Charlie Champion is on the Way Back , Look for his Imminent Arrival

September 30th, 2010

To those fans and readers who have missed my wit and insights ,

” Thank You for your Good Taste!!”

 ” Thank you for the loyalty and the notes and letters.”

I have gone through a rather dramatic upheaval in lifestyle, and my attention has been split in a myriad of directions. The changes are almost completed, and the World and the NEWS is beginning to drive me crazy…A good sign that the time to jump back in, is nigh.

I am no longer a resident of the North East.

 The Tri State region had been my home for a long time, and my house, located  in Long Beach , was as close to  an affordable Paradise as exists in that part of the Country.

Alas, high taxes both business and personal, and a debilitating recession, made it prudent and economically feasible, to move my business and  my family to the sunny South .

My new home is also a paradise, filled with the bounty of Southern beauty and hospitality. I have worked hard all of my life,and my new life is proof that the system works.

The opportunity to achieve and create afforded us by our Wonderful Country,is the greatest gift of all, because it gives all of Her citizens the freedom to achieve.

Free Enterprise and the Freedom to improve ourselves , is the foundation of this Great Nation. This liberty is in JEAPORDY  and must be defended at all costs.

Why the World is Going Broke. Does Anyone Care ?

May 21st, 2010

Why is the world going broke, and how did we get into this mess.

Start with a homeowner who was granted a mortgage even though he did not deserve one, and couldn’t afford one.

During a dip in the economic cycle, he looses his job, and can’t keep up with his mortgage payments.

He falls behind and ultimately defaults on his loan.

The mortgage company that brokered his loan  to the lending institution , takes a loss on the bad debt and goes broke.

The lending bank has a growing number of  defaulting  mortgages, and fails.

The failed bank had previously packaged and sold its mortgage loans as “derivatives”, to another bank.

The larger bank which bought the first bank’s derivative debt “bomb”, now goes broke.

The government springs into action, bailing out the failied bank, and assumes their bad debt.

As the derivative bombs continue to explode, they turn into a “blitzkreig” which threatens our entire financial system.

The government steps up and spends trillions of dollars to bail out and prop up the “entire world” .

While spending all of this bail out and now stimulus money which it does not have, the government continues to :

Provide Social Security, money , which it does not have.

Provide unemployemnt insurance  for upwards of 20 % of the population for almost 2 years, money , which it does not have.

Provide Medicare and Medicaid and other free health care services, with  money that it does not have.

Provide another trillion dollar health care reform coverage, with money, that it does not have.

Bail out the Bankers with TARP funds, which it does not have.

Bail out the auto industry with money it does not have.

Bail out and protect labor unions, with money that it does not have

When smaller countries, governments, states, counties, and municipalities can no longer afford the growing tide of the social welfare state, they turn to larger governments and countries to bail them out.

Investors seeing the dangerous rising tide of debt and insolvency in the world, buy big government bonds because they are “safer”.

When big governments run out of printers ink, the Ship of State finds inself sailing in rivers of red ink.

Red ink is not as buoyant as clean clear water, and the Ship of State is in danger of sinking.

Disaster lurks !

The main stream media and their very long noses

April 8th, 2010

The other day, a business, news report on CNBC talked about the exciting road to economic recovery.

The absurdity of the optimistic dribble left me shaking my head in disbelief.

Walk out of your insulated little cocoon world and look at the reality of life.

Our economy is in terrible shape, and despite the optimistic run up on Wall Street, our status is deteriorating not improving.

Twist the facts how ever you want, the World is in the beginning  stages of an extended deleverage process, unwinding from nearly 50 years of credit expansion.

We have lived beyond our means, existing in a world of hypocritical conspicuous consumption.

Keeping up with the Jonses .

Practicing one upsmanship.

Bigger and flashier is better.

Most expensive is best.

No!! No!! No!!

We are now going to be paying a very hard price, which has just begun.

