"There are two sorts of wealth-getting, as I have said; one is a part of household management, the other is retail trade: the former necessary and honorable, while that which consists in exchange is justly censured; for it is unnatural, and a mode by which men gain from one another. The most hated sort, and with the greatest reason, is usury, which makes a gain out of money itself, and not from the natural object of it. For money was intended to be used in exchange, but not to increase at interest. And this term interest, which means the birth of money from money, is applied to the breeding of money because the offspring resembles the parent. Wherefore of modes of getting wealth this is the most unnatural."

- Politics, Aristotle, 350 B.C.

"The Jew alone regards his race as superior to humanity, and looks forward not to its ultimate union with other races, but to its triumph over them all and to its final ascendancy under the leadership of a tribal Messiah."

- Goldwin Smith, The Jewish Question, October 1881

“I am a most unhappy man. I have unwittingly ruined my country. A great industrial nation is controlled by its system of credit. Our system of credit is concentrated. The growth of the nation, therefore, and all our activities are in the hands of a few men. We have come to be one of the worst ruled, one of the most completely controlled and dominated governments in the civilized world. No longer a government by free opinion, no longer a government by conviction and the vote of the majority, but a government by the opinion and duress of a small group of dominant men.”

- President Woodrow Wilson 1916

“We are grateful to the Washington Post, The New York Times, Time Magazine and other great publications whose directors have attended our meetings and respected their promises of discretion for almost forty years. It would have been impossible for us to develop our plan for the world if we had been subjected to the lights of publicity during those years. But, the world is now more sophisticated and prepared to march towards a world government. The supranational sovereignty of an intellectual elite and world bankers is surely preferable to the national auto-determination practiced in past centuries.”

- David Rockefeller, Baden-Baden, Germany 1991

“It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning.”

- Henry Ford 

“The real truth of the matter is, as you and I know, that a financial element in the larger centers has owned the Government ever since the days of Andrew Jackson.”

- Franklin D. Roosevelt, letter to Col. House, November 21, l933

“One of the least understood strategies of the world revolution now moving rapidly toward its goal is the use of mind control as a major means of obtaining the consent of the people who will be subjects of the New World Order.”

- The National Educator, K.M. Heaton

"We Jews, we, the destroyers, will remain the destroyers for ever. Nothing that you will do will meet our needs and demands. We will for ever destroy because we need a world of our own, a God-world, which it is not in your nature to build."

- Maurice Samuels, You Gentiles, 1924

“We are on the verge of a global transformation. All we need is the right major crisis and the nations will accept the New World Order.”

- David Rockefeller 

“Today, America would be outraged if U.N. troops entered Los Angeles to restore order. Tomorrow they will be grateful! This is especially true if they were told that there were an outside threat from beyond, whether real or promulgated, that threatened our very existence. It is then that all peoples of the world will plead to deliver them from this evil. The one thing every man fears is the unknown. When presented with this scenario, individual rights will be willingly relinquished for the guarantee of their well-being granted to them by the World Government.”

- Dr. Henry Kissinger, Bilderberger Conference, Evians, France, 1991

How to Think Clearly

"Never argue with stupid people. They will drag you down to their level and then beat you with experience." –Mark Twain

If you want to begin to understand and appreciate the work of Mike Stathis, from his market forecasts and securities analysis to his political and economic analysis, you will first need to learn how to think clearly. For many, this will be a cleansing process that could take quite a long time to complete depending on each individual.

The best way to begin to clear your mind is to first move forward with this series of steps:

1. GET RID OF YOUR TV SET (at least cancel your cable)


3. DO NOT USE A "SMART PHONE" (or at least do not use your phone to access the internet)


The cleansing process will take time but you can hasten the process by being proactive in exercising your mind.

You should also be aware of a very common behavior exhibited by humans who have been exposed to the various aspects of modern society. This behavior occurs when an individual overestimates his abilities and knowledge, while underestimating his weaknesses and lack of understanding. This behavior has been coined the "Dunning-Kruger Effect" after to sociologists who described it in a research publication. See here.

