Mcgraw Hill Companies (MHP)

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THE ALLUSION
Compare the 10, 5 and 1 year stock chart of McGraw-Hill and you get a completely different view of the company. Like the old story of the 3 blind men describing what an elephant is, one from the trunk, one from the massive body and the other from the tail. The one year charts makes McGraw-Hill look like a roaring undefeatable dynamo with no limits to the up side. The 5 year charts shows the companies real weakness with it's collapse from the high of $72 to about $16. The 10 year chart tells the whole story of where the company came from and where it is really going. The one year chart run up in price is due to pure QE-1 printing of money by the Federal Reserve and dumping it into the markets through the myriad of conduits at its disposal including the infamous Plunge Protection Team. Yes the Plunge Protection Team does exist, Alan Greenspan admitted it under intense questioning by Congress members before he left office, he should know he created it when the crash of 1987 happened. It worked, illegal but that does not seem to mater any more in today's government.

With QE-2 in full swing and the Chinese saying that they will not tolerate the devaluation of all the US cash and US Treasury Notes by continued QE actions by the Federal Reserve, then the game will end in 2011 and so will the QE run up of McGraw-Hill and other companies like it. With the colleges and universities shrinking quickly or shutting their doors in some cases in the coming Greatest Depression, there will be little need for any high priced flashy text books or their greedy authors. The other companies of the McGraw-Hill Family like Standard & Poors or JD Power will not be needed as no one will want information about investing in stocks or bonds, for a quick look out the widow at the soup kitchen lines will be a much better indicator. Read http://fallofthehouseofmcgrawhill.com/ and my other post on the message boards about them and get out while you can. The run up in the past year is all an allusion created by the QE Federal Reserve money and mainstream media hype. The “technicals looking good” as some say are nothing more than the allusion of Federal Reserve printing. You want to see what it will look like then observe the plummet from $72 to $16 on MHP charts. This will seem mild compared to the next plunge when the US bond market implodes which can happen in a mere 24 hour period. McGraw-Hill will survive but at a skeleton of it's former self and it will be better for in in the long run. Get out now and buy MHP back when it is well south of $1.00.