The Economy Guy

Stocks rebounded and is flirting with 11,000, but more importantly, gold is on a rampage going straight up.  The key point to watch is $1070.  If it breaks above that number, then it should test the highs of last year.

In the news today…..

It was all politics in the news today, so I don’t comment too much.

Lehman Bros – told a judge today that Barclay’s got a $5B secret sweetener to take over Lehman’s during the darkest hours of the crisis.  It is this type of opacity that drives Americans nuts.  There is a small club of bankers who take care of their own at the taxpayer’s expense.

Treasuries – fell this morning as traders who bought the new 10 Year Treasury bonds today tried to offload them into the market.  The 10 Year interest rate hit 3.91%.  This is the interest rate to watch closely as it affects so many things.

Tonight’s Dinner Conversation…..

Cap and Trade – that’s the next big agenda item from Obama to cram through the Senate.  The House already has passed this bill, so there is something to read now., and it will make your eyes water.  

Obama is planning as an executive direction to have all houses sold in the US to have mandatory low energy appliances in them when they are sold.  I said “mandatory.”  Did you get that?  It mean you will HAVE TO REPLACE your water heaters, refrigerators, lighting, etc. and use “approved” low energy ones.  This will cost America more than you can imagine.

It will also have a negative impact on the housing market.

Remember – vote soon and vote often.  We must push all these scumbags out of Congress.  And, for those of you who don’t really know my definition of scumbag, it is anyone who is sitting in Congress or the Senate right now.  Throw them all out.

Here are the last numbers for today:
Dow Jones 30 Industrial – 10,997 (up 70)
10 Year Treasury Bond – 3.89% (down 0.01%)
Euro – $1.3494
Gold – $1161 (up $9)
Oil – $84.91 (down $0.48)
Gasoline – $2.29  (down $0.01)