New Week, Same Bear
Research for Online Investors

by John Dalt

3/09/09

Concerns last week about China’s on and off again stimulus, GM’s viability, rising unemployment, and Washington making happy talk helped push the market down to close at a new bear market low. The Dow is currently down 53% since peaking in October 2007. The chart below illustrates we are in the middle of the second worst correction on record, only 1929 was worse. 

Were you amazed that Secretary of State Hillary Clinton cannot get the spelling right on a gift to Russia?  The full resources of the U.S. cannot spell ‘reset’ instead she prints ‘overcharge’ on a gift to the Russian ambassador.  Oh! Bama gives Gordon Brown a selection of movies; gosh, I hope the gift pack included some Jiffy Pop! 

Markets are waiting on Turbo Tax Tim to offer clarity on stress tests.  Rumors continue that ‘mark to market’ and the ‘uptick rule’ are on the agenda this week.  

U.S. may be ‘loaning’ gold to be sold on the open market.  It seems the treasuries reports now record the gold holdings as ‘held, and on loan’.  Speculators believe that the ‘on loan’ is fed speak for ‘loaned to someone else to sell.’  Gold was down today. 

With the 651,000 jobs lost in February there are now estimated to be 12.5 million unemployed.  Unemployment now stands at 8.1%, the highest in 25 years.  Bloomberg lambasted the OH! Bama administration Friday noting this was the worst beginning of ANY presidency.  It is now OH! Bama’s recession.  It seems we are already at the administrations unemployment level they predicted for a year from now. 

T. Boone Pickens was at a Wall Street Journal economics conference last Thursday.  Here is a great article where he predicts $200 to $300 oil within 10 years.  I think he is being very conservative.  Watch the video that accompanies the article, it is classic Pickens.

I got an email from a friend today organizing everyone to mail a teabag to the White House on April 1. The idea is to flood the President with Tea Bags through April 15 when taxes are due. Sounds like a good idea, OH! Bama will not pay any attention. It will be interesting to see how the mainstream press covers this action by citizens.

‘ Giving money and power to government is like giving whiskey and car keys to teenage boys’

                                         P.J. O’Rourke 

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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