Tuesday, June 23, 2015


Drugs, alcohol and schizophrenia or other mental illnesses have been involved in most mass murders from Dahner to Bundy to the South Carolina atrocity, etc. etc.

Major mental institutions have been closed. We don't treat mental illness with any degree of intensity.  The South Carolina murderer wanted to kill Blacks, Hispanics and Jews (who are both considered primarily white).

The belief the South Carolina murderer had of "Blacks taking over" was a delusion.  Other sick people have expressed their psychotic, schizophrenic tendencies thru believing they were the Messiah or some other mental derangement.

You take alcohol your mind can become confused. You take certain drugs your mind can become confused. Confused minds do strange things including shooting people in fits of mental breakdown.

Our society does not get rid of tobacco, alcohol, drugs, etc.

Columbine, Sandy Hook, Dahmer, Bundy, were all users of these mind altering products.  When sick minds use these substances, especially at the average age of about twenty when first psychotic breaks are likely to occur, unfathomable tragedies are likely.  

Saturday, June 13, 2015


Hillary Clinton recently claimed that prosperity is not just for CEOs and Hedge Fund managers.  She conveniently forgot that prosperity may not just be for Ex Presidents either.  

Furthermore, she doesn't bother to point out that if state governments, university endowments, unions and others did not give hedge funds their assets to manage, hedge fund managers would be making a lot less.

She said that democracy is not just for corporations. She left out almost everyone works for "corporations". Corporations are the basis of how we organize together for a substantial part of our lives. 

She conveniently left out that the entertainers and Hollywood people that support her are billionaires and millionaires  and CEOs.  To be more precise, she forgot to point out that almost the entire retirement and pension system is funded in one respect or another by our corporations.  She also left out that a significant portion of the wealth of the country is invested for the benefit of millions and millions of future retirees in the stocks and bonds of these corporations for which "most of us" work.  She also doesn't seem to care or know how the economy functions (for another time).

She should not be running for President because her campaign will be based on these kinds of deceptions and outright belief that the electorate is "stupid".


Monday, June 8, 2015


When the housing boom was taking place it developed huge vested interest in the continuation of the housing bubble. A voice in the dark could point out the absurdities of what was happening but the enjoyment of inflated prices and profits overwhelmed sanity, logic, discipline and history.

In my opinion, we are now being faced with a "time bomb" that will far exceed long term capital management, the insurance protection decline of the 1980s and the financial collapse of 2008. This huge "Black Swan", huge beyond comprehension, will hit when least expected and we will wonder why it wasn't dealt with before. The answer will be found underneath the rubble of certain greedy Wall Street types and vested political interests.

We cannot permit automated machine type trading, with no relationship to companies outlook, etc. to dominate the volume of trades in the stock market. There is no excuse, none whatsoever, for creating a machine driven gambling casino mentality in order to justify the existence of capitalism.

Here is what's going to happen. A computer driven decline will occur and the brakes will fail due to human error or whatever causing the equity wealth of the country to be sharply cut again. Because there will be something happening in the world at that time, recovery will not be as fast as it was in the late 2000's. All computerized trading, of the type we are referring to, should be made illegal and stopped before its too late.

The vested interest will tell you otherwise and make their case. Just like in the long term capital case they are mostly using other people's money and are more concerned with their chance of winning than losing. The monies not theirs anyhow and there is no concern for the system, only their own profits.

Look at the erratic swings in the stock market that have occurred in the last few weeks. We draw this as a small example, a very small example, of what is coming if we don't stop this type of computerized trading.

P.S. Please remember that I am a very strong supporter of capitalism and many of the activities that our financial firms participate in. The probably isn't a better system than ours.

Wednesday, June 3, 2015


If you want to be really disgusted with the functioning of the Justice Department, take a look at the extensive list of antitrust cases filed under the Department's website.

