Market Correction? Do Not Panic! This is Where We Should Be!

AUGUST 15, 2011 BY GEORGE LOVATO JR
I cannot take it anymore! The talking heads and Washington are driving me nutty! Between the two factions everyone should be jumping out of a window by now. Stop! Do not panic!!
Those of you that know me well can verify the fact that I have been saying the market was overvalued above 10,500. Put the puzzle parts together. The White House is not providing any leadership. On his best day the President is not even an “Armchair Economist”. He does not have a clue about what the Business Plan For America is. Congress as well has done a very poor job of instilling confidence not only from the American public but from foreign governments and foreign investors. Above and beyond that, the economy in in the proverbial tank. We have a government that cannot even tell the public what the true deficit is. So then why would it attempt to bump its’ head on 13,000? An overly optimistic group of traders and investors not really paying attention to the real metrics? Well it is more than likely all the above and some. Correction you ask? No this is where we should have been all along. The market has been overvalued for some time now.
We Need Organized Leadership

Europe is having its share of issues. But as far as we should be concerned, deal with our problems first then maybe move on to assisting others I say. For now we need organized leadership. We need to show the world that we are in control of our own numbers, budgets and forecasts. We need the American people to believe that the government really does know how to steer this massive economic ship. We need to have a government that promotes growth by stimulating the small business and its owners to reinvest and hire for expansion. Building businesses for growth through governmental incentives. That is the kind of boost we need. Give the incentives to the small business person I say. Let’s not put the governments’ money into beatification and highway off ramp projects. That is very short sighted. We need a Congress that stops bickering, takes off the party hat and puts on the hard hat. Look at tax incentives as capital to stimulate business growth. Thus economic growth!
We Need the Business Plan For America

I am tired of the Presidential rhetoric. I am tired of the Congressional verbosity. What we truly need is someone that has the Business Plan For America in his head and wants to put a plan of action that will put America back on the road to growth and prosperity. So Please Mr. Romney, tell us what it is. Since you are going to be the next President, share your Plan for Prosperity. We need it now more than ever. Leadership is lacking and it shows. We need to see your vision. We need to know that you have a sensible plan for business and for prosperity. We heed to see the same light at the end of this long and dark tunnel as you do.
The President has shown absolutely no knowledge of the theory of Economics. He has shown no knowledge of banking and finance. All he has chosen to do is blame the previous administration by saying “We inherited this problem and it is not ours.” Well guess what the day you took office Mr. President, it became your problem and you are, under the law, forced to take ownership of this mess. Get on with solving the problem and stop trying to tell us it is not yours.
Look For Bargains on the Stock Market

In the meantime, look for the bargains on the stock market. Buy gold! In short go in two directions at once. I have been out of the market since early last year. I bought Ford at $1.66 I sold it at the top as well as a host of others that were all bargains I might add. I have been buying silver whenever I can and gold along the way. It is time to get back in the market but only buy the undervalued bargains. The market is where it should be. That is until the economy bounces back. So there may be a little more to go to reach the absolute bottom but you are starring at it. So pay close attention to the metrics and get in only where a bargain exists.
The Government Can’t Help You But I Can

On to other matters what about money for my business you ask? Well it’s out there but it is scarce in some respects. In others it is abundant. All solid businesses can form capital. In other words all good transactions get done. There is light at the end of the tunnel and we at BHCL see it. But it takes hard work and a good business plan and solid management. Have hope, for we are going to see new leadership in Washington come the election. If this guy was one of my bankers I would have fired him by now. So Mr. Romney give us your Business Plan For America. We need to know new leadership will in fact put us all on the road to prosperity again. Meanwhile call me if I can help you with your business capital formation project! I know the government can’t help you but I can.
Disclaimer
This is not an offer to sell nor an offer to purchase securities. This is commentary and opinion. Any advice to purchase or sell any financial instruments, securities or government bonds should be sought from a licensed/registered financial advisor and or securities broker/dealer.

Lawyers Are Not Good Business People

OCTOBER 22, 2010 BY GEORGE LOVATO JR
Gulf Business Needs Good Business People – Not Lawyers
I read where small businesses in the gulf region of the United States are having some difficulty receiving compensation from BP. BP has shifted it’s own burden to Kenneth Fienberg a renowned lawyer. No let me say that many of my best friends are lawyers. I work with many more throughout the workday. I am literally surrounded by them. They are the tool makers of many a transaction I create. I like lawyers. But in most cases they are not good business people and they think too much like a lawyer and not enough like a business person. Thus offer a lawyer a job as a manager of a growing enterprise and the vast majority will tell you that is not their gift or the best use of their training. So back to the story. Mr. Fienberg is in the position to make many a business decision. Yes he is a genius but this is not the best use of his experience and training.
What Should BP Do?
Well it is not my style to criticize without providing some sort of a cogent solution. BP should form a series of panels. Those members of the panels should possess the expertise of a specific industry. All applications should then be forwarded to that panel. The panel should employ the standard evaluative tools that are common to assess the success of the enterprise pre-spill and then provide a comparative analysis to the current period of the application. Based on that analysis then a determination should be made as to the extent of impediment to working capital the business has experienced. That impeded amount is then what should be infused into the business. The financial statements should be cross referenced to the bank statements and vendor accounts payable confirmation. In short you have a mini audit. The very maximum you could afford to do considering the time constraints.
Let Business People Do What They Do Best
Let business people evaluate the requests. Do not overburden the process with too much of lawyer doing lawyer stuff. Utilize the experience of people in the know to shorten the fuse. In short let the business people so what they do best. Let the lawyers do what they do best. And let the gulf businesses get back to do what they do best as soon as possible…business!

Mr President – Your Government Should Leave Well Enough Alone!

AUGUST 30, 2010 BY GEORGE LOVATO JR
The Guiding Minds of Corporate America Have Done a Solid Job
Recently we have seen much comment on the fact cash harbored in corporate America is at an all time high. We have also heard how the government is pushing big banking to lend to small business again. In both cases there is a lesson in the news. First cash being at an all time high is in fact a good sign. This in simple terms means that at the appropriate time corporate America will reinvest in itself. The mood, tempo and general indicators of the economy will be right and the capital to exploit the economic condition of the nation will be present. This is a sign of recovery. Corporate America has done a pretty good job of judging the right time in a number of areas. Have there been mistakes and false starts in the past? Certainly. But by and large the guiding minds of corporate America have done a solid job.
The Government Has Made More Mistakes Than American Enterprise
Let’s speak for a minute on the governments comments. First they have played banker in the recent past. They have made what I consider some very controversial decisions in that regard. They helped the weak to survive and intervened in a manner not fitting American enterprises number one rule – survival of the fittest. Now after we have stopped the bleeding of the biggest economic banking hemorrhage in human history, the government wants to tell banks what to do. The government has made more mistakes than American enterprise. They have attempted to change the basic rules of business governance. Now before the timing and condition of the economy is ripe for regenerating the lending cycle again, the government wants to push where pushing is contradictive to its warnings to Wall Street and the financial community at large.
Dear Mr. President, leave well enough alone. Business and the financial community will be its own best judge as to when, where and how it will begin to fuel the rest of the economic recovery