Many people today think they are virtual experts on every topic they regard with relevance. The reason for this illusory behavior is because these individuals typically allow themselves to become brainwashed by various media outlets. The more information these individuals obtain on these topics from the media, the more qualified they feel they are in these subjects, without realizing that the media is not a valid source with which to use for understanding something. The media always has bias and can never be relied on to represent the full truth.

A perfect example of the Dunning-Kruger Effect can be seen with many individuals who listen to talk radio shows. These shows are politically biased and consist of individuals who resemble used car salesmen more than intellectuals. These talking heads brainwash their audience with cherry-picked facts, misstatements and lies regarding relevant issues such as healthcare, immigration, Social Security, Medicaid, economics, science, and so forth. They also select guests for interview based on the agendas they wish to fulfill with their advertisers.

Once their audience has been indoctrinated by these propagandists, they feel qualified to discuss these topics on the same level as a real authority, without realizing that they obtained their understanding from individuals who are employed as professional liars and manipulators by the media.  Another good example of the Dunning-Kruger Effect can be seen upon examination of political pundits, stock market and economic analysts on TV.  They talk a good game because they are professional speakers. But once you examine their track record, it is clear that these individuals are largely wrong, but they have developed an inflated sense of expertise and knowledge on topics for which they continuously demonstrate their incompetence.

One of the most insightful analogies created to explain how things are often not what you see was Plato's Allegory of the Cave, from Book 7 of the Republic.

We highly recommend that you study this masterpiece in great detail so that you are better able to use logic and reason.Although we recommend you read and study The Allegory of the Cave, you can get a flavor for its meaning by watching the following video. 

If you can learn how to think like a philosopher, specifically one of the great ancient Greek philosophers, it is highly unlikely that you will ever be fooled by con artists like those who make ridiculous and unfounded claims in order to pump gold and silver, the typical get-rich-quick or multi-level marketing (MLM) crowd.

STOP Being Taken

“Beware of false prophets, which come to you in sheep's clothing, but inwardly they are ravening wolves.”

King James Bible - Matthew 7:15

"It's easier to fool people than to convince them that they have been fooled." –Mark Twain

All Viewpoints Are Not Created Equal Just because something is published in print, online or aired in the broadcast media does not make it accurate.  In fact, more often than not the larger the audience, the more likely the content is either inaccurate or slanted. The next time you read something about economics or investments, you should ask two main questions in order to assess the credibility of the source. Is the source biased in any way?   That is, do they have any agendas which would provide any type of benefit accounting for their views? Most individuals either sell ads on their site or are dealers of precious metals or securities. That means their views are biased and cannot be relied upon.

Is your source is credible?  

Most people associate credibility with name-recognition. But more often than not, name-recognition serves as a predictor of bias if not lack of credibility because the more a name is recognized, the more the individual has been plastered in the media. And every intelligent person knows that individuals who have been provided with media exposure because they are either naive or clueless. The media positions these types of individuals as “credible experts” in order to please its financial sponsors; Wall Street. 

Instead of name-recognition or media celebrity status, you must determine whether your source has relevant experience on Wall Street as opposed to being self-taught. But this is just a basic hurdle that in itself by no means ensures the source is competent or credible. More important, always examine the track record of your source in depth, looking for accuracy and specific forecasts rather than open-ended statements. You must also look for timing since a broken clock is always right once a day.  Finally, make sure they do not cherry-pick their best calls. Always examine their entire track record. 

“Beware of false prophets, which come to you in sheep's clothing, but inwardly they are ravening wolves.”

King James Bible - Matthew 7:15

The above questions require only slight modification for use in determining the credibility of sources that discuss other topics, such as politics, healthcare, etc.We have compiled the most extensive publication exposing hundreds of con men pertaining to the financial publishing and securities industry, although we also cover numerous con men in the media and other front groups since they are all associated in some way with each other. There is perhaps no one else in the world capable of shedding the full light on these con men other than Mike Stathis. Mike has been studying the indistry for well over a decade. Alhough he has published numerous articles and videos addressing this dark side of the industry, the entire collection can be found in our ENCYCLOPEDIA of Bozos, Hacks, Snake Oil Salesmen and Faux Heroes
At AVA Investment Analytics, we don't try to pump gold, silver or equities like many others you see because we are not promoters or marketers. And we do not receive any compensation whatsoever (including from ads) from our content. We provide individual investors, financial advisers, analysts and fund managers with world-class research, education and unique insight.

