The News

Today it occurred to me. I am happy about the recent turn in news coverage in this country. The economy has taken a good tumble and now Uncle Sam is getting ready to kick it while it is down. The catch is he will offer a hand up while he plans his next kick.

While I disagree with many about the correct course of action, I find economic policy fascinating. It was just a few short months ago when the media started to focus less on international issues (e.g. Iraq) and more on domestic issues (e.g. the U.S. economy). I am elated. Economics is interesting, impacting, and challenging. It as about time we focused more on our own problems at home rather than abroad. In fact, the financial crisis may even for an end to a war that has become a tedious, fruitless endeavor.

Personally, I support the do nothing approach. Let us allow the market to function. If the market collapses it will eventually rebuild at a cost to the investors who took the risk. Not me. I am not concerned about people who invested blindly. It is your money and there is risk where there is opportunity.

And to my earlier point: Crude Oil Has Biggest Gain Ever as Dollar Drops Against Euro

Just as I suspected, energy and food prices are shooting through the roof. This is not rocket science. The problem is we have buffoons at the helm of this ship. This makes me want to revolt. I should have know, with all the idiots in this country, that they would eventually try to destroy the financial prosperity we all enjoyed over the last decade and a half. This thing isn't even close to over either. Brace yourself. McCain is insane, and Obama seems to becoming more and more deceptive (e.g. FISA). We cannot trust either man. I honestly think the most qualified presidential candidate, based on the current economic situation, is Ron Paul. If that caught your attention I dare you to argue with me.

Investors looking to hedge against the dollar's decline earlier this year have helped lead oil, gold, corn and gasoline to records.

Sept. 22 (Bloomberg) -- Crude oil climbed more than $25 a barrel, the biggest gain ever, as the dollar weakened the most against the euro since January 2001, boosting the appeal of commodities as a hedge.

Crude oil for October delivery rose $18.05, or 17 percent, to $122.60 a barrel at the 2:30 p.m. close of floor trading on the New York Mercantile Exchange. Futures climbed as much as $25.45 to $130 a barrel, the highest since July 22.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aPhXLrPjePjQ&refer=home

Dollar Devaluation

Well, the market is dropping again today and I suspect consumer prices may turn around and start rising again after one month of slowdown. We can thank the government for taking on more debt which in turns makes our currency less valuable. I suppose I am in a decent situation since I owe so many of those dollar my debt is actually contracting. But, that is only true relative to the rest of the world so I either need to move or start asking for my paycheck in euros or maybe even pesos. We'll have to see how bad it gets. I am sick of paying for other peoples mistakes.


http://www.bloomberg.com/apps/news?pid=20601087&sid=aBHEzyX6N2Rk&refer=home

Spellcheck Insight

Another random side note, have you noticed spell check picks up Obama and suggests Osama? Coincidence? I do not believe in coincidence. Not to say that he is a terrorist, but at one point, and still to some people, Osama is a revolutionary--a maverick. All I mean to say is people should think carefully before lining up behind any candidate. I wish more people could, or would, think for themselves. But, I digress; a lot today, it seems.

Is that last sentence legit?

Wreck Less Regards

As a side note, I am infatuated with the word reckless. If things made sense in this world is would be spelled wreckless. But, that wouldn’t make sense either since it would imply a lack of wreck, right? Well I know that wreck less definitely implies a lack of wreck. The bottom line is our language is a big sham, but I still love it.

McCain Says He Would Fire SEC's Cox If President

This man is possibly a better liar than Bush. I love the claims that he makes; especially when they conflict with his previous positions. I can't wait to vote for this man and ride the top of the wave to the demise of this fair land. Let us all hope for a cultural to develop where I am a pirate of sorts. I shall roam the earth piecing scraps of metal together to build weapons and wandering down abandoned highways to loot. For this first time in years I am starting to get excited about the direction this country is taking. Anarchy, or even a feudal system could work out well for me. There is just something magical about becoming a rogue nomad in a world with no legal recourse.


McCain Says He Would Fire SEC's Cox If President

Technically, the president can't remove Cox from the five- member SEC against his will, though Bush can pick one of the other four commissioners to serve as chairman. The SEC commissioners are appointed for fixed terms. Cox's term runs until June 2009.

The Arizona senator, while not naming Cox, said the SEC ``kept in place trading rules that let speculators and hedge funds turn our markets into a casino.''

``We cannot wait any longer for more failures in our financial system,'' McCain, who has supported deregulation in the past, said.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aZurn_3dmJjg&refer=home

U.S. Economy: Pending Home Resales Decline More Than Forecast

About time...
Wachovia Corp. in June stopped offering option adjustable-rate mortgages, which let borrowers skip part of their payment and add the balance to principal. Chief Executive Officer Robert Steel said today the Charlotte, North Carolina, bank next year will cut $1.5 billion of expenses as it's ``tapping the brakes'' on risk.

Can you say prices need to drop significantly to find equilibrium in the market?
At the July sales rate, it would take 11.2 months to sell all the houses on the market, about twice the supply that reflects a balanced market, according to the agents' group.

Obviously they prices were too high. Eventually market forces. Even government intervention can only delay and exacerbate problems.
Home prices in 20 U.S. metropolitan areas fell in June by 15.9 percent from a year earlier, the most on record, the S&P/Case-Shiller home-price index showed on Aug. 26.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aZFgAxUK63y8&refer=home