Archive for April, 2011

Trump Cursing Video

Friday, April 29th, 2011

Donald Trump curses in all three videos below. Don’t bother looking at the video posted by the main-stream media since they beep out all the cursing.

Nobody can talk like President Obama, but Trump is a surprisingly compelling speaker himself.

Toward the end, he starts talking about “The Trump Doctrine” which will compel companies like Apple to start making their products in the USA again or face tariffs on their Chinese imports.

The first f-bomb drops at 8:55 into the first video – and gets wild applause.



Note: I couldn’t find part 4. Maybe it hasn’t been uploaded yet, but if you see it, please let me know.

Lack of Demand

Tuesday, April 26th, 2011

The stock market has been rocketing upward for over a week now, so you might be wondering how my bearish call on Demand Media (DMD) played out. Did DMD catch a break from the frothing bulls?

Not hardly. As a matter of fact, there has been a distinct lack of demand for Demand. Here is a daily candlestick chart since I made my call on April 17th:

Down over 20%. How about that?

The moral of the story is that Google is a king-maker. If you follow their guidelines, they will list you prominently on their SERPs. If you cross them, they will lop off your head.

Take a look at the “stock market advice” SERP. In the #1 position you see fool.com. Google AdWords reports that about 2,900 people do that search each month, and I’m sure that fool.com ranks very highly in a multitude of related searches. Suffice it to say that at least a thousand fresh-faced investors are landed on fool.com’s doorstep each month, compliments of the king-maker.

What’s that worth?

NATO Bombs Chinese Ammo Dump

Friday, April 22nd, 2011

In Libya. According to DEBKAfile, the Chinese are arming and assisting Moammar Kadafi, and a NATO strike near Tripoli on April 14th targeted a Chinese arms shipment.

While China is the apple of Jeffery “Sweatshop” Immelt’s eye, the country is not a political ally of the USA. And DEBKAfile points out that it doesn’t appear much has changed since the Chinese helped the Serbians fight NATO twelve years ago.

Remember when we “accidentally” bombed the Chinese embassy in Belgrade? Looking at the Wikipedia page on the subject, you see that that bombing was the only one conducted by the CIA in that entire war.

Was the CIA sending the Chinese a message? Probably so.

Will another message be sent to the Chinese for their opposition to NATO in Libya?

It seems like a pretty predictable “surprise”, right?

Slaughter Slaughtered

Tuesday, April 19th, 2011

Last year while I was railing against the multinationals for accelerating offshoring while the USA enjoyed Depression-style unemployment, Larry Kudlow felt the need to strike back. Kudlow brought onto his CNBC show an “expert” and asked him: “What about this criticism of the multinationals for offshoring jobs? It’s a bum rap, isn’t it?”

The “expert”, Matthew Slaughter, agreed and claimed that offshoring created two new jobs here for every job sent to Mexico, China, India, etc. In fact, he even “proved” it in his 2009 paper titled: “How U.S. Multinational Companies Strengthen the U.S. Economy“.

Turns out the Dartmouth Professor and Senior Fellow at the Council on Foreign Relations was full of it. But don’t take my word for it; listen to this front-page story from the Wall Street Journal: “Big U.S. Firms Shift Hiring Abroad – Work Forces Shrink at Home, Sharpening Debate on Economic Impact of Globalization“. And look at this chart:

Slaughter’s “work” was nothing more than PR flack to help the multinationals with their offshoring. Is he repentant now? Hell no. As a matter of fact, he blames the USA for chasing companies out of the country. You see how that works? We were offshoring our way to Utopia when the “small people” turned on their multinational benefactors and drove them away.

Ridiculous.

Slaughter needs a new title: Professor of Stupid at the Council of Foreign Interests.

And I know what his next line of defense of offshoring will be. Wait to you see. Just wait.

The WSJ article also quotes Jeffrey Immelt, President Obama’s Jobs Czar:

“The era of globalization around cheap labor is over.”

Immelt admits it! It was all about cheap labor!

