MooPig Government Shutdown Department :: "Who Profits?"

Default would be an inexpressibly stupid event
Mashed articles by Pat Darnell  |  Oct 12, 2013  |  Bryan TX

[Picture LINK unknown]

Every investor should be afraid of a U.S. government debt default. But tearing a portfolio apart because of the risk of a default is risky, too. A U.S. default would be catastrophic. Even one day in default would harm the nation's credit rating, and have serious ripple effects, including:
• Damage consumer confidence, and possibly the economy.
• Cause interest rates to spike higher.
• Hurt stock and bond prices.
• Wound the value of the U.S. dollar on international currency markets. (John Waggoner, USA TODAY 9:34 a.m. EDT October 7, 2013. LINK)

Here's Who Profits If the Government Defaults | Mother Jones: "1. Short sellers: Most folks invest in stocks and bonds hoping the value of their investments will increase. But there's also money to be made by short selling—betting that the value of a stock or bond will drop. Short selling is an investment strategy that's typically employed by sophisticated investors and financial firms, but technically anyone can do it. Investors who bet that the value of US Treasury securities will dip would likely profit. Because a default could cause the US stock market to crash, shorting almost any US stock could make you money. In fact, you can even invest in specific mutual funds that specialize in short selling. "It's a very powerful and disillusioning feeling to know that smart rich people can make money even when America goes over Niagara Falls in a barrel," says Jeff Connaughton, a former investment banker and White House lawyer during the Clinton administration."

'via Blog this'

Precious metals and Virtual Money [BitCoin] will ride out the Government shutdown. Housing will suffer and jolt owners into foreclosures due to soaring interest rates -- but the banks, and holding companies make out like banshees. It will be a wild west land grab for greedy bankers.

" ... Jacob Lew, the current Treasury secretary, said in a letter to Congress in September: "The debt limit impasse that took place in 2011 caused significant harm to the economy and an unheard of downgrade to the credit rating of the U.S.. The drawn-out dispute caused business uncertainty to increase, consumer confidence to drop, and financial markets to plunge. If Congress were to repeat that brinkmanship again this time, it could inflict even greater harm on the economy. And if the government should ultimately become unable to pay all of its bills, the results could be catastrophic. (John Waggoner, USA TODAY 9:34 a.m. EDT October 7, 2013. LINK) ... "

With those poor credit ratings brought on by default, we pay higher interest rates for our credit. And government securities for sale would have to offer higher interest rates of return to attract buyers. That also increases interest rates for long term money like Housing, and would make borrowing for home buyers and businesses higher at the same time.


CONCLUSION
Markets will probably sell off as the deadline looms. If there's a last-minute resolution – as there was in 2011 – stocks and bonds should soar in value, as should the U.S. dollar.

 _________________________Reference
http://www.motherjones.com/mojo/2013/10/who-would-benefit-government-default
http://www.usatoday.com/story/money/personalfinance/2013/10/07/investments-in-default/2933457/
http://www.usatoday.com/story/money/personalfinance/2013/10/07/position-your-portfolio-for-default/2935395/
http://goldnews.bullionvault.com/gold-investing-100720136
http://www.investing.com/news/commodities-news/gold-gains-as-u.s.-government-shutdown,-default-fears-weaken-dollar-253567
http://www.motherjones.com/politics/2013/04/what-is-bitcoin-explained
http://thegenesisblock.com/us-debt-ceiling-highlight-bitcoins-role-asset-class/
http://tucsoncitizen.com/morgue/2008/12/30/106350-financial-crisis-gives-pawnshops-a-boost/
http://www.latimes.com/business/hiltzik/la-fi-mh-5-things-20131008,0,6197200.story
http://www.huffingtonpost.com/2009/10/21/perverse-incentives-lead_n_328378.html
http://www.motherjones.com/politics/2012/11/preppers-survivalist-doomsday-obama

Bye Bye Bitcoin | Uncommon Wisdom Daily

Whoops
Retrieved by Pat Darnell  |  Apr 13, 2013  |  Bryan TX

Out there is a strange world. Cyber wars are wreaking havoc on certain investments. MooPig Finance and Witchcraft Department has been posting blurbs about the BITCOIN phenom HERE and HERE.

Do you trust paper money and Ben Bernanke's ability to manage it? If you don't, and all your friends don't, then your price for paper money goes up, or like the experts say, it gets more scarce.