Western economies in general are hemorrhaging jobs,  money, and slowly we are loosing our freedom.

The deficits are staggering, and growing at an alarming rate, and governments are attempting to keep up by printing fiat paper as fast as their printing presses can run.

The United States is not alone, see Greece,Italy, Great Britain, Ireland,Spain,ET AL.

Our currencies are being diluted, and our grandchildren are being  turned into chattels, to serve a current agenda.

Our future is being wagered upon a foundation of government spending, massive entitlements, and staggering deficits.

This foundation is sitting upon a swamp.

Sixteen Months to Socialized medicine, How about a Capitalist Stimulus to Pay for this mess.

March 30th, 2010

The politicians spent 16 months fighting , quibbling , and arm twisting to pass this massive health care bill which no one has read. and which” we had to pass so that we can find out what is in the bill”.

O K , so it passed.

Now what?

Despite the phony optimism about the recovery of our ailing economy, I still find middle America is living on life support.

Business on Main Street is weak, and sinking further into the “red” with every passing day.

The health care bill is starting to add additional expenses to our bottom line, and the “benefits ” won’t show up for 4 or more years.

What are we supposed to do in the mean time?

The $ Trillion stimulus is a joke.

Not one penny has trickled down to the main stream private sector.

Construction is dead, retail sales are shrinking, the unemployment actual figures remain solidly in the  mid 20’s, and housing is soft and desperately treading water (trying to keep from going under water)

The next wave of foreclosures is a 2 headed viper, coiled and ready to spring, with the commercial loan defaults, and the prime ARM’s due to begin phase II & III later in 20 10 and spilling over into 2011 and beyond.

Wall Street is having a great time, defying gravity, blowing in the wind, and blowing smoke up you know where.

The rich get richer, and those in power become more and more powerful and entrenched at the expense of us, you and me, the citizens of this great country, that sadly is sliding into Socialistic mediocrity at an alarming rate.

Wall Street keeps going up while Main Street is going under water. Why?

November 13th, 2009

The Federal Reserve and our fearless leaders in Washington have set up a “Can’t Lose” scenario for big bank speculation.

Their traders are almost guaranteed winners . This is  a “no brainer” situation which leaves me  sorry that I left the tradeing desk  a lifetime ago.

The big banks can borrow money from the Fed for close to 0%, which they theoretically should be lending to consumers for mortgages, small business loans, and other economy stimulating  activities.

Instead they are useing this almost free money to speculate or trade in foreign currencies, or to buy commodities such as oil , gold futures, or anything else which is benefiting from a falling dollar.

Prices across the board are being bid up despite the imminent onset of the next phase of our recession/ depression.

Large multinational corporations are showing growing profits due to the weakened dollar . Overseas sales in foreign currencies are brought back to the U S where an additional profit is realised due to the dollars weakness.

If you pay attention to the economic reports, you will notice an exorbitant number of corporations reporting that they exceeded estimates of earnings per share (E P S ) but they are also reporting shrinking sales volume.

The increased profits despite smaller volume is due to cost cutting overhead.( Layoffs) , in addition to the falling dollar.

A win for multinational corporations, a big LOSS  for the American worker.

The Market continues to recover, passing the Dow 10000 mark and not looking back, yet the U S economy is still mired in a spreading recession.

Unemployment is increasing week by week. Last week the new filings for Unemployment insurance wasd ONLY 510000 ..Only!! Are you kidding me.

They say that is an improvemnt showing a turn in the economy.BULL FEATHERS!!! 

 They don’t care.

They have an agenda which welcomes spreading economic pain for the little guy.

In September consumer credit fell almost $ 15 billion, the 8th consecutive month of contracting consumer credit, (Over $ 170 billion total so far)

Considering that consumer debt is still exceeding historical levels by over 60% of income, or almost 2 1/2 to 1 . This indicates an additional correction can be expected, which should exceed the rapid decrease which we have just experienced.

