Contact Direct:  Andrew B. Vaughey at (206) 778-2084, or My Associate Nick at (206) 498-1932 for assistance.  Thank You.

I’m not saying what Madoff did was right.  It was Clearly WRONG.  And, He Must of had Help from His Buddies in Washington.  I mean this guy was the former Head of the Nasdaq Market.  Common.  74% of Americans Surveyed by CNN believe this is Common among our Financial Markets.  The SEC alleges Madoff operated a $50 billion Ponzi Scheme - the largest in history - that cost some of the world’s largest investors & foundations millions and millions of dollars each.

Of 1,000 Households Surveyed, 59% said Government is to easy on regulation, 22% said its too tight, and 18% said its exactly right.  The average American doesn’t understand the SEC, or FINRA, and how they can Slow the Markets Down.  Bottom line, the SEC knew about Madoff’s activities 10 Years ago, and they did nothing about it for 10 years???  Based on a theory that they had “No Credible Information”.  Give me a break.  Why isn’t Cox, the SEC Chairman, being held responsible?  Your Honor, He’s in Contempt!  He’s the one that the US Taxpayers are paying to steer the ship, and apparently he’s been asleep at his post.   

This Lax Policy has Americans hiding any extra money (which there isn’t any) under the mattress.  In theory if Americans had any extra money, say a $1,000 Christmas Bonus…Only 24% of Americans want to put the bonus in Stocks or Bonds…that means the vast majority of Americans - 76% would hide it under the mattress, ie Running from the Financial Markets.  The recent $700 Billion Bailout by Congress would have been better spent to give each American Family $1M to Pay off there Mortgages.  Why exactly did we give it back to the banks for making Bad Loans?  Is that Free Markets?  Is this responsible government?  Nope.  The Greedy Banks got all the Money, and Now there Taking the Houses and the Businesses Next, like they were given a lottery ticket.  How exactly is that Fair Government (Using our Tax Dollars to Bailout the Crooks)?  And, Now we Want More Government Intervention in the Financial System?

By:  Andrew B Vaughey

Even with this, he concedes, “The economy is likely to get worse before it gets better,” a downbeat forecast, 57 days before he takes the oath of office and as Americans headed into the year-end holiday season.  Cheers Everyone!  Its not going to be a great Christmas this year. 

Barring swift action, “most experts now believe that we could lose millions of jobs next year,” he said, urging the newly elected Congress to act quickly on his plans after opening its session on Jan. 6.

At a news conference, Obama was critical of the Big Three automakers, saying he was surprised they did not have a better-thought-out plan for their future before asking Congress to approve $25 billion in emergency loans. 

He said once he sees a plan, he expects “we’re going to be able to shape a rescue.”

Obama declined to say how large a stimulus package he wants from Congress. Democratic lawmakers speculated over the weekend that the price tag could reach $700 billion over two years as the nation struggles to emerge from a recession compounded by a credit crunch. “It’s going to be costly,” the president-elect said.

By: Andrew B Vaughey

Citigroup’s problems have been thinly veiled, given the tap dance the bank and regulators performed in an effort to keep the New York bank’s purchase of Wachovia on track even after a private buyer, Wells Fargo, stepped forward with a higher price as part of an offer that didn’t require assistance from the Federal Deposit Insurance Corp. Citi was also seen by some as the major bank needing government help when the Treasury Department debuted a program in which it required nine major banks to accept direct government investments in their companies.

In addition to loan problems contributing to about $20 billion in losses over the previous four quarters, the bank has deep-rooted problems in integrating the many pieces stitched together over the last decade or so.

With investors pummeling Citibank’s shares toward $2 last week, the government stepped in Sunday night with a plan to rescue what was once the nation’s most powerful bank.

Under the rescue plan unveiled by the Treasury Department, the Federal Reserve and the FDIC, Citigroup (NYSE: C) and the government have targeted a pool of about $306 billion in troubled assets. Citigroup will assume the first $29 billion in losses from the pool and 10 percent of losses beyond that point. Additional losses from the pool will be dumped on the nation’s taxpayers.

