Responsible

From an investment newsletter (Daily Wealth) by Dr. Steve Sjuggerud: “Government policy shouldn't be this hard or this disastrous. Most of the time, the right answers for government come if you just think about it as if it were your family or your own business. For example, if it were your own money, would you take a private plane 365 times in two years to commute to work? Or would you take all of your family's money and borrow as much money as humanly possible from other family members to buy a fleet of brand new Hummers – destined to fall in value? Whenever you get confused about what the government is up to, here's a little secret for you... Just take it back to the basics. Simply ask yourself this: If this were my family, or my business, would I spend my money this way? Why can't governments from the smallest municipality all the way to the new administration abide by that simple standard?” This is something to think about, no?

USOIL

More grim news from Yahoo! News: “U.S. crude stocks have risen by 27 million barrels over the past month and on Wednesday, analysts expect that the government will report that trend has continued. Crude inventories could grow by as much as 3.4 million barrels, according to the average of estimates in a survey of analysts by Platts, the energy information arm of McGraw-Hill Cos. That has not led to savings at the gas pump for many motorists, however. Refiners have cut production because of falling demand, and retail gas prices have been rising. On Tuesday, the average national retail price for a gallon of gasoline rose less than a penny to $1.92. That's 13.6 cents more per gallon than a month ago even though crude prices have fallen more than $6 per barrel in the same time.” How annoying. Crude prices drop by a lot but the price at the pump goes up. That’s manipulation. Since refiners have to keep making nice profits, they will not pass any savings along to consumers so (just like OPEC) they cut production in order to affect the supply side of the equation: LESS SUPPLY EQUALS HIGHER PRICE since the demand is still there, relatively unchanged. When they cut production, guess what happens: PEOPLE LOSE JOBS. Essentially, gasoline prices are maintained on the backs of people who need their jobs. There’s a morality lesson there somewhere if only I could find it. The U.S. government needs to buy as much oil as possible right now and put it in reserves. 27 million barrels is really not that much. In fact, compared to consumption, it’s nothing. It is time to NATIONALIZE the oil industry. We are almost there. PLEASE.

Trust has left the building

From Yahoo! News: “After Geithner's announcement, stock prices fell further and the dollar extended losses while prices for U.S. Treasury debt securities extended gains. James Ellman, President of Seacliff Capital in San Francisco, said: "Investors want clarity, simplicity, and resolution. This plan is seen as convoluted, obfuscating, and clouded." Geithner acknowledged deep skepticism has developed over the fairness and efficiency of a $700-billion bank bailout program approved by Congress in October. He said leaders of some financial institutions that have received money had squandered the good faith that is needed to make the bank rescue effective. "The spectacle of huge amounts of taxpayer money being provided to the same institutions that helped cause the crisis, with limited transparency and oversight, added to public distrust," Geithner said. The revamped approach to the government's financial rescue war chest would use $100 billion to cover risks the Fed would take in expanding a $200 billion program supporting consumer and small business lending to a $1 trillion program that also supports an array of mortgage-related assets. Markets appeared caught off balance by some of the measures that Geithner offered.”
I guess the psychology is now something like what the financial debacle brought to light: If it’s too complex to understand, don’t buy it. One cannot put too high a price on trust, confidence, and honesty. Perhaps those values are the true backbone of the economy? Who really knows? Is there anyone out there who has some credibility with the big investors? PLEASE.

Russia and Europe

From Yahoo! News: “WASHINGTON – A standoff over an obscure air base in a Central Asian country few Americans could find on a map is becoming an opening salvo in a new kind of Cold War with Russia. The prize is not military mastery or the global supremacy of ideas, but the defensive protection of resources and security. Each of the 20th century’s nuclear superpowers wants say-so over the decisions the other has reserved the right to make, and with a new U.S. administration signaling possible compromise with Russia on a missile-basing plan detested by Russia, Moscow is using U.S. dependence on the base for the Afghan war to drive a hard bargain. Security officials in Kyrgyzstan said Friday the United States must quit the Manas air base, but U.S. officials said they have not gotten any official eviction notice and that negotiations to stay are under way.” Let us not forget the Russians are expert chess players. Caught in the middle of all this are Germany and France, as always... somewhat amusing if it weren’t such serious stuff.

Nonsense

Does anyone really know the stock market? Of course not. Nearly 600,000 jobs were lost in January and the market went up by more than 200 points. If someone with an invisible hypodermic needle went around injecting investors with a good dose of optimism, the market would go up no matter what. That's what happened this Friday, no?

Church and State again

Well, now the saga between the pope and the newly re-instated bishop and the Jewish council in Israel has escalated to include the German government. Whatever happened to separation of Church and State? The pope has even asked the wayward bishop (in Argentina) to recant, which I'm sure he won't do. This will get dicey for sure, though the Vatican is very good at diplomacy. (See post of January 28 - Bishops and Rabbis)

Advertising revenue

So, the Super Bowl achieved some sort of breakthrough in advertising. It sold every minute of ad space. It's a good thing it's not a heavyweight title bout - sometimes those things are over in less than a minute. These football games have to go the distance, no?