On The Money
Financial Advice for the Working Class
The “Blue Chips”
A recent Wall St. survey revealed that more than 90% of all professionally managed mutual funds, failed to perform better than the Dow Jones Industrial index or the the S+P 500. The managers of these funds charge investors substantial fees for their stock market expertise. Those fees add up to million dollar salaries for these guys, but almost all of them failed to earn their keep.
This lead many Wall St. pundits to recommend that the vast majority of working people put their 401K plans or retirement money in index funds. That is, mutual funds that buy shares of all the companies in the index, so as to mirror the performance of the index. Index funds have a couple of advantage over managed funds, specifically:
Since index funds follow a simple investment formula, fees for managing the fund stay low
You can easily track the financial performance of your investment just by turning on a TV or looking at a newspaper.
Despite these advantages, I think that working people should think long and hard before buying index funds. Index funds, often considered a safe investment, conceal many risks for, and threats to working people. Unfortunately, it’s not so easy to track the real performance of your index fund investment, that is, what your money is really doing in the world, just by watching TV or reading the newspaper, but it bears considering.
Even people who don’t care about anything but money, that is, most financial professionals, have to admit that the major stock indexes remain volatile and news-driven, making future performance quite unpredictable. If you happen to have billions of dollars, and view working people as just so many pawns on the chess board, this volatile environment provides you the opportunity to concentrate your power, squeeze out competition, and drive down wages.
The rich know they are raping the planet and exploiting us all. They know its important to keep us busy, and to protect themselves from us, because we would kill them if we ever figure out what they’ve done to us. At the same time, the rich want us to buy into their power structure. So, the rich attacked and destroyed union pensions, and got everyone into these 401K plans. Now, we only get to retire if corporate profits rise. If stocks fall off a cliff, they take your retirement with them. Don’t ever forget that the reason you have a 401K, instead of a pension, is because big Wall St. investors and Ron Reagan crushed the labor unions.
Now, workers getting close to retirement really want the stock market to go up, even if it means future jobs get outsourced to nonunion shops, younger workers get lower wages and everyone loses their health benefits, for the sake of corporate profits. You see union shops all over the country accepting “two-tier” contracts, that screw younger workers and out source jobs overseas.
Today I want to talk about the Dow Jones Industrial Index, the “Blue Chips”, and show you why you don’t want your money there. Of hundreds of publicly traded companies on the New York Stock Exchange, only 30 get to be “Blue Chips”. Chosen specifically to represent the core of our economy, they change over time.
You’ll recognize all of them. And as you’ll see, all of them are working to destroy your life. People who buy shares of these companies bet real money that they will succeed. Do you want to be Pete Seegar, or do you want to be Pete Rose?
So, lets take a look at the Dow Jones “Components”, the 30 companies that Dow Jones believes comprises the core of our nation’s economy. I’ll try to break them down into “sectors”, but keep in mind that these companies have their hands in everything. With multiple subsidiaries that dominate more than one industry, I’ll hardly scratch the surface of their nefarious activity. But lets start with:
The Bailout Sector
Bank or America, J.P. Morgan Chase Yep, those guys. Too big to fail, but plenty big enough to fuck you over. They gave us the housing bubble,the mortgage fiasco, the recession. These are the people who priced me out of a home and left you underwater, took billions in commissions and bonuses. Then, we borrowed billions more as taxpayers to bail them out, ehile they paid themselves million dollar bonuses, to save this whole wretched system from collapse, just so we could have this wonderful recession. I wouldn’t keep my money in an account there. I sure don’t want to buy their stock.
The Napalmed Babies Sector
Yes, the good people who set babies on fire make up a large part of the Dow Jones Index,
Boeing, United Technologies and Alcoa. These guys make bomber planes.. Alcoa makes the metal, UT make the engines, and Boeing puts them together, increasingly, overseas. Sure they make beer cans and passenger jets too, but the big money’s in delivering America’s “calling cards”.
Caterpillar. Whether you’re damming a river, mining uranium, or clearing rainforests, Caterpillar will help you get the job done. A Cat D-9 ran over Rachel Corrie on its way to demolishing yet another Palestinian home in Gaza. The Israelis use them like tanks. In the Southwest U.S. , the U. S. government uses Caterpillar tractors with drag-chain attachments to scrape away desert vegetation from large swaths of land around Indian reservations. This prevents native tribes from gathering food, medicine and from grazing their sheep. Anywhere you find big ugly scars on Mother Earth, you’ll find Caterpillars.
Dupont, 3M, and General Electric these companies make some of the most toxic stuff on earth, and they always want to make more of it. From ozone destroying CFCs to cancer causing PCBs, if its impossible to pronounce name got shortened to an infamous anagram, like 245D, or DDT, these guys probably invented it, patented it, promoted it and sold it. Which leads to…
The Cancer Sector
Pfizer, Merck and Co. The pharmaceutical giants who continue to get rich, while the rest of us get poorer and sicker. While these guys haven’t “cured” anything in years, they can treat anything. You’ll just need to take these pills every day for the rest of your life. With newer more expensive cancer treatments every day, that also cause cancer themselves, we can expect The Cancer Sector to continue to grow until it kills its host economy.
The Climate Change, Oil Spill, War and Oppression Sector
Exon-Mobil, Chevron. Big Oil, the guys who wrecked the Exon-Valdes and killed all the otters, destroyed the Niger Delta in Nigeria and got Ken Saro-Wiwa hanged, and still deny that burning fossil fuels contributes to global climate change. They have a great deal, we pay for the oil, and we pay for the military that secures it for them, and they get to keep all the profits.
The “Do You Fear Me Now?” Sector
ATT, Verizon. Warrant-less wiretaps, no problem. Tracking your every step by GPS, without your knowledge, sure. Lose your personal information to hackers, OK. Just don’t drop a call. Which leads us to…
The Big Brother Sector
IBM, Microsoft, Intel, Cisco Systems and Hewlett-Packard, the people who make universal internet surveillance possible, by making it fun.
Wall-Mart, Home Depot. Specializing in low, low prices, in big, big stores, Wal-Mart and Home Depot drive out competition, pay their workers less and pass the savings on to you. According to the Supreme Court, there’s plenty of opportunity for women to advance their careers at Wal-Mart.
The Poisoning Your Family Sector
Most everything Proctor and Gamble, and Johnson and Jonson makes can be replaced with vinegar, baking soda and Dr. Bronner’s liquid soap. Toxic cleaners with with national ad campaigns won’t make cleaning the bathroom any easier or more fun. Avoid P+G and J+J and you’ll feel less woozy afterward.
Kraft, McDonalds and Coca-Cola. Now that Kraft own RJ Reynolds Tobacco Co., these four companies provide everything you need for a completely unhealthy lifestyle. Obesity, emphysema, chronic heart disease and diabetes for everyone!
The Financial Scams Sector
American Express and Travelers Companies. Credit cards and insurance, two “industries” that make nothing themselves, but make everything else more expensive. Which only leaves…
The Nazi Propaganda Sector
Walt Disney Co. You knew Mickey mouse had an agenda, didn’t you? Mickey sells kids the American Dream before they even know what hit them. Do you think we would buy the rest of this crap, en-mass, if we weren’t sufficiently programmed to do so, by age five, by the Nazi overlords at Disney?.
So, there you have it. The core of our economy. If that’s what they call a “safe investment”, I’m taking my money to the dog track. There’s a view of the “Blue Chips” that’s On The Money