As camera's followed Senators around Capital Hill, many were asked what programs were going to be delayed or cut to help pay the $200 billion dollar tab from Katrina. Everyone danced around the question, and finally Senator Bill Frist had the guts to admit the answer. He said, "I guess we'll have to borrow it".
I don't like to play the "what if" game, but... what if Rita adds to the $200 billion we have to borrow because of Katrina?
As I watched the so called market experts second guess Alan Greenspan yesterday, I was amazed that they were not intelligent enough to realize that Greenspan had no choice but to raise rates. If he didn't, the dollar would crater, and oil prices would go even higher.
In addition, the CPI, and other magically manipulated economic numbers are showing that inflation is remarkably contained. My reaction is simple..BS..BS..BS. You and I are well aware that the inflation rate is well above what the government is reporting.
Short term interest rates have gone from 1% to 3.75%, and the news media is over emphasizing the "11 times" mantra. Would they have felt better if the Fed had raise rates 5 times at a half a point, and 1 time at a quarter?
WASTING MONEY
There are many wonderful people who live in New Orleans, but I was shocked by the New York media types reaction over the sniper attacks on the rescue workers. Let me tell you, these thugs and criminals exist in every major city across the nation. I guess these thugs do not show up to wine and cheese party's in New York.
Turning government money over to an incompetent Mayor, and Governor, of a historically corrupt state is shear insanity.
JURY STILL OUT ON YEAR END RALLY
With all that has happened, I am amazed that the markets have held up as well as they have. Of course, the performance of major integrated oils have buffered the blow. It seems that big market players who have the ability to buy and sell a basket of stocks with a push of a button, have their minds set on a year end rally. I must warn you however, that any rally could end abruptly.
Do you remember the court case: Gore vs. Bush? While the Presidential outcome was being decided by the courts, consumers were watching TV instead of shopping for Christmas. One by one, retailers (in particular technology company's) were announcing that November sales were soft, and the market cratered.
Maybe the insiders are telling us something (they usually are). Today's insider report shows 58 Buyers, and 136 Sellers; the pattern continues.
Now that investors are giddy about oil companies, its time for us to shift our focus to Natural Gas. On the next pullback, we will be looking to add a few more natural gas plays.
