Why Republicans Love The Stupid, The Ignorant, The Under-Educated, The Easily-Influenced, The Gullible, The Religious Zealot, The Sponge, The Parrot, And The Follower!

 

THE GOP STRATEGY

 


http://www.thefreedictionary.com/imprinting

 

 

TABACCO: So you’ve had your home foreclosed on, but the important issue is Elizabeth Warren or Nancy Pelosi!

 

So you’ve lost your job to Outsourcing, but the important issue is Obama’s Birth Certificate!

 

So you’ve been rejected or denied by Private Insurance on your Health Care Claim, but the important issue is Deathers!

 

So the Gasoline price at the pump is $4.00 and heading to $5.00, but the important issue is economic freedom for the top 1%!

 

So the BP Gulf Oil Spill has ruined that economy for years to come, but the important issue is permitting the Oil Industry to get its Subsidies!

 

So Obama has been unable to reduce Unemployment to 6%, but the important issue is putting Republicans, who created the Economic Crisis and drove Unemployment to 9% in first place, back into the White House!

 

So Middle Class Income has been static since Ronald Reagan’s presidency, but the important issue is expelling Illegal Hispanics rather than punishing Employers, who hire Illegals!

 

So Israel has Undeclared Nuclear Weapons, but the important issue is prohibiting Iran from producing WMDs!

 

So Castro Cuban Socialist Communists are evil, but the important issue is importing cheap products from China’s Capitalist Communist factories!

So BP and Exxon have had bad Oil Spills, the Banks were involved with worthless Derivatives, Enron scammed everybody, Bernie Madoff worked his Ponzi Scheme on the Wealthy, but the important thing is DEREGULATION!

 

The Biggest Stock Scams Of All Time

December 02 2011

 

It is unfortunate, but words often associated with money and fortune are “cheat,” “steal” and “lie.” Who among us hasn’t “accidentally” taken two $500 bills from the Monopoly bank, or forgotten at least once to pay $5 back to a friend? Chances are you were never called on it, because your friends trusted you. Just as we trust our friends, we put faith in the investing world. Investing in a stock takes a lot of research, but it also requires us to make a lot of assumptions. For example, we assume reported earnings and revenue figures are correct, and that management is competent and honest, but these assumptions can be disastrous.

Tutorial: Online Investment Scams

Understanding how disasters happened in the past, can help investors avoid them in the future. With that in mind, we’ll look at some of the all-time greatest cases of companies betraying their investors. Some of these cases are truly amazing; try to look at them from a shareholder’s standpoint. Unfortunately, these shareholders had no way of knowing what was really happening, as they were being tricked into investing.

Learn how to turn $1k to $10k with Penny Stocks!

ZZZZ Best Inc., 1986
Barry Minkow, the owner of this business, posited that this carpet cleaning company of the 1980s would become the “General Motors of carpet cleaning.” Minkow appeared to be building a multi-million dollar corporation, but he did so through forgery and theft. He created more than 10,000 phony documents and sales receipts, without anybody suspecting anything.

Although his business was a complete fraud, designed to deceive auditors and investors, Minkow shelled out more than $4 million to lease and renovate an office building in San Diego. ZZZZ Best went public in December of 1986, eventually reaching a market capitalization of more than $200 million. Amazingly, Barry Minkow was only a teenager at the time! He was sentenced to 25 years in prison.

Centennial Technologies Inc., 1996

In December 1996, Emanuel Pinez, the CEO of Centennial Technologies, and his management, recorded that the company made $2 million in revenue from PC memory cards. However, the company was really shipping fruit baskets to customers. The employees then created fake documents to appear as though they were recording sales. Centennial’s stock rose 451% to $55.50 per share on the New York Stock Exchange (NYSE).

According to the Securities and Exchange Commission (SEC), between April 1994 and December 1996, Centennial overstated its earnings by about $40 million. Amazingly, the company reported profits of $12 million, when it really lost about $28 million. The stock plunged to less than $3. Over 20,000 investors lost almost all of their investment in a company that was once considered a Wall Street darling.

