Heyer Capital, LLC

The link below is a very fair explanation of why flash trading is plainly not fair dealing with the public and how this horrendous practice costs Joe & Mary Lunchbucket billions by the penny.

http://www.zerohedge.com/article/themis-trading

“Yesterday I was at my favorite local supermarket buying a large bag of dog chow for my loyal pet, Biscuit, the Wonder Dog and was in the checkout line when woman behind me asked if I had a dog.

“What did she think I had, an elephant?

“Well, since I’m retired and have little to do, on impulse I told her that no, I didn’t have a dog, I was starting the Dog Chow Diet again. I told her that it was essentially a perfect diet and that the way that it works is to load your pants pockets with chow nuggets and simply eat one or two every time you feel hungry. The food is nutritionally complete so it works well and I was going to try it again.

“I added that I probably shouldn’t, because I ended up in the hospital last time, but that I’d lost 50 pounds before I awakened in an intensive care ward with tubes coming out of most of my orifices and IVs in both arms.

“(I have to mention here that practically everyone in line was now enthralled with my story.)

“Horrified, she asked if I ended up in intensive care because the dog food poisoned me.

“I told her no, I stepped off a curb to sniff an Irish Setter’s butt and a car hit us both.”

h/t:  Backwoods Home Magazine

Here’s Jeff’s impression of an impressionist.

Click here to view the original painting by Monet. 

Columnist, atheist-depantser, and Christian fiction writer Vox Day has an interesting line of thinking in today’s column, particularly the ominous pathways we’re on as a result of “the Quiet Coup.”

I encourage people to not get distracted by the $163 Million in bonuses AIG is contractually obligated to pay. It’s the Washington ruse to keep our eyes off the fact that the taxpayers have paid $173 BILLION to AIG, most of which funneled directly out the door to its counterparties: Goldman Sachs, Deutche Bank, Société Générale, Bank of America, hedge funds, et al.

No wonder the Feds have been so blasted secretive about telling who got what.  As Bloomberg commentator Michael Lewis put it, the American taxpayer is paying off AIG’s gambling debts.

A week ago, the Chinese premier expressed concern over getting paid back all the dollars they’d loaned us. Our response? This week the Fed said they’d whistle up another $1.2 trillion out of thin air in order to manipulate the bond market and erode the dollar. The Federal Reserve is destroying the dollar, while the conservative media tries to get people get lathered up about $500,000 earmarks in a $3.5 TRILLION monstrosity. What was that about Nero fiddling?

I couldn’t let February slip without posting my impressions from his annual letter to Berkshire Hathaway shareholders.

His hubris of telling America in mid October to “buy America” while he unloaded shares of Johnson & Johnson and Proctor & Gamble that quarter is, shall I say, discongruent with his outward persona of “investor’s best friend.”

Ditto his advocacy of government bailouts and interference in the credit markets last year.

More later…

My October article on Junk Bonds, or euphamistically “High yield” bonds, has generated a fair bit of readership, so I’ll offer an update:

Bond prices have fallen, and yields and spreads have increased. And I don’t think the trend will reverse soon, as the bond prices of tracking ETFs are hovering right at 52 week lows, and junk bond spreads are at records, if I understand the data correctly. I’m staying clear for now, as a trend in motion tends to stay in motion, and fighting the trend or picking a bottom typically just leads to pain.

Some tickers to watch are JNK, HYG, and Vanguard’s VWEHX.  These are not recommendations for you, but a means for you to learn, observe the market, and to track prices.

There’s a lot of truth to the bumpersticker: ” If you think there’s nothing wrong with your Congressman, you’re part of the problem. “

For what it’s worth, I’m posting my fax that I sent to my congresscritters. Since they’re going to pretend it’s a democracy, I’ll keep playing along.

***************************************

via fax: (202) nnn-nnnn

Dear [insert congresscritter]:                             September 24, 2008

The fact that the White House is flying by the seat of its pants is itself the very reason to reject the Wall Street bailout aka “Paulson’s Folly.”  Federal Reserve Chairman Bernanke has admitted the deception:  there will be no “low bidder” auction; instead the Treasury will pay above-market prices. Outrageous!

Of course the Treasury is going to pay above-market prices and rich premiums for the mortgage bonds. This ‘clog’ of bad investments to which they keep referring could be cleared immediately at lower offered prices. But no one on Wall Street wants to take their medicine. Wall Street paid out BILLIONS in bonuses (God bless ‘em,) but now Congress should not force the taxpayer cover the losses.  This proposal is reeks of “heads Wall Street wins; tails I lose.”  Do not participate in this highway robbery.

As little as two weeks ago, Paulson assured the public that the system as was safe and sound.  They scurry around now, urging panic and spreading fear, to prevent Wall Street from paying the tab for their recklessness.  King Henry is either incompetent, ignorant, or deceptive, and he and his successors are unworthy of neither a $700 billion revolving line of credit nor continuing in their high office. 

Their unstated purpose is to prevent a dollar collapse by making a market for foreign holders of US mortgage bonds. The fact that, by the proposed law, those bonds have to first be laundered and marked-up through US-headquartered firms is just gravy for Wall Street. 

It is prudent to restrict the authority to purchase only those securities that were owned by an American firm prior to July 4, 2008, or some such date that prevents a foreign bailout. 

Sincerely, 

Brian G. Heyer, CPA, MBA

P.S.  Remember what happened the last time President Bush rushed to action with only a “just trust us.”     Fool me once, shame on me.  Fool me twice…