Media Lies

If you listen to the media, most likely it is costing you hundreds of thousands of dollars in lost money at minimum over the course of your lifetime. The deceit, lies and useless guidance from the financial media certainly is a large contributor of these losses to the sheep you pay attention.

But a good deal of lost wealth comes in the form of excessive consumerism which the media seeks to impose on its audience. You aren’t going to know that you’re being brainwashed or that you have lost $1 million or $2 million over your life time due to the media, but I can guarantee you that with rare exception this is the reality for those who are naïve enough to waste time on the media.

It gets worse. By listening to the media, you are likely to also suffer ill health effects through the lack of timely coverage of toxic prescription drugs or through the ridiculous medical shows, all of which are supportive of the medical-industrial complex.

And if you seek out the so-called "alternative media" you might make the mistake of relying on con men like Kevin Trudeau or Alex Jones. This could be a deadly decision. As bad as traditional media is, the so-called "alternative media" is even worse.

Why Does the Media Air Liars and Con Men?

The goal of the media is NOT to serve its audience because the audience does NOT pay the bills.

The goal of the media is to please its sponsors, or the companies that spend huge dollars buying ads, and in order for companies to justify these expenses, they need the media to represent their cause. The media does this by airing idiots and con men who mislead and confuse their audience.

By engaging in "journalistic fraud," the media steers its audience into the arms of its advertisers because the audience is now misled and confused, so in the case of the financial media, it seeks the assistance of Wall Street brokerage firms, mutual funds, insurance companies, precious metals dealers. This is why advertisers pay big money to be promoted in the financial media.

We see the same thing on a more obvious note in the so-called "alternative media," which is really a remanufactured version of the so-called "mainstream media." Do not be fooled. There is no such thing as the "alternative media." 

In order to be considered "media" you must have content that has widespread channels of distribution. Thus, all "media" is widely distributed and the same powers that control the distribution of the so-called "mainstream media" also control the distribution of the so-called "alternative media."

The claim that there is an "alternative media" is merely a sales pitch designed to capture the audience that has since given up on the "mainstream media."  The tactic is a very common one used by con men.

The same tactic is used by Washington to convince naive voters that there are meaningful differences between the nation's two political parties. In reality, both parties are essentially the same when it comes to issues that matter most (trade policy, healthcare and war). Anyone who tells you anything different simply isn't thinking straight.

On this site, we expose the lies and the liars in the media. We discuss and reveal the motives and track record of the media’s hand-selected charlatans with a focus on the financial media.  

Why Stathis Was Banned

No one has generated a more accurate track record in the investment markets over the past several years than Mike Stathis. Yet, the financial media wants nothing to do with Stathis.

You aren't even going to hear him on the radio being interviewed.

You aren't going to see him mentioned on any websites either.

You won't read or hear of his remarkable track record unless you read about it on this website or read his books.

You should be wondering why this might be. Some of you already know the answer.

The media has banned Mike Stathis because the trick is to air clowns so that the audience will be steered into the hands of the media's financial sponsors - Wall Street and gold dealers.

And as for the radio shows and websites that either don't know about Stathis or don't care to hear what he has to say, the fact is that they are so stupid that they assume those who are plastered in the media are credible. And since they haven't seen or heard Stathis in the media, even if they come across him, they automatically assume he's a nobody in the investment world simply because he has no media exposure.

Well, if media exposure was a testament to knowledge, credibility and excellent track records, Peter Schiff's clients would be a lot happier when they looked at their account balance.

Others only care about pitching what’s deemed as the “hot” topic because this sells ads in terms of more site visits or reads. This is why you come across so many websites based on doom and conspiratorial horse shit run by con artists looking to cash in on ads.

