Sunday, July 27, 2008

Post Review

What can I say.

My best selling book, The Angry Black Man's Guide to Success proving prophetic. Lets talk about Washington Mutual for example. WaMu has announced that they have 50 Billion Dollars in capital, most of which is from the San Francisco Office of the Federal Home Loan Bank. This is equivalent to saying that the available credit on a credit card is an asset instead of a liability. That's why the King is pursuing the purchase of a bank. With rules like this, and other rules that prevent losses from appearing , anyone could be a banker. As WaMu's condition becomes clearer, look for a forced merger that protects current shareholders.

In the first quarter of 2008, I forecast bank failures (IndyMac) and that the Fed bag of tricks is running out. Fannie May and Freddie Mac are on life support. This is the time to invest for 30 to 40 year returns. There are some businesses the Federal government will not let fail, even at the peril of the average American. Buy GM, Ford and Bank of America and stick to the blue chips. Review my older post for details.

Stay away from small banks and wall street firms. This is going to be one rocky ride.

King George
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