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Cautionary Notes

Wed March 30, 2011

We will post out Tuesday update tomorrow; it is long term view using one stock of where this market really is in terms of recovery. Stay tuned for that. In the mean time from the news today

In India Doubts Gather Ovewr Rising Giant's Course, WSJ 3/30/2011 Page A1

In recent months, the mood in teh planet's most populate democracy has soured badly – to the point that some of India$'s richest people have begun to complain that things are seriously amiss.

Observation Social mood is determined endogenously, from within a person not from outside sources. We pegged the Bombay Exchange as topping last November and said so right here. Now it is front page news that the mood has changed. Bear markets also happen in fractrals. Here is more evidence it is underway. Actually Jim Rogers in his round the world tours predicted that India would have lots of problems, too muchy red tape, too much bureaucracy. Indeed this article reports China has added ten times as much power as India has in the same period of time. The Article bylines, Flawed Miracle.

ON page C3 Trump's son in law is over his head in the most expensive property ever purchased, $1.8

billion at the time. Now he is $3.5 M a month short on the payments.

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3 responses to “Cautionary Notes”

  1. Phillip Garcia Avatar
    Phillip Garcia

    On Donald Trump’s on in law, if I had a chance to buy a building for $1.8 billion dollars, I would buy more than one building. There is a saying “Don’t put all your eggs in one basket.” Mr. Trump’s son in law should have started small and invested in a couple of nice houses or buildings for a limit of $3 to $5 millions each. Always make sure that your have enough cash on-hand to paid your most important bills. The son-in-law might not get another chance, because of his failure to pay his business bills.

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  2. Dennis Elam Avatar
    Dennis Elam

    I am reminded of a famous comment a county commissioner made in Andrews TX. The CC has borrowed quite a bit of money against his cotton crop. When asked if he was worried about that, he replied, heck I know the banker is worried, no point in both of us worrying about it!
    I have always thought this was the Trump method, borrow enough the banker worries bout your default more than you do.
    See the much better investment his Dad made on the next post.

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  3. blanca Herrera Avatar
    blanca Herrera

    if I were to open my business, the first thing I would do is gather all the money. thatway we dont have to to borrow money . you have to check the interest rate, and see if your business is going to be successful.

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