 These figures do not include the mortgage credit markets, creating an additional credit contraction of $ 4 – 6 trillion.

This scenario, coupled with other market factors which we have discussed over the past 16 months will create a serious deflationary spiral, which should accelerate as the prime ARM’s begin to accelerate in 2010-2011.

At this rate of deflation the burgeoning recession/depression figures to have another 5-8 years, assuming that the Government leaves the economy alone,  Which it won’t.

Next- Don’t forget the falling dollar!!! A great way to further muddy the waters .

Why are stocks still going up? The lie of the century!

November 13th, 2009

Every day I watch the steady increase in stock prices and I hold my breath.

” Will today be the day the world wakes up , looks in horror at their portfolio holdings, and decides to Sell ! Sell ! SELL !!!”

Stocks are going to be hit hard and the Market is going to tank, when people realze that the recovery is a fraud.

There are several things which might set this off, but I believe that the second wave of foreclosures and defaults is getting ready to begin in early 2010.

Rising unemployment is definitely a major factor, pushing many prime mortgage holders over the edge into default.

The depletion of the severance packages given to bankers and other executives in the fall of 2008 and early 2009 is beginning to take a toll. Upper income executives expecting to quickly find new jobs, continued to maintain a semblance of their life style, and with the scarcity of jobs, they find severance pay dissapearing, and bank accounts depleted.

This financial deterioration and continued bleak employment picture is now affecting a new category of exotic mortgages, which were developed in the early part of this decade to enable young executives to take advantage of the exploding real estate market.

Beginning in 2002 and 2003 , just as the real estate market  began to approach its peak, the Alt A, and oprtion ARM’s sprang into existence as a way for these wealths executives to purchase homes that they could not really afford, by offering loans with 5-7 year interest only payments, or low interest mortgages with an adjustable balloon after the 5-7 year period.

Additional creative, no income verification loans were created , featuring low payments for that 5-7 year period, knowing that all of these prime mortgages would adjust upwards after the initial period.

The theory was dependent upon a never ending rise in real estate prices and a endless supply of money available to fund new mortgages.

These adjustable mortgages . by contract with the buyers, are set to adjust not at prime or treasury rates, but at a premium spread above these rates.This is the payment agreed to in exchange for no income verification and low payment options selected by home purchasers.

These higher peyments are confounded by the reality that many of these larger mortgages are already under water.( Loan is more than the value of the home)

The timing of many of these loans during the last phase of the Real  Estate Boom, leaves many with a very high loan to value ratio.

As these loans readjust then end up in defauld , the foreclose rate will accelerate, creating a new real estate tumble.



Is Wall Street right? Are things really getting better?

October 22nd, 2009

Wall Street might think its right, but its really turning left, and a left turn  isn’t good for Capitalism.

Our investments are doing very well !

The Dow is currently holding above 10000.

And this is a  great achievement when you compare it to last March, but very sobering when you realise that this is where it was in the Spring of 1999. This kind of progress could drive a sober person to drink.

When you factor in the fact that the buying power of the dollar is only 70-75% of what it was in 1999,  a case could be made for investors being down 25-30% during the last decade.

“Hot Dog! Are we running backwards, or what!”

In real terms, almost 15% of us  are unemployed, and home prices continue to fall .

Foreclosures are increasing at close to a  5% rate, and the numbers are growing despite various government sponsored and ineptly initiated bailout plans.

What will the future bring? Are things really improving, or is this a sham perpetrated with mirrors.

The Obama presidency has hit some serious bumps in the road, and his future as a viable President is being affected.

A case in point is the Governors race in New Jersey.New Jersey is a traditionally very blue state, and one that Obama carried by better than 15% .

Despite a highly  uninspired campaign, Chris Christie the Republican candidate is running neck and neck with  Governor Corazine.

The panic in the Democratic ranks is evident by the parade of heavy hitters arriving in New Jersey to try and boost Corazines reelection chances.

