Articles

It is hard to believe, by this time, that anyone is in favor of the war in Iraq. Much attention is given to Bush's low approval numbers. But fully one third of Americans remain in favor of the war. We know they are mostly Republicans (but certainly not all Republicans are for the war), but what else do we know about them?

I cannot see any reason for this rise in GM.

The credit crisis has taken its toll on many sectors. The municipal bond market has remained largely unscathed to date. But municipal investors need to open their eyes. These bonds are about to be the next shoe to drop in the credit markets.

China is making huge strides in its economy, but remains very uncomfortable with the internet and other freedoms. This lag-time will haunt the country as it moves into the 21st century and assumes a -- if not the -- major leadership role among nations. Banning Wikipedia is a silly but telling symbol of how stuck China still is between centuries.

The market is more skittish than it has ever been. Upsand downs of hundreds of points daily have become common occurrences. The slightest news causes ecstasy or panic. There is very little reflection, very little tempered reaction. Many say the volatility that we are becoming used to is the result of the spread of technology and the speed with which herd behavior happens. Whatever the reasons, we are in dangerous times where the herd can literally take the market and the economy down significantly. It is a hell of a time to be rounding the corner of the 6th anniversary of 9/11.

Bernanke has it in his hands to control the spiraling credit crunch by lowering rates (or even indicating that he is seriously thinking of doing so) or to keep credit relatively tight and push the market and the economy into a real danger zone. Greenspan, in the past, made a habit of getting in front of potential shocks to the economy by acting to forestall them. But, Unlike Greenspan, Bernanke -- coming out of the academy and distant from the real world -- is willing to let the market play out on its own. It is a hell of a time to have an academic in this post.

Several politicians have proposed giving each child born in the country a bond that matures after a certain period of time. The idea is to foster an idea of savings and start everyone off in the right direction.

Alan Greenspan is a smart man, and smart men are sexy. I recently listened to a speech he gave and think it was filled with insight that can benefit everyone. Here's what he had to say:

Next time you get change for a dollar, look at the coins. Unlike any other currency, there is something decidely different about our coins. And, ask anyone and they will not have noticed.

Citgo is 100% owned by Hugo Chavez of Venezuela. He uses earnings from Citgo to fund his domestic and foreign policies. And, they aren’t the most progressive policies around. In fact, he is one of the world’s most scary and unattractive figures.

Those of us who believe that the Democrats will do serious harm to the American economy have been secretly betting on Fred Thompson's unannounced candidacy as the best chance for the Republicans. He was the stealth candidate whom few knew much about but who – because of his star power – had a possibility of carrying the day. Today, tucked away inside the first section of the New York Times, after first being aired on the web by the LA Times, is a piece of news that will seriously weaken his candidacy.

The hoopla over new record highs for the Dow and S&P is just that -- a lot of noise signifying little or nothing. These kinds of highs feed the bubbles of today as they did those in past years. But it isn't a very good idea to do too much celebrating over these new highs. One has to look back and one has to fold in measures of inflation before cheering.

I am very pleased that rates have been going up; they make my decision to keep money out of the market look good. I am delighted that BestCashCow has now made it possible to get the opinions and views of others. My sense is that rates will continue to rise and that I should not yet lock in to longer term paper.