It seems that some private nuclear reactor funding is starting to yield useful results.
As it runs, the core in a traveling-wave reactor gradually converts nonfissile material into the fuel it needs. Nuclear reactors based on such designs "theoretically could run for a couple of hundred years" without refueling, says John Gilleland, manager of nuclear programs at Intellectual Ventures.
This design is called the Travelling Wave Reactor and it could conceivably run without having to be refueled for 100 years! Now that is just strait-up amazing. That takes care of the proliferation threat as well as the waste problem all at once.
This along with the Liquid-Fluoride Reactor will usher in a new wave of "Green" Atoms. If Obama doesn't fund this research ASAP then he is as bad as Bush standing in the way of stem cells. All of the wind power and solar plants in the world will not add up to a tenth of what these Green Reactors can provide. Anyone that is serious about getting rid of global warming should fund this research right now.
Thursday, March 05, 2009
Stocks Tumble While Obama Fiddles
We had another terrible bloodletting on the market.
Investors fled Wall Street as fear grew about the stability of the nation's largest banks and worries mounted about General Motors Corp. The major market indicators resumed their slide Thursday after a one-day rally, falling to levels not seen in more than a decade as investors contended with more disheartening economic data, new concerns about the stability of GM and ongoing uncertainty about the financial system.
You would think that the Commander and Chief was watching the markets and trying to reassure fearful Americans worried about their 401K, their pensions, or their university endowments. Nope Obama was doing this.
President Barack Obama summoned allies, skeptics and health care figures of all stripes to the White House Thursday to debate ideas for overhauling the nation's costly system and declared, "The status quo is the one option that is not on the table."
The big Washington session — Obama called it a health care summit — and meetings to follow around the country show the new president's push for universal health care coverage will be more open and inclusive than the Clinton administration's failed attempt of 15 years ago.
I think Obama needs to think about fixing the financial system and banks before he goes any further on healthcare. This is 2nd year stuff that won't matter at all if the financial system is not fixed ASAP. People don't worry about their rising healthcare costs when they have lost their house, their job, and they probably can't retire until they are 75. He needs to concentrate on one crisis at a time and not be sidetracked by things he can take care of months from now.
Investors fled Wall Street as fear grew about the stability of the nation's largest banks and worries mounted about General Motors Corp. The major market indicators resumed their slide Thursday after a one-day rally, falling to levels not seen in more than a decade as investors contended with more disheartening economic data, new concerns about the stability of GM and ongoing uncertainty about the financial system.
You would think that the Commander and Chief was watching the markets and trying to reassure fearful Americans worried about their 401K, their pensions, or their university endowments. Nope Obama was doing this.
President Barack Obama summoned allies, skeptics and health care figures of all stripes to the White House Thursday to debate ideas for overhauling the nation's costly system and declared, "The status quo is the one option that is not on the table."
The big Washington session — Obama called it a health care summit — and meetings to follow around the country show the new president's push for universal health care coverage will be more open and inclusive than the Clinton administration's failed attempt of 15 years ago.
I think Obama needs to think about fixing the financial system and banks before he goes any further on healthcare. This is 2nd year stuff that won't matter at all if the financial system is not fixed ASAP. People don't worry about their rising healthcare costs when they have lost their house, their job, and they probably can't retire until they are 75. He needs to concentrate on one crisis at a time and not be sidetracked by things he can take care of months from now.
Wednesday, March 04, 2009
Rush Calls Obama Out: Wants to Debate; Mark My Words: Obama Will Duck It.
I think Rush's gambit might just succeed in distracting the White House enough that the market might recover from his missteps.
But I have an idea. If these guys are so impressed with themselves, and if they are so sure of their correctness, why doesn’t President Obama come on my show? We will do a one-on-one debate of ideas and policies. Now, his people in this Politico story, it’s on the record. They’re claiming they wanted me all along. They wanted me to be the focus of attention. So let’s have the debate! I am offering President Obama to come on this program — without staffers, without a TelePrompTer, without note cards — to debate me on the issues. Let’s talk about free markets versus government control. Let’s talk about nationalizing health care and raising taxes on small business.
That would be one hell of a debate. I guess the White House is all about making Rush the defacto head of the GOP but they look like fools if they step back onto the high horse now and duck him. I mean the President of the United States didn't have to step off of the high horse in the first place. After all the President should never be debating on-air CNBC reporters and talk-show hosts in the first place.
So all Limbaugh has to do is send a guy in a chicken suit or a guy holding a sign that says "Debate Rush Now!" to every Obama event then suddenly the President looks like a buffoon. He looks like he is ducking a talk-show host that his own White House is trying to demonize and elevate to the head of the opposing party.
Man, I bet Putin is licking his chops. If Obama can't stand up to a guy with a radio program then wait until he goes head to head with a trained KGB operative. Also, I guess it is time for the Red Chinese to get us out of this economic mess now that Obama is wasting his time with radio personalities and guys on the financial channel.
