A Dictatorship Soon
Research for Online Investors

by John Dalt

9/30/09

Novelist Gore Vidal says the U.S. will “Have a dictatorship soon” in an article in the Times Online. He supported Hillary Clinton but switched to Oh! Bama and now regrets it. I do not agree with the man, or admire him as an intellectual to be listened to, but his views are worth consideration. It always amazes me that some people’s convictions are so deeply held they cannot consider another view. You can always learn something, even from your adversaries.

A few additional notes are due on our coverage yesterday of the FDIC’s proposal to make banks “prepay” the next three years of insurance fees by the end of this year.  The FDIC estimates their losses at $100 billion over the next four years.  The “prepaid” fees will amount to $45 billion.  The FDIC went through over $10 billion in the last quarter, and with 400 banks on their problem list, the pace of closings will probably quicken.

The numbers do not add up.  Three years of fees may not be enough to cover next year’s closings.  I visited with subscriber B.A. yesterday on this issue.  B.A. is President of a bank in the Kansas City area.  He believes that the FDIC pads their numbers on bank closing costs.  He believes the costs will actually come in lower than predicted, but this is dependent on the economy recovering which will enhance the value of the troubled assets.

Many of the troubled assets are loans on commercial real estate, and a recovering economy will increase their value.

Subscriber D.J. sent in a short clip of Representative Mike Rogers of Michigan on healthcare on July 16.  There are some politicians that work honestly to keep our country from sliding down this path of a more powerful government.  Watch Mike Rogers.

Today’s letter is short, as I am working on our newest premium investment service.  I am excited about it.  Our recommendations will be a little more aggressive than the Long-Term Portfolio with an emphasis on income.  As with all of our services, it will be safe enough for self managed retirement accounts.

We should be ready to roll it out soon.  If you are interested, reserve your preferred spot, we have ten spaces left that will get a special Charter Member discount.  I will email you the details as soon as they are ready.  You are not committing, just reserving your spot.  Of course, it will be 100% guaranteed.  Email your interest to customer-service@galtstock.com

Subscriber S.V. sent a milestone, “Ted Kennedy has now been sober for four weeks.”

The information presented in this newsletter is based on generally available news releases, corporate filings, current events, interviews and the editor’s opinions.  It may contain errors and you should not make investment decisions based solely on what you believe you have read here.  Do your own research, it is your money.  If you lose it, it is your responsibility, not ours or your grandmothers!  The editor may or may not have a position in any securities discussed.  The editor may have held a position in a security earlier, or in the future.

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