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Jim Cook

 

RUNAWAY SOCIAL SYMPATHY

Every once in a while I switch the TV channel from Fox to CNBC to see what the liberals are saying.  After listening awhile I get a deep sense of hopelessness and foreboding for our country.  The most important thing for the left is giving money to people.  They are happy to see the growth of food stamps, disability payments, housing subsidies, free healthcare and all the other welfare benefits.  They utterly fail to see the damage it is doing to the recipients.  Whole cities that once flourished have deteriorated into rotting eyesores populated with shambling hulks of chemically dependent drones.  These people are no longer employable.  They have become incompetent and helpless and the liberals can’t see that it’s their doing.

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The Best of Jim Cook Archive

 
Best of William Histed
August 30, 2010
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I still don’t trust much of Wall Street for a number of reasons.  Executive pay is far, far up in the ionosphere, with many top corporate executives making in the tens and even hundreds of millions of dollars a year.  Despite all of this major Wall Street-owned media hype about “changes” and “new ways of doing business on Wall Street, it is mainly window dressing.

Wall Street has really not changed much.  Chaps still get their friends on board seats and those friends set salaries for the same executives.  Some huge corporations today are losing money for shareholders, but executives in many cases never take a pay hit themselves.  There are literally major corporations losing money and on their way of going out of business that never  gave their officials a pay cut for running the firm into the ground.

The people who pay for these tremendous corporate salaries and perks are the little shareholders who don’t have the clout to get on the boards of these corporations to help in the raiding of the corporate treasury.  Some pension funds are finally getting wise to this and want more of the profits for their members who actually own part of the corporation.

Corporate salaries of publicly traded companies. . .a polite way of saying firms owned by their shareholders, are obscene in many cases, despite the “crash.”

Much corruption remains on Wall Street today.  I know what I am talking about.  Much of the “change” we read and hear about is window dressing to appease the public who helped bail out the international speculators and Wall Street brokers who employ an army of lobbyists and public relations firms.

A top executive of one of the huge Wall Street banking firms that owns part of the Federal Reserve Bank literally paid tens of millions of dollars in cash for a home in August, 2010.  This is legal robbery what is going on in Wall Street.  At the most, it is going to get a band aid, as these huge corporations have their tentacles well into the federal government and its central bankers.  Remember, the Federal Reserve Bank is not owned by the U.S. government and never was.  It is a consortium of private banks, private banking families and a few Wall Street firms that are up their eyeballs in “bailouts” from the U.S. Treasury.

I do a lot of research, and once helped determine the investing of $200 million in today’s dollars when I was 23 years old.  I read, read and read more.

I bought my first stock when I was 15 years old and my mother had to drive me to the broker’s office and sign for me to buy the stock under what the state called “uniform gifts to minors act,” as I wasn’t of legal age.

Today, I know hundreds of stock symbols, can tell you a lot about many companies.  But sadly, I would not invest in the vast majority of them.

I was set to invest in the stock of a restaurant chain based in Ohio.  Things appeared good on the surface.  Then, I dug into compensation for the directors and officers.  They were getting fantastic hidden pay in “stock options” they were buying for a tiny fraction of what the public was paying for the stock and literally turning around and selling it into the market days later at market price. I quickly decided I wanted no part of that.

I study hundreds of stocks, most of which I would not buy.  Many household name Wall Street companies give totally free “awards” of stock to board members and officers at no cost and often I see where day or weeks later, those officials sell their shares into the market.  It is a very crooked game, in my book.  It also dilutes the ownership interest of the smaller shareholders and those who own shares indirectly in pension and IRA type of funds.

There are many crooked things that are legal in our society and many things that are not crooked that have been deemed illegal.

The fact that these huge corporations, their directors and officers hire so many “lobbyists” and hand out so much money to politicians for “electioneering” is another hint at wide scale corruption of our stock market system.

We can talk down about other nations in the world where such pay-offs are openly called “bribes” and laughed about.  Here, we call this transfer of money to politicians by corporation and even labor unions as “campaign financing,” or “helping with election costs.”