But I have an idea. If these guys are so impressed with themselves, and if they are so sure of their correctness, why doesn’t President Obama come on my show? We will do a one-on-one debate of ideas and policies. Now, his people in this Politico story, it’s on the record. They’re claiming they wanted me all along. They wanted me to be the focus of attention. So let’s have the debate! I am offering President Obama to come on this program — without staffers, without a TelePrompTer, without note cards — to debate me on the issues. Let’s talk about free markets versus government control. Let’s talk about nationalizing health care and raising taxes on small business.
That would be one hell of a debate. I guess the White House is all about making Rush the defacto head of the GOP but they look like fools if they step back onto the high horse now and duck him. I mean the President of the United States didn't have to step off of the high horse in the first place. After all the President should never be debating on-air CNBC reporters and talk-show hosts in the first place.
So all Limbaugh has to do is send a guy in a chicken suit or a guy holding a sign that says "Debate Rush Now!" to every Obama event then suddenly the President looks like a buffoon. He looks like he is ducking a talk-show host that his own White House is trying to demonize and elevate to the head of the opposing party.
Man, I bet Putin is licking his chops. If Obama can't stand up to a guy with a radio program then wait until he goes head to head with a trained KGB operative. Also, I guess it is time for the Red Chinese to get us out of this economic mess now that Obama is wasting his time with radio personalities and guys on the financial channel.
Ponzi Schemer Madoff Gave Thousands to Dodd and the Dems
Here we go again with the crooks giving thousands of dollars to Democrats.
I checked opensecrets.org and found old Bernie gave $182,250 to politicians and political causes over the year. That included $173,500 to Democrats and their causes.
His wife, Ruth, made $42,800 in donations — $32,250 to Democrats.
Among his Democratic Party friends are House Ways and Means Chairman and Tax Cheat Charles Rangel, Senator and Mortgage Manipulator Christopher Dodd and Sen. Chuck Schumer.
I checked opensecrets.org and found old Bernie gave $182,250 to politicians and political causes over the year. That included $173,500 to Democrats and their causes.
His wife, Ruth, made $42,800 in donations — $32,250 to Democrats.
Among his Democratic Party friends are House Ways and Means Chairman and Tax Cheat Charles Rangel, Senator and Mortgage Manipulator Christopher Dodd and Sen. Chuck Schumer.
Larry Kudlow Will Smash Dodd in a Senate Race
At last we see a true challenger come to the fore against the hapless and inept Chris Dodd.
In 2010, the Republicans will have to run on fiscal responsibility and economic management, especially if the market continues to slide and the economy keeps stalling as badly as it is now. Dodd helped run the housing market into the ground, but thus far has managed to avoid much of the responsibility by shifting it to what he calls deregulation. Kudlow seems uniquely positioned to expose Dodd’s arguments as fraudulent and to explain in clear terms what Dodd did to wreck the nation’s economy. And that’s before Kudlow rips Dodd over the Friends of Angelo loans he received from Countrywide while he was supposed to be overseeing the industry.
I think all Kudlow will have to do is show how incompetent and unqualified this man is to run the Banking Committee and he will win by a landslide. Any Banking Chairman that talks about nationalizing banks and causes financial stocks to swoon is a guy that should be looking for another job. The banks are terminally ill and Dodd is dangerously unqualified to do anything except for shaking his finger at bank CEOs.
I think the sweetheart loans from a bankrupt lender that people despise like Countrywide (people hate them so much that Bank of America is going to ditch their name and logo) will only be icing on the cake. I mean Dodd still hasn't come clean about these loans and the longer he waits the guiltier he will get. Also there is the matter of his Irish Countryhome and the various sleazy dealings surrounding it as well.
In 2010, the Republicans will have to run on fiscal responsibility and economic management, especially if the market continues to slide and the economy keeps stalling as badly as it is now. Dodd helped run the housing market into the ground, but thus far has managed to avoid much of the responsibility by shifting it to what he calls deregulation. Kudlow seems uniquely positioned to expose Dodd’s arguments as fraudulent and to explain in clear terms what Dodd did to wreck the nation’s economy. And that’s before Kudlow rips Dodd over the Friends of Angelo loans he received from Countrywide while he was supposed to be overseeing the industry.
I think all Kudlow will have to do is show how incompetent and unqualified this man is to run the Banking Committee and he will win by a landslide. Any Banking Chairman that talks about nationalizing banks and causes financial stocks to swoon is a guy that should be looking for another job. The banks are terminally ill and Dodd is dangerously unqualified to do anything except for shaking his finger at bank CEOs.
I think the sweetheart loans from a bankrupt lender that people despise like Countrywide (people hate them so much that Bank of America is going to ditch their name and logo) will only be icing on the cake. I mean Dodd still hasn't come clean about these loans and the longer he waits the guiltier he will get. Also there is the matter of his Irish Countryhome and the various sleazy dealings surrounding it as well.
Jeff Macke's 3 Point Plan For Obama to Regain His Footing
It seems that Obama is starting to really rankle some people in the investment community.
The man has had the shortest honeymoon since George Bailey had a run on his savings and loans within seconds of saying "I do." His staff is less in synch than a fifth grade marching band. He’s somehow managed to make the insult “tax-and-spend liberal” seem not only utterly insufficient as a gibe, but the closest thing the president has to a coordinated policy.