We have donated countless hours and huge sums of money towards the pursuit of exposing the con men, lies and fraud. We continue this mission but we cannot continue it forever without your assistance.

We have been banned by virtually every media platform in the U.S and every website (mainly because we expose the truth about gold and silver).

We have been banned from use of email marketing providers.

The fact is that the Jewish Mafia has declared war on us because we have exposed the realities of the U.S. government, Wall Street and corporate America.

Note that we only began discussing the role of Jews in criminality by 2009, three years AFTER we had been black-listed by the media, so no one can say that our criticism of the Jewish Mafia has led to being black-listed, not that it would even be acceptable.

You can talk about the Italian Mafia, and Jewish Hollywood can make 100s of movies about it...


We rely on you to help spread the word about us. Just remember this. We don’t have to do what we are doing.

We could do as everyone else and focus on making money. We are doing sacrificing everything because in this day and age, unfortunately, the truth is revolutionary. It is also critical in order to prevent the complete enslavement of world citizenry.   

Rules to Remember

On Exposure: No one who has significant exposure can be trusted because those who are responsible for permitting such exposure have allowed it for a very good reason, and that reason does not serve your best interests.

On Spotting Frauds: Whenever you wish to know whether someone can be trusted, always remember this golden rule..."a man is judged by the company he keeps."

This is a very important rule to remember because con men almost always belong to the same network.

You will see the same con artists referencing each other, on blog rolls and so forth.

  • How to Think Clearly
  • STOP Being Taken
  • Media Lies
  • Why Stathis Was Banned
  • Rules to Remember
  • X close

Finally, the Truth on Housing

You’ve all probably seen or heard about the recently released Harvard Housing study. Among other things, the report discusses the fact that the median wage-earner is unable to afford the median priced home and forecasts a drop in real estate prices to the 1999 level. The fact is that the study comes about one year too late for investors and consumers.  

