Tea Parties Tomorrow
Research for Online Investors

by John Dalt

4/14/09

I wrote yesterday about the suspicion of manipulation in financial stocks last week. The Wall Street Journal noted yesterday that Citi did not file paperwork on time for an offering that created a shortage of stock available on Thursday. The pre-announcement by Wells Fargo of profits got the ball rolling and the tide came in for all financials. Anyone short had to make a decision to cover or let it ride and bleed a little. Any short in Citi had to bid for fewer shares than were supposed to be available. This was like adding kerosene to the fire. Citi closed up over 10%!  Goldman Sachs seems to be at the center of the action, according to this article.

Ari Fleisher, President Bush’s Press Secretary, has a good article in the Wall Street Journal on tax policy.  I don’t agree with him on everything, but do any of us?  He has a lot right, “everyone should pay income taxes”.  I liked the flat tax that Huckabee promoted.  It seems the only way to make taxes fair and widespread.  The democrats have successfully turned large parts of the population into beggars for government checks.  Why wouldn’t they want more government, when they do not pay for it?

The Texas house is considering a bill scolding the Federal Government for ignoring the tenth amendment, usurping states rights, and becoming too intrusive.  Gov. Rick Perry, in consultation with his legislature, has decided to refuse some of the stimulus money and is encouraging other governors and states to do the same.  He says, “The Federal Government has become oppressive in size…intrusion into lives of citizens...Tired of Washington trying to tell us how to run Texas”.  Every time I see or hear Rick Perry, I think we might need another Texan in the White House.

Bloomberg had a good article on crude oil demand and supply.  We have been using the oil and the resource sector for many trades in the SwingTrader program to great success.  The article surmises that hedge funds and other investors are being drawn back to the crude oil trade anticipating the inevitable supply squeeze that will occur when the world economy begins to recover.  Crude has been hovering around $50 a barrel, but the overhang of supply is keeping it from breaking out, for now.  I feel confident in the future of oil, we cannot do without it.  America can always do without another mall fashion store, or some other consumer do-dad.  No matter how many wind farms or solar cells are installed, we need crude.  The amazing thing with all the talk about renewable sources of energy, none of them replaces gasoline in cars.  It is idiocy, cars and trucks use oil that is imported.  Imported oil drains money out of our economy.  Wind and solar replaces cheap coal powered electric plants with a more expensive option, which drains more money out of our economy.  Stupid.

Remember to file your taxes tomorrow, check out this web site or google “tea party” to see if there is a gathering in your area.  It will be interesting to watch the spin put on this grass roots movement by the national media.

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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