The Dow Jones Industrial Average has fallen over 1300 points and 16% since President Obama’s inauguration, yet he and his staff members continue to complain about the problems they “inherited." I waited 3 and a half years to take the scarlet W off my sweater for voting Republican in 2000 and 2004, and I’m pining for W less than 2 months into the post-Bush era.
This was a guy that "Voted for Change." I think he may have mistook what the word change meant. It was the coin variety and not actual change. Macke has a 3 point plan on how Obama could get back on his pedestal and I tend to agree with him.
The man has had the shortest honeymoon since George Bailey had a run on his savings and loans within seconds of saying "I do." His staff is less in synch than a fifth grade marching band. He’s somehow managed to make the insult “tax-and-spend liberal” seem not only utterly insufficient as a gibe, but the closest thing the president has to a coordinated policy.
The Dow Jones Industrial Average has fallen over 1300 points and 16% since President Obama’s inauguration, yet he and his staff members continue to complain about the problems they “inherited." I waited 3 and a half years to take the scarlet W off my sweater for voting Republican in 2000 and 2004, and I’m pining for W less than 2 months into the post-Bush era.
This was a guy that "Voted for Change." I think he may have mistook what the word change meant. It was the coin variety and not actual change. Macke has a 3 point plan on how Obama could get back on his pedestal and I tend to agree with him.
The Rush Limbaugh Attacks Go Right to the White House
I think the White House are forgetting that there is an economic crisis that is enveloping the entire world. Instead of tacking that problem they are going after a talk-show host.
Neither Democrat would say so, but a third source said the two also began pushing the idea of targeting Limbaugh in their daily phone conversations with Emanuel.
Conversations and email exchanges began taking place in and out of the White House not only between the old pals from the Clinton era but also including White House senior adviser David Axelrod, Deputy Communications Director Dan Pfeiffer, Press Secretary Robert Gibbs and Woodhouse.
Doesn't David Axelrod have anything better to do with his time then to make a boogieman out of Rush? We just had our GDP drop by 6%. Shouldn't he be thinking of some way to get Americans back to work? Instead they are thinking up childish plans to "Get Limbaugh." Talk about fiddling while Rome burns. This partisan BS is just what America hates about Washington. I guess being distracted by Rush is better then introducing more wealth destroying changes to the economy.
Neither Democrat would say so, but a third source said the two also began pushing the idea of targeting Limbaugh in their daily phone conversations with Emanuel.
Conversations and email exchanges began taking place in and out of the White House not only between the old pals from the Clinton era but also including White House senior adviser David Axelrod, Deputy Communications Director Dan Pfeiffer, Press Secretary Robert Gibbs and Woodhouse.
Doesn't David Axelrod have anything better to do with his time then to make a boogieman out of Rush? We just had our GDP drop by 6%. Shouldn't he be thinking of some way to get Americans back to work? Instead they are thinking up childish plans to "Get Limbaugh." Talk about fiddling while Rome burns. This partisan BS is just what America hates about Washington. I guess being distracted by Rush is better then introducing more wealth destroying changes to the economy.
Tuesday, March 03, 2009
Recession Proof Stocks: Gun Makers and Cabela’s?
It seems that the recession might breed lawlessness and people are afraid that Obama might take away their guns right before people need them according to this.
The recent earnings report of handgun maker Sturm Ruger (RGR) suggests this is a national trend: Over the last year, the company saw its order book grow by almost 50%, from $156 million to over $233 million. Demand is hot: Out of the 776,000 units ordered, Sturm Ruger reported over 175,000 of them were on backorder.
Sturm Ruger’s stock, though incredibly volatile, is near its 52-week high (but still sharply lower than it was 2 years ago). Smith & Wesson (SWHC) has also seen its stock
rise, as speculative fervor has built on the apocalyptic scenario.
Even Cabela’s (CAB), the outdoor-sports-and-equipment retailer, recently defied Wall Street expectations on the force of strong firearm and ammunition sales; its same-store sales rose 2.2% in the quarter. (It would be interesting to see if its camouflage gear was also in high demand.)
So handgun sales are starting really take off as people are trying to front-run the Obama administration. However these stocks will seriously tank once Obama introduces the Dedicated Initiative for Safe Ammunition Repair and Maintenance (DISARM) act that bans all gun purchases except by "commercial hunters" (who have to pay $1000 a year for a permit and be subjected to a psychological screening, a background check, a drug test, and a yearly audit) and imposes 500% "safety fee" on all ammo purchases.
It will be slipped into the 10,470 page $15.7 Billion Stimulus Bill 2 that Obama will stump for by actually wearing a Grim Reaper costume. He will talk about the Bill in an ominous baritone while shining a flashlight under his face. He will periodically shout if you don't pass this we are "Doomed, Doooomed, DOOOOMED!"
The recent earnings report of handgun maker Sturm Ruger (RGR) suggests this is a national trend: Over the last year, the company saw its order book grow by almost 50%, from $156 million to over $233 million. Demand is hot: Out of the 776,000 units ordered, Sturm Ruger reported over 175,000 of them were on backorder.
Sturm Ruger’s stock, though incredibly volatile, is near its 52-week high (but still sharply lower than it was 2 years ago). Smith & Wesson (SWHC) has also seen its stock
rise, as speculative fervor has built on the apocalyptic scenario.
