1. It Takes A Billion

2. 50 Cents Gets You a Dollar

3. Read up on Darfur

1. Real headline of the day: “Obama Led First Billion-Dollar Race This Year as Spending on Vote Doubled”. These guys needed a billion dollars to get elected this year and you really think they’re out for anybody but the richest companies and people who gave them the money to get elected? Where do you think all these bailouts come from?

2. I stumbled across Openwave (OPWV) today. You can buy the company for half the amount of money they actually have in their checking account. Problem is that they’ve not generated cash from operations since 2006. You’re gonna see a lot of stocks trading below cash in the next year or two. Be patient though.

3. When was the last time you googled Darfur and read up on the horrific situation there?

1. Forced Lending Will Destroy Housing

2. Housing Cannot Rebound For Years

3. Trade With The Kremlin? No Thanks

1. It stands to reason that the only self-sustaining system is one where private-profit-seeking companies with self-serving interests trades/lends/borrows/invests because they can create profits from doing so. Our new system is built upon welfare institutions that are soon to be “forced” lend to businesses and people that won’t be able to pay them back…what’s self-sustaining in this new system?

2. 80% of all mortgages are now owned by the US government and controlled by politicians and bureaucrats who don’t get a share of the profits, but want your votes. Everybody wants to create artificial government-controlled incentives to fix housing. Housing won’t be fixed until banks and homeowners are profit-seeking again, and that will only happen when the government gets out of the way.

3. Real headline of the day: State cash gives holiday cheer to Russia share. MSM is stupid! The Russia market index was down 40% when they started using taxdollars to buy back stock in the open market. It’s now down 70%. See points #1 and #2 above for why.

But give my daddy a job cause he needs one
Hes got lots of mouths to feed
But if youve got one, I’ll have a machine gun
So I can scare all the kids down the street

Father christmas, give us some money
We got no time for your silly toys
We’ll beat you up if you don’t hand it over
Give all the toys to the little rich boys — The Kinks

The liars and crooks who run the investment banks that are now the largest welfare institutions on the planet took out almost $2 billion of money JUST THIS YEAR that they should have been saving for the rainy day that’s now here and handed it to the 600 people they thought were most important to their companies’ well-being.

And now they’re still driving around in corporate jets even after becoming welfare institutions? I went down to Wall Street to find some people to defend this concept. We got a guy on our show tonight who says it’s probably not a bad idea to let Wall Street remain excessively wealthy….

We’ll be doling out “gift ideas” on Happy Hour later today, and I think I’ve got a good, sarcastic gift idea to save Joe Sixpack. I just hope Obama/Pelosi/Palin/Paulson don’t wind of this idea and think it’s serious…because the socialist Republican/Democrats that you guys keep voting into office might want to put this over on us economy-destroying worthless savers and renters:

I’d like to give the $2.6 million that the average Wall Streeter got last year to every elected politician and bureaucrat in this country – to every small town councilmember, police officer, firefighter and sewer cleaner, every mayor, every US and state representative and even, yes, Bush and Pelosi and Ben and Hank…

Don’t you guys realize that unless rich people feel rich everyday, that this economy will implode and Joe Sixpack will lose his job, and since it’s too outrageous to give Wall Streeters this big a bonus after they’ve destroyed our economy and are now on welfare…let’s pick the old-school bureaucrats to take their place!.

PS. Flip It, indeed. You know it’s bad when you have to explain that you’re just being sarcastic when you propose something as outrageous as I just did. I mean, didn’t you think it had to be a joke when you heard that the real estate developers of the world were uniting to beg for welfare for the ownership class they represent?

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1. Work Your Butt Off RIGHT NOW!
2. Your New Treasury Secretary Is Incompetent
3. Save Lobo’s Brother at AnimalLeague.org

1. Another huge spike coming on top of another huge sell off.  I’m still thinking we are likely rangebound around these current levels for at least a couple years, but I do think we’ve started to see some incredible values and I launched RevolutioNewsletter.com to start detailing the opportunities that are coming our way.  Pay your dues now so you can cash out next time things don’t suck anymore.

2. Real quote from and about Tim Geithner just four months ago after he gave $2 billion in welfare to Bear Stearns’ shareholders: “He is certain that calamity was averted and that the people who gain most from the deal are not bankers but “the family who needs to borrow money to finance a house or send their child to college, or the individual trying to build enough savings for retirement, or the worker worried about losing her job.”  Wall Street just eviscerated the $350 billion that Geithner sent it last month.  How’s it working out for you so far?

