Archive for January, 2013

Dead by 50 in America

Posted by Al Lewis on January 12, 2013
Trends / 1 Comment

(Click here to watch me talk about “The U.S. Health Disadvantage” with Matt Flener on Denver’s 9News.)

You are more likely to be dead by 50 in America than any other developed nation, according to a study released last week by the Institute of Medicine and the National Research Council.

It’s a shame that what we like to think of as the greatest nation on earth isn’t providing the healthiest lifestyles.

The 378-page report, “U.S. Health in International Perspective: Shorter Lives, Poorer Health,” lays out many causes. But I say the main problem is consumerism run a muck.

Click here to read my column in The Sunday Wall Street Journal. And click here for links to the report on the Intitute of Medicine’s website.

Do banks tell borrowers not to pay them?

Posted by Al Lewis on January 12, 2013
Housing / Comments Off

 

 

Banks say it doesn’t happen, but I have heard from many homeowners that it indeed does.

A homeowner asks a bank asking for a loan modification.

The bank tells the homeowner it can’t help them unless they are behind on their payments – effectively telling them not to pay their mortgage.

The homeowner stops paying to try to get the loan modification. But eventually the loan modification is denied, and the bank forecloses on the home.

This is what Caylin Crawford of St. Paul, Minn., says happened to her. She is suing her lender with this claim in U.S. District Court in Minneapolis.  Banks, by the way, are also paying billions to settle allegations that they’ve wrongfully foreclosed on homeowners, including a settlement reached this week.

 Click here to read my column.

Dig a hole to China and dump money down it

Posted by Al Lewis on January 09, 2013
Investing / Comments Off

China seems to be beating America at its own game: Stock fraud.

Watch ABC News tonight for a report on the billions of dollars Americans are losing after investing in Chinese companies with accounting problems on par with Enron. Click here for a story it has already posted on it’s website.

ABC News calls it “one of the largest sprees of alleged financial crimes in recent memory — one that has gone largely unnoticed by most Americans.

“More than 100 China-based companies have now been de-listed, have left the NASDAQ and New York stock exchanges, have been denied listing, or have withdrawn applications, all following allegations of fraud or accounting irregularities, the ABC News investigation found.”

What kind of life is selling Herbalife?

Posted by Al Lewis on January 09, 2013
Companies / Comments Off

Watch the latest video at video.foxbusiness.com

Stock of multilevel marketing company Herbalife Ltd. is still recovering after a well-known hedge fund manager trashed it as a “pyramid scheme” at a New York investor conference last month.

William Ackman of Pershing Square Capital Management presented a 340-page slide show, claiming the company is more about recruiting people to sell its wares, than the wares themselves.

Companies that recruit people to recruit people, and sell products to all their friends, have been around for ages. They’re always so full of that self-improvement schlock and power-of-positive thinking banter that you know they are trying to appeal to the downtrodden.

In the case of Herbalife, it’s a wonder so few people who get involved stop to wonder how they’ll ever compete with the three million others selling Herbalife stuff or with Wal-Mart, selling similar products for much less.

Click here to read my column on Marketwatch.  Click here for links to Mr. Ackman’s data and slideshow on Herbalife. And click here to read the thoughts of another hedge fund manager, Robert Chapman, who invested in Herbalife after Mr. Ackman’s attack on the company.

Also, click here for an investors’ perspective on what the Federal Trade Commission does about pyramid schemes: Next to nothing.

Have you had experience with Herbalife? Tell me your story.

 

Fiscal cliff a symptom of our madness

Posted by Al Lewis on January 07, 2013
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Why is Washington so crazy, put the nation over a fiscal cliff, and bickering about debt ceilings instead of doing their jobs?

Because most of the nation is crazy.

If you start adding up all the numbers, you quickly come to the conclusion that there are very free people thinking clearly in this country at any given moment.

Click here to read my column on Marketwatch.

Over the cliff and into the blue

Posted by Al Lewis on January 01, 2013
Washington / Comments Off

CABO SAN LUCAS, Mexico–Down a shot of tequila, twist open a Corona, kick back in your beach chairs and let me tell you how one goes over a cliff.

In Mexico, where I take my winter vacations, there are many people who go over cliffs. They have different ways of doing this: Front flip, back flip, swan dive, and even the screaming leap.

A water taxi driver told me he goes over the cliff with a bandana over his eyes. I told him that in my country, he would be a great leader.

My family, some friends and I boarded the Rissalena, a 37-foot power catamaran, and we chased a whale at the tip of the Baja California peninsula.

The whale spouted and waved its tail, but it was not as spectacular as the London Whale who lost billions at J.P. Morgan Chase trading credit default swaps last year. So we changed course to go snorkeling in the San Lucas Bay. We anchored near a formation known as Pelican Rock. And I knew this was my chance to go over the cliff.

Our cautious, white-haired skipper wasn’t so keen on the idea. “If somebody gets hurt, they blame El Capitan,” he explained.

Rich Reisin, a Chicago accountant who was also on the three-hour tour, didn’t think this was a good idea, either. “I think we should avoid the cliff.” he said.

Mr. Reisin had been reading the dismal news out of Washington as lawmakers grew increasingly determined to take their own flying leap. He and his daughter, Michelle, agreed to shoot photos since the cliff was something I could not avoid, either.

Now, for the record, I do not usually spend my vacations swimming out to rocks and jumping from them. It is often difficult enough just to climb from my cabana. But as a writer, I take metaphors seriously.

Crabs scattered in every direction as I grabbed the slimy base of the rock. They waved their pincers at me like tiny protest signs. When you are scaling a fiscal cliff, there are crabs just about everywhere.

When I got past the crabs and the sea slime, I immediately discovered this outcropping was called Pelican Rock because it is where the pelicans do their business. Barefoot, clad in only swimming shorts, I struggled to find the best way to the top along a filthy and jagged surface.

Fortunately, an older gentleman climbed up behind me. He wore a black, neoprene diving suit with booties on his feet. He scaled along like Spiderman as he guided another diver to the top. He spoke with a French accent and eerily reminded me of Jacques Cousteau.

“I will show you the way,” he said, and quickly offered me some technical climbing tips, like, “Put your left arm here and roll.”

He was pointing to another white spot on the rock. I told him I was trying not to wallow in pelican poop. “Don’t worry,” he said. “It will all wash off when you hit the water.”

So wallow, I did, and at last, I felt like a real Washington lawmaker.

Soon I was on the precipice, looking down at the waves, amazed at how much higher the rock seemed from the top, and overcome with gut-wrenching dread and tingling fear.

No one had forced me to this point. I climbed there on my own. Why did I think this was a good idea? Wasn’t this insane? Wasn’t it a sign of complete dysfunction?

I soon realized this agonizing inner dialogue mirrored exactly what the people in Washington have been saying since the election. There was only one thing left to do, so I took the leap.

All fear evaporated the moment I left the rock. There was no time left to think my way out of it. My belly made certain I would obey the law of gravity.

The next thing you know, I was underwater. Not my stock options. Not my mortgage. Me.

Oh, yes, I slid deep into recession. I do not exactly know how far I receded from the surface of the water. But down, down, down I went, unable to think about Medicare, Social Security, taxes, or even how to fund the next big war.

The good news, though, is that I eventually popped out of my recession. I swam back to the boat, and when I climbed aboard, I was no long underwater.

My wife had just one question: “What are you going to do to analogize the debt ceiling?”

PHOTOS: Rich and Michelle Reisin.