Even Cabela’s (CAB), the outdoor-sports-and-equipment retailer, recently defied Wall Street expectations on the force of strong firearm and ammunition sales; its same-store sales rose 2.2% in the quarter. (It would be interesting to see if its camouflage gear was also in high demand.)
So handgun sales are starting really take off as people are trying to front-run the Obama administration. However these stocks will seriously tank once Obama introduces the Dedicated Initiative for Safe Ammunition Repair and Maintenance (DISARM) act that bans all gun purchases except by "commercial hunters" (who have to pay $1000 a year for a permit and be subjected to a psychological screening, a background check, a drug test, and a yearly audit) and imposes 500% "safety fee" on all ammo purchases.
It will be slipped into the 10,470 page $15.7 Billion Stimulus Bill 2 that Obama will stump for by actually wearing a Grim Reaper costume. He will talk about the Bill in an ominous baritone while shining a flashlight under his face. He will periodically shout if you don't pass this we are "Doomed, Doooomed, DOOOOMED!"
Blockbuster Refinancing its Debt and is Not Bankrupt
It seems Blockbuster is just looking for a way to finance some debt coming due in August and not closing up shop as reported earlier. Look for a steep drop off in Netflix stocks tomorrow. Maybe Blockbuster should approach the Feds about a bailout?
The video rental chain has said that it has the cash to fund itself through 2009 if necessary, but is trying to secure refinancing to make a debt payment due in August. Shares of Blockbuster had dropped 77% on Tuesday after a published report said it had hired Kirkland & Ellis to help it consider a variety of restructuring options, including a possible bankruptcy filing.
The video rental chain has said that it has the cash to fund itself through 2009 if necessary, but is trying to secure refinancing to make a debt payment due in August. Shares of Blockbuster had dropped 77% on Tuesday after a published report said it had hired Kirkland & Ellis to help it consider a variety of restructuring options, including a possible bankruptcy filing.
Now Gibbs Goes After Cramer: Does the Press Secretary Have Anything to Do Other then Watch CNBC?
Now Gibbs has Jim Cramer in his sights after going after Santelli a few weeks ago.
"I'm not entirely sure what he's (Cramer) pointing to to make some of the statements," said Gibbs. "And you can go back and look at any number of statements he's made in the past about the economy and wonder where some of the back-up for those are too."
When pressed further by Costello, Gibbs said, "If you turn on a certain program it's geared to a very small audience. No offense to my good friends, or friend at CNBC. But the President has to look out for the broader economy and the broader population."
Um, Mr. Gibbs Jim Cramer has a view of the economy that you cannot even dream of. Cramer has access to traders in the trenches, hedge fund managers, market mavens, and the people that have dealt with the economy for decades. Hell, he called this crisis back in 2007.
Plus Cramers money as well as his reputation is on the line when he talks about the economy. All the Obama administration can point to is a 2500 point drop in the Dow and a bunch of vague ways to soak the rich. Oh and spending $780 billion so that 95% of Americans can get $13 per paycheck. In fact I think Obama's economic team could actually use the insight of a guy like Cramer.
Instead we have Gibbs calling these people out by name and attacking their "back-up." I remember a time when the President didn't insult critics on TV and this Gibbs has done it twice to people on CNBC. I think Gibbs will now knock Becky Quick's choice of hairstyle or maybe he has some comments on the color of Carl Quintanilla's ties.
I think Gibbs needs to shut off the TV for a little while and read The Forgotten Man: A New History of the Great Depression by Amity Shlaes. Hopefully, he will take it as a cautionary tale and not a handbook for the future under Obamanomics.
"I'm not entirely sure what he's (Cramer) pointing to to make some of the statements," said Gibbs. "And you can go back and look at any number of statements he's made in the past about the economy and wonder where some of the back-up for those are too."
When pressed further by Costello, Gibbs said, "If you turn on a certain program it's geared to a very small audience. No offense to my good friends, or friend at CNBC. But the President has to look out for the broader economy and the broader population."
Um, Mr. Gibbs Jim Cramer has a view of the economy that you cannot even dream of. Cramer has access to traders in the trenches, hedge fund managers, market mavens, and the people that have dealt with the economy for decades. Hell, he called this crisis back in 2007.
Plus Cramers money as well as his reputation is on the line when he talks about the economy. All the Obama administration can point to is a 2500 point drop in the Dow and a bunch of vague ways to soak the rich. Oh and spending $780 billion so that 95% of Americans can get $13 per paycheck. In fact I think Obama's economic team could actually use the insight of a guy like Cramer.
Instead we have Gibbs calling these people out by name and attacking their "back-up." I remember a time when the President didn't insult critics on TV and this Gibbs has done it twice to people on CNBC. I think Gibbs will now knock Becky Quick's choice of hairstyle or maybe he has some comments on the color of Carl Quintanilla's ties.
I think Gibbs needs to shut off the TV for a little while and read The Forgotten Man: A New History of the Great Depression by Amity Shlaes. Hopefully, he will take it as a cautionary tale and not a handbook for the future under Obamanomics.
Officials Try To Defend Obama's Budget: Lipstick on the Pig Time!
