InvestorsObserver.com
Home   |  Login  |  First Month for $1  |  Free InvestorPerks Signup  |  Special IO Reports  |  Help  |  Contact Us

Exclusively for IO Members
Click Here to access your
IO Premium Services,
IO Portfolios,
IO Investment Tools, and to Change Account Profile.

  Not a member yet?
Click here to sign up for your first month for only $1 Plus eleven FREE bonuses worth over $820.
Free Investment Newsletter
Free Investor's Cheatsheet
Free Premium Article
Free Dividends Plus Service
Free 10-10 Portfolio Service
Free 3-Way Portfolio
Free Double/Nothing Service
Free High Return Quick Exit Service
Free E-Mini Service
Free IK Portfolio Service
A $14.95 Rebate Coupon.
 

  If you are not satisfied with an IO product or service, you will receive a full refund.  

  Click Here for details on
each of our portfolios including recent performance figures.
Click Here to subscribe to a portfolio.
 

  NEW!
Selected trades from our InvestorsKeyhole service that should hold up on an up, down or flat market.
 

  Capitalize on intraday S&P 500 index moves using
E-Mini Futures.
 

  NEW!
Rake in the cash and get out quick if you have to. No matter what. Really!
 

  10% return goal if the stock rises, stays flat or even drops up to 10%.
Autotrade this portfolio with...
 

3-Way Managed Risk
  Index beating investments that manage risk associated with capital expenditure, stock price drops, and time.
 
   

If you like what you read - Send this Newsletter to a Friend

Bonuses For AIG Executives… What’s Next, Bonuses For Congress? + Lee’s take on NYT, DIS, JPM, C, WFC, BAC, V, AXP, AIG, CXW, NVS, FDX, GE, NWS, and RIMM

 

 
 


InvestorsObserver Featured Contributor
Lee M. Allen






The New York Times (NYT) reported that during the last year, over $11 trillion in assets have evaporated from US household mattresses, Winnie The Pooh – a property of Disney (DIS) - cookie jars, and wherever else these households keep such important assets.

News Flash… Expect more wealth destruction as the bills come due on Washington’s economic stimulus plan.

Who did you think was paying for the stimulus plan anyway? The bankers at JP Morgan (JPM), Citigroup, (C), Wells Fargo (WFC), or Bank of America (BAC) don’t have that much money. Why do you think they are begging at the White House every time their private jets land in town?

Even the spending limits on Bill Gates, Warren Buffet, and Lee Allen’s Visa (V) and American Express (AXP) cards combined will not be able to repay all the money that has been dispatched to the four corners of this country.

So much of our taxpayer money has been flushed into this economic recovery scheme that I keep getting a sinking feeling it’s like sending my daughter to the shopping mall with a stack of blank checks. She wouldn’t stop spending until all the checks were gone. The scary part is that the government can print all the money they want. For now anyway.


2008 AIG Bonus: $2.1 million and a red shirt

But a few cracks are showing in this economic recovery and it’s not clear how Mr. Obama is going to confront these. But I have some ideas and a phone number he can use to get some real help…

Read on
for more of Lee’s insights into how the government could fill some economic stimulus plan cracks and slow down US wealth destruction…

Rebuild Your Portfolio with Strategies Designed for Consistent 10% Returns

Discover strategies designed to beat a stagnant or down market – FREE for 60 days.  See trades on track to earn $2,124 and $1,792 in our ETF Covered Call Plus Portfolio and Ultra Conservative Covered Call Portfolio.  Learn how we made $4,100 last November in our special Market Smart All-Weather portfolio.  Get strategies for generating income today, and long term picks to build your portfolio for tomorrow.

Click Here to Try These 3 Services FREE for 60 Days

A few days ago while he commented on the American International Group (AIG) executive bonus issue, President Obama actually stuttered. He apologized for the lapse in his usually articulate delivery by saying he was particularly upset over the prospect that hundreds of millions of taxpayer dollars would go to the very people who single-handedly helped push the US economy nearly off a cliff.

Mr. Obama went on to say that he appreciated AIG’s help in getting him elected, since last fall’s collapsing economy really hurt the other presidential candidate who ran against him. He currently refers to that guy as, “my best friend, that old, white haired guy.”  


One of the smaller AIG bonus checks

When asked what he would do about these egregious AIG bonuses, President Obama said he would request that his powerhouse man-of-steel economic fixit-t man Timothy Geithner to ask the AIG executives if they would please give the bonus money back.

What would you do if someone asked you to please give back your $2.1 million bonus check?

I don’t think the word “please” is really strong enough language in this case. 

The US government doesn’t ask us to please pay income tax… They make it clear that if we do not pay our tax bill, they will drag us through years of costly and pointless courtroom proceedings then take our houses away, put us in prison – managed by Corrections Corporation of America (CXW), and force our spouses to scrub floors in the various government buildings like the Pentagon for the rest of their days.

The US government doesn’t ask immigrants to please enter the country legally; they erect large fences patrolled by rabid dogs and trigger-happy border police officers on ADHD medications – made by Novartis (NVS) - named Zeke to keep them out. And if these immigrants do make it into the USA,  they get dragged through years of costly and pointless courtroom proceedings then put them in a FedEx (FDX) box and send them back to wherever they came from. And they don’t spend the money to send them overnight priority. The trip could take three days or more.