The government will also receive warrants to purchase shares in the bank as part of the plan in which it will invest a further $20 billion into Citigroup on top of the $25 billion invested in the bank as part of the Treasury’s direct investment.

“With these transactions, the U.S. government is taking the actions necessary to strengthen the financial system and protect U.S. taxpayers and the U.S. economy,” the Treasury Department, Fed and FDIC said in a joint statement Sunday.

Citigroup’s Citibank is a significant player in the San Francisco Bay Area banking, with about 1,500 employees and 108 branches in the 10-county region. Citi has a total of about 3,100 employees in the Bay Area. San Francisco is also home base for the president of Citibank California, Rebecca Macieira-Kaufmann.

Under the terms of the bailout, Citigroup cannot pay a dividend on its common stock of more than a penny per share per quarter for the next three years.

It would not be surprising to see a public backlash emerge over the Citibank rescue plan, specifically in not requiring a change in the top management nor the sale of parts of the bank. The rescue plan emerged even as General Motors, (NYSE: GM) Ford (NYSE: F) and Chrysler are being criticized for coming to Washington for a federal bailout with no plan in hand for how their businesses will be restructured for long-term survival.

The Citibank rescue is also likely to come under criticism for privatizing profits made from the bank’s high-risk bets, but placing losses on the taxpayers’ shoulders.

President George W. Bush already said Monday that there could be similar plans based on the Citigroup rescue for other financial institutions needing help.

By: Andrew B Vaughey

The Trouble at the nation’s largest banks likely goes much deeper than regulators initially anticipated, given the government’s decision to potentially absorb hundreds of billions of dollars of losses on loans and other assets languishing on CitiGroup’s books.

The clear view of the industry’s troubles will become focused in the months ahead as the economic downturn takes its toll on consumers’ ability to repay loans.  Forget loans, it will become evident when the consumers ability to pay basic bills comes into question.  Also, the quality of commercial real estate mortgages will likely be the next leg to break in our economy, which will further erode the value of securities backed by questionable loans.

By:  Andrew B. Vaughey

Diamond Investments, Inc. engages CKT Management to solidify Project Fundings through very competitive POF, VOD, and SBLC for clients looking to fund there projects.  From Top 20 Banks.  This is a New Service now available.  If you are looking to Fund Projects, or Obtain Funding Call Us Today.  (206) 778-2084

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$10M SBLC Cost is $350k

$100M SBLC Cost is $5M

Gold Prices Soar Report As Investors Flee to Safe Haven Assets, an in depth report by Andrew B Vaughey

As investors flock to tangible assets, Gold prices exploded this past Wednesday, posting the largest 1-day price gain in dollar terms, as the fears of more credit market turmoil continued.  “People are heading for high ground, to precious metals, and ’safe-haven’ type assets,” reports Drew Barrett.

Gold Prices rose by $90.40 or 11.60%, to $870.90 an ounce in after-hours trading on the NYSE.  The Huge Rally came on the news of the Federal Reserve $85 Million bailout of insurer giant AIG.  AIG, Washington Mutual (WAMU), & Lehman Brothers are all on “life support” thanks to the losses tied to the sub-prime crises. 

The psychology right now is fear and concern, when you have the fourth largest investment bank in the World, with a 158 Year history, people wonder how this can possibly be good for jobs, income, housing.  Forget the economy, everyone who has a pulse knows its just plain bad.  “Forget the economy is bad routine right now.  People are seriously concerned about where there next paycheck is coming from, as Corporate Giants are Falling by the wayside”, said Andrew Vaughey.

In this backdrop, assets like Gold are King.  Experts like CPM Group in New York have expressed predictions that Gold Prices Could Climb back to $1,000 per ounce by this Year’s end.  And its not just Gold, SIlver and Copper also soared in this Global Financial Meltdown. 

Posted By: Andrew Barrett, Nick B Vaughey, & Drew Barrett of Diamond Investments, a Private Equity Firm

Fed pumps $70 Billion into our nation’s fragile financial system to try and ease the stress over the market imploding, as many fear this is the worst crisis since The Great Depression of the 1930’s.  “While this move might help in the short-term, amid concerns of Wall Street, one’s got to wonder how we can work are way out of the over-leveraging of banks,” commented Andrew Vaughey.  Lehman Brothers case in point.  The World’s fourth largest bank filed for bankruptcy protection.  Washington Mutual downgraded to Junk, and now is considered by many to look like its on the shopping block for a JP Morgan, or Bank of America. 