In the last week, we have seen Vice President Biden, Former President Bill Clinton, and now the President himself, stump the state in an attempt to engender excitement for Corazine, yet the polls continue to signal a dead heat.

This is not a good omen .

A Democratic loss, or even a close win is a repudiation of the Obama policies, and an abandon ship warning from the moderates in his party.

Obama is stuck in a quandary. All the money spent, and the promises made, leave his presidency in a very difficult position.

Going forward is impossible and going backward is unthinkable.

He can’t back away from his promises to rescue the U S economy, if he does the whole country will loose the glow of hero worship, and the historic election will turn into quite a different meaning.

On the other hand, going forward with his expensive rescue and stimulus programs will take $ trillions additional. Since he doesn’t have the money, he will have to borrow or print more .

He has already used up half the trees in North America printing all this money so far. Who knows how many more trees will have to be sacrificed to the voracious printing presses.

The best hope for a successful resolution for the President would be an economic recovery.This way Obama wouldn’t have to do anything, and he would be able to retain his mantle of invincibility.

That is not going to happen, no matter how much the media and the insiders try to run this rally.

“Why not?” You ask.

If you have followed my writings you already have the answer.

Our system is broken, the recovery is an illusion, and the reality is that we are headed into a much more serious recession/ depression.

The consumer credit economy is dead.

The banks aren’t lending to consumers, and the consumers don’t want to borrow anyway.

Consequently demand is shrinking.

Wall Street has managed to keep its rally going by posting higher profits , which they trumpet, yet lower gross sales, which they whisper.

They call it reduced overhead, but what they mean is employee layoffs, and shrinking benefits.

Rest assured, this recovery is a fraud, and the illusion for recovery is a sham.

The Lazy Little Squirrel who refused to gather nuts, a parable about incentives to work

October 19th, 2009

Stanley squirrel was enjoying his first summer.

He had learned to leap from tree to tree using the spring of the branch to launch himself to his next target.  The feeling of exhilaration as he flew through the air was liberating.

All the first year squirrels liked to play together, chasing butterflies, splashing through the shallow creek and sunning themselves in the warm summer sunshine.

The older squirrels cautioned the newlings, ” play is fine, but as squirrels, we all must spend our time gathering acorns and other nuts for the cold winter when food becomes scarce.  If we don’t work together, we will all go hungry.”

Stanley, being somewhat stubborn and simple-minded , rebelled against the elders.

” I live to play,” He said.  ” I don’t know what winter cold is, but I’m sure it can wait a few more days.  After all, we are young and healthy and food is very plentiful…Why worry?”

Stanley and his siblings resumed their play, pretending to not hear his mothers screech of anger.

Summer passed quickly and the early fall brought cooler nights, but the days were  warm and the sun shone with a  brilliant clarity. Stanley continued to ignore the admonishment of the adults, playing and sleeping instead of gathering nuts for the winter.

One by one, all of his playmates left to join the rest of the squirrels in preparation for the coming season.

Finally it was only Stanley, and his special friend, bushy tailed, Stephanie.

” Look at all those fraidysquirrel’s, running to gather nuts” said Stanley.” We squirrels take care of each other. If we need food, the others will share their wealth,meanwhile we can play.”

Stephanie flicked her tail in his face and sprang away, with Stanley in hot pursuit.

Time passed, and late Fall turned into early Winter.

 The first snowfall of the season hit the forest. Everything was covered with a thin white blanket, and the crystals shone brightly in the morning sun.

Stanley and Stephanie sat on a bare branch of their favorite Oak tree. ” The others are still looking for food” said Stephanie, her black eyes wide with alarm.

“Don’t worry”, said Stanley,” we will look for food tomorrow.In the mean time,  the others will share their wealth with us  if we need it. ”

“Tag you’re it!” he shouted,  and sprang from the branch, sending a shower of snow to the ground below.

A few days later, Winter set in with a vengeance. The snow fell for 2 days, and the winds blew huge drifts against the trunks of the trees.

