Dow 6000

Government Inflation Bonds

2009-04-10T07:53:00.000-07:00

Has anyone purchased government Inflation bonds besides me. They are known as I bonds for short. Currently it is receiving a fixed interest rate and the inflation rate for a combined payout of 5.64%. The inflation rate will change and be recalculated on May 01. The treasury can also get rid of the fixed rate as well. It's about 1% right now. The previous fixed rate was zero. The fixed rate remains with you for the life of the bond. I ordered a few. I believe that future inflation will be terrible. With the unemployment around 8.5%, I believe now is the time to play it safe with money. There is no cure for the oil non-crisis happening right now. It will take at least another decade for electrics and hybrids to fully penetrate main-stream America. For now, we are at the mercy of the whims of every pig-faced oil CEO and dictator in the world.

The stock market is positive, WTF?

2009-04-08T07:49:00.000-07:00

I just read the other day that Aluminum giant, Alcoa, released disappointing earnings for the quarter. Aluminum is used in many things in business such as automobiles, soda, etc. Aluminum is a great way to gauge the growth or decline of world economies. In this case, any reasonable person would make, from the news, that there is no demand for aluminum. Hence, the drop in cost per lb. Furthermore, people realize we are still caught-up in a slowing economy; one that has been contracting for well over a year. There will be no GDP growth this year. How? Every S&P 500 company has laid-off a percentage of their workforce. Why then is the stock market up today? A good question I don't know the answer to; other than the fact that earnings season is under way. I won't hold my breath. I know this economy is headed for more bad news. We may no longer be in free-fall, but our parachute has many holes in it.

Goodbye GM and Chrysler, I knew thee well

2009-03-30T18:41:00.000-07:00

Another month has passed and the government has denied General Motors additional bailout money. Of course you already know this is tax-payer dollars going to work. By now you know a great percentage of this money will never get paid back. But have you really thought about what's at stake here? Freedom. Dreams. Yes, Ford Motor Company and General Motors began building cars for the working man and woman way back when. They are responsible for making Americans dream of tomorrow while living in today.
The blue collar worker has gotten the short-end of the stick, again. They have no AIG year-end bonuses waiting for them. They don't receive all paid expense vacations to Colorado with their familes 3 times a year. The Unions have agreed upon lower wages to keep the factories open. These workers smell of sweat and muscle. Their perfume is oil and grease. Their soundtrack is rivets and bolts. They stand 8 hours a day twisting and turning, bending and stooping. There are no desks from which to hide behind. Their shirts are so thinned you can see their souls. Their eyes gleam with fearful hopefulness waiting for our president to approve further packages.
The answer today was no. Our president said no to thousands of men and women across the nation. Don't blame him. Surely, the blame rests with Toyota and Honda for building more reliable cars that our home grown manufacturers couldn't compete with.
I will miss those fast corvettes and affordable camaros. The thrust of that vortec pushing 4000 rpms until you had to stop 1 block later. The smell of that hot exhaust on a cool summer night. Yes those were good times and fond memories. At the end of the day that's all they will be, a beautiful memory.

Dow 6000

2009-03-08T19:59:00.000-07:00

With all the market turmoil it's easy to lose sight of your long-term investing goals. I've seen the Dow Jones see-saw up and down for the last 14 months now. I've heard of the great plunge that was supposed to happen in October and every month after that. Don't fret, at least for now. The Federal government has stepped in with wave after wave of rate cuts. This has lowered the mortgage rates for many, helping them refinance their homes at rates not seen in years. Secondly, the Federal government has granted not one but two stimulus packages to energize this stalling economy. Thirdly, this same government is backing our financial institutions. The message is clear. Life as we know it will go on. Yes, this economy has stalled. That's all. Dow 6000 is the invisible line we will not cross. I'm slowly investing money once again in the stock market. Will you be ready when it rebounds?