Vigilant Investor

Hey everyone! It’s me, Melissa Moody…not that other Moody’s you have been reading about. Actually that’s why I’m here I’m just so sick and tired of that other Moody! Their ratings stink, and they don’t know nearly as much as I do about debt, it’s true, I’m maxed out on 4 out of 7 credit cards I know I have a problem but I just can’t stop,ha ha. I can do a better job than Moody’s and that is what I’m gonna do! And let’s face it, their old ratings were too complicated. I mean Aa3, Baa1, Caa2, B1 who knows what that means? My ratings will be simple:

• BFFAE (Best Friends Forever and Ever)
• BFF
• FFLAF (Best Friends For Like Almost Forever)
• BFFBAS (Best Friends Forever But Also a Slut)
• FFBIHH (Best Friends Forever But I Hate Her)
• Whore

You must be blown away but I am ready to blow you even more than that — let’s get on with it already!

Please feel free to click on through to read the rest of Ms. Moody’s thorough ratings analysis of MBIA — well worth the read, as is most of the entertaining content at Long or Short Capital LLC, the funniest blog around for those following what we do.

The Hedge Fund manager has issued a year end update.  Here are some snippets:

Our Widows & Orphans Enhanced Money-Market Fund is under investigation by the Federal Trade Commission. It seems our use of the word “enhanced” is deemed incompatible with “real sorry we gambled that dollar you gave us for safekeeping on collateralized-debt obligations and ended up losing a cent or seven. Or 20. We’re not entirely sure yet…’”

…You know the saying “pay peanuts, get monkeys”? It isn’t true. We have been paying our traders peanuts since the fund’s inception, and it turns out that the annual rate of nut inflation is killing us at 11.5 percent given how low our investment returns have been.

You can read the rest of the report over at Bloomberg.

“Silver and gold, silver and gold
Everyone wishes for silver and gold
How do you measure its worth?
Just by the pleasure it gives here on earth!”

– Yukon Cornelius from “Rudolph the Red Nosed Reindeer”

Ah memories…Good old Yukon Cornelius from the classic, “Rudolph.” He certainly was a man who understood the value of real money. You’d also think he was reading current headlines.

Today we learn that GM posted a $39 Billion quarterly loss. Does this surprise us? Is George Bush going to win an eloquence contest? We’ve been warning about it for years. What else could an objective person expect from an industry, which for the better part of this decade has been accelerating purchases, which would normally take place in the future — via excessively low interest rates. Well — the future is now! You eat your seed corn – you’re going to go hungry down the road – maybe for a while. We smell lower interest rates – and an increased money supply (more inflation).

We also learn that several of the biggest and well known Wall Street banks and brokerage firms may be in MAJOR financial trouble. These firms — who took sub-prime mortgages — sliced, diced, and packaged large amounts of them into bonds, which they sold – and large amounts, which, they kept — are getting shellacked as mortgage defaults accelerate dramatically. While major losses are being announced – no one really knows how much a significant portion of this underlying sub-prime debt is really worth. Losses are estimated to end up in the hundreds of BILLIONS. We smell a major bailout – and an increased money supply (more inflation).

If that isn’t enough – today the Chinese announced they are getting ready to diversify out of the Dollar due to it’s continued plummet in value (hint, hint — due to inflation). Can’t blame them the Chinese – we think the Dollar – like all paper money — is going significantly lower against all things. It will be interesting to see what they buy. We think we have a pretty good idea.

Yes, that Giselle Bundchen is not just another pretty face. The supermodel is no longer accepting payment in Dollars. The Dollar is losing its status as the world’s reserve currency. However, since the rest of the world is also significantly inflating their currencies – we think Giselle will soon be heeding the sage advice of Yukon Cornelius. She’ll then be getting paid in real money.

Are you learning anything? Seek vigilant advice!

If only Mr. Monk-e wasn’t speaking the truth. Give him a click and hear him out.