Good luck because they are pretty much trying their best to polish a turd.
But Geithner defended the overall proposal, saying far more people would benefit from lower taxes under the plan. He said the budget reflects what Obama viewed as "a deep moral imperative to make our society more just. But it's very good economic policy too. It will mean there is again a fairer, more equitably shared tax burden on the vast majority of Americans."
The problem is that it soaks the rich, punishes charities, and rips off energy companies in order to give the middle class $13 more per paycheck. There is no justice in crippling the economy during a recession in order to give more people tens of dollars. Then we have pollyanish economics in this budget.
The budget forecasts that the economy, as measured by the gross domestic product, would only shrink by 1.2 percent this year and then snap back and grow by a solid 3.2 percent in 2010, followed by several years of annual growth of over 4 percent.
That's more optimistic than most private forecasts, and comes despite a new government report showing the economy contracted by 6.2 percent in late 2008, far more than the 3.2 percent drop first reported.
We better have a robust last 2 quarters to make up for the GDP losses we have now in order to get to just a 1.2% contraction. And 3.2% growth followed by 4% growth after a worldwide recession is shooting for the moon. However the cap and tax thing is the worst part of the budget.
Obama wants to reduce the emissions blamed for global warming by auctioning off carbon pollution permits. The proposal, known as cap and trade, is projected to raise $646 billion over 10 years.
Most of the money would be used to pay for Obama's "Making Work Pay" tax credit, which provides up to $400 a year to individuals and $800 a year to couples. The plan also would raise money for clean-fuel technologies, such as solar and wind power.
That means everyone gets to run in place and the leftovers go to a poorly articulated "green" plan. However he should know that tax credits (or outright cuts) will go a lot further then cap-and-tax. And if nuclear is not put in the clean-fuel category then Obama is not serious about getting rid of global warming or weening ourselves off of foreign oil.
But Geithner defended the overall proposal, saying far more people would benefit from lower taxes under the plan. He said the budget reflects what Obama viewed as "a deep moral imperative to make our society more just. But it's very good economic policy too. It will mean there is again a fairer, more equitably shared tax burden on the vast majority of Americans."
The problem is that it soaks the rich, punishes charities, and rips off energy companies in order to give the middle class $13 more per paycheck. There is no justice in crippling the economy during a recession in order to give more people tens of dollars. Then we have pollyanish economics in this budget.
The budget forecasts that the economy, as measured by the gross domestic product, would only shrink by 1.2 percent this year and then snap back and grow by a solid 3.2 percent in 2010, followed by several years of annual growth of over 4 percent.
That's more optimistic than most private forecasts, and comes despite a new government report showing the economy contracted by 6.2 percent in late 2008, far more than the 3.2 percent drop first reported.
We better have a robust last 2 quarters to make up for the GDP losses we have now in order to get to just a 1.2% contraction. And 3.2% growth followed by 4% growth after a worldwide recession is shooting for the moon. However the cap and tax thing is the worst part of the budget.
Obama wants to reduce the emissions blamed for global warming by auctioning off carbon pollution permits. The proposal, known as cap and trade, is projected to raise $646 billion over 10 years.
Most of the money would be used to pay for Obama's "Making Work Pay" tax credit, which provides up to $400 a year to individuals and $800 a year to couples. The plan also would raise money for clean-fuel technologies, such as solar and wind power.
That means everyone gets to run in place and the leftovers go to a poorly articulated "green" plan. However he should know that tax credits (or outright cuts) will go a lot further then cap-and-tax. And if nuclear is not put in the clean-fuel category then Obama is not serious about getting rid of global warming or weening ourselves off of foreign oil.
The Obama Crash
Hmm, according to this the Dow has gone from 9500 to 7000 since Obama was elected. Now this is one sad looking chart:
The worst part is that Obama isn't concerned with the 2500 point swoon since he was elected.
“What I’m looking at is not the day-to-day gyrations of the stock market, but the long-term ability for the United States and the entire world economy to regain its footing,” Mr. Obama said. “And, you know, the stock market is sort of like a tracking poll in politics.”
Hopefully he is looking at the month to month gyrations because that is what is killing 401Ks. We also get this little tidbit of investing advice from the Obama as well:
“Profit and earning ratios are starting to get to the point where buying stocks is a potentially good deal,” Mr. Obama said, “if you’ve got a long-term perspective on it.”
I think he meant PRICE to earning ratios and it was (hopefully) just a slip of the tongue. He is right that lots of stocks are once-in-a-lifetime cheap. I'm just afraid that if you go long the wrong thing he will just turn around and release a budget that will kill your healthcare stocks. I'm pretty sure that his energy bill will end up killing oil companies and drillers (my money is on a ban on drilling in the Gulf of Mexico or other nonsense as a sop to global warming nuts.) I think the prudent advice is to Short Obama.
The worst part is that Obama isn't concerned with the 2500 point swoon since he was elected.
“What I’m looking at is not the day-to-day gyrations of the stock market, but the long-term ability for the United States and the entire world economy to regain its footing,” Mr. Obama said. “And, you know, the stock market is sort of like a tracking poll in politics.”
