Paradise Lost Financial

Episode 13 of the Paradise Lost Financial podcast Pain Now or Pain Later   

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Youtube Link: https://youtu.be/YQwRGjO64Io           

Articles & References from this episode:    

Mention of Inflation up 800% on Corporate Earnings Calls: https://finance.yahoo.com/news/warren-buffett-is-right-inflation-is-running-rampant-105340040.html   

Bailing out Airlines (again) with Taxpayer Money:   

Article Title:  After Mismanaging Their Companies With Stock Buybacks  And Lucrative CEO Pay Packages, Airlines Demand Another $25 Billion From  Taxpayers   

Link:  https://www.forbes.com/sites/jackkelly/2020/10/12/after-mismanaging-their-companies-with-stock-buybacks-and-lucrative-ceo-pay-packages-airlines-demand-another-25-billion-from-taxpayers/?sh=7902f89a2358   

$36 Billion Wasted on Unemployment since CARES Act (as of January.. higher now): https://www.cnbc.com/2021/01/05/scammers-have-taken-36-billion-in-fraudulent-unemployment-payments-.html    

70% of Unemployment Claims were Fraudulent in April: https://www.sevendaysvt.com/OffMessage/archives/2021/04/26/unemployment-insurance-fraud-is-the-latest-epidemic

Link to Youtube video: https://www.youtube.com/watch?v=krK9gxQnA-8

Reviewing new taxes being proposed, and potential economic/social consequences of these policies.    

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Articles & References Mentioned in the Video:  

Elizabeth Warren fuels class warfare with new wealth redistribution ideas:  https://www.msn.com/en-us/news/politics/elizabeth-warren-fuels-class-warfare-with-new-wealth-redistribution-ideas/ar-BB1eMxfb?li=BBnb7Kz  

Warren Buffett and Bill Gates agree that the rich should pay higher taxes https://www.cnbc.com/2019/02/25/warren-buffett-and-bill-gates-the-rich-should-pay-higher-taxes.html   

The Income Tax in 1913: A Way to ‘Soak the Rich’: https://www.pbs.org/newshour/economy/the-income-tax-in-1913-a-way-to-soak-the-rich  

Five staffers let go over marijuana use, White House says: https://www.nbcnews.com/politics/white-house/five-staffers-fired-over-marijuana-use-white-house-says-n1261578    

Top 10% of Earners Pay Over 70% of Income Taxes: https://www.ntu.org/foundation/tax-page/who-pays-income-taxes   

Millions of illegal immigrants set to get $4.38 billion in Biden COVID cash: https://www.msn.com/en-us/news/us/millions-of-illegal-immigrants-set-to-get-4-38-billion-in-biden-covid-cash/ar-BB1ePU08?li=BBnbcA1&srcref=rss   

A By-the-Mile Tax on Driving Gains Steam as a Way to Fund U.S. Roads: https://www.msn.com/en-us/news/us/millions-of-illegal-immigrants-set-to-get-4-38-billion-in-biden-covid-cash/ar-BB1ePU08?li=BBnbcA1&srcref=rss     

Source for the Dollar Value Illustration: https://howmuch.net/articles/rise-and-fall-dollar   

By HowMuch.net, a financial literacy website

Here's the link to the Youtube video: https://www.youtube.com/watch?v=n2mFygMq-YA

Please consider supporting the Paradise Lost Financial channel: https://www.patreon.com/paradiselostfinancial?fan_landing=true

Articles/References Mentioned during the Video:

Wall Street Journal article on "What's New in the Third Covid 19 Stimulus Bill": https://www.wsj.com/articles/whats-new-in-the-third-covid-19-stimulus-bill-11615285802   

US National Debt Tops $28 Trillion for the 1st Time [$224,000 per  taxpayer and $85,000 per citizen (even newborn American infants)]: https://bnonews.com/index.php/2021/03/u-s-national-debt-tops-28-trillion-for-the-1st-time/   

US DebtClock: https://usdebtclock.org/     

We are witnessing a fundamental structural change of how the financial & savings system works... my advice would be for Americans to get prepared.

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Patreon Link: https://www.patreon.com/paradiselostfinancial?fan_landing=true

Additional Links & Resources:

Bureau of Economic Analysis News Release on Rise in Personal Income: https://www.scribd.com/document/477497451/State-of-Personal-Income-2nd-Q-2020#from_embed

CBS News Article on Unemployment Benefits paying more than people's jobs: https://www.cbsnews.com/news/low-wage-workers-unemployment-cares-act-earn-more-income/

DISCLAIMER: nothing on this channel should be construed as financial  advice. I am not a financial advisor and you should always do your own  research

WallStreetBets driving up prices of Gamestop, AMC, BlackBerry, Nokia, and more, intentionally targeting some of these stocks due to outspoken short-selling firms.

Robinhood (and some other brokerages) have come under fire for restricting trades (or outright closing some of their user's positions, allegedly) and potentially even conspiring with hedge funds such as Citadel to allow for damage control at the expense of the retail trader.

We're beginning to see class action lawsuits against Robinhood, members of Congress demanding a DOJ investigation,  and billionaires stating that this situation is "dangerous for the markets". 

Many Robinhood traders & the WallStreetBets folks are saying they will close out their Robinhood accounts and #DeleteRobinhood is now trending. 

*Note that I should have said 76% of users say they will stop using Robinhood (I mistakenly said 76 people... sorry I'm tired lol) and it looks like hedge funds have lost roughly $5 billion,  not $70 billion  (I was thinking of Twitter & Facebook losing $70 billion in market cap after they shut down conservative accounts... separate topic) - that's still $5 million millions,  so $5B is nothing to sneeze at! 