The US government doesn’t ask us to please marry one wife at a time. As soon as they find out you have taken on more than your fare share of simultaneous wives they send the FBI and various other law enforcement people along with a full contingent of television camera crews to knock on the door of your Utah compound, “Can we please talk to the lady of the house?” Why do those bigamists always fall for that line? Then after they parade the skinny sixty-year-old husband to forty-two wives, ranging in age from sixteen to forty-five out in front of the TV cameras, they put him through years of costly and pointless courtroom proceedings then make him choose one wife he wants to keep. Later that day they find Mr. Bigamist in some alley dead from massive blood loss and what looks like thousands of finger nail scratches covering his body. Not to mention the loss of a certain private part that would probably have drawn some attention in a health club locker room.


Is Geithner thinking? I see his lips moving
but I have no idea what he’s saying

I know Mr. Obama is new at this President job, and really doesn’t totally have everything figured out yet. It’s obvious he hasn’t made it through the entire binder of rules, procedures, and guidelines prepared by the White House Human Resources lady. Why else would he think it’s okay for a sitting president to appear on NBC’s – a division of General Electric (GE) – Tonight Show?  By the way, the plastic wrap was probably unbroken on that Presidential instruction binder since the last guy who had the job never read it at all. Ever. Not even a word. He kept asking for the book-on-tape or the “For Dummies” version.


Would you handover $2.1 million
 to this guy if he asked please?

But when Mr. Obama pages through that Presidential Rules-of-the-Road binder, somewhere in the back he will probably get to a page that says something like, “never ask people please when they have stolen money from the American people,” and, “If all else fails, dial this number: (310) 597-3781.
 
Now, kind readers, please do not actually dial that number because if you do you may get none other than Jack Bauer, the unstoppable government agent from Fox Television’s – a division of NewsCorp (NWS) – alleged drama called “24”. I say alleged because I think, although the situations are made up, all the technology, weapons, organization dynamics, and computer mumbo jumbo are real.  In fact that show plays out like a warning to terrorists and other bad guys on why they should not mess with the United States of America. There was an Al Jazeera report that inferred the reason Osama Bin Laden stays in hiding is because he is afraid of Jack Bauer.

So why doesn’t the President pull out his Blackberry Smartphone – make by Research In Motion (RIMM) – and dial up (310) 597-3781?  He could explain this AIG bonus problem to Jack Bauer who will say something like, “I know I have your full support on this Mr. President. I will do what it takes to fix this problem.” Which, in Jack Bauer speak, usually means the use of a hack saw on vital body appendages, live electrical wires applied to extremely sensitive skin areas, or the useless destruction of a neighborhood 7-Eleven store. All in the name of patriotism, of course. 

Now, you may think calling in Jack Bauer is a little harsh action for these AIG bonus takers…  I think not. Because once the pattern is set where people are rewarded for misspending taxpayer money we head down a deep dark rabbit hole. After all, the government has cleverly contained all the known misspenders like this to Congress where they can keep an eye on them.

So what would Jack Bauer do with these AIG bonus takers?

To be prepared to explore this question, I spent last weekend watching the last six seasons of “24” on DVD. Now, those of you who are math inclined and know this show plays in real-time probably figured out that to watch 6 seasons at 24 hours each would take me 144 hours and there are only 48 hours in a weekend.

Pat yourself on the back for being so smart. But…

Well, here’s how I did it… Since they were DVDs they did not include commercials and I fast forwarded through the “this is what happened last time” review at the beginning of each episode. I also fast forwarded through all the parts with any talking… That way I watched all six seasons in just under eight hours.


Jack Bauer reporting for duty Mr. President

If President Obama calls in Jack Bauer to get that AIG bonus money back for the American people, Jack would send out a message to all the AIG bonus recipients telling them that a mistake was made on their bonus checks. They really should have received $4.2 million each; not a measly $2.1 million each.  Jack would tell them to meet him at a nondescript warehouse on the waterfront at 4:01AM to get the rest of the money they deserve. He would then swoop down with his special operations team, cover the AIG people’s heads with black bags and put them on a jumbo jet that takes off into the faint beginnings of a beautiful sunrise. On the next DVD we would learn that Jack has taken all the AIG bonus recipients to the newly emptied prisons at Guantanamo Bay, Cuba. A few hours later Jack calls President Obama and tells him that, “Not only have they given back all the bonus money, but they have agreed to work for the next five years for minimum wage.”

No more AIG bonus problem. Now that’s how a President solves problems…  Maybe Mr. Obama should consider Jack Bauer as a full-time special assistant to Timothy Geithner to help him run the Treasury using a new playbook.

If you have a friend, relative, or coworker who received one of these huge AIG bonuses and you would like his or her location made known to certain government authorities looking to extract a refund, please e-mail me at LeeAllen@InvestorsObserver.com.   

Rebuild Your Portfolio with Strategies Designed for Consistent 10% Returns

Discover strategies designed to beat a stagnant or down market – FREE for 60 days.  See trades on track to earn $2,124 and $1,792 in our ETF Covered Call Plus Portfolio and Ultra Conservative Covered Call Portfolio.  Learn how we made $4,100 last November in our special Market Smart All-Weather portfolio.  Get strategies for generating income today, and long term picks to build your portfolio for tomorrow.

Click Here to Try These 3 Services FREE for 60 Days