Pickens Plan, Immigration
Research for Online Investors

by John Dalt

3/19/09

In times of turmoil, like now, it is normal for us to look back for explanations or patterns. We have seen the best seven-day rally since 1939 It is natural that the market pull back, take a breather, and rally up to around 900 on the SP500. The question will be where we can find our footing for the next leg up. Hopefully around the 750 on the SP500

Tomorrow is option expiration day, so the swings could be extreme.  Market movers will try to manipulate the swings to clean up their positions.  Gold and oil had big days today as the commodity markets were closed yesterday when the FOMC announced their $1 trillion commitment to buy bonds.  The rise we saw in ETF’s yesterday (they trade independent of the commodity market) was reflected in the commodities today.  I expect the market to give up ground tomorrow.  We should look to bounce off the 750, if not we should look out below.  This is dangerous territory on a Friday afternoon.

The commitment of the Fed to buy $1 trillion in treasuries and real estate backed bonds is an admission that the financial market is not doing well. Interest rates were threatening to rise due to increased supply and lack of demand. The Fed intervention is an attempt to replace the demand side with Fed “quantitative” money. Stimulus bills and bailout bills are stacking up borrowing that has to be funded. A trillion here a trillion there, pretty soon you are talking real money. 

As a candidate, Oh! Bama was critical of the U.S. having “No energy policy”. Today we have “No energy policy”. The administration has withdrawn federal land auctions for drilling, frozen off shore drilling discussions, proposed punitive tax changes for exploration companies, a new tax on energy usage if produced by carbon fuels. He wants to give tax money to renewable energy products and research to help them be competitive. Maybe that is his energy policy. 

President Ronald Reagan said government’s attitude is, “If it moves, tax it.   If keeps moving, regulate it.   And if it stops moving, subsidize it.” 

No matter how much we abuse natural resource companies, they keep moving.  They efficiently deliver cheap energy every day.  Renewable energy cannot compete without subsides, otherwise they would not need our money to be successful. 

The problem is we do not have enough crude oil under our country to fuel our economy.  We have natural gas and coal.  Environmentalists do not like coal because it is dirty.  The problem is, it is cheap.  Our countries industry and economy is placed at a competitive disadvantage if we do not use the cheapest energy available. 

Why doesn’t OH! Bama embrace Pickens Plan?  Why not use natural gas for transportation?  It is a cheap bridge to higher technology when it becomes available.  Fuel Systems (FSYS) offers conversion kits to convert your vehicle to natural gas.  This company is profitable, but beaten down.  Their business slowed as the price for gasoline dropped.  You may want to look at them for a nice play off the increasing crude oil prices.  The American public has fallen into denial concerning the cost of future energy.  It is not going to last folks.

Honda sells a natural gas car; I bought an electric car for short trips to town.  News reports are that hybrid sales are slow.  Now is a great time to make a deal on the vehicle you want when gasoline returns to $4 per gallon, and higher.

Attorney General Eric Holder says it is possible that terror suspects from Guantanamo could be released in the U.S.  I do not know what to say. 

Nancy Pelosi says that enforcing immigration laws is Un-American.  According to Pelosi, we should not conduct raids on businesses or check citizenship during a traffic stop.  You might want to check a new fact page I added to the web site about the cost of immigration. 

Question of the Day: 

“Thou shalt not covet.” Ninth commandment.  Does this mean I cannot take money from my neighbor even if he has more than I do?

"A billion here, a billion there, pretty soon, you're talking real money".

Everett Dirkson, Senate Minority Leader

Civil Rights Advocate

Conservative

R.I.P.

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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