Financial Regulation
Stocks went up a little today on the retail sales news. Bond interest rates increased at the same time – continuing their sideways trough move.
The Dollar strengthened another cent against the Euro. This had the effect of reducing the price of gold, and reducing the price of oil/gasoline.
Gold is now approaching my first buy position of $1100/ounce. However, I am hoping it continues its fall much further and faster.
Oil has fallen below $70/barrel in spite of the growth engine happening in China, and is looking like it could help support the grow of the US economy as gasoline might just fall in price.
In the news today……
Retail Sales – rose 1.3% in November, and up from the 1.1% in October. This is great news for the economy, as these sales will push through the entire economy and help wholesale sales, and manufacturing. Some day it might even cause more jobs to be created.
Auto Sales – did you know that the number of cars sold in China is GREATER than the number of cars sold in the US? That says a lot about the economy of China, as their economy is way smaller than our economy. The standard of living is increasing by leaps and bounds in China. It must be like living in the US in the 50’s and 60’s. I wonder when there will be a Chinese rock and roll.
Tonight’s Dinner Conversation…..
The House passed legislation to regulate the financial industry. The Senate will consider this subject some time next year. I don’t know the details; do you? I doubt that many people really know the details. In fact, I doubt the legislators (scumbags) even read the regulations.
The one thing I do know is that whatever is in this bill, it isn’t for my good, or your good. Why do I believe that? Because Congress works with special interests to draft these new laws, and someone (we’ll find out later) will be benefiting from these new laws. There appears to always be a payoff to someone. Also, I strongly suspect that some freedoms will be lost – certainly by the financial industry, but also by yourselves – somewhere hidden in the details. Look for it.
I can give you one example that came from my banker who went to DC to lobby against this legislation. The US Treasury weenies were acting like this legislation was already law, and were demanding certain actions from the banks. Oh, by the way, it means all banks – big and small. Don’t think this is aimed at just the Wall St giants who are too big to fail. No, it also will hit your corner bank. Back to the example, When you want a HELOC loan, your local bank will not only be presenting its normal HELOC loan package, it will also be presenting the US Government HELOC loan package. It is presumed that eventually, the local bank’s package will be eased out by the government – and you will only be able to consider a Federal Government package.
What do you think about that?
Here are the last numbers for today:
Dow Jones 30 Industrial – 10,472 (up 66 points)
10 Year Treasury Bond – 3.54% (up 0.06%)
Euro – $1.4622
Gold – $1116 (down $16)
Oil – $69.73 (down $0.81)
Gasoline – $1.84 (up $0.01)
