Friday, October 07, 2005

SPINNING WHEELS

To hear it from Kudlow and Co. and whatever guest he ever has, "world economy is bitchin'!" "We got growth all over the world and the world housing BOOM is just getting started..." " not too late to buy ccommodities"

Looking at price of copper and gold etc, it sure looks good! And Kudlow could be right, he suggests buying copper stocks etc, but then why the reluctance f the US stock markets to get on board?

WHy the hosing of US home building stocks? Why are retailers weak?

Reason, 3 years into cyclical bull, the game of asset inflation is getting old. Talk by the FED about inflation is fanning gold fever, and maybe even this gold breakout is the real thing, but then this wouldn't be the same setup as the 70's too little capacity to cover too many dollars, it is quite the opposite.

So I Understand what is driving the price of gold, inflation caused by energy prices and a housing bubble, but I don't see wages out of control nor lack of supply or capacity, so IMHO this too shall pass.

A day doesn't go by now without Avian Flu story, local cable even the President is talking it up.

SO what do we get from our BUSH led Gov to help us with energy crisis?

An energy bill with tax giveaways to big oil, and now a bill to spur building of new refineries, with more tax breaks and relaxation of pollution controls!

Not a PEEP about conservation, nor mandating increase in MPG per vehicle, NOR speeding up adaptation of HYBRID models instead of pie in the sky promises of hydroegn economy, a sham as it now takes MORE fossil fuel to produce same amount of hrdrogen and its very expensive.

Yields seem reluctant to give up recent gains, putting more pressure on consumers.

As always consumers hold the key.

The stock market went nowhere today, new lows still outpaced highs 102 to only 38 highs!

Brokerage upgrades EMC today at $13, at no time from when it was $100 back in 2000 did it get a sell! Nor did at $3 it get a buy. WHATEVER these jokers say about stocks........fugitaboutit.

WE need to make investments in capital equipment to get healthy, we need to do this from savings, we have negative savings. I think the FED is buying back their own bonds trying to hedge down rates from rising too fast, because foreign buyers have cut back.

Our government is failing us, and maybe what comes out of this is the realization that this 2 party system ain't working, giving us too many LAME Presidents, and where a 3rd party basically has NO SHOT to be heard.

GOV is getting larger and larger even under Republican rule, even more so. ALL that happens is pie gets redistributed.

Div tax cut hasn't improved company payouts still barely 2% yield. BUT Bill Gates certainly thanks you.



Duratek

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