The Justice Department has brought cases against Alcoa; a company that's gone nowhere, Eastman Kodak; a company that is virtually out of business, Microsoft; as it came under intense competition, IBM; still around but not really ever growing, etc. Now they are finally attacking Google, as it's primacy in the Internet market comes under fierce attack.

I decided to just pull a case at random. It's hard to believe but in 1993 our Justice Department, yours and mine, actually filed a case against a company for attempting to maintain the retail price of HOCKEY SKATES WITH V2 BLADES. There is no more inept view of our country than the destruction brought to the business community by the insanity of having an antitrust case over hockey skates.

Another example of a government department that's overzealous, over sized and out of control.


I decided to put the website back up because so many people reached out and requested I do so.  Thank you to all of our loyal followers. 


Sixty years ago we bought our first house. It was $11,000.00. About ten years later we sold it for $30,000.00. Basically housing prices rose steadily for sixty years. Along the way home ownership became a cult idea. It started with Roosevelt and ended in a crescendo of speculation and absurd overpricing. No one really knew why a house was worth so much and why everybody should have one. There were lots of theories. Are we now faced with a cyclical downturn in housing demand? Or have we reached a tipping point where more and more people say “Hey I don’t need a 3,000 square foot house… I just need a 1,200 or 1,600 square foot home.” That would be a break in the mania, not just a typical cyclical decline. I don’t think too many people would argue with the idea that everyone should have all the “good things in life”, the only real difference of opinion would be how to accomplish that goal.

Abraham Lincoln once had a debate with Stephen A. Douglas. They were both running for Senator of Illinois. Douglas said the slaves of the south were better off than the northern immigrants. His rationale was that slaves were property and generally treated better than the northern laborers. This appeared to be true at the time. Lincoln’s response was that the difference between the northern laborers and the slaves was that northern laborers would eventually be upwardly mobile, one after the other. One would a start business, many would begin to hire their own employees and another would rise up in someone else’s business. Whereas he said that slaves, on the other hand, couldn’t go anywhere. They had their chains.

Unfortunately there are many kinds of chains. One can be chasing an impossible dream that housing prices will rise forever, or that internet prices will rise forever, or that people will stay pessimistic forever or that the government will provide for you forever. We are reaching the point where millions and millions of people are working for the government. We are increasingly restrained by an enlarging government which is viewed as beneficial but instead, in many ways, is becoming a new form of imposed chains.

Almost every significant unionized industry in America has failed. Now the largest unionized segment in America is government. I’m not against unions, anymore than I am pro-incompetent management. But they have both often caused more harm than good and been well compensated along the way.

People don’t leave what they believe to be secure environments. With unionized government jobs you’re unlikely to leave. You give up on opportunity. You generally vote for those in control that convince you that this is a good deal. You are mentally captured by what they seem to be providing and give up almost any chance for significant opportunity. Are we now on the road to the subtle enslavement state? You may be free to go, but how can you. Lincoln was right when he implied that “chains” come in many different varieties.

Government can only be paid for by taxes. If wages and salaries aren’t rising, and stocks aren’t rising, and houses aren’t rising, there isn’t going to be much to pay for future government. Freedom to succeed will ultimately create  a more economically equal society. Reducing that freedom, whether well meaning or not, will ultimately prolong the problem. Certainly taxation without representation, where a small percentage of the people pay almost all of the taxes, will not work. The ultra wealthy who attempt to shield their real tax reducing methods, while shouting for equality, don’t help solve our problems.

Tuesday, June 2, 2015


When the Syrian insurgency began President Obama was given a "one time only" opportunity to quickly prevent escalation.  Inaction was followed by inaction and well over 100,000 people have been killed, wounded or misplaced.

The complexity of facilitating an end to the carnage now, creates a much more difficult, expensive. risky and limited set of options.

As we wrote in an earlier blog, the cost of ending atrocities early would have been much less than the cost is today and the longer term implications of inaction are not any clearer.

The character of any President is most tested when issues of life and death for many take over the landscape.


Shepard Osherow. All Rights Reserved