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Just a little reminder
Folks,
Just a little reminder: I am an oil man. This Catagory 5 hurricane is headed to Texas. Texas is where we have a lot of oil refineries. The liberals in this nation have prevented the evil oil companies from building any new refineries since 1976. Katrina has already knocked out 10% of US refining capacity. The USA had no spare capacity before Katrina. If Rita damages more refining capacity, $4 and $5 gasoline will be a reality. And home heating this winter, Natural gas or Heating Oil, will be extremely expensive.
More importantly will be the long term impact upon the US economy. That impact will be decidedly negative. In this environment, inflation is a given. US history since 1920 says that every recession has begun with high oil prices. The Greenman has again raised interest rates to attract foreign investment. He knows he is going to have to print money to pay for all the rebuilding that is necessary. Add in to the equation that we are fighting two wars at once, and trying to rebuild Iraq, give billions of aid to the AIDS people in Africa, and soon you get the idea that there is not enough money to go around. The Greenman knows this. He will continue to raise the rates.
One other disaster on the horizon: a provision of the new Bankruptcy law states that Credit Card companies must make the minimum payment large enough so that the debt will be repaid in 10 years. Current minimums are designed so that the credit card borrower will repay in 20 years. That means that beginning in November, every debtor to the credit card companies will have DOUBLE the card payment. That will come as a decided shock to a lot of people (the average US family has $9,000+ in credit card debt). That, combined with higher fuel costs, and with rising costs for everything due to higher fuel costs and HIGHER INSURANCE COSTS from the 'canes--is going to hammer the economy. Period.
Just a little reminder as you consider your investment strategies for the coming days, weeks, months.
Jiesen, it is no time to buy Walmart! It might be a good time to short the Walmart. I see retailers having a bad year.
Folks,
Just a little reminder: I am an oil man. This Catagory 5 hurricane is headed to Texas. Texas is where we have a lot of oil refineries. The liberals in this nation have prevented the evil oil companies from building any new refineries since 1976. Katrina has already knocked out 10% of US refining capacity. The USA had no spare capacity before Katrina. If Rita damages more refining capacity, $4 and $5 gasoline will be a reality. And home heating this winter, Natural gas or Heating Oil, will be extremely expensive.
More importantly will be the long term impact upon the US economy. That impact will be decidedly negative. In this environment, inflation is a given. US history since 1920 says that every recession has begun with high oil prices. The Greenman has again raised interest rates to attract foreign investment. He knows he is going to have to print money to pay for all the rebuilding that is necessary. Add in to the equation that we are fighting two wars at once, and trying to rebuild Iraq, give billions of aid to the AIDS people in Africa, and soon you get the idea that there is not enough money to go around. The Greenman knows this. He will continue to raise the rates.
One other disaster on the horizon: a provision of the new Bankruptcy law states that Credit Card companies must make the minimum payment large enough so that the debt will be repaid in 10 years. Current minimums are designed so that the credit card borrower will repay in 20 years. That means that beginning in November, every debtor to the credit card companies will have DOUBLE the card payment. That will come as a decided shock to a lot of people (the average US family has $9,000+ in credit card debt). That, combined with higher fuel costs, and with rising costs for everything due to higher fuel costs and HIGHER INSURANCE COSTS from the 'canes--is going to hammer the economy. Period.
Just a little reminder as you consider your investment strategies for the coming days, weeks, months.
Jiesen, it is no time to buy Walmart! It might be a good time to short the Walmart. I see retailers having a bad year.
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