Bre-X Minerals, 1997

This Canadian company was involved in one of the largest stock swindles in history. Its Indonesian gold property, which was reported to contain more than 200 million ounces, was said to be the richest gold mine, ever. The stock price for Bre-X skyrocketed to a high of $280 (split adjusted), making millionaires out of ordinary people overnight. At its peak, Bre-X had a market capitalization of $4.4 billion.

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The party ended on March 19, 1997, when the gold mine proved to be fraudulent and the stock tumbled to pennies, shortly after. The major losers were the Quebec public sector pension fund, which lost $70 million, the Ontario Teachers’ Pension Plan, which lost $100 million, and the Ontario Municipal Employees’ Retirement Board, which lost $45 million.

Enron, 2001

Prior to this debacle, Enron, a Houston-based energy trading company was, based on revenue, the seventh largest company in the U.S. Through some fairly complicated accounting practices that involved the use of shell companies, Enron was able to keep hundreds of millions worth of debt off its books. Doing so fooled investors and analysts into thinking this company was more fundamentally stable, than it actually was. Additionally, the shell companies, run by Enron executives, recorded fictitious revenues, essentially recording one dollar of revenue, multiple times, thus creating the appearance of incredible earnings figures.

Eventually, the complex web of deceit unraveled and the share price dove from over $90 to less than 70 cents. As Enron fell, it took down with it Arthur Andersen, the fifth leading accounting firm in the world at the time. Andersen, Enron’s auditor, basically imploded after David Duncan, Enron’s chief auditor, ordered the shredding of thousands of documents. The fiasco at Enron made the phrase “cook the books” a household term, once again.

WorldCom, 2002

Not long after the collapse of Enron, the equities market was rocked by another billion-dollar accounting scandal. Telecommunications giant WorldCom came under intense scrutiny after yet another instance of some serious “book cooking.” WorldCom recorded operating expenses as investments. Apparently, the company felt that office pens, pencils and paper were an investment in the future of the company and, therefore, expensed (or capitalized) the cost of these items over a number of years.

In total, $3.8 billion worth of normal operating expenses, which should all be recorded as expenses for the fiscal year in which they were incurred, were treated as investments and were recorded over a number of years. This little accounting trick grossly exaggerated profits for the year the expenses were incurred; in 2001, WorldCom reported profits of around $1.3 billion. In fact, its business was becoming increasingly unprofitable. Who suffered the most in this deal? The employees; tens of thousands of them lost their jobs. The next ones to feel the betrayal were the investors who had to watch the gut-wrenching downfall of WorldCom’s stock price, as it plummeted from more than $60 to less than 20 cents.

Tyco International (NYSE: TYC), 2002
With WorldCom having already shaken investor confidence, the executives at Tyco ensured that 2002 would be an unforgettable year for stocks. Before the scandal, Tyco was considered a safe blue chip investment, manufacturing electronic components, health care and safety equipment. During his reign as CEO, Dennis Kozlowski, who was reported as one of the top 25 corporate managers by BusinessWeek, siphoned hordes of money from Tyco, in the form of unapproved loans and fraudulent stock sales.

Along with CFO Mark Swartz and CLO Mark Belnick, Kozlowski received $170 million in low-to-no interest loans, without shareholder approval. Kozlowski and Belnick arranged to sell 7.5 million shares of unauthorized Tyco stock, for a reported $450 million. These funds were smuggled out of the company, usually disguised as executive bonuses or benefits. Kozlowski used the funds to further his lavish lifestyle, which included handfuls of houses, an infamous $6,000 shower curtain and a $2 million birthday party for his wife. In early 2002, the scandal slowly began to unravel and Tyco’s share price plummeted nearly 80% in a six-week period. The executives escaped their first hearing due to a mistrial, but were eventually convicted and sentenced to 25 years in jail.

HealthSouth (NYSE: HLS), 2003
Accounting for large corporations can be a difficult task, especially when your boss instructs you to falsify earnings reports. In the late 1990s, CEO and founder Richard Scrushy began instructing employees to inflate revenues and overstate HealthSouth’s net income. At the time, the company was one of America’s largest health care service providers, experiencing rapid growth and acquiring a number of other healthcare-related firms. The first sign of trouble surfaced in late 2002 when Scrushy reportedly sold HealthSouth shares worth $75 million, prior to releasing an earnings loss. An independent law firm concluded the sale was not directly related to the loss, but investors should have taken the warning.

