Was yesterdays crude oil spike (up almost $6.00 per barrel),
a head fake or a dead cat bounce?

Todays open on NYMEX crude oil is Down $2.19 ---$119.00 per
barrel. And a stronger dollar. Inverse relationship.

Never a dull moment.

Interesting note - I saw on the news today that the cost of salt (bulk for cities to spread in the winter, not table salt) will be triple the cost this year over last. Crazy. Most cities/counties up here ran out last winter due to the heavy snowfall.

Matthew

Went to see that I.O.U.S.A movie last night - there will be lots of not-so-dull moments down the road.

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Warren Buffett and other cast members were on CNBC this morning. Buffett was on for almost an hour. He said many interesting things ie. "windfall profits tax would be kind of like punishing the successful and rewarding the stupid".

Windfall profits tax is socialism, pure and simple.

I read a review on the IOUSA movie. I would have liked to have seen it.

The US economy is now glued to oil prices. Oil up, US down, and visa-versa.

Personally, I think it's a dead cat bounce. The US mind set is really changing again. The last time it changed it lasted 15 years... this one is another change...

I see the end of monster SUVs. At least I don't think we will see many more 5'2" soccer moms driving them to work much anymore.

My brother is in the market for a new truck. He currently has a 98 Explorer and is looking at a new Ford of some sort. He owns a print shop. About once a year he needs a big rig (Excursion), and is looking at buying for that rare need. My feeling would be to get a smaller xover machine - think Ford Edge or Lincoln MDX - and rent a u-haul the one day you need it. The gas savings would pay for 10 such rentals! Their kids live in Colorado, my brother and his wife in Florida... the gas savings for such a drive between the Excursion and the Edge is over $150 one way. And the Edge is $9k cheaper than even the most discounted Excursion.

If he owned an orange grove, go for the Excursion... my fiscal conservatism tells me to go Edge/MDX (for more plush).

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I read a report that many of those large suv's that are on
dealership lots, are getting shipped to the rental car lots.
(Avis, Hertz, Budget etc.)

Not sorry to see suv's become a thing of the past. Maybe Detroit will start competing again for the small car market.
I see many changes after the election.

Crude oil prices fell like a rock today. Down $5.00---almost as much as it gained yesterday. Stronger dollar and the Stockmarket/Dow up almost 200 points.

Andy, it was a dead cat bounce. At least for now. Have a great week-end.

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First off, the GOP has been advertising that taxing the rich is socialism... is that why they have been milking the Middle Class for so damned long?

Socialism isn't all bad (in as much as communism isn't either). It just won't work for the USA. All I ask is that we don't demonize those that it will work for.

Socialism is a very top heavy beaurcracy. We have a big enough government; growing it would just strangle progress. It also has a tendency to require approvals for all activities and as such would be a time waster.

Where socialism does work is in smaller countries that don't have huge defense budgets or needs. In short, it's a good way for a small nation to bring the bottom up to the middle. And that's how it supports itself. The upside is that there are little expenses outside the taxes paid. Many socialistic societies have free medicine and college and retirement. So the process does take care of itself. The downside is that it is tax heavy... but if you don't have to pay for any of it... see how that works? In short, I don't mind paying taxes, if I see where the money is going and it's good.

England attempted the Great Socialistic Experiement during the years after WWII. It failed. Check British Leyland for the case study in messed up policies. Sixty years later, they are still stuck with it.

What happens here is that we see the failures of these systems and feel our system should work for all (in many nations, all they see are the failures of our free market, see how perspective and perception really cloud the issue?) Not every nation has the intellectual, social, economic and natural resources we do. As I said above, socialism won't work here. But what DOES work here is a touch of both.

Welfare has been considered socialism, yea, well... um... ok... But it's better than having people starving... This is the problem: Human decency and a sense of fair play are both traits of the USA. Not showing that compassion at home is hypocritical. Welfare, WIC, food stamps... all there for that reason. What bugs me are the few that abuse those systems. They should be strung up for doing so. And they should be temporary, in addition to work training.

To wrap this diatribe up:

If we took all the folks on welfare, put them into jobs - sure, they more than likely would be menial jobs - it would eliminate the underground economy that hires illegals. Our unemployment would drop, the illegal alien problem would resolve and things should improve. The biggest problem? The perception is that most on welfare won't do those menial jobs... If that is ultimately true, then we have an endemic problem in this country that no amount of policy wrangling will change.