Today’s Revolution Investing links: Let the crash come and other must-reads

No changes to the portfolio this morning.

I’ll have more thoughts and updates in a bit. But in the meantime, here’s what I was reading and thinking about when I wasn’t trying to get my mind to get my body to get over this chest cold that hit me yesterday.  Your best home remedy suggestion for me? Anyway, on with the links (cough, cough).

Let the crash come! –  This is a point I used to make everyday while the Republican Democrat Regime and its cronies used to come on my Fox TV show and explain why they were so desperate to save the insolvent banks like JP Morgan and Goldman Sachs: “Whether it is in the Euro-zone, China, or America, it would be better to let entities fail, and deal with the mess.  Yes, GDP will drop a lot, but it will rocket out of the troubles 2-3 years out, the way that Eastern Europe did post-Warsaw Pact.” Here we are three years and tens of trillions of handouts to the banking industry later and the only solution to our crisis remains the same.

My Gut Feeling for Today, Jan 17, 2012 – Scott Rothbort’s daily musings are one of the first things I read every morning. His note today includes this analysis, which makes a lot of sense to me: “AA+ is the new AAA. The bond market will wise up to that fact pretty soon. Any fund that could only invest in AAA will revise their authorizations to AA+”.

Why expect S&P, Moody’s, or Fitch to know it’s junk when expert musicians can’t tell a Stradivarius from a fiddle? – Because Frank-Dodd is magical. Or maybe the Republican/Democrat Regime can de-legitimize the entire government-mandated ratings agency oligarchy by doing away with the whole sham of ratings-approval. Anyway, funny article.

Indicator Update for 1/16/12 — Have big companies lost their earnings mojo? – Good question. This week, with Google, Microsoft and plenty of other biggies on the clock, we’ll get more answers to Jeff Miller’s question. As he puts it, “The best news of the week is something that you will not see mentioned by most observers.  The one-year forward earnings estimates are higher.  I view as very significant for the market.  Recently forward estimates have been drifting lower with European and recession worries.  Brian Gilmartin has been all over this story, and writes that estimates on the S&P 500 have now increased to $107.

Trading strategies for Amazon, Broadcom, Google and more – From this week’s chat at my independent service, TradingWithCody.com.

MERS drives the US real estate market into anarchy – This is where we are headed if the Republican/Democrat Regime doesn’t stop the Too Big Too Fail banks and their destruction of our country’s most fundamental rights to own property. From the article:

The true horror of MERS is what it could do to homeowners who are current on their mortgage payments: The “good” homeowners who still had a job and weren’t facing foreclosure. If there was no legal record of which bank owned their debt, and the MERS-mortgaged homeowners had been making payments, then who exactly was the homeowner paying? The checks, clearly, were going out every month, cashed by a bank that claimed to own the note. But without the legal record to certify the owner of the note, it followed that the bank could not legally issue the homeowner a clear title to the home. In effect, a homeowner with MERS on his mortgage could spend thirty years paying a lender that wasn’t the owner of the note. …. “[Y]ou’d always be looking over your shoulder,” said Trotter. “Some other lender could come and say ‘No, we owned that note. You paid the wrong guy.”

, he said, “nobody owns anything. You’re only paying rent.”

Not a funny article. Rather terrifying for this modern-day investor in fact. I’m still short LPS, the fine Florida firm that runs the MERS system. And if you buy real estate do not get your loan from any TBTF bank.