Barrow Bits

Tax the Fat Slobs

Just walk around the streets and you will notice there is an epidemic of obesity in the U.S.  To be sure, NYC is less fat than places like Maryland where I regularly visit.  In NYC more people walk so the exercise pays off in less girth being carried around.  However, in car dependent Columbia Maryland the number of obese people is staggering and very unpleasant to look at, and costly to the tax payers.  In the current debate over health care it should be noted that all told, 9% of health care spending last year was spent on obesity related costs - this according to the Urban Institute.  Half of that bill was footed by taxpayers through Medicare and Medicaid.  I propose increasing the health premiums for all obese people.  Also taxes should be imposed on sugary soft drinks and high fat fast food.  It's time Americans slim down and taxing the hell out of them just might be the answer.

Boycott the Advertisers of Hate

On Tuesday Fox News and Glenn Beck reached a new low in calling President Obama a racist.  While the charge came from Beck and not specifically from Fox, it's clear to anyone who watches this garbage news channel that they do everything possible to spread hate of Obama.  Moreover, Beck has a show on Fox so they are complicit in this outrageous conduct.  I believe every person who believes in toning down hate rhetoric should contact advertisers who sponsor this channel and Beck and tell them enough is enough and that they won't buy products advertised on the network.  Hit them in the pocketbook folks!!

Venture Capital going in clean energy solutions

It seems that venture capital firms are going into clean energy solutions again.  I still this this area is ripe for big gains over the next few years. 

Fox News Bimbos

After scanning the TV channels this morning I have concluded that the Fox News Channel and their affiliate business channel has the biggest dumb bimbos in TV land.  They all seem to have long blond or red hair and are completely devoid of any talent or knowledge of the subjects they are supposedly reporting on.  The business babes are the worst.  All they do is read the teleprompter.  I have forgotten more about Wall Street than these gals will ever know.  I guess FOX management just wants good looking women and the hell with their credentials for reporting.  And, while on the subject of FOX their status as a racist network was cemented on Monday when that lunatic Glen Beck announced on the morning show that Barack Obama is a racist!!  The world would be so better off without this horrible news organization (right wing propaganda machine) on the airwaves.

Beats me

The reality of it is that the stock market has rallied strongly in recent weeks, and the reason(s) for this rally really beats me.  Yes, earnings have been on average better than estimated, but I have discussed that issue before.  Doesn't mean a thing until earnings growth comes from increases in unit sales.  The employment picture continues to stink and trying to sell your house remains a futility for many a home owner.  Yet the market keeps going up.  Makes no sense at all. 

Mass confusion

The only way I can think of describing the economy right now is "mass confusion".  I think some people are very confused in believing that the economy is improving.  These are the hopeless optimists among us who see silver linings where there is only dark clouds.  Those dark clouds are the continued high rate of unemployment, a housing market that is remains in the tank, and federal spending that is out of control.  The market has done very well in the past two weeks ignoring the reality of economic calamity that awaits just around the corner.  Stocks are way over bought right now.

Will the Rally Continue?

The market did very well last week.  Indeed, all the major averages were up about 7%.  This week a bevy of new earnings will be released and suddenly optimism is abounding.  We will see.  Would still sell into this strength.

GE Misses the mark

Just when it seemed that all corporate earnings were coming in better than expected, GE disappointed the Street this morning.  And to the extent that GE is a surrogate for the economy in general the company's report was surely of concern.  This recession is far from over and that fact was evident in GE's financial statements.  It's been a great week for the market, but I just can't believe the euphoria will last much longer.

A Recommended Book

From time to time I like to mention a special book on this blog.  One that really strikes me as relevant and worth the time to read.  One such book is "Contagion" authored by John R. Talbott.  Talbott is a former banker for Goldman Sachs.  Perhaps, more importantly he has been dead-on relative to many current economic problems, particularly in forecasting the housing disaster.  In this book he clearly explains why the worse is far from over in real estate, and details other non-encouraging things.  While the book is certainly not uplifting, I think it's necessary reading for any serious investor.

Contagion, by John R. Talbott, 251 pages, John Wiley & Sons

 

The Right Wing Slime Machine- Fox and Drudge

There is no doubt that there is a vast right wing slime machine in this country and it's led by Fox News and the Drudge Report.  Yesterday, for lack of anything better to do I tuned into the Fox Business Channel for the first time in weeks.  In the midst of a huge stock market rally this poor excuse for a business network was finding every negative thing it could to dispell the notion that the rally could last.  Indeed, they were focusing on how horrible Obama is and how health care reform will bankrupt the economy.  Of course, the cheerleading was led by the bevy of blonde bimbos that Fox pays to read telepromters.  This morning the Drudge report is filled will Obama hatred that I'm sure will find it's way into the content of Rush Limbaugh's program today.  For those who claim there is a liberal bias in the media a quick turn of the channel or a click of a mouse will dismiss their bogus charges.