Sunday Moneytalk Commentary

Honeybee's Commentary and Bob Brinker Excerpts from Sunday, January, 27, 2008
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On Sunday, I did not hear Bob Brinker mention the stock market even one time during the three hour program he calls “Moneytalk.” Moneytalk is no longer the program to listen to if you want any forward looking guidance on the stock market. The only guidance you will usually get is what you read between the lines. But as I said, there weren’t even any “lines” to read between this past Sunday.
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However, Brinker is on record saying that this latest decline was more than he “expected.” At the present time, he recommends dollar-cost averaging into the stock market.
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Brinker must have thought people were more interested in what was happening in France than the wild ride on Wall Street, because he spent most of his opening monologue bashing the French European Central Bank President and the management of Societe General. Here are some of his excerpts:
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Bob Brinker said “….the European Central Bank is in very, very weak hands, in my opinion right now, in the hands of the president, Jean Claude Trichet. And I don’t know why he’s as a poor a leader as he is or as misinformed on economics as he is, but it might have to do with his training. Because he was trained in France as an engineer and maybe that’s the reason. Now I don’t know if he was a locomotive engineer or an electrical engineer or what kind of an engineer it was but it doesn’t matter, he’s certainly not a financial engineer. And I just think it is amazing that the European Central Bank has to deal with this kind of poor leadership. The reality of the situation is that there’s a big difference of opinion right now between how to conduct monetary policy between Europe and the United States.
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Now I think Ben Bernanke is catching up to the curve he fell behind – he has more to go and I think he’ll do more Wednesday. ……..And I think he is right to do it and he deserves credit for catching up, not criticism as the European Central Bank President prefers to give……

After all, Ben is not alone in what he’s doing….... I mean the reality of the situation is that there have been others that have cut rates. How about the Bank of England – they’ve cut rates. How about the Bank of Canada – they’ve cut rates. ….so I don’t know if this is left over ill feeling between certain people in France and the United States…….The reality is the European Central Bank deserves better leadership than it has right now.
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And while we are on the subject of France, what a disgrace, what an absolute disgrace to the senior management of Societe Generale, the second largest bank in France, with home offices in Paris, France……..I’ve been there, it’s quite impressive. What a disappointment to see the managers of Societe’ Generale allow over $7Billion of bank capital to disappear because they can’t oversee a 31 year-old mid-level employee making $70,000 a year………If you didn’t see the story, you would never believe it, but it’s true. …..the good news is it appears they are going to stay in business."
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Honeybee sez: It seems like Brinker showed a bit of hypocrisy with his demeaning comments about not knowing “if he (Jean Claude Trichet) was a locomotive engineer or an electrical engineer or what kind of an engineer it was but it doesn’t matter, he’s certainly not a financial engineer.”
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Bob Brinker’s own son was not trained as a “financial engineer,” in college. His original education and training was in IT/computer sciences. However, IIRC, after taking some kind of correspondence course, he began using the family name (which automatically caused Mark Hulbert to include it in HFD) to write and publish the "Brinker Fixed Income Advisor."

These days it’s very difficult to distinguish between father and son (son is middle-aged – we are not talking about a child here). When his fixed income newsletter ads play on Moneytalk, it is never explained that the “Brinker” in the title who publishes the newsletter, is not the radio talk show host.

Last weekend, I heard a caller tell Brinker that he subscribed to “both of his newsletters.” Brinker made no explanatory comment. MOF: I’ve noticed that the “Jr” seems to have been dropped altogether. And on his newsletter website, he signs his name simply Bob Brinker -- with no distinguishing middle initial or "Jr." Is Brinker "Jr" involved in writing Marketimer? I don't know....
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One further note on this subject. I have read a sample BobJr's fixed income newsletter and I have read the latest copy of the Retirement Advisor, which is published by Kirk Lindstrom and David Korn. In my opinion, there is no comparison. Kirk and David's "Retirement Advisor" is superior, by far. If you are interested, I recommend that you get free copies of BOTH newsletters and make your own comparison. I am fully convinced that you will choose "Retirement Advisor." (Click for a Free Issue of The Retirement Advisor.)
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Here is a list of all the calls on Sunday by subject
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HOUR ONE:
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1. Money market funds safe? >>Yes, if you stick with big names like Fidelity, Vanguard, etc.

2. Stimulus package

3. Laddered CDs

4. European Central Bank

5. Paid off high rate property loan thanks to Bob

6. Lost $250,000 because of bank bankruptcy >>Answer: Be sure to check for FDIC insurance

7. Sub-prime bail out

8. Stimulus package

9. Roll SHLD holdings into 401K? Sears going bankrupt? >>not likely based on price of stock, but do it if you are worried.

HOUR TWO:

1. Stimulus package

2. Car calorie use versus human calorie use

3. Stimulus package

4. Stimulus package

5. Where to invest $7 million.

6. I-bond versus TIPS >>Use TIPS in tax privileged account. There is a limit on I-bond purchases.