G-20 Excitement
Research for Online Investors

by John Dalt

4/01/09

The G-20 meeting opened today with protesters gathered in the streets. They broke into the Royal Bank of Scotland. A mass of anarchists rallied behind a sign that said, “Capitalism isn’t working”. I looked for OH! Bama, but he overslept. He later met with the Queen. I wonder, was she impressed with the iPod? Seems the girls stopped by the White House gift shop and picked up something special.

I have some additional information on oil production to follow up yesterday’s article, and why I believe we are back in a long-term bull market.  Exploration is declining because of low prices; capital is not being spent to maintain existing oil fields.  In the last couple of years Iran’s crude production is down 3%, Mexico and Nigeria are down 18%, and Venezuela is off 24%.  I hear hybrids are cheap, now.

Jim Rogers sat down for a 28-minute interview last week.  It was one of the best ways I have spent 28 minutes in the last week.  Grab a cup of coffee and enjoy watching, it will give you pause, and insight into the future.

The market worked its way up 13 to close at 811 on the SP500.  The optimism is almost contagious.  The close puts us on the precipice.  You can see the stars to go higher or valley from here.  This level has been resistance on the market.  We briefly broke through last week.  Your guess is as good as mine, mine is we look lower. I have tightened my stops, ready to bail if the market jumps off the cliff.

The House of Representatives is working on the budget.  The Republicans have a plan to slow the growth of government.  I wish it would stop the growth and shrink, but that is probably dreaming.  One of the authors had an article in the Wall Street Journal today.  Representative Paul Ryan paints a stark difference, you can read it here.

Carmakers reported sales for March; GM was off 45%, Ford 41%, and Chrysler was down 39% from March 2008. This was the 17th month that sales have declined.

Congress is working on a law to set wages for bank employees, if their employer has taken federal funds.  The Treasury would be empowered to approve all pay scales, down to secretaries.

Treasury’s plans to partner with private funds to purchase ‘toxic assets’ from banks is being criticized for being an insider’s game.  The rules were written to make it almost impossible to participate, unless you are Goldman Sachs, or PIMCO.  It always amazes me that people are “shocked” when bureaucrats bite back.  Playing favors and picking winners is how you get a nice job when you leave public ‘service.’  It is the danger of all-powerful governments.

Rick Waggoner, past CEO of GM has a little time on his hands; he may want to go shopping on Amazon.  I think he just had a “John Galt Moment”.

" when you see that in order to produce, you need to obtain permission from men who produce nothing - when you see money flowing to those who deal, not in goods, but in favors - when you see that men get richer by graft and pull than by work, and your laws don't protect you against them, but protect them against you - when you see corruption being rewarded and honesty becoming a self-sacrifice - you may know that your society is doomed."

Atlas Shrugged (1957)

Ayn Rand

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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