Top Stocks For 2011, Best Stock Investments For 2011, Hot Stocks For 2011

I was sitting in the office of a billion-dollar hedge fund manager, and good friend, a couple of months ago comparing notes.

The mood was casual... until I mentioned a side project of mine.

I had found a 39-year-old glitch in the federal accounting system.

Not only that, but I figured out how to exploit this error to make as much as $3,750 every month.

The truth is I sold my best stock portfolio in May 2007 and was using this glitch as my only way to make money.

My strategy is so foolproof, when the best stock market dropped 36% in just over a year, I kept every penny of my wealth intact.

My friend pleaded with me to keep the details of my strategy between us. He even offered me a large sum of money to do so.

But, I wasn't interested in keeping it to myself.

That's why I'm writing you today. As a Taipan Publishing Group subscriber, I want to give you first crack at this incredible moneymaking opportunity.

The United States experienced another interesting first on Wednesday. For the first time in the history of our union, the Securities and Exchange Commission brought charges against a State. The powers that be in New Jersey had been deceiving and misleading investors in regards to the fiscal well-being of the Garden State, and the SEC busted 'em. Bravo.

That's where the good news ends.

But first, the Cliff's Notes to this mess, according to the SEC's allegations:

In 2001, New Jersey increased pension benefits for state employees without having the funds to cover new benefit expenses. For the next six years, at least, the state continued to underfund the pension system - but hid that information from municipal bond investors. On 79 separate occasions the state sold a total of $26 billion in bonds while "withholding and misrepresenting pertinent information about its financial situation," said SEC director of enforcement Robert Khuzami.

It's always a little tricky to know exactly what an economic recovery looks like. But it's usually pretty easy to know what it doesn't look like...and it doesn't look anything like the chart below:

An economic recovery doesn't look anything like this either:

If Henry David Thoreau was right when he wrote, “That government is best which governs least,” then Australia got itself the best government in the world on Saturday.

Of course technically speaking, Australia didn’t elect a government. And that government which is not a government cannot govern at all. Thus, “not at all” being less than “least”, the unelected government not elected on Saturday is best!

Okay. Enough of the japery. Let us put our dour and serious face on and see what Saturday’s election means for markets...

On second thought, let’s not be serious. After all, this is a great result, is it not? That would be the unconventional take on things. The conventional take is that markets hate uncertainty. What they got on Saturday was an extra portion of uncertainty with a dollop of extra time. But to paraphrase Gordon Gecko, “Gridlock is good.”

Think back for a moment to 2005, at the height of the U.S. real estate bubble.

When the house down the street was snatched under contract within hours of being on the market, for five times what the owner paid just a few years before. When the banks were handing out mortgages like they were free toasters. When Ma and Pa turned into house- flipping overnight millionaires. When everyone was living high on the proverbial hog.

If I had told you then that in just a few short years - on Sept. 16, to be precise - the big banking giants like Lehman Brothers, Bear Stearns, AIG and Merrill Lynch would come crashing down all at once... would you have believed me? If I had insisted that in one fell swoop, a banking-induced global economic crisis would reach pandemic proportions and would prompt the IMF to warn the world hindered on "brink of systemic meltdown"?

How about if I had told you in 2007 that next year Treasury rates would actually turn negative... that the U.S. automarket would siphon billions in bailouts from the government... or that we'd see triple-digit oil prices?

More recently, what if I'd said to you on May 5, 2010, that the next day the market would take a devastating 1,000-point dive for seemingly no reason?