Hopefully he is looking at the month to month gyrations because that is what is killing 401Ks. We also get this little tidbit of investing advice from the Obama as well:
“Profit and earning ratios are starting to get to the point where buying stocks is a potentially good deal,” Mr. Obama said, “if you’ve got a long-term perspective on it.”
I think he meant PRICE to earning ratios and it was (hopefully) just a slip of the tongue. He is right that lots of stocks are once-in-a-lifetime cheap. I'm just afraid that if you go long the wrong thing he will just turn around and release a budget that will kill your healthcare stocks. I'm pretty sure that his energy bill will end up killing oil companies and drillers (my money is on a ban on drilling in the Gulf of Mexico or other nonsense as a sop to global warming nuts.) I think the prudent advice is to Short Obama.
Blockbuster Could Go Bankrupt?
At least that is what the rumor is because they have hired advisory firm Kirkland & Ellis LLP to go over its options.
Bloomberg reported Tuesday on its Web site, citing a person familiar with the situation. Kirkland & Ellis LLP was asked to evaluate restructuring options for the movie rental company, which may include a "pre-packaged" or "pre-arranged bankruptcy," the news agency said. Blockbuster shares were down 76% to 23 cents before trading was halted.
It looks like Netflix may have won the video rental war at long last. Netflix stock is booming today because of it as well.
Bloomberg reported Tuesday on its Web site, citing a person familiar with the situation. Kirkland & Ellis LLP was asked to evaluate restructuring options for the movie rental company, which may include a "pre-packaged" or "pre-arranged bankruptcy," the news agency said. Blockbuster shares were down 76% to 23 cents before trading was halted.
It looks like Netflix may have won the video rental war at long last. Netflix stock is booming today because of it as well.
FED To Backstop Lenders
I guess we are now in the debt bundling business to the tune of $200 billion. Hopefully the FED does a better job calculating the risk of these things then the banks did.
Under the program, the Fed will buy securities backed by different types of debt including credit card, auto, student and small business loans. The credit crunch — the worst since the 1930s — has made it much more difficult for people to obtain such financing , and those that do can be socked with high rates.
Prior to the financial crisis, banks relied heavily on packaging loans into securities and selling them to fund additional lending. That process has financed about 25 percent of all auto, student and other consumer loans in recent years, the Treasury Department said Tuesday, until the credit markets ground to a halt in October
Under the program, the Fed will buy securities backed by different types of debt including credit card, auto, student and small business loans. The credit crunch — the worst since the 1930s — has made it much more difficult for people to obtain such financing , and those that do can be socked with high rates.
Prior to the financial crisis, banks relied heavily on packaging loans into securities and selling them to fund additional lending. That process has financed about 25 percent of all auto, student and other consumer loans in recent years, the Treasury Department said Tuesday, until the credit markets ground to a halt in October
Monday, March 02, 2009
Tomorrow is Square Root Day!
I found out that 3/3/09 is a square root day.
"These days are like calendar comets, you wait and wait and wait for them, then they brighten up your day — and poof — they're gone," said Ron Gordon, a Redwood City teacher who started a contest meant to get people excited about the event.
The winner gets, of course, $339 for having the biggest Square Root Day event.
I will celebrate the day by eating at least 3 steak fries that have been cut into squares.
"These days are like calendar comets, you wait and wait and wait for them, then they brighten up your day — and poof — they're gone," said Ron Gordon, a Redwood City teacher who started a contest meant to get people excited about the event.
The winner gets, of course, $339 for having the biggest Square Root Day event.
I will celebrate the day by eating at least 3 steak fries that have been cut into squares.
The Market Verdict on Obama's Economic Plan? Make Him Stop Please!
It seems that we are now at 12 year lows. We almost lost 1000 points since the "stimulus" plan was passed. The market which is the ultimate arbiter of whether things stink or not is saying that spending $780 billion in order to get a few people tens of extra dollars was a big waste. It is now selling off in response.
I guess it is time to unveil next months $1.5 trillion "Stimulus" 2 which will give 95% of Americans an extra $20 a paycheck. If that doesn't work then "Stimulus" 3 will spend $7 trillion so that Americans can buy more lottery tickets and to stay in their leaky wooden shacks.
Then "Stimulus" 4 will spend $20 trillion in order for Americans to buy 2 cardboard boxes. One to sleep in and the other to put their stacks of devalued currency in. Finally, "Stimulus" 5 will spend $80 trillion to run an "Everything Must GO!!! sale" so we can pay off our creditors. I'm sure we can get a few billion for Mt. Rushmore and the Grand Canyon. However we would have to gift Congress to Sweden because I'm pretty sure the Red Chinese will find them a little too anti-capitalist for their tastes.
I guess it is time to unveil next months $1.5 trillion "Stimulus" 2 which will give 95% of Americans an extra $20 a paycheck. If that doesn't work then "Stimulus" 3 will spend $7 trillion so that Americans can buy more lottery tickets and to stay in their leaky wooden shacks.
Then "Stimulus" 4 will spend $20 trillion in order for Americans to buy 2 cardboard boxes. One to sleep in and the other to put their stacks of devalued currency in. Finally, "Stimulus" 5 will spend $80 trillion to run an "Everything Must GO!!! sale" so we can pay off our creditors. I'm sure we can get a few billion for Mt. Rushmore and the Grand Canyon. However we would have to gift Congress to Sweden because I'm pretty sure the Red Chinese will find them a little too anti-capitalist for their tastes.
