span>After the serious upset on Wall Street, questions began to be asked by many Americans! Just as his two predecessors did before him, President Hoover went to the Secretary of the Treasury Andrew W. Mellon (who would be considered a modern day Warren Buffet) to no avail. It had been speculated that “Short Selling” (the anticipation of making a profit from declining prices…expecting a drop in price. Selling the stock and buying it back later at a lower price leaves the difference as the profit). On November 23, 1929, The Economist asked: “Can a very serious Stock Exchange collapse produce a serious setback to industry when industrial production is for the most part in a healthy and balanced condition? … Experts are agreed that there must be some setback, but there is not yet sufficient evidence to prove that it will be long or that it need go to the length of producing a general industrial depression.” History later revealed that the experts were wrong, and it would only be World War II that would bring us out of the depression caused to the improprieties of those on Wall Street.
Just as the Economist was misguided, or shall we say wrong, in its publication almost eighty years ago, on Feb. 10th, the New York Times Reported that Sirius XM was in danger of filing for bankruptcy (implying a dire situation). Coming from such a trusted source (with its own stock dropping at the time, and the next month laying off 100 employees, cutting the salaries for the rest of the year by 5 percent) many share holders were surprised to hear that the company they had bought stock (NASDAQ: SIRI) at inviting rates, were decreasing while the company itself could boast in growth with a successful merger and an increase in subscribers. Something just was not adding up!
While the New York Times was letting go of employee’s, a press release came from the Sirius XM, with this quote from its president, “In the fourth quarter 2008, the company’s first full quarter of combined operations, SIRIUS XM made remarkable financial progress…For the first time in company history, we reached positive pro forma adjusted income from operations of $32 million, as compared with a loss of $224 million one year ago. Fourth quarter 2008 revenue of $644 million grew 16% over the year ago quarter while total cash operating expenses declined by 22%, a clear demonstration of our focus on improving profitability. Despite challenges in the overall economy and in the auto sector, we look forward to continuing to deliver on the synergies of the merger.” Can anyone remember what was happening around the last quarter of 2008? I can tell you! 1. GM, Chrysler, and Ford stood before Congress requesting a “Bail Out” 2. Bernie Madoff caused Billions of Dollars worth of damage to the pockets of investors due to his Ponzie Scheme and 3. Lehman Brothers was liquidated! What FACT would cause The New York Times, MSNBC, and other news channels to predict the demise (or bankruptcy filing) of their “Competition”, resulting in apparent stock fluctuations in the market?
With GM and Chrysler both declaring bankruptcy, common shareholders within Sirius XM Radio are asking questions, demanding answers, and not allowing other media outlets determine their fate, and why would they? With subscription rates second only to Comcast, Sirius XM appears to be a “Leader” in the industry, with no signs of letting up and neither is Liberty Media. Liberty Media CEO Greg Maffei stated, “We are excited to be investing in Sirius XM. We have been impressed with the company, its operations and management team…Sirius XM’s ability to grow subscribers and revenue in a difficult financial and auto market is indicative of how listeners view this as a ‘must have’ service.”
This “Must Have” service is being defended in the new documentary “STOCK SHOCK: The Short Selling of the American Dream” http://stockshockmovie.com/ . Directed by Sandra Mohr and Narrated by Richard Keane, it appears as if they are taking pieces of the puzzle from Stock holders, industry professionals, pages of history, a glimpse of the future, and are carefully putting them all together. This documentary expounds upon how easily the public can be, and has been fooled by propaganda initiated through the NYSE, profiting only a few while causing millions of others to lose countless hours of sleep and money!
This documentary reveals the not so obvious future that many, who are in competition with this service, would rather the people overlook; Sirius XM Radio will be around as long as the United States Government is backing automobile warranties and IPhones are giving subscribers the option to listen to this service outside of the car. It is the observation of this blogger that Sirius XM will be taken much more Seriously within the upcoming months. With both Michael Moor (Untitled production and currently filming) and Oliver Stone (“Money Never Sleeps” in Pre-Production) preparing to come out with films, also dealing with the American Financial system in some aspect, “Stock Shock” appears to be a precursor to many untold truths finally revealed this year!
Perhaps a President who silently guided America through the “Roaring 20’s” could share some basic truth upon our situation:
“After all, the chief business of the American people is business. They are profoundly concerned with producing, buying, selling, investing and prospering in the world.”