A quick lesson on Governments.

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DEMOCRATIC

 
You have two cows.
Your neighbor has none.
You feel guilty for being successful. 
Barbara Streisand sings for you.
 

REPUBLICAN
 
You have two cows.
Your neighbor has none.
So?
 

SOCIALIST
 
You have two cows.
The government takes one and gives it to your neighbor. 
You form a cooperative to tell him how to manage his cow.
 

COMMUNIST
 
You have two cows.
The government seizes both and provides you with […]

Look for Interim Rally ahead of earnings.

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We have entered earnings season and we expect a rally because most analyst have reduced earnings bogies.  Favored sectors continue to be Energy, Metals, Basic Materials, Natural Gas, Agricultural Commodities, Chemicals, Farm Machinery and Steel. Consumer Durables, Consumer Goods, Retail, Autos, Airlines, Builders, Lumber, Furniture & Furnishings and Luxury goods are expected to continue on the wain. Financials probably have bottomed unless […]

Reform the Fed also. Doing less will not work.

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Secretary of Treasury Hank Paulson today proposed to revamp the US financial regulatory framework to strengthen the Federal Reserve’s powers to oversee products, transactions, and financial solvency across the landscape of American financial institutions. Specifically he proposed to eliminate the Office of Thrift Supervision

Investing in Uncertain times.

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It’s spring and optimism is in the air. The Fed is beginning to show proactive policy tendencies.  Bear Stearn’s shareholders are expected to get $10 a share instead of $2, and commodities are declining in price.  Soon first quarter earnings results will be out and results are, in our view, should not be expected to be terrible–

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