Some relationship stuff....

I'm single man after what I did Friday 8)
There is no way that we could get back together anymore.

When I meet this lady on last autumn, I was quite honest my private banking stuff. She always thought that I was pitiable looser, because I did not take any risk.
I was very happy with my bonds yielding ten percent, but she thought that I was fool because anyone could do hundred percent on BRIC -market.

I have my job on computers, and I really love it. I have wonderful office, workpals, clients, and everything is fine. But it is still job, it is not my business.
This banking layer is something very much deeper to me, it works on philosophical layer. It explains me who I am and why I'm here. It is meaning of my life. It is most very important corner stone of my personality.

So those strikes from that lady, did really insult me on very deeply.
But you know how lady's are... So I did not take those too deeply.

But then she get idea to buy stocks. I have already to explain why I avoid them as much as possible.
There has been seven very rich years in €urope, and you need to be economically blind not to see end of that golden era.
Well, I'm not, and I highly suggest once again to avoid stocks.

She did not listen me, she actually never did on these matters. I was the looser and she was female version of Warren Buffet.
Economical depression was already started, and to me it was just another dead cat bounce.
She used something like hers one year net salary to buy Nokia's stock on price 24€.
There was few beautiful days for her, market did recoil as usually. And then start to fall again.
Very soon she did loose one month salary and that point there was "explosion" when I start to talk about investment.
My investment was carrying very beautifully and she was loosing money fast. And it seems to be my fault.
These mental explosion were so devastating that I just stop discuss anything about economics, until last week.

It was very easy to see what is going to happen. There was bad news on every front of economy.
On our stock market (OMX/HEX) there is only one liquid stock, stock of Nokia.
Company itself is Finish origin, but something like 90% of stocks are own by USA pension funds, so what ever happen is USA, it will deters stock courses here. When they start to sell, there is nothing to stop that avalanche.

Last week 16€ warrant was knocked out. It did happen on very very very low market changes, and quite much first thing on morning.
It seems to me like mild summer wind knock down that warrant.
I did bring it up with lady and ask do she still have those stock. There was helluva fight, it was my fault that she has lost so huge amount money (couple of moth salary) and she did not listen me, like always.
I did give very clear warning once again, and she would have more than 20h to sell those stock.
She did not, and next day: -11%.
Well, quest whose fault this all was 8)

I did buy pile of same stock on price of 14€, my main motivation was purely revenge.
I did make very clear to her, that I (fool&idiot) will get rest of my live double amount dividends than her (master investor).
And I did enjoy it. I really did enjoy that.

Fellows:
I feel good, I knew that I would.


Accumulated Points: 11,894,819

Been pretty quiet out there. Almost had frost in the past week. 35F(1.6C). Some of the lower spots reported getting frost, but not here, which is good. The corn is still about 1-2 weeks behind, but the soybeans have all started to turn yellow. Had a nice rain of 1.4 incches(3.55cm). Hopefully 2 more weeks without frost will give all the crops the time needed to mature. I did start to harvest some squash this week. Turned out pretty nice too.

We are now seeing the aftermath of the Republican National Convention(RNC). 844 arrests I think was the final figure, but now they are looking more closely at the figures and they may not prosecute all of them because some of them were just people in wrong place at the wrong time. There will be more analysis of the arrests in the coming weeks, so we'll see what finally happens. There is no excuse for those who engaged in property damage and had the intent to harm others.

Cheers

Please accept our heartfelt sympathy at the loss of your mother. May she rest in eternal peace.

Best wishes to you and your family during this awful time.

From my perspective this situation will get worse before it gets better, notwithstanding the $700G (that is "G" as in Giga, meaning billion) bailout currently proposed by the U.S. government. There are so many problems with the proposal that it is hard to enumerate them.
1. Nobody knows where the figure came from. Guessed at is probably how. The claim is that no one knows how to set a value on the bad mortgage securities, so how do we know how much money will be needed to buy them from the banks which invested in them ?
2. Who is going to make the decision on how to spend this money ?
3. Our government is already operating at a deficit, that is, it must already borrow money, so it then must enter the worldwide credit market and borrow this bailout money.
4. If it does not borrow this money, then it will only be printing money to cover it and I don't have to tell anyone how inflationary that is.
5. There is no provision for any executive pay caps for any bank or financial institution which gets some of this government handout.
6. There is no provision for any type of mortgage holiday or mortgage restructuring.
7. One of the causes of this whole mess is that housing values have fallen. The banks engaged in in shoddy or non existent criteria for granting mortgages, causing excessive demand for housing and driving housing valuations to unsustainable levels for anyone with a middle class income stream. Everyone knows that values can not go up indefinitely, especially at the rates of 25 % per year. The housing values are returning to more reasonable levels dictated by demand for housing. The bailout action by the government will not cause housing values to rise. Housing values will only stabilize and then begin to rise when the supply of houses and the ability of the consumers to purchase them return to an equilibrium state.
8. The other big elephant in the room is amount of credit card debt the big banks are carrying on their books. If their delinquency rates on this debt deteriorate due to further erosion in the consumers ability to service this debt there will be further cries of woe and even more huge losses by the banks.

President Bush was just on the radio warning of a "long and painful recession" if his proposed bailout plan is not enacted quickly by Congress. If he had any guts he would have warned of the dreaded "D" word, Depression. The Congress must act quickly, but do so with the proper controls in place and the money properly targeted and there must be strong oversight. There must be provisions for the willing but unable to pay to restructure their mortgages to levels which reflect the true value of the underlying asset value of the principal domicile. There must also be an enforcement of prudent banking practices enforced by regulators who are not afraid to do their jobs.

I trust it will get better, but not real soon.

Cheers