Stocks as you know are headed in one of their downtrends we have become familiar with lately. It was when the Dow Jones Industrials went above ten thousand six months ago that I told my readers that it was officially time by buy everything. After this the market dipped below ten thousand again before coming back above to stay. But now we are approaching that same ten thousand figure and I'm wondering whether I should give an official Sell signal. I'm not doing it today but look for it. Unemployment claims are up and I imagine the next unemployment figure will be back over ten percent. Houses really aren't recovering the way everyone hoped they would and there is still a large number of home owners living with upside-down mortgages. The problem is people have been so bearish on the economy nobody can accuse the Obama administration of setting our hopes too high. The question now is which country in Europe will go bankrupt next?
Things don't look at all rosey for the tea party set either. Rand Paul, son of Ron Paul, may have won the Kentucky senate nomination but no way does he have the personal carisma of his father, and he comes off as near incoherent in public. We can pretty much award that senate seat to the democrats. Blanch Lincoln was forced into a run-off. This isn't good for President Obama, who sold out his own position on the Health Care bill to support and campaign for her. Arlen Specter is another "ditto" case of President Obama not having what it takes to campaign for people. On top of the failures of a few months ago the President's track record for campaign isn't very good. But it isn't good for the tea baggers either because Joe Sestak is a liberal and younger democrat, who probably stands a better chance of winning then Spector would have, being eighty years of age. It's time to send this war horse out to pasture, with his magic bullet and all. But the one race which really was head to head democrat facing republican, the Democratic candidate won, for Jack Myrtha's old senate seat. This can't bode well for the tea party set either. A lot of their success will depend on what happens here in California in November. But clearly is there is something wrong with this economy, it can be blamed on Obama following the failed Bush policies and perhaps if new blood were introduced, things would change. Republicans fear the completely non existant threat of inflation and "printing press money". One only wishes that that would actually happen, because we could pay back the national debt with cheaper dollars like we did with Reagan. You remember him. But these days the financial community is like a giant vacuum cleaner sucking up any excess funds. We need to put teeth in any financial reform bills that come out of congress and President Obama needs to rally the American people. For all his aledged "gifts of oratory" it isn't showing up in hard votes. His idea of a severe tongue lashing is waving a wet noodle in the air. Obviously we need to bring back Glass Stiegal. Just to refresh your memory on that one more time. Glass-Stiegal was passed in 1935 under Roosevelt. This bill said that you could be either a Savings Bank or an Investment Bank, but that you could not be both. Either you had depositors and made loans, or you were like one of these brokerage houses that played the market. You just can't do it with Aunt Thelma's money. Germany has banned "naked short selling". If I understand this- - in normal short selling you "sell a stock" that you don't own, but normally you have to put up the money to prove you could actually afford to own the stock. Hopefully when the stock drops in market price, you buy this stock that you've already paid for at a reduced price and hence make a profit. So I think a naked short is sort of a equivelent to a zero margin requirement, which is taking a huge risk. If a short goes against you even at 100% equity up front, you could be out several times your investment. On a 50% margin whatever that number is, multiply it times two.
Oil is now creeping ashore on Louisiana beaches at last. This is the thick main mass of the oil slick and not the "sheen" they have talked about. People have been out observing it. But I hear that the Federal Government won't allow scientists and others to conduct measurements of oil concentration or toxisity. Neither will the government do it themselves. But it goes further. CBS reporters were on a public beach yesterday reporting on the oil slick and a coast guard cutter came by and told them to get out of there on orders from British Petrolium. You tell me what THAT is all about. Why hasn't President Obama come out more stridently against British Petrolium and made it plain to them that they will have to pay every penny of the clean up costs, and not the US tax payers. Clearly we need a third party candidate and we need it bad. Because it's clear that Obama is in bed both with the Wall Street bankers and the oil companies. It's time for a thorough spring cleaning, like Tom Dewey talked about doing in 1948.
Well it looks like the LA Lakers are headed for another NBA championship. It's becoming a habitual affair. Actually I'm beginning to find it a little boring knowing they win just about every game and every play-off round like clockwork. The Suns are almost history so bring on the Celtics. Then we can spend money on another victory parade that taxpayers can't afford.
The senate just passed some version of the financial reform bill. I'll have to read the provisions of it but I suspect like the Health Bill, the provisions they include might not be the most important ones. I'll like to know all of the loopholes in the bill, that you might be able to drive a Humvee through. Consumer protection is OK to a point, but it's the funny stuff that goes on in the back rooms that I'm worried about. It's the "deal before the deal" I'm worried about.
No comments:
Post a Comment