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Sunday, January 4, 2009

Sunday Update: Bob Brinker's Moneytalk January 4, 2009

This weekend, Bob Brinker did not mention anything about stock market events over the past year. Matter of fact, he didn't mention the stock market at all this weekend.

Brinker devoted the entire opening monologue to singing the praises of John Maynard Keynes. Brinker said that the program today "is to honor" John Maynard Keynes.

There are many well-educated people who do not agree with Keynes. These are the people that Brinker contemptuously refers to as "free marketeers" who want to "let the markets work it out." Indeed, "free marketeers" are the people who believe that big government and the Federal Reserve are the problems -- not the solutions.

Milton Friedman is probably the most notable and highly honored "free marketeer" economist who opposed Keynesian economics. I highly recommend Friedman's writings, especially "Free to Choose" and "Capitalism and Freedom"

"The government solution to a problem is usually as bad as the problem." __Milton Friedman

Bob Brinker made a chilling statement today that "2008 was the death of the concept of global free markets." It's chilling because it is probably true; and more chilling because he said he had "no problem" with it.

The remainder of the program was mostly Brinker's political viewpoints with 3 Ginnie Mae calls thrown in for good measure. Brinker recommends Vanguard GNMA Fund. The fund is trading at $10.57 right now, which Brinker says is the top of the trading range. So be aware that if interest rates climb, the fund NAV will drop possibly as much as 10%.

Brinker mentioned "The Mad Dog" Ponzi scheme again today. He was referring to Bernard Madoff who was arrested for fraud. Madoff (allegedly) swindled $millions from people who trusted him -- however, he was not truthful or honest about his true performance record, so people were seriously damaged. It's a terrible thing and I hope there will be justice some day.

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Brinker's Sunday guest-speaker was David L. Scott. Brinker talked to Scott about how the drought is affecting Lake Mead, which is now at about 47% capacity. If I recall correctly, Brinker lives nearby Lake Mead. The drought condition sounds serious for Las Vegas. This from Wikipedia:

"As of October 2008, the lake is currently at 47 percent of its capacity, threatening to make the Las Vegas valley's primary raw water intake inoperable. If the lake doesn't receive enough inflow this spring, problems may arise later this summer. Arrangements are underway to pipe water from elsewhere in Nevada by 2011, but since the primary raw water intake at Lake Mead could become inoperable as soon as 2010 based on current drought and user projections, Las Vegas could suffer crippling water shortages in the interim. Lake Mead draws a majority of its water from snow melt in the Western Colorado Rockies. Since 2000 the water level has been dropping at a fairly steady rate due to less than average snowfall. As a result, marinas and boat launch ramps have either needed to be moved to another part of the lake or have closed down completely."

Brinker quote of the day: "The amount of work that I do is absurd."

If you want to hear more of Brinker's almost totally unopposed political viewpoints, download the programs from KGO810:

Download the show, listen at your convenience. A downloadable version of Bob Brinker's Moneytalk program is available FREE at KGO Archives for a full 7 days after broadcast! Now, you will be able to listen at your convenience on your portable media device whether it's in your car, on the trail, in your garden, or just relaxing at home. You won't have to stay online to listen any more! Moneytalk available when you want it FREE at KGO810

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