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	Send My Check Directly to the Credit Card Company
	Does Hillary Have Experience?

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	Charles Delvalle
	Andrew M. Gordon
	Dr. Russell McDougal D.D.S.
	Rick Pendergraft
	Chris Johnson

Thursday, January 31, 2008

Send My Check Directly to the Credit Card Company


	Chris Johnson

I received an influx of responses to my recent article on Ben Bernanke. While not feeling completely sympathetic for the Fed chief, I do feel that he’s been left with a heck of a mess to clean up. And now the market thinks that he's doing a poor job of it.

I spoke to a reporter from CNN earlier this week regarding BB's situation. I described it as "someone [Alan Greenspan] spent 10 years blowing up a balloon, then simply pinched the end and handed it off to someone else, hoping that none of the air would come out.”

That’s not been the case.

Many of you responded to my article with questions and commentary of your own. Thanks. A response from G.F. really hit home in terms of the focus by the FOMC and Congress to put more money in the consumer’s pocket to keep spending going.

G.F. writes:

It has been said that the job of the Fed is to take away the punch bowl just as the party really gets going. It appears that their policy has now morphed into: We're going to have an awful hangover if we stop drinking now. Keep drinking! Keep drinking!

Let's face it; the checks that you and I get in the mail from the Treasury Department thanks to whatever stimulus package they finally hammer out have already been spent and thus will do little to spark an economic recovery.

Unfortunately, the economy has benefited from cheap money for the past decade, resulting in a consumer that is now waking up from their spending binge to a pile of debt that's coming due.

The market has benefited from years of "cheap money." Unfortunately, this comes at a cost when the printing presses begin to cool off and the consumer begins to spend less. For now, consumers may be happy with all the toys they've accumulated as they begin to pay off their looming debt. If so, expect a natural correction in the economy as spending continues to slow.

Have a great trading week.

P.S. To let me know what you thought of today's article, send an e-mail to: feedback@investorsdailyedge.com.

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Does Hillary Have Experience?


Charles Delvalle

A few weeks ago, I got this e-mail from a reader about my Unplugged article from January 2.

Hi:

I expect that you wanted to touch a nerve with telling us that Hillary has experience. The only experience she has is running a high class tea party and proving that the political drive she has outweighed the sex acts of her husband.

Most of the rest of the article seemed about right except for the building construction. I am convinced that we are no worse off; actually, than many times in the past but at time we have lost control of the mortgage instruments. That means we have less opportunity to help people having trouble with their mortgages and the press seems to love making it worse than it need be. I maybe wrong but I hope not.

Best,
Tom

Dear Tom,

First, on Hillary. As first lady, you can’t deny that she must have learned a lot more about being president than any governor or senator running could have learned (except maybe McCain). I seriously doubt that she sat idle in the White House, watching episodes of Seinfeld and speaking at PETA functions every once in a while.

Husbands and wives are close. Even if Bill was getting some action on the side, she has to know a lot of what he knew. That doesn’t mean I think she should get the job, though. There are other issues I’m more concerned with.

As far as the housing mess, we’re in trouble. And yes, we are much worse off than before. This is more evident every time we get an economic report showing our economy going down the toilet.

In Florida, property tax collections are dropping, which in turn forces cities to cut their budgets. How do they do that? By laying off people. And California, Nevada, and a host of other states are in the same situation.

Shockingly enough, the media hasn’t made a big enough deal about this oncoming recession as I think they should. Up until January, every talking head on CNN came just short of calling a recession.

What’s wrong with them?

When things deteriorate as fast as they are now, odds are we’ll have a recession. Hey, you remember when interest rates were inverted? Yeah, that usually means we’ll have a recession in the future.

I’m just calling it like I see it. A recession looks like it’s on its way. Maybe we won’t get two straight quarters of negative growth, which is “technically” needed to call a recession. But it still won’t be a good time.

Good investing,

Charles

P.S. To let me know what you thought of today's article, send an e-mail to: feedback@investorsdailyedge.com.

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