Fisker Fingers Fed
Research for Online Investors

by John Dalt

10/02/09

Fisker Automotive received a $529 million ‘loan’ from the Dept. of Energy last week.  One of Fisker's largest investors is a venture capital firm.  The V.C. firm, Kleiner Perkins Caufield & Byers (KPCB), includes Al Gore as a partner.  The Fisker ‘loan’ follows a ‘loan’ to Tesla Motors for $465 million in June.  This loan was to develop new “more affordable” models to be built in Southern California, along with a battery factory for Northern California.

The Tesla is built in England and the Fisker is going to be assembled in Finland.  Fisker has not even built a car yet, but the ‘loan’ is to develop a less expensive car, to be built in the United States.  The Fisker will be a ‘plug-in hybrid’ that has a gas motor on board, like the Chevy Volt.

According to the Center for Responsive Politics, the employees of KPCB donated (invested) more than $2.2 million to mostly democrats during the last political campaign.  A good investment on their part.  $2.2 million bags a $529 million ‘loan’ that we all know will never be paid back, just like GM and Chrysler.  Fisker may not even have to build a car, before they go bankrupt.  Reuters has the story, “US Loans to Fisker and Tesla.”  It is a new world where investment refers to political contributions.

Pending home sales rose 6.4% in August reaching the highest level since March 2007 according to the National Association of Realtors (NAR).  NAR’s chief economist, Lawrence Yun states, “No doubt many first-time buyers are rushing to beat the deadline for the $8,000 tax credit, which expires at the end of next month… Sales will decline when the tax credit expires because we are not yet on a self-sustaining recovery path. It also raises a risk of a double-dip recession.”

We have been tracking the FDIC’s search for new funds.  There is no question of the necessity.  On June 30, they listed 416 problem banks, and had $30 billion in reserved funds for the closure of banks.  Last week the FDIC closed Georgian Bank in Atlanta at an estimated cost of $892 million.  The problem?  Georgian Bank was not on the problem list, there were no reserves for this bank failure.  This one bank closure ate almost 9% of available unrestricted funds!

Subscriber D.J. sent in this six-minute video on Canadian Health Care from John Stossel on ABC 20/20.  Rumor is that this story is why he left the network.  ABC delayed this report until after Waxman’s Committee voted out HB3200 this summer.  Stossel has announced he is joining the Fox Network.

Today, the Labor Department reported that nonfarm payrolls decreased by 263,000 in September. As a result, today's chart provides some perspective on the US job market. Note how the number of jobs has steadily increased (top chart) over the long-term. During the last economic recovery, however, job growth was unable to get back up to trend (first time since 1960). More recently, nonfarm payrolls have pulled away from the 50-year trend by a record percentage (bottom chart). In fact, the number of US jobs is currently at level first seen in early 2000.

Responding to yesterday’s question, “Why do foreigners come to the U.S. to practice medicine?”

“Because they have nationalized health care in their native country!”---subscriber J.A.

I agree, medicine is the one area we get the best and brightest immigrants.  Our government wants to discourage them, and keep the borders open to illegals and terrorists.

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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