclosures, falling retail sales, states going bankrupt, pension plans getting reworked, and commercial real estate beginning it's plunge to zero.. the pressure on the equity market creates forces that I don't believe it can weather.

Not only are aging baby boomers taking money out of the market to retire on, we are seeing wave after wave of unemployed looking at their 401K's from their old job and thinking "hey, I'm just about squeaking by here on unemployment, and I have 40 grand laying in a silly 401K. Maybe I ought to just pay the tax and penalty and take it". As more and more people run out of their "extended" benefits, and have NO income we'll see more people elect to raid that 401K. Now, where's that 401K typically invested? Bonds? Nope. They're in stocks.

We just learned that in the week of July 1 we saw 11 billion dollars come out of stock funds. Some of that was simply nervous investors wanting to pull back if the market sours more. But some of that is indeed "broke people" looking for income any where they can get it. If they can't refi their house and take a cash out refi, if they have no job, and they just ran out of unemployment bennies, how long is Mom and Dad going to float them if indeed Mom and Dad are still around? Not long. Now that 401K looks more like a tool for survival in the present versus some retirement plan in the future.

Consumer Confidence Takes A Header

Look at this recent headline from the other morning:

"8:33 AM June ISM New York Business Index: 69.3 vs. 89.9 in May. The 20.6-point drop was to be expected because the May level of expansion wasn't sustainable, but future optimism was less broad based than in prior months."

Guess that's how they'd also explained away the Richmond and Philly Fed numbers when they were released. So, it's not only business people that are pulling in their bullish horns, it appears consumers are too as indicated when Consumer Confidence crashed last month too. 99% of the analysts on CNBC have been telling us that the consumer was fine, and everything was on the mend. Maybe that isn't quite so accurate! Sure people were happy when they were getting 99 weeks of unemployment insurance, strategically defaulting on their home loans and living fat while sitting on the couch drinking booze purchased with food stamps, or in the case of California taking their welfare checks to the ATM machines at the casino. But when the government cuts back a bit on the programs, "consumer confidence falls". Who would have thunk!?

American history is full of examples where it's had huge dips in the economy, followed by some form of expansive rise. So, we realize that after the 2008 - 09 meltdown, the majority of people think they've seen the worse and it's time for the next big move up to happen once again. We notice this all the time. People say that we're still pretty weak, but very soon, all will be great. We then inquire "why", but they have no real answer, except that it's always worked that way. So they feel if it always turned out that way, it will once again. If we say that this time it will be different, we get a dazed look, a frown or what have you. This is a big mistake on their part because this time it will be different. Hugely different. Those are scary words, but pay attention to them because the Big Pain is still coming.....!!!!