The federal reserve aide came in two functions, first the $50 billion immediate cash infusion, and then another $20 billion regularly scheduled injection in temporary reserves.  The maneuver by Federal Reserve Chairman Ben Bernanke and his central bank colleagues prepare to decide on which direction to take on interest rates.  Some are critical of Alan Greenspan say is the one to pick who killed our economy.  Why?  The deregulation of the banking industry, which means in layman terms, it made it too easy for banks to extend credit & leverage there portfolios.  Now we’re paying the price.

Merrill Lynch, another powerhouse in the brokerage industry, decided to not go it alone, and be purchased by Bank of America.  Now, insurance giant, AIG is dangerously close to toppling.  Against this backdrop, Wall Street plunged 500 points, the most since the September 2001 terror attacks.

The cash infusion Tuesday is designed to help ease the higher costs in lending rate between banks.  A sharp rise in such borrowing costs, which has happened, makes banks reluctant to lend each other cash, worsening an already tight credit conditions.  And, just as we know that consumers have been a mist a credit crunch, your starting to see this spill over to the business sector, a factor further slowing the economy. 

Hold on to your seat, because this is going to undoubtedly be a Wild Ride.

Posted By: Andrew B Vaughey, Nicholas B Vaughey, and Drew Barrett (updated September 20, 2008)

Jacobs Energy’s (JE) slogan is “knowledge of the past, vision of the future”.  Jeremy Jacobs is clearly driving the revolution for Shale-Gas exploration & development.  Mr. Jacobs was recently appointed to the a list of the Top 100 Consultants for the PTTC, and the Department of Energy.  JE is a diverse energy development company involved in the production of natural resources, specifically Shale-Gas drilling in Appalachian Basin, Tennessee, Kentucky, & West Virginia.  “At the core, is knowledge and data that drives the decision making process of where to drill, what land to tie up in leases, and ultimately what fields to acquire”, stated Andrew Vaughey of Diamond Investments, a private equity consulting firm.  

As a nation, we are overly reliant on foreign oil & gas to fuel our country and economy.  We import approximately 70% of what our energy needs are annually, and thus export roughly $700 billion dollars or more, to foreign oil companies.  Shale-gas plays have recently been touted as the savior for the US Consumer, as it is estimated between 500-600 Trillion cubic feet (Tcf) exist in the US.  In fact, Shale-Gas could even the field, and lead to less reliance of foreign oil.  Jim Cramer of CNBC has spoken about this revolution in oil and gas on his talk show.

Diamond Investments is providing Business Consulting with KP Capital Group, to privately raise $90 million in financing capital through a joint partnership effort with Jacobs Energy.  There are more than 35,000 shale-gas wells in the U.S., with cumulative production of roughly 600 Bcf, according to College Oak Investments LLC.  “Many of the wells in the Appalachian Basin were drilled 20, 30, or even 50 years ago, and  are still producing gas & oil, but haven’t been retrofitted with new technology known as ‘Fracturing or Frac(ing) the hole’, so to speak” said Nick B. Vaughey of the Diamond group.  “This is where the hole is drilled deeper and/or injected with CO2, to explode the rock and thus releasing even more gas potential from the “gas rich” Appalachian Basin.  There’s huge upside, because we are betting on the shale-gas, not even factoring any natural gas or double traps, or even oil” Andrew Barrett.  Many of the fields & wells of Jacobs Energy are capable of producing 10, 100, even 1,000 barrels of oil a day, in addition to the Shale-Gas.

 Posted By:  Andrew B Vaughey, Nicholas B Vaughey, & Andrew (Drew) Barrett of Diamond Investments, a Private Equity Firm in Seattle Washington.

Posted By: Andrew B Vaughey, Nicholas B Vaughey, and Drew Barrett of Diamond Investments a Private Equity Firm in Seattle Washington.