The Economy Guy

Most all of the markets marched in place today.  No change was recorded in the stock market, the bond market, and oil and gasoline markets and the currency market.  The Oil market did set a new record high of $103.90 during the day, but settled back at the close.

Only the Gold market moved forward with a New High of $991 being set during the day.

In the news today….

Warren Buffett said he thought the US was in a recession right now – based on the performance of his companies.

The Institute of Supply Management (ISM) reported that construction spending was at an index value of 48.3.  Anything less than 50 is a sign of a contraction.  What’s interesting about this report is that construction spending is for “business.”  If business is contracting, then you can say for sure that “exporting” is not going to save businesses in the US during our recession.

Tonight’s Dinner Conversation

Hugo Chavez, President of Venezuela, has threatened to invade Columbia.  Why???  Because Columbia chased some rebels into Ecuador and killed them.  By moving across the Columbian border, they have angered Chavez.  Chavez has been in recent discussions with Castro to try to get those rebels to release their long term captured hostages, but this action by Columbia kind of ruined that plan.  Chavez ordered 10 tank battalions to the Columbian border.

Would the US come to the rescue of Columbia if Chavez invades?  Probably yes.  However, will Chavez invade, or is he just rattling his sabre?  My best guess is that he is rattling his sabre as he just hates the US.  Is he crazy enough to take on the US Armed Forces?  I guess we’ll have to see.

Here are today’s Numbers:
Dow Jones 30 Industrial – 12,259 (Down 7 points)
10 Year Treasury Bond – 3.53% (No Change)
Euro – $1.5205
Gold – $984 (Up $9) – a NEW interday HIGH of $991
Oil – $102.45 (Up $0.61)
Gasoline – $2.67 (no change)