The scandal unfolded in March, 2003, when the SEC announced that HealthSouth exaggerated revenues by $1.4 billion. The information came to light when CFO William Owens, working with the FBI, taped Scrushy talking about the fraud. The repercussions were swift, as the stock fell from a high of $20 to a close of 45 cents, in a single day. Amazingly, the CEO was acquitted of 36 counts of fraud, but was later convicted on charges of bribery. Apparently, Scrushy arranged political contributions of $500,000, allowing him to ensure a seat on the hospital regulatory board.

Bernard Madoff, 2008
Making for what could be an awkward Christmas, Bernard Madoff, the former chairman of the Nasdaq and founder of the market-making firm Bernard L. Madoff Investment Securities, was turned in by his two sons and arrested on Dec.11, 2008, for allegedly running a Ponzi scheme. The 70-year-old kept his hedge fund losses hidden, by paying early investors with money raised from others. This fund consistently recorded a 11% gain every year for 15 years. The fund’s supposed strategy, which was provided as the reason for these consistent returns, was to use proprietary option collars that are meant to minimize volatility. This scheme duped investors out of approximately $50 billion.

The Bottom Line
The worst thing about these scams, is that you never know until it’s too late. Those convicted of fraud might serve several years in prison, which in turn costs investors/taxpayers even more money. These scammers can pick a lifetime’s worth of garbage and not even come close to repaying those who lost their fortunes. The SEC works to prevent such scams from happening, but with thousands of public companies in North America, it is nearly impossible to ensure that disaster never strikes again.

Is there a moral to this story? Sure. Always invest with care and diversify, diversify, diversify. Maintaining a well-diversified portfolio will ensure that occurrences like these don’t run you off the road, but instead remain mere speed bumps on your path to financial independence. For further reading, see Playing The Sleuth In A Scandal Stock.


Read more: http://www.investopedia.com/articles/00/100900.asp#ixzz1nzWt5p00

http://www.investopedia.com/articles/00/100900.asp#axzz1nzVRnAfj

 

So during Bill Clinton’s presidency the National Debt was reduced for the first time in recorded history, but the important issue was Monica Lewinsky!

 

So women’s rights are significant and their views on contraception and abortion are relevant, but the important issue is that only a group of white males in Congress should make the final decision on these women’s rights!

 

So Congress continues to waste our Tax $ on ‘Bridges to Nowhere’ under Earmarks, but the important issue is reducing Taxes for the Rich!

 

So 99% of Americans are in financial trouble under America’s Economy, but the important issue is maintaining that economic system: Capitalism!

 

So the patient, who smoked himself into throat cancer, who drank himself into chronic kidney disease and/or cirrhosis of the liver, is morally unblemished, but the important issue is prevention of Gay Marriage, which obviously will reduce the incidence of AIDS!

 

So the National Debt is $15 Trillion+ and rising rapidly, but the important issue is Tax Reduction – for the Rich!

 


http://www.usdebtclock.org/

 

 

Need I say more!

 

 

Tabacco: I consider myself both a funnel and a filter. I funnel information, not readily available on the Mass Media, which is ignored and/or suppressed. I filter out the irrelevancies and trivialities to save both the time and effort of my Readers and bring consternation to the enemies of Truth & Fairness! When you read Tabacco, if you don’t learn something NEW, I’ve wasted your time.

 

Tabacco is not a blogger, who thinks; I am a Thinker, who blogs. Speaking Truth to Power!

 

In 1981′s ‘Body Heat’, Kathleen Turner said, “Knowledge is power”.

 

T.A.B.A.C.C.O.  (Truth About Business And Congressional Crimes Organization) – Think Tank For Other 95% Of World: WTP = We The People


 

 

T1568\3474

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5 Responses to Why Republicans Love The Stupid, The Ignorant, The Under-Educated, The Easily-Influenced, The Gullible, The Religious Zealot, The Sponge, The Parrot, And The Follower!