An excerpt from my recent article “Lawrence Yun Continues to Mislead on Housing” summarizes some of my forecasts in the real estate market, first released in 2006.
  • Home Prices: from the peak in 2006, home prices will decline to pre-1999 levels.
  • Commercial real estate market will also suffer
  • Prime Mortgage foreclosures: the next trend in the housing correction will be a crisis in prime mortgages due to the weakness in the economy
  • Rental Market: set to heat up, good investment opportunities
Those who read Cashing in on the Real Estate Bubble understand that the book wasn’t focused on ways to navigate the foreclosure and pre-foreclosure markets because the real opportunity will only come in 2009-2011, depending on the region. The real focus was to convince the reader of the full extent of the crisis by detailing the risks in the real estate and banking industries and advising investors to short the mortgage companies (LEND, NFI, FMT, FRE, FNM), home builders (LEN, TOL, BZH, KBH, CTX), and banks (C, BAC, WM, JPM). The results speak for themselves.
Another “stunning” prediction by the Harvard group was that America is “poised to see an increase in housing demand over the next decade.” What would you expect the housing market to do after bottoming in the next 2 or 3 years? It can only go in one direction from there - up. The question is by how much. With 80 million boomers set to retire over the next two decades, there is a high risk of a continued although more modest housing glut for many years, as many sell their homes due to financial problems or to move to a retirement community. The failure of the Harvard study to point out this very credible possibility demonstrates the group really does not have a good understanding of all dynamics essential for making forecasts in the housing market and economy. 
While the report does provide a nice presentation of what has already happened, it by no means sheds any light for investors because the information was already uncovered in advance by others who acted ahead of time. But when put into perspective, it provides some credible warnings during a period whereby almost every “expert” with a wide audience base has been dead wrong. You might recall some of the recent claims made by JP Morgan (JPM) CEO Dimon, which I commented on last month
The Harvard study follows a widely discussed report from a JP Morgan (JPM) analyst released on June 11, which forecasts a potential fall in home values nationwide by 30%. Once again, I am not only unimpressed; I am wondering why it took them so long to figure things out. At the time of JPM’s “revelation” home prices were already down by 21% from the 2006 peak according to the Case/Shiller Index. It doesn’t exactly take a massive research effort to tack on another 9% from here, especially when many on Wall Street are now admitting that the real estate and banking crisis are far from over
What JP Morgan (JPM) glazed over is much more interesting. Instead, of warning of a very nasty junk bond market, the analyst downplayed the accelerating credit risk.
“U.S. home prices may fall as much as 30 percent through 2010 and push high-yield bond valuations close to levels seen during the last recession, a J.P. Morgan analyst said on Wednesday.”
 If you do not interpret this as downplaying the bond market, then you’ve underestimated the credit risk. As I mentioned in a previous post, not only will the collaterized debt market continue to get worse, there will soon be a surge in corporate bankruptcy filings.
The bottom line is that these reports and forecasts provide absolutely no value to those who know what is going on. The reports will only amaze, shock, or impress the sheep, of which most investors are. On a positive note, the reports by Harvard and JP Morgan may pressure the “experts” to stop hiding the truth. But nothing can stop pain. The domino effect is already in play. We are still only in inning 3 or 4 of the real estate and banking crisis and inning 2 of America’s long and painful period of correction. I will guarantee you there are many more problems ahead – many, many bank failures, hedge fund blowups, corporate bankruptcies, the 1970s-like inflation and interest rate trends on the way, and maybe even a meltdown in the $40 trillion global credit defaults swap market. Either way, it is very likely this recession and real estate correction extend throughout the globe.
Removing Yourself from the Noise
Investors would be wise to ignore everything Wall Street, Washington, bank and real estate industry shills state about the real estate and banking crisis, the economy and the capital markets. By the time they confess the realities, it will be too late for you to do anything about it. In the meantime, their misinformation could cause you to lose a lot of money. Remember, a real investment expert is only as good as his last call. That means they need to be right before the consensus. Being right about something when everyone else shares the same view won’t help you much even if it proves to be true. As we now know, almost all of the “experts” out there, from economists to Wall Street pros got it completely wrong and continue to deny the realities, while a few are trying to redeem themselves. Just don’t forget where they stood two years ago.
The “experts” made available to the public have and will never alert you in a timely manner. That is why most people suffer during periods of crisis. Booms are always set up by Wall Street and publicized by the media. And when the bust occurs, Wall Street denies the truth, using the media as their partner while they exit. The few who make out big during busts are extremely selective about paying attention to only the most credible resources because their time is better spent doing their own analysis.
Many investors have formed their opinions about what will or will not happen to the real estate market, the economy and the capital markets based entirely on what they have read and heard from the media. Without realizing, they’ve let this misinformation serve as a basis upon which to crystallize their views. As a result, some think they can get rich buying distressed stocks because they fail to recognize the extent of the risks. Investors have been brainwashed by Wall Street and the media to think that “buying low” is always a winning approach. What they do not realize is the difference between buying an undervalued stock and buying a distressed security. Buying a distressed security is not “buying low.” Investment in distressed securities is a very speculative strategy because bankruptcy is very possible.