It has been in the news lately about how millions and millions of dollars in “campaign money” goes to 5 star restaurants, vacations, huge bar bills, cars and money to the relatives and friends of candidates.  In Florida, the recent head of the State GOP is under indictment for such alleged behavior and it hardly made the news.  His lawyer told the newspapers the former state Republican head is ready to sing in court; that will be quite interesting.  Wall Street and the major political parties are very well connected; Wall Street often pulling the strings in Washington.  If you don’t believe that, just look at the trail of trillions of dollars in various “bailout” money and government loan guarantees.  I’ll say not more.

To show you the advantages of silver, especially, at the current prices, we will consider silver a corporation, a Wall Street stock.  There is debate within the silver family of how much available silver exists in the world. Frankly, no one knows or ever will know for sure.  Much of it is in long-term hands and is not openly displayed for sale.

Some experts believe available silver supplies could be 300 million troy ounces, 500 million troy ounces, even a billion troy ounces.  I’ve seen all types of figures, but let me put the whole silver thing into a different perspective.

Let’s say that each ounce of silver that may be driven under higher price pressure for sale is one share of stock.  Let’s call this corporation Silver Supply Corporation.  And let’s be hard on ourselves and take the high end of the silver supply figure, and say there are 1 billion ounces available.  I doubt that figure, especially if you are talking about the current world spot price of around $18 a troy ounce as I write this.  It will take much higher prices to drive out more of the supply that exists.

So, Silver Supply Corporation has 1 billion shares at $18 a share, for a total market cap of $18 billion.  And this is all of the shares represented for this company being in business for thousands of years and that is in virtually every nation on earth with various amounts of stock held by its citizens.

This same $18 billion is chump change to the politicians in the United States, and remember, the U.S. holds just a small fraction of the total stock held by the world.  Now compare our total $18 billion total market cap of Silver Supply Corporation.  Let’s go crazy and say there are 2 billion shares out at $18 a share.   (Two billion ounces at $18 a share)  Many would doubt the later figure, but let’s be hard on ourselves.

How does this stack up with even a single U.S. company that has many competitors, has only a fraction of its industry in just one or a few countries of the world.

Here is my research.  You can check out my figures at an unbiased Wall Street web site:  bigcharts.com   I want you to check my figures for yourself.

Citigroup, which has many, many competitors and is not even in many of the world’s countries, has 30 billion shares outstanding!  As I write this in August of 2010, Citibank stock is $4 a share, so the market says the value of Citibank is around $120 billion dollars, 5 or more times the current value of all of the above ground silver in the world today!   This is just one small dot in the world banking scene, even though the name is big, there are foreign banks worth more money.

McDonald’s Corporation, which has tremendous competitions from Wendy’s, Burger King, KFC, pizza places and dozens of other major restaurant chains, has 1 billion shares out.  At the market price of $72 a share as I write this, we are looking at McDonald’s having a total market cap of some $73 billion dollars, several times as [many as] our Silver Supply Corporation which has been around for thousands of years.  This means, at 1 billion ounces of silver, the current market value of McDonald’s alone is about 4 times the value of all above ground silver in the world today.  This is just one restaurant chain!

Verizon, the telephone/communications company, has 3 billion shares  out.  The total world market value of silver at the present price is less than the stock market value of Verizon.  And it is only one of many such companies in its industry.

ATT, which also has many competitors, has 6 billion shares out.

What I am saying friends, is the entire world silver supply is valued at less than just the present stock market value of one U.S. corporation that has only [a] fraction of the business in a fraction of the world’s population.

Silver has properties that are unique and that are required for modern industry and technology, forget war times needs.

I believe that Silver Supply Corporation is one of the best stock values in the world today.  A few other things about Silver Supply Corporation.  It’s ‘share’ are not drained by huge annual compensation packages to top executives and board members.  Silver Supply Corporations has no debt of any kind.   When you buy the stock outright, it is yours and you never have to sell it and it has never gone down to zero in thousands years.