3. Hula still needs a home.  Come on, people.

1. Real Headline of the Day
2. You Take; I Give
3. Shrug This, Atlas

1.  Real headline of the day: Congress Approves $6 Billion Jobless-Benefit Extension That Bush Will Sign.  Yup, you folks who quality for jobless welfare just got handed almost a whole 1% of the amount that the banks and their executives and their shareholders got on Wall Street from the capital infusion part of TARP.  You got less than ¼ of 1% of the $2 trillion in welfare we’ve given Wall Street in total so far in the last three months. You’re still getting something for nothing though.
2.  We give welfare, stimulus checks and free lines of credit that we hope will get paid back to bankers, banks, homeowners, really poor people and their children, giant corporations, middle class people who make less than $77,000 a year, old people, car companies, energy companies, yacht owners, private jet leasers, and even hedge funds.  I am none of those things and most of you aren’t either.
3.  I haven’t read Ayn Rand in many years, but it dawned on me last night as I lost sleep worrying about my tax bills – what happens if those of us who are actually receiving none of this welfare stop working like her characters did in Atlas Shrugged.  You beggars think its hard now?  Try doing it without those of us who work, rent and save.

I told you guys a few weeks ago that I think right now, as the economy and markets accelerate their downside pain, is a great time to be hustling, working, bleeding and setting yourself up for the next boom. And while the next boom is probably at least another year or two if not five years away, there will indeed be another boom.

I told viewers on Happy Hour tonight that I’m looking to start slowly but surely stepping into some individual stocks for the first time since I publicly sold everything we owned and closed my hedge fund and sent all my partners all their money back when I took this job at Fox Business Network in October 2007. The markets are down nearly half since then.

I will be detailing much of my strategies for buying stocks and options and investing in gold in my new newsletter, the RevolutioNewsletter. Here’s the first couple pages of the inaugural issue. Visit RevolutioNewsletter.com to sign up today and get it for half price for a limited time:

You know the bad news; after all, it’s everywhere you look: on TV, in the newspapers and on the Net. The boom times of the last five years (or twenty-five years, really) have turned to bust. The macroeconomic cycle that was so full of virtuous cycles creating bullish financing opportunities and incredibly easy access to capital for consumers (credit cards, home mortgages, etc.) and companies alike (commercial paper, selling bonds to buy back stock, etc.) has turned vicious.

Yes, the government now sends welfare to any company that foolishly lent money to bad actors in the good times, and the government sends welfare to any person who borrowed any money in the bad times. Apparently, welfare systems aren’t just for poor people and start-up businesses anymore. No, the government has instantly created new systems for the ownership class of individuals to pawn their trillions of dollars of losses onto the renter/saver class. And the government has also instantly created new systems for the largest corporations to pawn their trillions of dollars of losses onto the smaller, smarter, healthier companies, losses that they’re facing since they didn’t prepare for the ongoing rainy day that we’re all living through.

Yes, that’s the TARP package and all the power it’s given to the Treasury and the Federal Reserve and the incredibly unsophisticated bureaucrats at the FDIC. And none of that is bullish or good for earnings or good for the market.

Believe it or not, that’s also the good news.

Yes, the system has been turned on its head so badly and the problems in both the economy as well as the problems in the actual wrongheaded fixes that the Republican/Democrat Socialists have put into our system to try and fix those problems are actually setting us up to put in some real bottoms and see some incredible money-making opportunities arise for those who have the patience and vision to start positioning and planning for the next phase of these markets.

And that’s where the RevolutioNewsletter comes in. Long time readers also know that I stepped in and actually launched a hedge fund when the previous economic downturn reached its nadir in October 2002. Over the course of the next couple years, we stepped in and loaded up on many great stocks when they were literally being given away because people were so scared that they’d never generate reliable earnings or cash flows again. We wrote about and bought names like Apple when they were literally being given away for less than the amount of net cash they had on their balance sheets — it’s as if we were able to buy the company for less than they had in their own checking account and the checking account of course came along with them.

Apple was at $7 a share back then, and they had slightly over $7 a share in net cash when we bought it and wrote about it. (I sold all of my partners’ and my stocks before I started at Fox, so my last sell of the Apple I originally bought at $7 was at about $150, which long time readers all read about in real-time). Read in more detail below as I outline why I plan to slowly but surely build my own Apple position back up, using both options and common stock strategies that I’ll delineate for subscribers in real-time again. Today, Apple’s now got over $27 a share. Yup, up from $7 a share to $27 a share in net cash in the last five years. That’s real fundamental results and shareholders will enjoy similar results in coming years. But we’ll need to be patient and stay on top of this company and its strategies and its finances during these tumultuous times we’re living in.