Most investors choosing to mess with these securities would better off gambling their money in Vegas rather than counting on biased coverage of the economy and markets by media hams that are usually wrong. Unlike Vegas, this market offers no chance of luck to anyone. Only those who are well-informed and very skilled will navigate this storm, taking the money away from everyone else. There will be no easy money in the U.S. market for many years.  There will only be easy loses. If you feel that these programs provide you with valuable insight, I would advise you to reconsider whether you should be in this market.  
There are some periods that are best to be in 100% cash due to high levels of market risk. But you will never hear that from Wall Street or mutual funds because they only make money if you are invested. A few weeks ago, I warned investors they needed to go to cash and consider buying the Ultrashort Financials ETF (SKF). Thereafter, the Dow lost 1400 points (see my May 5 article “Stay Clear of Traditional Asset Classes”). 
Those who took my advise must be feeling pretty good right now, as the market has dropped from 13,200 to 11,800 since then. Meanwhile, the financials have gotten creamed much more. Now, I am certainly nowhere near perfect. All I ask is to examine the person’s track record – not by just looking at what they are saying now, but what they were saying in 2007 and 2006. It’s easy to change faces when things turn against you because most investors have short memories. In the end, you can decide who to listen to. But if history is any indicator of my future accuracy, those who elect to bet against me are going to need some really deep pockets. 
Investment-related Guidance
Going forward, if you insist on investing in the U.S. stock market, you had better be in oil and agriculture. Long term I still like healthcare (drug makers and HMOs) as an investment (UNH, HUM, WLP, AET, PFE, MRK, LLY, NVS), due to the boomer demographics and the very generous Medicare Part D subsidy – generous only to the drug makers. I especially like United Health (UNH) and Pfizer (PFE) at these levels although both are still showing considerable weakness. But if you think the market has much further to go, there is no need to pick these up now. Patience and cash preservation are critical. Finally, regardless how long your horizon is, you should keep a good cash position at all times.  
Experienced traders might want to play gold and mining stocks (GLD, SLV, NXG). One particular mining supplier that has shown some real strength over the past couple of months is Bucyrus International Inc. (BUCY). If you chase it here you should be prepared to hold it for a while because a correction could bring it down significantly. Those with long horizons should look to the Chinese and Brazilian stock markets and foreign currencies such as the Swiss Franc (FXF) and Japanese Yen (FXY). For those of you with no exposure in these markets, now is a good time to begin entering small positions especially in China (GCH, FXI). I think Brazil (EWZ) will offer a better buying opportunity down the road.
The current recession, although still denied by many, will most likely turn out to be the worst in decades. While I have little doubt the recession will spread globally, further corrections in foreign markets will represent excellent buying opportunities for investors with long horizons. Those with shorter horizons should consider maintaining a very large cash position and wait for interest rates to soar. There is going to be an excellent period to buy TIPS (TIPS) once long-term rates go beyond 8% and when Washington is less able to suppress the real inflation data. It is highly likely that over the next several years, we will see double digit interest rates due to 1970s-like inflation. After 2010, you should expect inflation and interest rates to really begin soaring. Of course, much of this will depend on what the fed will do with rates and the money supply. It is entire possible that Bernanke will continue to act irresponsibly towards consumers while protecting only the banks. Already we will pay an enormous price down the road for the $1.2 trillion bank bailout. Unfortunately, in my estimates the banks will need at least another $1.5 trillion to ensure liquidity over the next few years. All of this is going to come at a huge price. Keep that in mind if we see a big market rally in a few years.
A Final Word of Caution
Those of you looking to make easy money in the financials like E-Trade (ETFC) need to think again. The risk is too high right now. I find it amazing how so many who have taken a long position in ETFC cite the company’s impressive book value as some sign of value or financial strength. Understand that book value is used in the event of liquidation of assets in bankruptcy and therefore usually has no impact for common stock holders. In addition, book values of financials are meaningless since the banks have overvalued their debt. Finally, book values typically have no way of fully accounting for the type of massive leverage the banks have built. If you were not aware of these basic facts, you really need to sit this one out, save your cash and wait for the next bull market, when nearly everyone does well.
Even Citibank (C) has considerable downside from here, as does Bank of America (BAC). Over the past year, I have made many recommendations to short the financials. Earlier in the year, my attention was focused on Lehman Brothers (LEH) and American International Group (AIG). The story on these guys is far from over but I would wait for a rally before going short again. The next short to consider will be Merrill Lynch (MER). When MBIA (MBI) and Ambac (ABK) get another downgrade, MER will be in deep trouble due to their large exposure to insured mortgage debt. That said, you might be wondering why MER is already near a year low. It’s quite simple. All that I have told you about Merrill’s risks is widely known. But that does not mean it can’t go lower. However, unless you are very experienced with shorting, you need to stay away from this strategy.
Will there ever be a time to pick up the financials? I doubt I will bother to pick up any of these (other than for short-term trading) even when I sense the bottom has been reached because the climb back up is going to be very slow and small. The dilution that has and will continue to occur will crush earnings for many years.
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