The Unsinkable brian cork™

Brian Patrick Cork is living the Authentic Life

General Motors ON

November16

It’s no secret that General Motors (“GM”) has it’s Initial Public Offering (“IPO”) this week.

What might be a secret to the masses, however, is it’s truest underlying purpose.

The government lent money to GM. There is some thinking that the government could own as much as sixty-one percent (61%) of GM. And, the big auto-maker, as leading and cutting-edge as it’s vehicles have become, will struggle for decades to pay our thinly stretched United States Treasury back – and, it does not have a prayer of meeting it’s pension obligations.

So, they, that insidious “they” (no doubt led by the pipe-smoking-black-dog), mind you, are going to foist the problem on the American Citizens the very best of the good old fashioned way, certainly time-honored… By manipulating the stock market.

Seriously.

Here is how this particular effort will play-out. You simply need to make the decision if you are going to benefit, or keep getting your collective asses kicked.

The IPO will likely open up around $28.00 a share. Insiders (by many a definition) will pay less. For example, the United States Treasury is going to own shares as will friends of the big brokerage houses. JP Morgan is the syndicate lead and they are making all manner of new friends on Capital Hill with this play. This is not widely publicized for obvious reasons.  In any event, based on the aforementioned loan details, the Treasury will break even when the stock hits approximately $44.00.

So, it’s a good bet the stock will do just that, and then some.

I’m guessing there will likely be close to a $6m billion over subscription of the stock leading up to the IPO. My experience tells me we’ll see about $1 billion in roiling. Then that “over-hang” of back-orders will kick the stock up. After that, it’s all about “management”.

This is not evil. This is simply the way things work. You, why not you, can argue it’s part of the American dream.

I have to say something. It’s one of the many reasons you read this Blog. And, it’s something a Prudent and Optimistic Gentleman finds, required.

Good luck. But, there is little of that actually involved. Fortuna, perhaps, eh Dr. Pappas?

UPDATE 11/17/2010 @ 1pm: VOILA! – GM Confirms Expanding IPO by 31 percent

Peace be to my Brothers and Sisters

Brian Patrick Cork

inside story

May15

The Treasury Department has asked the Obama Administration for clearance to control the Derivatives Market.

In a two-page letter sent Wednesday to congressional leaders, Treasury Secretary Timothy Geithner said he wants to create a central electronic-based system that would track the buying and selling of derivatives. He also wants to ensure that financial firms selling the instruments have enough capital on hand in case they default and subject them to stringent standards of conduct and new reporting requirements.

Geithner wrote in his letter:

“All (over-the-counter) derivatives dealers and all other firms whose activities in those markets create large exposures to counterparties should be subject to a robust regime of prudential supervision and regulation.”

[…]

Obviously regulations, control and transparency sound great. However, Wall Street – and, certainly Global finance is most efficient when it’s manipulated and controlled by power mongers brokers and illuminati hand-picked insiders.

Look what a disaster Sarbanse-Oxley has been for the markets.

Seriously.

Wall Street began to second guess itself about the time socialist regulators began to enforce lop-sided audit controls. Sarbanse-Oxley became, literally, it’s own industry over night. Only some of you noticed that, as “options” for inside trading and the dissemination of related information became more difficult, short-sellers were able to step in and confound institutional traders.

Change and rules might be good. But, too much government is not.

The violent, lathe-like spinning of Ayn Rand in her grave threatens to throw the Earth out of its orbit, and hurl us screaming into the sun.”- Nick Milne

Note: I lifted that, in part, from Nick Milne (and, freely admit, changed a few words, and it’s very context) with naught but the best of intentions.

In any event…

Good or bad – and, always depending on where you stand in the equation, our national and the global financial markets have always been manipulated with the plan being steady growth, with most of the profits fueling a multitude of strategies that benefit a relatively select few.

When I am writing about things like this, it always takes me back to when Grandad would talk about “defending the mountains of Hemingway’s Spain”More on that later – maybe.

Obama likely means well (in a sophomoric sort of way). And, many people that support him (for now) were not the beneficiaries of that accumulated wealth and power. However, the system probably can’t work off of Democratic ideals for long (notice how Wall Street can’t get a sustained run going?) and global markets keep looking for excuses to put more authority in the hands of a shrinking number of banks.

This sets the stage for revolution.

Watch how in the next fifteen years key families, their familiars, and other elites work through certain banks (including the sinisterly named Bank of America) to amass wealth, and become more blatant about deploying it strategically.

I don’t know yet if Obama will go down in history as the Anti Christ; there are too many views, (in terms of cultural nuance) to define what that might look like. But, it sort of feels like a significant part of his legacy will be that of having set the stage for anarchy and the foundation for a greater Brazil-like gap between the wealthy and the desperately poor.

Gawd… The irony is almost delicious. It’s the aftertaste that will have me concerned.

To be more clear… What we see happening now appears to be common sense changes to equalize the financial process. But, global finance can’t work that way. The result will be a broken system that can only be righted through financially incentivized leadership.

So, ironically, more rules will result in greater chaos, and set the stage for a power elite that only Thomas Jefferson could have imagined when he designed our Constitution to allow for separatist (like) rules.

Peace be to my Brothers and Sisters.

Brian Patrick Cork

What’s All This About?

"What am I looking at?", you might wonder.

Lots of stuff.

Meanwhile, here, I discuss events, people and things in our world - and, my (hardly simplistic, albeit inarticulate) views around them.

You'll also learn things about, well, things, like people you need to know about, and information about companies you can't find anywhere else.

So, while I harangue the public in my not so gentle way, you will discover that I am fascinated by all things arcane, curious about those whom appear religious, love music, dabble in politics, loathe the media, value education, still think I am an athlete, and might offer a recipe.

All the while, striving mightily, and daily, to remain a prudent and optimistic gentleman - and, authentic.

brian cork by John Campbell





photos by John Campbell

 

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