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Subject: Bill Clinton

William Jefferson “Bill” Clinton (born William Jefferson Blythe III, August 19, 1946) was the 42nd President of the United States from 1993 to 2001. He was the third-youngest president; only Theodore Roosevelt and John F. Kennedy were younger when entering office. He became president at the end of the Cold War, and as he was born in the period after World War II, he is known as the first Baby Boomer president. His wife, Hillary Rodham Clinton, is currently the United States Secretary of State. She was previously a United States Senator from New York, and also candidate for the Democratic presidential nomination in 2008. Both are graduates of Yale Law School.

Clinton was described as a New Democrat and was largely known for the Third Way philosophy of governance that came to epitomize his two terms as president. His policies, on issues such as the North American Free Trade Agreement and welfare reform, have been described as centrist. Clinton presided over the longest period of peace-time economic expansion in American history, which included a balanced budget and a reported federal surplus. Based on Congressional accounting rules, at the end of his presidency Clinton reported a surplus of $559 billion. On the heels of a failed attempt at health care reform with a Democratic Congress, Republicans won control of the House of Representatives for the first time in forty years. Two years later, in 1996, Clinton was re-elected and became the first member of the Democratic Party since Franklin D. Roosevelt to win a second term as president. Later he was impeached for obstruction of justice, but was subsequently acquitted by the U.S. Senate.

Clinton left office with an approval rating at 66%, the highest end of office rating of any president since World War II. Since then, he has been involved in public speaking and humanitarian work. Clinton created the William J. Clinton Foundation to promote and address international causes such as treatment and prevention of HIV/AIDS and global warming.

In 2004, he released his autobiography My Life, and was involved in his wife Hillary’s 2008 presidential campaign and subsequently in that of President Barack Obama. In 2009, he was named United Nations Special Envoy to Haiti. [Wikipedia]

Stock buyback fraud

The Buyback Bubble is now official!

An equity market in disequilibrium can suddenly come tumbling down.

The Federal Reserve flow of funds accounts have signaled that there is a massive disequilibrium in the US equity market for over a year. Most investors will pass through these days of madness, hardly appreciating the spectacle that surrounds them.

However, I will step into the breach and make an unsolicited public service announcement:

“The Great Buyback Bubble is now official! Look around you and behold!”

Q1 2006

Individual investors avoid equities

Asset Allocation: Net Mutual Fund Sales

Federal Reserve flow of funds accounts for Q1 2006 show the degree to which equity investments have fallen out of favor with individual investors.

In the year 2000, about 80% of the money that flowed to mutual funds was directed to the equity market.

After the crash, by 2002 less than 20% of net mutual fund sales were allocated to the stock market.

Retirement plans

What is the future of private pension plans?

Critical investment decisions in 'defined contribution' plans are made by unsophisticated workers.

Between 1999 and 2002, US private pension funds lost US$ 1.2 trillion in value. It would almost seem that pension fund managers had been speculating with retirement money, attempting to beat each others’ short-term performance statistics, with little interest in safeguarding the assets of plan beneficiaries.

Political intrusion and trade unionism have debilitated the pension fund industry over many generations. The end of the pension industry may now be in sight.

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Featured articles on inside pages

Stock buybacks

Accelerating to a buyback-option blowout

By Q1 2006, stock buybacks had multiplied to five times the level of 2000. Buybacks grew by 25% in 2005, with corporate profits after taxes increasing only 5.5%. At these rates, buybacks will exceed after-tax profits by 2009.
More ...

Securities Analysis

Is big bank complexity irreversible?

The root problem with big banks today is organizational and product line complexity. Excessive complexity in banks can be traced to the reorganization of Citibank in 1956, under Walter Wriston, following the advice of McKinsey and Company.
More ...

US Politics

The decline of mainstream media

In September 2009, President Obama dominated television in his attempt to sell his government-run health plan, despite massive public opposition. Mainstream media has falling revenues and market share as people turn to unbiased sources. More ...

US equities

GAO favors overly-optimistic projections

In a study of the effect of the retirement of Baby Boomers on the price of equities, the GAO assumed that equities will provide real returns of 7% over the next decades. This figure is often cited in Wall Street promotional literature, but has no scientific basis.
More ...

US Bonds

The collapse of the dollar and US bonds?

The extreme spending of the Obama government, combined with irresponsible bank lending policies promoted by Barney Frank and Chris Dodd, portend rising interest rates, the collapse of the bond market, and the end of dollar supremacy. More ...

World Economy

What Is ‘International Liquidity’?

It used to be that the term 'international liquidity' meant the relative amount of resources available to a nation's monetary authorities that could be used to settle a balance of payments deficit. In the days of the gold standard, this would mean access to gold that could be used to redeem a nation's currency held by foreigners. More ...

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2011-01-04 16:02