Why Rush Limbaugh Doesn't Matter
I was thinking about Michael Steele comments on Rush recently and I have to agree with him.
In an interview on CNN with D.L. Hughley, Steele assured that he, not Limbaugh, was in charge of the party before saying that he wanted to put the right-wing talker “into context.”
“Rush Limbaugh is an entertainer,” Steele said. “Rush Limbaugh, his whole thing is entertainment. Yes it’s incendiary, yes it’s ugly.”
Steele is right that Limbaugh is just an entertainer who hasn't been elected to anything. So his voice should *not* be the one leading the party. The GOP is 3 votes away from irrelevancy and the failed-from-the-start stimulus bill showed that in bright neon letters. The GOP had their own plan but it didn't even get a fair hearing. Hell, most people I talked to didn't even hear about it.
Juan Williams on Fox said the GOP stimulus plan was another tax cut for the wealthy. If you actually read the GOP plan it was a real tax cut for the middle class which lowered the bottom two tax brackets and resulted in hundreds of dollars in tax savings. It wasn't a worthless $13 per paycheck for 95% of Americans that Obama gave us.
Right now there is a leadership vacuum in the GOP and Steele is afraid that Limbaugh is going to fill it. A GOP that is being run by an "entertainer" on talk-radio who is not an elected and thus answerable only to his listeners and advertisers is a minority party. Just like a Democrat party run by Sean Penn or the Daily KOS who are only answerable to box office receipts or click-through advertisers would be a permanent minority party.
I think Steele understands that the Limbaugh wing running the GOP (or even being portrayed as running the GOP) will make them a permanent regional party if they aren't careful. A modern day Whig party if you will. Despite what Rush says about the millions of Dittoheads there just aren't enough of them to win elections and Steele sees America turning away from the GOP. Steele knows that the EIB Network won't win back the House or the Senate.
So when we see Rush rooting for Obama's economic plan to fail and then being targeted by Rahm Emanuel:
And whenever a Republican criticizes him, they have to run back and apologize to him and say they were misunderstood. He is the voice and the intellectual force and energy behind the Republican Party.
It looks to many Americans like the GOP is being run by an unelected talk-show host that doesn't make policy and is not forced to work with his ideological opposites like in Congress. So of course the leadership of a party that is so close to irrelevancy needs to push back against people that are hoping things fail. Failure means a Great Depression and a radical change in our standard of living. I'm sure Rush doesn't want that but it sure sounds like he does.
In an interview on CNN with D.L. Hughley, Steele assured that he, not Limbaugh, was in charge of the party before saying that he wanted to put the right-wing talker “into context.”
“Rush Limbaugh is an entertainer,” Steele said. “Rush Limbaugh, his whole thing is entertainment. Yes it’s incendiary, yes it’s ugly.”
Steele is right that Limbaugh is just an entertainer who hasn't been elected to anything. So his voice should *not* be the one leading the party. The GOP is 3 votes away from irrelevancy and the failed-from-the-start stimulus bill showed that in bright neon letters. The GOP had their own plan but it didn't even get a fair hearing. Hell, most people I talked to didn't even hear about it.
Juan Williams on Fox said the GOP stimulus plan was another tax cut for the wealthy. If you actually read the GOP plan it was a real tax cut for the middle class which lowered the bottom two tax brackets and resulted in hundreds of dollars in tax savings. It wasn't a worthless $13 per paycheck for 95% of Americans that Obama gave us.
Right now there is a leadership vacuum in the GOP and Steele is afraid that Limbaugh is going to fill it. A GOP that is being run by an "entertainer" on talk-radio who is not an elected and thus answerable only to his listeners and advertisers is a minority party. Just like a Democrat party run by Sean Penn or the Daily KOS who are only answerable to box office receipts or click-through advertisers would be a permanent minority party.
I think Steele understands that the Limbaugh wing running the GOP (or even being portrayed as running the GOP) will make them a permanent regional party if they aren't careful. A modern day Whig party if you will. Despite what Rush says about the millions of Dittoheads there just aren't enough of them to win elections and Steele sees America turning away from the GOP. Steele knows that the EIB Network won't win back the House or the Senate.
So when we see Rush rooting for Obama's economic plan to fail and then being targeted by Rahm Emanuel:
And whenever a Republican criticizes him, they have to run back and apologize to him and say they were misunderstood. He is the voice and the intellectual force and energy behind the Republican Party.
It looks to many Americans like the GOP is being run by an unelected talk-show host that doesn't make policy and is not forced to work with his ideological opposites like in Congress. So of course the leadership of a party that is so close to irrelevancy needs to push back against people that are hoping things fail. Failure means a Great Depression and a radical change in our standard of living. I'm sure Rush doesn't want that but it sure sounds like he does.
Friday, February 27, 2009
Some Dems Oppose Obama's Budget
Now this is news to me but there seems to be some Senate Dems against the tax hikes for the wealthy to pay for pennies for the middle class.
