Deficits and Taxes Going UP
Research for Online Investors

by John Dalt

5/13/09

The U.S. Trade Deficit increased in March for the first time in eight months, according to the Commerce Department. The deficit was recorded at $27.6 billion.  Just wait until crude starts climbing back into three digits. Then the economy will sputter, high unemployment, stagnant growth, rising interest rates, and spiraling energy costs are the future for us all. Add onto this the added taxes Oh! Bama is going to tack onto the economy; it is going to take Ron Paul to clean up this mess. Protect yourself.

The Office of Management and Budget has revised the U.S. budget deficit UP. 2009 is now projected at $1.84 trillion and $1.26 trillion for 2010. It is a good thing Oh! Bama found $17 billion in savings last week, this week the deficit increased $89 billion! He still has a few weeks to go. The government now borrows almost fifty cents out of every dollar it spends.  Read that again, "the government now borrows almost fifty cents out of every dollar it spends."

Now that OH! Bama has solved the trade deficit, and deficit spending, he is turning his attention to bank executive pay.  The administration wants to extend limits on executive pay at non-TARP banks.  Their justification in this grab for power is that banks pay too much for aggressive business practices designed to increase profitability.

Next will be insurance companies, then automakers, oh wait a minute they already fired Rick Waggoner.  I cannot wait until they get to actors and athletes.    Sean Penn and Danny Glover, there are a couple of good democrats that need to give more.  Bono, who flies around the world promoting humanitarian gestures by governments, does his own tax planning.  He moved his domical out of Great Britain to Ireland to lower his tax bill.  Why do world changers and do-gooders always want to tell other people how to spend their money, but keep as much of their own money as possible?  Al Gore lives in a McMansion and flies around the world in a private jet, to tell everyone to lower their carbon footprint and stop global warming.  What a hypocrite.

Gold was about the only green on my screen today.  SP500 closed at 883, right above our second support line of 850.  I expect a little dead cat bounce tomorrow, and then who knows.  It seems like the market has shifted to 'buy the dips', rather than 'sell the rallies'.  However, traders seem to be paying more attention to bad news now.  The banks are rushing secondary offerings to market, to raise capital, while prices are favorable.  Many of these offerings are under current stock prices, which undercut the current market price.

The market could not digest the retail sales numbers out of the Commerce Department, with out heartburn.  Expectations were for sales to stabalize, signaling that the economy was poised to rebound.  Instead sales fell by 0.4% in April.  Analysts had predicted retail sales to be flat.  The market sold off, with industrial producers and consumer businesses taking the hardest hit.  The New York Times had a late article on Retail Sales.

Joke from a M.L.:

Mr. Johnson, a businessman from Colorado, recently went on a business trip to Arizona. He immediately sent a text message back home to his wife, Jo Ann, to let her know that he had arrived safely.

Unfortunately, he was using a new phone and mistyped the number so the text mistakenly went to the wife of a preacher who had just passed away.

The preacher's wife took one look at the text and promptly fainted. When she was finally revived, she nervously pointed to the message, which read: "Arrived safely, but it sure is hot down here."

I am going to share this with our pastor; he may use it for a laugh this Sunday.

The information presented in this newsletter is based on generally available news releases, corporate filings, current events, interviews and the editor’s opinions.  It may contain errors and you should not make investment decisions based solely on what you believe you have read here.  Do your own research, it is your money.  If you lose it, it is your responsibility, not ours or your grandmothers!  The editor may or may not have a position in any securities discussed.  The editor may have held a position in a security earlier, or in the future.

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