DISCLAIMER: As always, nothing on the podcast or channel should be construed as financial advise, always do your own research and never invest unless you can afford to lose it all.

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Articles on Actionable Intelligence:

Mind Blowing Valuations - Tesla, AirBnB, DoorDash (12/20/2020)

https://actionableintelligencealert.com/mind-blowing-valuations-tesla-airbnb-doordash/

Commodities & Market Rotation into Value (12/29/2020)

https://actionableintelligencealert.com/commodities-market-rotation-into-value/

DISCLAIMER: None of this content should be construed as financial  advice, I'm not a financial advisor of any sort and you should always do  your own due diligence. Never invest if you cannot financially afford  to lose your investment.

More links & details to follow - here are the links in the meantime:

Hindenberg Research Report:  Nikola: How to Parlay An Ocean of Lies Into a Partnership With the Largest Auto OEM in America (GM): https://hindenburgresearch.com/nikola/

Potential class action lawsuit against Nikola that is in the works: https://finance.yahoo.com/news/law-offices-frank-r-cruz-184100187.html

Nikola One in Motion: https://www.youtube.com/watch?v=IAToxJ9CGb8

Investopedia - "Short Selling": https://www.investopedia.com/terms/s/shortselling.asp

We are witnessing the biggest "reshuffling" of the DOW in almost 10 years:

Being Added:  

⦁ Salesforce (software/tech)

⦁ Amgen (biotech)

⦁ Honeywell (conglomerate that makes all sorts of products, you've probably seen them in retail stores like Target, WalMart, BestBuy)

Being removed from the DOW: 

⦁ Pfizer (pharmaceuticals)

⦁ Raytheon (military/industrial - US defense contractor)

⦁ Exxon (oil & energy) 

This is likely an indication that US commodity companies are in decline,  software & healthcare continue to gain some steam, at least in the eyes of investors

Also interesting to note that the DOW has trailed the other major indexes (S & P 500 and NASDAQ), but this "reshuffling" might allow it to catch up if these trends are to continue

Apple Market Cap $2 Trillion: https://www.nytimes.com/2020/08/19/technology/apple-2-trillion.html

Back in September, Apple's market cap was $1 trillion (has now doubled in size)

Stock market reaching all time highs (S & P 500 & NASDAQ): https://www.marketwatch.com/story/stock-index-futures-mostly-higher-dow-on-track-to-erase-2020-loss-2020-08-28

July's "official" unemployment data says unemployment rate is at 10.2%

https://www.statista.com/statistics/273909/seasonally-adjusted-monthly-unemployment-rate-in-the-us/

Voodoo Economics - definition: 

https://www.investopedia.com/terms/v/voodooeconomics.asp

*Creation of the Federal Reserve 

Great book that covers the "Federal" Reserve:   Creature from Jekyll Island by G. Edward Griffin 

*The Working Group on Financial Markets AKA the "Plunge Protection Team"

Created by Executive Order 12631 in 1988 by Reagan

https://www.investopedia.com/terms/p/plunge-protection-team.asp

https://home.treasury.gov/news/press-releases/sm1086

https://www.archives.gov/federal-register/codification/executive-order/12631.html

*Exchange Stabilization Fund

"Emergency Reserve Fund of the US Treasury Department"

https://www.investopedia.com/terms/e/exchangestabilizationfund.asp

https://home.treasury.gov/policy-issues/international/exchange-stabilization-fund

*High Frequency Algorthimic Trading 

Uses computer program with a defined set of rules or triggers to  buy & sell securities at an extremely fast pace

In theory, can produce profits at speed & frequency that are impossible for human traders/investors

Defined set of instructions based on timing, price, quantity, any mathematical model.

Can even "scan" headlines for certain words and be triggered based on what's being reported on a given day or time

https://www.investopedia.com/articles/investing/091615/world-high-frequency-algorithmic-trading.asp

https://www.investopedia.com/articles/active-trading/101014/basics-algorithmic-trading-concepts-and-examples.asp

*Flash Crash

There have been a couple of these in history, but the main one I'm familiar with was the "Crash of 2:45" which happened on May 6th in 2010 - TRILLION dollar stock market crash (before recovering ALMOST entirely before the closing bell that day)

https://www.investopedia.com/terms/f/flash-crash.asp

*Trading Desk at the Federal Reserve (for "short-term objectives for open market operations")

https://www.federalreserve.gov/monetarypolicy/bst_openmarketops.htm

Side note on gold stocks & Warren Buffet re-allocating his portfolio to include 20.9 million shares of Barrick Gold, while reducing his positions in banking & financial stocks:

(He has mocked gold as an investment for years...  as a reminder, I do not believe in gold or precious metals as an investment, but as a tool for wealth/purchasing power preservation as the USD becomes more debased)

Barrick's shares rose 7.4% after hours (that's pretty significant)

Articles: https://www.marketwatch.com/story/buffetts-berkshire-buys-gold-miner-barrick-slashes-wells-fargo-and-jpmorgan-stakes-amid-coronavirus-2020-08-14 

https://www.bloomberg.com/news/articles/2020-08-14/buffett-s-gold-averse-berkshire-jumps-into-a-big-bullion-miner

Introduction to Counterparty Risk (Investopedia): https://www.investopedia.com/articles/optioninvestor/11/understanding-counterparty-risk.asp

10 Questions to Ask Before Investing in Precious Metals: https://sprott.com/investment-strategies/physical-bullion-trusts/10-questions-to-ask-before-investing-in-precious-metals/#