The Economy Guy

Stocks went up slightly today, as the cheap money that the FED is printing makes it way into the market.  However, this market is currently overvalued by historic records, and everything that goes up…….

Bonds, the Dollar, Oil and Gasoline all went sideways – very boring.

GOLD, on the other hand, hit an all time HIGH of $1118 today.  What a dynamic market.  When will it stop?  From a technical perspective, it’s impossible to say when this bull rush will stop – as we are in new territory at these prices and there is no history.  From a fundamental position, Gold could be valued anywhere, and everyone has a different opinion of where the top will really be.  From my perspective, It is important to lock in profits anytime they present themselves to you, and I have a plan to do just that.

In the news today…..

Meteorites – let’s talk about these for awhile since there isn’t much else happening out there financially.  One passed within 8000 miles of earth (extremely close) and was within the moon’s path around the earth.  Well it missed, that’s the good news.  But, what if it had hit earth?  Nothing much.  It was only 23 feet across – not too big, and they come our way twice a year.  If they hit earth, this one would have burned up in the atmosphere, and caused quite a light show.  So, if you saw this headline – just ignore it.  The press would sensationalize things, but you know the truth now.

Strong Dollar – Geithner told the Japanese that a strong Dollar is important to the recovery of the US economy.  What a joke.  Of course it is, and a third grader could tell you that.  What he didn’t say was that his government and his President is consciously moving in a weak Dollar policy direction – and the currency markets are telling the truer story.  Geithner was only trying to get those Japanese to be suckered into buying US Treasuries – just like Goldman Sachs suckers all its clients (that’s where he learned his trade.)  Geithner is clearly short on ethics.

GM Chairman – has rebuked the GM CEO.  The Chairman (and board) has told the CEO that he needs a realistic business plan.  His plans to date are too optimistic.  The Chairman said that rather than concentrating on bringing money into GM via IPO, the CEO should be concentrating on paying the taxpayer its interest payment – and that means that GM should be concentrating on making profits.

Tonight’s Dinner Conversation……

Unemployment – yes, you know it’s 10.2%.  But, what if you add in those people who are part time or just fell off the unemployment insurance trough?  That number is 17.5%

But….. What if you used the same calculation that was used for Unemployment before Carter?  The number today would be 22.5%.

Think about that for a second.  22.5%.  The only time in our history that we’ve had 22.5% unemployment was the Great Depression – and that’s the purpose of tonight’s dinner conversation.  The government is painting the unemployment picture with a rose colored brush.  Why?  Do they like to lie to you?  Probably, they just can’t help it because they do it all the time.  They think you are stupid.  Are you?  They don’t want you do know the truth – but now you know it.

What can you do about it?  That’s your homework for tonight.

Here are the last numbers for today:
Dow Jones 30 Industrial – 10,291 (up 44 points)
10 Year Treasury Bond – 3.47% (down 0.01%)
Euro – $1.4982
Gold – $1114 (up $12) – New High!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Oil – $79.26 (up $0.29)
Gasoline – $1.99  (up $0.02)