” I’m hungry ,” whined Stephanie.” All the nuts and berries are gone. What will we eat.”

 Stanley looked around.” Yes I’m hungry too. Lets go ask the others to share their wealth.”

They scampered off and went to see the Top Squirrel and the other elders.

” Can we please have something to eat.” They asked in unison.” We are hungry, and there is no food to be found in the forest.”

The Top Squirrel looked at them sadly, and shook his head.” We have been working all summer and all fall to gather enough food to keep us alive during the long cold winter.”

 He stamped his front paw.” That’s what squirrels do. We work as a community to provide the food to keep us alive. Everyone must contribute or we all die.”

Stanley hung his head.” We didn’t know..” His dark eyes opened wide.” I always thought we were part of a community of squirrels.

All for one and one for all.

From each according to his means to each according to his needs.

Share and share alike

We should be be taken care of by the Community of Squirrels.”

The Top Squirrel shook his head. His eyes blazed with anger.” By ignoring  our warnings, and playing instead of working, you have jeopardised our community.

Everyone must work together for all to survive.

I’m sorry. You and Stephanie must find your own food.

We have only enough to feed those who helped gather the food. If we feed you we all starve. ”

THE MORAL of the STORY: Redistribution of wealth only works if there is some incentive to contribute to the common good.

The Straw That Broke the Camel’s Back, a Parable about An Economy in Distress

October 14th, 2009

There is an old Middle Eastern tale about a poor farmer.

He lived in a  mud and straw hut , with his wife and three teenage daughters.

He owned 3 old camels .

Twice a year, at the Spring and Fall solstice,  he would pack the camels with large bags of straw and wheat.

He would kiss his wife , hug his three daughters, and then he would set off  for the 10 hour trek to the market at Dandalia.

This was a very important trip for the poor farmer, who  hoped to sell his produce and earn enough money to keep his family alive for the next 6 months.

Upon arriving in Dandalia , he would join with farmers from all over the Province . He would then set up his assigned booth, and displaying his wares.

The market would last for two full days,.The crowds were boisterous and the din was deafening. By the end of the second day, the farmer would count up his meager earnings, repack the now  empty hemp  sacks, and  tie his three camels into a caravan.

The return trip home was always much quicker, because he and Gabor, his young helper could ride the tired old camels.

One morning the farmer awoke and  found his two neighbors waiting for him in the front yard.

They offered the farmer  bags of straw as additional produce  to bring to market.He could keep 50% of the profits for his trouble.

The farmer was excited. With the extra money he could keep his family secure and comfortable.

The day before Spring Solstice was  cool, with a brisk gusty wind.

The farmer brought out the three old camels, and proceeded to load his bags of straw,

He looked at the camels. They were  pretty well loaded, but he was determined to pick up the additional freight from his neighbors.

He arrived at Abmar’s yard and found 8 additional bags waiting for him.

The camels were  loaded with much argument and posturing.

The farmer and the heavily burdened camels walked to  Fardeneen’s yard

There he found Fardeen and five additional bags of straw.

Loading the camels required a ladder, a makeshift pulley assembly and also a great deal of  discussion.

Each camel in turn staggered as the additional burdem was placed on its back. Their knees trembled, and they shifted unsteadily.

“Well,” said the farmer,” I guess I’ll be on my way.” He shook his head,” I don’t think these camels could carry another ounce of freight.”

Just then, Fardeen’s 12 year old daughter, came running out of the house. She was holding a large straw doll wrapped in a scrap of pale grey cloth. It was 2 feet tall, and had been made by weaving stalks of straw together, then dyed and clothed.

“Daddy, Daddy” she gasped, her arms wrapped around the doll’s body to hold it steady. ” You promised I could sell Esmerelda at the Solstice Market. I need the money to buy cloth for my new clothes.Mother says I am turning into a little woman, and need larger more appropriate dresses.”