Even Senate Budget Committee Chairman Kent Conrad of North Dakota, had misgivings. Conrad said he worried about the budget's long-term outlook, which sees deficits fall until 2013 and then begin to rise again. "I think that requires additional work," he said Friday on CNBC. And he predicted trouble for Obama's plan to limit itemized deductions for individuals earning more than $200,000 and couples earning more than $250,000. "I would put that high on the list of things that will be given a thorough scrubbing and may well not survive," he said.
I think Senator Conrad understands that limiting deductions for the wealthy will result in less charitable donations since they can't write off as much as they could before. Also it will cause even more mortgage woes for the bank as rich people pay off their homes instead of holding a small mortgage for the tax write-off.
Obama needs to understand if you raise the taxes of people making $250k or more he needs to provide a way for them to escape some of the burden. Especially if they are small business owners. According to the nonpartisan Tax Foundation:
Restoring the higher, Clinton-era tax rates on the top two brackets, as Senator Obama and some Congressional leaders have proposed, increasing the 33 and 35 percent rates to 36 and 39.6 percent, respectively, would raise taxes on 45 to 55 percent of small business income, according to a new Tax Foundation study.
So raising taxes on these people will just resort in them cutting job creation or passing that tax burden on to the consumer. That means that soaking the rich isn't a good idea if you want them to boost the employment and create more jobs.
Even Senate Budget Committee Chairman Kent Conrad of North Dakota, had misgivings. Conrad said he worried about the budget's long-term outlook, which sees deficits fall until 2013 and then begin to rise again. "I think that requires additional work," he said Friday on CNBC. And he predicted trouble for Obama's plan to limit itemized deductions for individuals earning more than $200,000 and couples earning more than $250,000. "I would put that high on the list of things that will be given a thorough scrubbing and may well not survive," he said.
I think Senator Conrad understands that limiting deductions for the wealthy will result in less charitable donations since they can't write off as much as they could before. Also it will cause even more mortgage woes for the bank as rich people pay off their homes instead of holding a small mortgage for the tax write-off.
Obama needs to understand if you raise the taxes of people making $250k or more he needs to provide a way for them to escape some of the burden. Especially if they are small business owners. According to the nonpartisan Tax Foundation:
Restoring the higher, Clinton-era tax rates on the top two brackets, as Senator Obama and some Congressional leaders have proposed, increasing the 33 and 35 percent rates to 36 and 39.6 percent, respectively, would raise taxes on 45 to 55 percent of small business income, according to a new Tax Foundation study.
So raising taxes on these people will just resort in them cutting job creation or passing that tax burden on to the consumer. That means that soaking the rich isn't a good idea if you want them to boost the employment and create more jobs.
GOP Backs Obama's Iraq Withdrawl
It seems that the GOP is backing Obama on the Iraq withdrawl timetable while the Dems are against him this time. The Dems don't want the 50,000 troops to be in country until 2011. I think Obama is hedging his bets just in case he has to support Iraqi troops if there is another flare-up in violence.
Sen. John McCain (R-Ariz.) took to the Senate floor to declare “the president’s withdrawal plan is a reasonable one.” Senate Minority Leader Mitch McConnell (R-Ky.) commended “the president's decision yesterday for making it possible to take another step toward realizing our goal of a stable Iraq.” Rep. Eric Cantor (R-Va.), the House GOP whip, said Obama “deserves credit for not listening to the chorus of voices calling for a rapid drawdown of forces.”
Sen. John McCain (R-Ariz.) took to the Senate floor to declare “the president’s withdrawal plan is a reasonable one.” Senate Minority Leader Mitch McConnell (R-Ky.) commended “the president's decision yesterday for making it possible to take another step toward realizing our goal of a stable Iraq.” Rep. Eric Cantor (R-Va.), the House GOP whip, said Obama “deserves credit for not listening to the chorus of voices calling for a rapid drawdown of forces.”
The American People Are Now *Really* Long Citigroup Stock
In a very interesting turn of events we are now 36% owners of one the biggest banks in the US.
Besides a stronger capital base, the company is getting a critical boost to its cash flow as it forgoes its 4 cent annual dividend on its common shares. That is giving Citi an additional $2.18 billion a year. The bank will also no longer pay the 5 percent dividend it owed on the government's preferred shares that have converted to common stock.
So now we are long this ailing bank but without a 5% dividend cushion to protect our money. I guess we had to make this deal because of Senator Dodd's incompetence when he came to sticking things into the Stimulus Bill at the last minute. Oh well, our brand new Citigroup stake just dropped 39% in one trade day. With investment managers like the US Government who needs mutual funds?
Besides a stronger capital base, the company is getting a critical boost to its cash flow as it forgoes its 4 cent annual dividend on its common shares. That is giving Citi an additional $2.18 billion a year. The bank will also no longer pay the 5 percent dividend it owed on the government's preferred shares that have converted to common stock.
So now we are long this ailing bank but without a 5% dividend cushion to protect our money. I guess we had to make this deal because of Senator Dodd's incompetence when he came to sticking things into the Stimulus Bill at the last minute. Oh well, our brand new Citigroup stake just dropped 39% in one trade day. With investment managers like the US Government who needs mutual funds?
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