We’ll need to be patient and stay on top of all our individual stock picks, controlling how we allocate our capital as we overlay the broader economic cycles with the strategies that will minimize risk while maximizing long-term profit potentials.

You know me – it’s always all about the SLOW MONEY!

Over the next few months, I’d be looking at picking up 1/3 of how much I’d eventually want to own in each of the four stocks I discuss below. These companies all have tons of cash and no debt and are dominant in their respective fields with huge gross margins and lots of repeat business. All-important things all the time, but with the cash and no debt criterion, more important than usual right now because of the financial markets Revolution/Depression we’re living through.

So to be clear then, if you want to eventually own $100,000 of each of these stocks (appropriate for someone who has perhaps $1 million in liquid investments and retirement accounts – if you have ten times less, then you might only want to eventually own $10,000 of each of these stocks, etc.) then you’d begin by starting to scale into only $30,000 of each of these names between now and the first quarter of next year.

The time will come to start buying some long-dated call options to really juice the upside. But that’s at least several quarters off, given this nasty bear market and ugly economic set up.

In addition to the stocks I outline below, I also plan to start buying some more gold, and I plan to be doubling my allocation to gold over whatever I plan to expose to each of these common stocks in the next year or two. With gold right now at $739, it’s about 1/3 the price I expect it to reach over the next three to five years — $2,000. Remember – that’s long term, baby. Slow money, right?

Onto the stocks then…

Visit RevolutioNewsletter.com to be one of the first to sign up for the RevolutioNewsletter, and, for a very limited time, get it for half price — only $10/month or $100/year.

Sorry for the paucity of posts this week.  I’ve been working on a special feature for Fox Business called “Where’s My Money?!”

You know I’m diligently figuring out just how much cronyism and corruption is going on as the Republicans/Democrats in power send trillions of your dollars to the largest companies and the richest people on the planet.

We’ll have all kinds of new features highlighting where you money is going (and just how badly the government and its cronies are giving it ya’).

Weekend Vittles still to come today.

1. $600 Billion Crowd Out

2. Transparent Transparency

3. TARP Confidence Now!

1. I know that everybody’s really bullish about China’s government sending out $600 billion in projects and incentives for its people. There goes another $600 billion out of what might have funded private, profit driven markets here in the US and push it into the Socialist America’s, er, in this case Communist China’s pockets.

2. If the banks like Lehman and Citi and insurance companies like AIG were apparently gaming the regulators accounting methods in order to keep their lies about their solvency and liquidity positions a secret, then somebody tell me again why I’m supposed to think more government regulation won’t simply be gamed again. Why don’t we simply let banks use transparency as a competitive tool?

3. Wall Streeters and the Republicans/Democrats in DC leveraged trillions upon trillions of the nation’s capital base to create as much wealth for themselves as they possibly could. And now that it’s backfired on them they’ve decided to simply send each other trillions of dollars of the nation’s capital base and call it TARP. And they sold that to you as a way of “building confidence”?!

Here’s what I was selling off in my own head today:

1. Sell ‘Em When They’re Cheap

2. Lobo Assistance Loan Program

3. Expecting More Downside

1. There’s an old saying that you should buy cyclical stocks (like commodity companies) when they’re expensive and sell them when they’re cheap. The bulls keep trying to convince me that the market’s a buy because cyclical stocks are cheap. The time to buy them was when they were very expensive but much lower a few years ago.

2. Real headline of the day: Fed Warns Consumers About Pitches on Nonexistent Government Loan Program. How pathetic that there are so many government loan programs out there that you and I have completely lost track. The markets and the economy will continue to get worse until we have confidence in the sanctity of private ownership and accomplishment.

3. I said all week on the show that the election would be a catalyst to sell and that there was likely a 5-10% vacuum under the market. We got 5% of that move down today, but I still think the path of least resistance is down for both the near and intermediate terms.

1. Playbook Says Sell Stocks

2. Cody Trump, Jr

3. Food Bank Bailout

1. The playbook that I’ve been laying our for you guys says that we’re likely rangebound between 7k and 9500 and that you should sell/short all extreme rallies and buy/cover on all extreme selloffs. That means you should be shorting this rally right now if you’re a trader.

2. Oil’s down 35% in October. And it’s down by more than that since our friend, Donald Trump Jr, bet me his inheritance against mine on Happy Hour that oil would see $150 before it’d see $50. I still say oil’s likely to be below $50 a barrel by the end of 2010.

3. I jokingly said I’d rather own a food bank than a real bank right now during Quick shots. Fact is, there’s always a food shortage at food banks, much like there’s a capital shortage at money banks right now. Support you local food bank.

PS. Check me out on ABC’s 20/20 tonight for more on how the well-connected dudes have destroyed our system.