> From: Tyler Loudon
> Subject: rBS
> To: "Jon Tran"
> Date: Tuesday, January 20, 2009, 3:31 PM
> Jim Rogers was absolutely dead on right when he said short
> U.S. financials in 2007. Only he shouldn't have limited
> it to U.S. financials, foreigners are having a similar
> problem and bought U.S bad assets too. A short position
> would have garnered 73% today alone on RBS, with a projected
> 2008 loss of $42 Billion, roughly one Anheuser-Busch prior
> to the merger (see article link below).
>
> The economic reality of our ever larger government backed
> debacle has not "Changed" the world for the
> better, jump started a recovery, or done much more than
> spent money the U.S. doesn't have. Since the tangible
> real world is an ugly and dire scenario with no swift
> solution, people are turning to an intangible hope, where
> whatever your hope, insert the idea and presto, that's
> what the campaign meant to you. Anything but reality.
> Blind Hope can also be found in the fiction section, such as
> The Little Engine That Could and Dumbo. Only Americans
> aren't reversing their course of over consumption and
> trying really hard like the little engine and dumbo. They
> don't want to work really hard to get a sustainable
> lifestyle less lush than their excesses have recently
> afforded. America simply wants to continue consuming more
> than it produces. It's the same mentality that has lead
> 1/3 of American adults to be obese and another 1/3 to be
> overweight. They "hope" and "wish" to
> loose weight, but they return to McDonalds and mumble
> something about a slow metabolism or a busy schedule.
> Americans are not doing anything close to what is within
> their ability to improve their personal financial situation.
> Americans save 2% of their personal income. Chinese save
> 30% and have incomes relatively much less than Americans.
> Saving more and spending less. The US government is
> appeasing citizens to keep it up, with programs such as Hope
> Now that bail them out of a terrible decision to buy a house
> they couldn't, and can't, afford. This action is a
> huge welfare check by any other name, only for your
> mortgage. It's financial liposuction and they'll be
> back, having learned nothing, eating burgers tomorrow,
> popping a cholesterol reduction pill, complaining about the
> next Joe Six-Pack issue.
>
> When consequences of the reckless are bore by everyone in a
> government bail out, that false paradigm of preservation
> weakens the system and punishes the few who were
> responsible. The second $350 of the TARP has been released
> (the first already eaten) and has takers (Bank of America,
> already a participant in the first half). Top of the list
> to come is another $800 Billion or so in government
> spending, fostering more consumption, more government
> backing and ownership, more debt to lead the way as we
> continue the same path we're on, only now we're
> sprinting towards the point of no return where our Fed debt
> payments overcome tax revenue. In that case, the two
> national outcomes are either a slow and painful financial
> drain as we can't pay our interest and eventually sell
> off assets, or WWIII time. Ethics aside, if we ever get to
> that point, the World War worked out pretty well for the US
> last time a financial storm like this was around, and the US
> is still way more militarily powerful than any other country
> by far. China has U.S. Treasuries, we have the F-22 Raptor.
> But that would never happen. America doesn't support
> such injustice. The US wouldn't do that as much as they
> would unjustly bail out a failing mismanaged business, just
> because it's a big mismanaged business, like GM.
> America stands for liberty and freedom. A land of
> opportunity, not handouts. Our founding fathers created
> something better.
>
> Well as founding father Benjamin Franklin said when asked
> what kind of government they had decided on in 1787, he
> replied, "A Republic, if you can keep it." Will we
> lose it? Here's to hoping.
> THE REALIST
>
>
> http://investing.businessweek.com/research/stocks/news/article.asp?docKey=600-200901190307APDIGITLFINANCE__EU_Britain_Royal_Bank-5KRVJEQ379LMJP71N92BIH9BU4¶ms=timestamp||01/19/2009%203:07%20AM%20ET||headline||RBS%20expects%20full-year%20loss%20up%20to%2028%20billion%20pounds||docSource||AP%20Digital||provider||ACQUIREMEDIA&symbol=RBS
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