  1. admin says:

    From Above:

    “Bernard Madoff, 2008
    Making for what could be an awkward Christmas, Bernard Madoff, the former chairman of the Nasdaq and founder of the market-making firm Bernard L. Madoff Investment Securities, was turned in by his two sons and arrested on Dec.11, 2008, for allegedly running a Ponzi scheme. The 70-year-old kept his hedge fund losses hidden, by paying early investors with money raised from others. This fund consistently recorded a 11% gain every year for 15 years. The fund’s supposed strategy, which was provided as the reason for these consistent returns, was to use proprietary option collars that are meant to minimize volatility. This scheme duped investors out of approximately $50 billion.”

    With stock and Ponzi schemes so intricate and complex, is it any wonder that Bernie Madoff is the only name from “The Biggest Stock Scams Of All Time” that most people even recognize. Capitalist rogues count on this intricacy and this complexity to maintain a low profile even if discovered and prosecuted. Hell, Gordon Gekko has much higher name recognition than Dennis Kozlowski!

    And if you think Ponzi Scams are inscrutable, how about honest investing on Wall Street! And while we’re at it, try reading those disclaimers you have to approve before you may access or download from the Internet – you approved it, but did you actually read it!

    Tabacco

  2. Elmides says:

    maybe if you include more photos and videos your article would be more understandable.http://www.floresemesa.com

    • admin says:

      Elmides:

      Thank you for your input. I assume you must belong to the Facebook/YouTube very young generation. I include pics and video links when I want to make a point, not to fill up space. I blog for those folks, who are capable of reading text and whose attention span exceeds 5 minutes. If you want to read something with lots of pictures and videos, I suggest you stick to Facebook and YouTube – oh, you might expand your horizons to TV sitcoms, reality shows and comics (if they still exist). I also recommend highly ‘Sesame Street’!

      You might want to refer your parents to this blog because I write for intelligent adults! Please come back in 20 or 30 years when your attention span increases!

      Rots o Ruck,
      Tabacco

  3. admin says:

    Romney: U.S. Doesn’t Need “More Firemen, More Policemen, More Teachers”

    While Obama’s comments drew widespread scrutiny, Republican candidate Mitt Romney drew far less media attention after openly attacking the hiring of firefighters, police officers, and teachers. Speaking in Iowa on Friday, Romney invoked the recent election in Wisconsin to criticize Obama for pushing a measure to help states regain public sector jobs.

    Mitt Romney: “He wants to hire more government workers. He says we need more firemen, more policemen, more teachers. Did he not get the message of Wisconsin? The American people did. It’s time for us to cut back on government and help the American people.”

    http://www.democracynow.org/2012/6/11/headlines
    Repub by Tabacco

  4. admin says:

    Alabama Gov. Signs Anti-Abortion Law; Arkansas Senate Advances New Curbs
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    Reddit_20 Email_20 Addthis_20

    Republican Gov. Robert Bentley of Alabama has signed into law a measure forcing clinics to have a state-licensed physician present at every abortion. Such doctors would also have to obtain admitting privileges at a local hospital, a step that can be impossible for abortion providers. The law is set to take effect in July. A similar effort is threatening the closure of the lone abortion clinic in Mississippi, but legal challenges are expected in both states. The state Senate in Arkansas, meanwhile, has advanced a measure that would cut off sex education grants to Planned Parenthood for providing abortions. Planned Parenthood says the measure could affect doctors and rape crisis centers for referring women to the group’s services.
    http://www.democracynow.org/2013/4/10/headlines

    Tabacco: Republicans/Conservatives/Tea Partyers/Right Wingers know how to do one thing – and it isn’t Democracy! The know how to be OBSTRUCTIONISTS! This Alabama Legislation (why is it almost always the Deep South!) is meant to OBSTRUCT the Supreme Court’s Decision in Roe V. Wade – nothing more, nothing less! If they like Federal Laws or Supreme Court Decisions like ‘Separate But Equal’, then everything is Jim Dandy! But if they really don’t like it, they try every dirty trick they can think of to do what, Class? OBSTRUCT IT!

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