Articles About Washington

What Happens When There’s Nowhere Left to Run

18 | By Shah Gilani

What if I told you the safest (and by far the biggest) market in the world isn’t safe anymore?

The U.S. Treasury market – government bills, notes and bonds – is more than $12 trillion. That’s twice as big as the next two biggest nations’ debt securities combined – and is believed without question to be the safest market in the world.

Whenever there’s a panic and the markets freak out, investors dump stocks and buy Treasuries. That’s the so-called “flight to quality.”

However, before the recent new market highs, back on Oct. 15, when the last full-on flight to quality exploded, the U.S. Treasury market failed to do what it had always done.

It failed to be safe.

And nobody’s talking about it.

Today, I’m going to talk about it – and I’ll show you how this lack of safety will impede your ability to invest and make a profit in the future…

Unemployment May Be Down, but Our Future Looks Like a Disaster

46 | By Shah Gilani

Finally, things are better, right?

I’m talking about the Friday employment numbers, not the election.

Though they do have something in common. I’ll get to that.

But first let’s celebrate how good we all feel now that unemployment is down to 5.8% — its lowest level since July 2008.

OK, now it’s time to get back to the election, which put Republicans back in charge of the U.S. Senate.

But not because I’m going to comment on it. At least not yet…

Here’s Where Socialism Intrudes on Our American Dream

30 | By Shah Gilani

It’s yet another prime example of “The strong get more while the weak ones slave.” Private equity shops and institutional players are buying and packaging (securitizing) nonperforming mortgages and selling those mortgages to mutual funds and themselves.

On the surface, the U.S. Department of Housing and Urban Development (HUD) wants to minimize the cost to taxpayers. After all, we have to cover the insurance guarantees the Federal Housing Administration (FHA) made on loans it backed but are now nonperforming or in foreclosure.

That’s really nice of HUD and the FHA, thinking about us taxpayers. Maybe they should have thought about us when they agreed to guarantee payment on loans to less-than-prime borrowers who only have to put down 3% to get their loans.

But, whatever, they’re from the government…

Don’t Believe a Word the GAO Says

41 | By Shah Gilani

Last week the U.S. Government Accountability Office (GAO) released a report titled “Large Bank Holding Companies: Expectations of Government Support.”

And wouldn’t you know it – all the too-big-to-fail banks broke out their crack pipes.

The highly anticipated report didn’t surprise anybody. After all, we all already know that big banks are government bootlickers… when they need to be.

But that’s not all the report said.

Keep reading, and I’ll reveal the report’s “shocker”…

Shah Calls This Stock “A Buy” (… and Predicts It’ll Rise 33%)

4 | By Wall Street Insights and Indictments Staff

It’s called “tax inversion,” but it means “run from the IRS.” As Congress threatens to change the tax code to keep American firms in the United States, dozens of them look to head overseas.

The irony wasn’t lost on Shah, who stopped by Fox Business‘s “Real Halftime Report” on Wednesday.

To read more and watch the interview, click here.

Here’s why.

Higher Education: The Biggest Scam Going

79 | By Shah Gilani

Here’s a question for you: Has higher education become another great American scam?

I’m not talking about the rich getting scammed. They get what they pay for. They can afford to be scammed – they know what’s up.

A lot of rich people send their kids to expensive private colleges hoping they’ll get a good education that will lead them into their chosen careers. If they haven’t chose a career, rich parents are more than happy to give their kids the “experience” of college, with all its social aspects, country club accommodations and alumni status.

But then there are kids who want a higher education because they believe a college education is their ticket to gainful employment and well-compensated careers. They pay for it themselves, or their hardworking parents cosign on loans or take out personal loans on behalf of their kids’ college dreams

For them, higher education is increasingly looking like a scam.

Some critics complain that this is students’ own fault, that they’re pursuing the wrong majors. Or, they say that colleges themselves are lacking, that they’re not teaching what kids need to know in our ever-changing economy.

However, my problem isn’t with education or kids’ choices. Today I’m telling you where my beefs are – and why they’re costing today’s kids and their parents billions…

Know Your Rights Before You Lose Them

28 | By Shah Gilani

It’s Independence Day tomorrow, so here’s a story about your freedom to think about and act on.

News came to light this week that a Facebook data scientist named Adam Kramer conducted an experiment on 689,003 users of the social-network site over a seven-day stretch in January 2012.

It’s news for a few reasons.

Some people are ticked off that they may have been used in an experiment without their knowledge. Some of the subjects of the experiment may have been teenagers.

And some people, namely folks at the United Kingdom’s Information Commissioner’s Office and the Data Protection Commissioner of Ireland, are looking into whether European Union privacy laws were broken.

Facebook wants us to believe it’s all a big kerfuffle over nothing.

But it’s not. It’s a demonstration of corporation and the government are taking away more and more of our rights to privacy and freedom.

And today, I’m going to show you how we’re letting those rights slip through our fingers…

3 D.C. Scandals Converge to Set New Standards for Outrageousness

17 | By Shah Gilani

Here are three not-so-little things hitting my radar this morning.

On Thursday, you were all shocked (not) to have to consider the possibility that peeps in Congress would ever break a law, let alone a law they made to stop themselves from breaking laws.

Alas, it may have happened. I say “may,” because we may never know if the perps – um, I mean, peeps in Congress are still making money by dishing out dirt on legislation they’re brewing up, this time to traders who profited from leaky pipes in the Senate or House.

While I like to beat on the executive branch for their various foibles, this time I admire their moxie for trying to make a case here.

I’m going to tell you what the feds and the courts are trying to do here. I expect a full-on separation-of-powers battle royale.

Here’s how it could go down …

Obamination: This One-Act Tragedy Is Nothing But a Bill of Goods

128 | By Shah Gilani

I’ve never before written anything about the Affordable Care Act, otherwise known as Obamacare.

That’s because I didn’t want to jump into the debate on one side or the other before letting some dust settle and seeing what there really is to see.

As the old Johnny Nash song goes, “I can see clearly now the rain is gone. I can see all obstacles in my way.”

Too bad the next line is the exact opposite of what I see. Nash sings, “Gone are the dark clouds that had me down. It’s gonna be a bright, bright, bright, bright sunny day.”

NOT!

The future of Obamacare isn’t bright. It’s not even cloudy. It’s black, as in a giant black hole.

That’s because the Affordable Care Act is going to be anything but affordable. It’s going to get more and more expensive, as if it’s not already outrageously overpriced hype.

What is Obamacare really? It’s a make-richer scheme for giant insurance companies.

Now, I’ll tell you exactly what this Obamination is going to do to your health plan, the U.S. economy and your wallet …

I Can’t Believe The Government Wants To Unleash This On The Public

20 | By Shah Gilani

Do you know Ally Financial Inc.?

You’ve no doubt seen their commercials. They used to be all over the tube hawking their high-yielding certificates of deposit. Now they’re all over the tube with their “no hidden fees” campaign.

I like the one where the woman is afraid to try new things because she’s had bad experiences before. Her mechanical dog sparks a fire when he drinks water and her trainer hooks her up to electrodes that zap her. I like these commercials; they’re funny.

But Ally isn’t funny.

It recently announced that it’s launching an initial public offering (IPO) of its stock at a price per share of $25 and $28. The shares will be offered by the U.S. Treasury as part of its planned exit of its investment in Ally during the subprime crisis in 2008.

I’ve heard some analyst say this could be a good deal for investors.

But I can’t believe the government wants to unleash this on the public.