But is it really over? In what sense? Immelt means that if he moves 50 factories to Mexico, then his cheap-labor strategy is complete.

I say it’s not “over” until those factories are brought back home.

And I don’t believe for one second that the switch to cheap labor has come to an end.

The chutzpah of people like Immelt is breathtaking. First he exports your job, then he picks your pocket for a bailout of his dumb company. And then a Democratic president makes him Jobs Czar, of all things.

Hard to believe.

And its not over. The lack of repentance on the part of people like Slaughter and Immelt is proof that there are no plans whatsoever in Washington to come to the aid of the millions of unemployed Americans. All that has changed is the slogan, from “Offshoring is Good for You” to “Offshoring is Your Fault”.

Once upon a time, this nation had a policy of protecting its people from cheap foreign labor. And a mighty Middle Class grew up as a direct result. We were the envy of the world.

Once upon a time.

Google Cracks Down

Sunday, April 17th, 2011

You probably heard all the hoo-ha a few weeks ago about Demand Media’s (DMD) IPO. While the company has a technically impressive operation, it just might be built upon quicksand. And if you bought the stock of the company that brought us the “How to Pour a Glass of Water” page, then you just might find yourself under water soon.

“Instructions: Turn on a kitchen or bathroom faucet if you wish to drink tap water. Usually you may choose from two different temperatures of water: hot or cold.”

That quote is not a joke. That’s what Demand Media does. If you don’t know why a company would create a page explaining how to pour water, see if you can figure it out before I give you the answer below.

Initially, Demand Media dodged Google’s content-farm crackdown bullet. But now it seems that Google has reloaded with a heat-seeking missile. See the chart here.

Google’s “Panda” algorithm update is mauling content-farms like Demand’s eHow.com. And not only that, Google is encouraging the masses to rat them out. If you use Google’s Chrome browser, you can install their Personal Blocklist plugin. With one click, you can make all the eHow pages go away. And Google watches who you vote off the island. If you don’t like it, Google probably doesn’t like it either.

I don’t know if Demand Media will survive or not. What I do know is that Google will fight tooth-and-claw to protect its SERPs (search engine result pages) because that is their content. Anybody who thinks they can game the system on a sustained basis is living in a dream world.

And even if the army of idiots which is flooding the world with “how to drink water” pages were to ultimately succeed, and overrun Google, they would still perish because everybody would quit using search engines to find things.

There are laws against email spam. There are laws against idiots calling you on the phone all day. Will there one day be a law against web spam? I don’t know, but it might be the only way to save search engines in the long run.

If you are a stock-picker who does fundamental analysis, you now have another metric to evaluate: how much of the company’s revenue is derived from black-hat SEO? Because it is only a matter of time before Google comes for them.

The reason why eHow wrote a “how to pour water” page was to attract bottled-water ads from Google AdSense. Look down at the bottom of that page and you will see them, assuming that you are not running AdBlock. Profit margins on water products are high, and I wouldn’t be surprised if those advertisers are spending a lot on those ads. eHow gets paid every time somebody clicks on one. OK, the page may not attract a lot of traffic, but the whole point of a content farm is to make a million such pages so that the revenue ads up to something substantial.

And that is indeed clever. But not from Google’s perspective. In fact, when Google sees a page like that, smoke starts to come out of its ears as it reaches for the laser canon. Google always talks about their algorithms, and how an impartial robot is trying to build the best SERPs. But I guarantee you that in addition to that, the actual people at Google take it very personally.

Any algorithm can be gamed if you know how it works. When a company like Demand Media games the algos, it is a direct threat to Google’s bread and butter. Google will crush them because it has no choice.

Personally, I wouldn’t hold the stock of a company like Demand Media if you put a gun to my head. And I wouldn’t be the least bit surprised if it went to zero, never having turned a profit. No doubt they are very smart people, and they may figure out a way to survive. But Google only wants to list links to quality content, and if Demand has to spend more money to bring up its quality, that would certainly eat into any future profits.