"You know what the news is-- in a minute, you're going to hear the rest of the story"- Paul Harvey

Here are the issues of the day;

-Oil prices are tanking,

-the government (Bush, Paulsen & Bernanke) is coming up with solutions to the financial crisis,

-former major league pitcher and current US Senator Jim Bunning throws a high hard one under Fed Chariman Bernanke's chin,

-and Meridith Whitney needs to shut up.

Oil

Crude oil prices were down as much as $10/bbl in intra day trading today on fears of a weakening US economy. The truth of the matter is the economy was already weak, so the excuse for the sell-off is rather lame.

In reality, the demand destruction for oil has begun. The much awaited refinery in India is just now coming on-line, additions to the (SPR) Strategic Petroleum Reserves have been put on hold, and intervention to shore up the dollar, and get the shorts to cover oil and currencies seems to be underway.

I saw an ad for alternative energy investments by T. Boone Pickens. In most cases ads that promote crisis and panic, or euphoria and optimism usually occurs at the top or bottom of an investment cycle. T. Boone is not only drinking from the energy crisis punch bowl, but he stands to profit from a major shift to alternatives as well.

Government Solutions

On July 13th Treasury Secretary Henry Paulson asked Congress for authority to buy equity stakes in Fannie Mae and Freddie Mac. Today, President Bush asked lawmakers to quickly pass legislation to help both companies (not a bailout) weather the financial storm. And finally, SEC chairman Chris Cox is focusing on the nacked short selling in commodities, and oil.

The government plan would temporarily provide capital to both companies by way of Treasury credit lines, and buying stock. This is pissing off short sellers like Hedge fund manager William Ackman who appeared as a guest on CNBC this morning. I find it amazing that CNBC allows people like Ackman to come on CNBC to talk his book (investment positions that make him money), and sway viewers to act on his opinions when he clearly stands to profit from it.

Jim Bunning Throws a High Hard One

Former major league pitcher, hall of famer, and current US Senator Jim Bunning (KY) threw a high hard one under the chin of Fed chariman Bernanke on Capitol Hill today. I don't expect the media to cover this verbal brush back pitch, but they should. You know the drill when it comes to the media, they only focus on things they want you to know instead of the things you should know.

Bunning blasted Bernanke's monetary easing, and blamed him for the decline of the dollar, rising oil prices and rising inflation. Being a professional baseball player is one thing, but to be a star during his era (1955-1971) took toughness and guts. In my opinion, even at age 77, Bunning hasn't lost a thing.

Bunning never has been gutless. Senator Robert Byrd one day said Bunning "isn't really a Senator, he's just a baseball player". Bunning responded back by saying, "Oh, yeah, Robert Byrd? I guess I should have been a Klansman instead. And, you there, Ted Kennedy, well, I'll let you off since you're still sick. No need to drive off that bridge just now..."

As Bunning blasted Bernanke, other sissified senators on the committee made light of his criticism. I would have liked to use another word other than sissified to describe these other gutless senators, but I think you get the point.

Bunning has been an outspoken critic for quite sometime. Here is his statement to the Senate Banking Committee on the Federal Reserve Monetary Policy Report. You better read it here because I doubt if the press will ever let you see it.

Meridith Whitney Needs to Shut up

As I continue to listen to the remarks from Meridith Whitney on the banking and credit crisis I thought, "these issues are nothing new, and these CDO's, SIV's, have been on the books of banks for many years'. Where was Meridith during the real estate boom when banks were forced to make sub prime loans because of governmental pressure?

Anyone can see a problem when a problem exists, but exploiting a problem and the piling on after the fact makes you look smart in the short run, but an opportunist in the long run.

The cat is already out of the bag. If Meridith wants to look like a hero, she should begin focusing on the solutions not seen rather than the problems that are obvious to all. It's time to shut up and focus on a solution. Unless I am mistaken, wealth in the market is made by buying low and selling high.

In my opinion, the capitulation in the financials is well underway.