Investment

» BoltonCT - The bleeding continues

Bob Brinker always claimed that rising oil prices would not be inflationary but rather equivalent to a tax increase. To the extent it is an end product and not an ingredient as it is for plastics manufacturing, Bob is right. The Bush administration's tax rebates won't stop the economy from stagnating in the second quarter because soaring food and fuel bills consume the rebate to the consumers.

USA stock market futures are down ever so slightly even as financial institutions indicate that the bleeding losses continue. That is the trouble with the FED low interest policy. Negative real interest rates thin the blood of the economy. It doesn't clot up around and stop the incompetent and irresponsible executives. It flows continuously through their hands and into their pockets and down their legs into the sewers of our society. It rewards the inept of the filthy rich, the old club, the con men, the pushers, the good old Wall Street boys and makes their stealing a legitimate enterprise. It institutionalizes greed, misrepresentation, fraud, deception, and incompetence.

The Asian market decline is accelerating and becoming more prevalent with the average decline over 1% last night.

The European markets are dropping faster now than the Asian markets last night. France is now down 2.35%, Germany down 1.33% and Britain is down 1.37% at the moment.

Will this be another buying opportunity or will it signal a further decline. For one thing I see that corporations are finally being confronted with their dead products that are carried on the books that are a burden on future product growth. The write-offs and the great "Corporate Bath" has only just begun.

-- posted by BoltonCT