He turned to the farmer,” Well ? Will you take  the doll and sell it for my Mindlee?”

The farmer looked at the three ,seemingly unsteady , overburdned camels.” I’m afraid to add any further burder to these camels. They are important to feed my family. I don’t think they can carry another thing.”

Fardeen looked at the farmer. “Come on Hamoken, share the wealth. Give my little girl a chance to get some pretty cloth for dresses. We can’t afford the cloth unless she sells the doll.”

He shook his head. ” I don’t want to disappoint  you but these camels are carrying the burden for our entire community. Let someone else share his wealth. They can’t carry any additional burden.They’ll break down.”

The farmer looked up, and spied the local tax collector approaching from the East.

Tax collector Sninndl looked at farmer Hamoken and smiled. ” I am here on the Governors business. As I’m sure you know, the irrigation project failed due to sabotage from our enemies. We are now  faced with many new poor and starving residents.

It is the Governor’s decree, that a 25% tax will be placed on all new business above last years totals.

 New business is to buy you a  luxury .That new wealth should be shared with those citizens who have the need.”

The farmer looked distressed.” After the extra cost for a slower trip and paying for the extra market space necessary, it will not be worth anything to carry all this extra weight.”

The tax collector sneered.” The Governor has already been told of this extra tax on your load in our report to his scribes. You will have to carry the load to earn the money to pay the tax, even if it does not pay you very much.”

The farmer’s shoulders sagged. He knew he was stuck. He was being forced to do all this extra work .

He turned to Mindlee and gave her a half smile.” Come on, give me your straw man, if we can carry all these taxes for government giveaways, we can carry a little more straw. After all, straw is so lite.”

He took the straw doll, and placed it carefully on  top of the lead camel’s pile of straw filled bags.

The camel turned its head toward the farmer, and gave him a long sad look.

They heard a crack, the camels back broke, and it keeled over…dead.

The moral of the story.Too much taxation is a backbreaker


One World Economy Who’s World will it be?

October 9th, 2009

      Hi. I’m Charlie Champion and I am coming to you as a write in candidate for President.

     I have chosen to run as a write in candidate for President because I have grown to distrust out political system.

      It feels like there is a very sneaky , subversive  agenda  being fostered on the American public.

     The Socialization of our society is in full swing, robbing the individual of incentive to achieve and create.

     With the development of International corporations, and  the globalization of  wealth and production,  our leaders, both Republicrats and Demopublicans  have been leading us on a long sloping path towards a One world economy.

      Out sourcing, open borders, NAFTA, CAFTA, the elimination of duty on many imports, the clues are everywhere.. The money funding so many of our politicians   and their political campaigns appears to pour in from foreign sources.

     Our major industries are being nationalized. The banks, the Auto manufacturers, now they are after health care .

     The ascendancy of socialism has empowered the labor unions, and their loyalty transcends borders.

     If not a world economy, then certainly a North American Union, possibly Western Hemisphere.

    International corporations survive and prosper but how about us?

       Natural resources from Canada, manufacturing with cheap labor in Mexico or Central America is great for corporate profits and wealthy  CEO’s, but what happens to  your Everyman USA citizens? What do we get out of a World wide economy?

      Nothing good!!!  Very little is manufactured here anymore. We are being turned into a nation of  working drones ..Our freedoms are being eroded, and  our living standards are dropping , while   World leadership and World Economic Emperors of Industry get richer and more powerful.
         Unemployment is growing, our home values are crashing, yet our leaders point to an artificially inflated Stock Market as a sign that all is getting better .

     The best Nation in history is being taken away from us.


     We are being turned into a Nation of  slaves many working from paycheck to paycheck. We are becoming mindless workers!


     I DON’T THINK SO!!! I’m no DRONE!!!!


     I’m mad as Hell at what I see coming !! Enough is enough.

    Vote for Charlie Champion for President . This insidious plot must be thwarted.

    Free enterprise not socialism.

     America the Beautiful.