We are not Bitcoin experts, and certainly not investment wizards here at MooPig enterprises. But these guys advertise that they are:

Bye Bye Bitcoin | Uncommon Wisdom Daily: "When was the last time you saw an equity, ETF or currency drop more than 75% in one day, only to have trading halted to allow the market to “cool down” … If I asked you that question yesterday, your answer should have been “never.” That all changed, however, when the infamous electronic currency Bitcoin made history. In the aftermath of the Cyprus bailout debacle, interest in this alternative currency skyrocketed, sending the price parabolic and pushing Bitcoin to an all-time high of $266 just yesterday."

'via Blog this'

UPDATE
Whatever the case against bitcoin as an alternative currency, there’s one country where people probably won’t need much persuading to join the craze. Here’s why China could drive a further bit-boom:

1. They’ve already done the whole virtual currency thing—with Q Coin. (Gwynn Guilford — April 13, 2013. HERE)



_________________________Reference
http://www.uncommonwisdomdaily.com/bitcoin-makes-history-we-hope-you-followed-our-advice-16022?FIELD9
http://moopigwisdom.blogspot.com/2013/03/bitcoin-can-virtual-currency-do-away.html
http://moopigwisdom.blogspot.com/2011/08/bbc-news-bitcoin-can-virtual-currency.html
http://bitcoincharts.com/
http://qz.com/74137/six-reasons-why-chinese-people-will-drive-the-next-bull-market-in-bitcoin/

Bitcoin: Can a virtual currency do away with banks? PART TWO

FOFOA: Bitcoin Open Forum: "To summarize, this guy had 25,000 Bitcoins stolen from him around noon on Monday. At that time, Bitcoins were trading for around $20 each, so he lost almost $500,000 worth of Bitcoins! I'm just learning some of the technicalities of Bitcoins now, so please correct me in the comments if I get anything wrong. I imagine this will make for a lively discussion! It seems Bitcoins have been quite a trade recently, running from less than half a penny up to $30, back down to $10, and up again to $20. Here's the chart:"

  'via Blog this'

____________________________Reference
http://fofoa.blogspot.com/2011/06/bitcoin-open-forum.html
http://fofoa.blogspot.com/2011/06/bitcoin-open-forum-part-2.html
http://fofoa.blogspot.com/2011/06/bitcoin-open-forum-part-3.html
http://fofoa.blogspot.com/2011/06/from-treasure-chest.html
http://news.bbc.co.uk/2/hi/programmes/click_online/9555513.stm
http://unqualified-reservations.blogspot.com/2011/04/on-monetary-restandardization.html
http://www.timesunion.com/business/press-releases/article/Jeff-Berwick-Announces-Opening-Of-First-Bitcoin-4381646.php
http://theweek.com/article/index/241760/cyprus-banking-crisis-is-good-news-for-bitcoin
http://www.guardian.co.uk/commentisfree/2013/mar/25/london-whale-link-us-economy-cyprus
http://www.secretsofthefed.com/is-bitcoin-the-new-safe-haven-currency-bitcoins-surge-after-cyprus-bank-raid/
http://moopigwisdom.blogspot.com/2011/08/bbc-news-bitcoin-can-virtual-currency.html

MooPig's Report from the Mid-West :: "Illinois Tollway says glitch caused havoc"

Don't Mess with Chicago Tollways, they are a Money Pit
Retrieved by Pat Darnell | Dec 10, 2011 | Bryan TX

[Photo LINK]
Illinois Tollway says glitch caused havoc with I-PASS users' accounts - chicagotribune.com:
" ... Tollway spokeswoman Wendy Abrams said the problem was traced to software used by its toll collection contractor, Electronic Transaction Consultants Corp., of Richardson, Texas."

Former tollway board member Bill Morris had advocated for a new system sooner. Morris said Friday that the latest flub comes at an especially bad time — just as basic I-PASS tolls are about to rise 87.5 percent Jan. 1.

[Tollway spokeswoman Wendy Abrams] ... Abrams said the glitch won't hasten the agency's plans to replace the complex license-plate-reading and collection system. The agency plans to install a new system by 2014.
'via Blog this'


_____________Reference
http://www.chicagotribune.com/news/local/ct-met-tollway-ipass-accounts-20111210,0,71416.story
http://enjoyillinois.wordpress.com/2010/04/05/wake-up-youve-just-driven-over-the-biggest-hole-in-america/

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You Said it Boss...!

Just 'cause you says so, don't make it so... Sorry, if you thought that would be the case.

More -- Barry's Big Day

Edited by Pat Darnell
MooPig's "Inagural Department" roving photographer Jack Pribek, former wedding photographer, has captured the spirit of the Inauguration 2009, for posterity. See for yourself. Following is a generous compendium, photo essay, no captions, cross-section of Americans at play in the field with their new President. Pick out faces in the crowd, see the plethora of posters and cocktail napkin logos.