The Big Slush Fund
Stocks started off down, but fought back and ended with a gain. Why?? Because there was no auto bailout yesterday, but there is a rumor of a bailout today. Bonds improved slightly.
There was no change in the Dollar and in gasoline. Oil dropped slightly, as did Gold.
In the news today…..
Retail Sales fell 1.8% in November. Bad news for the economy.
The PPI (Producer Price Index) fell 2.2%. Good for prices, but bad for the economy if it continues to decline as it would be the marker for deflation.
Ecuador defaulted on its debt today. This will be the first in a big line of national defaults. Take care in investing outside of the US right now.
Tonight’s Dinner Conversation…..
President Bush has stated he wants to use TARP (the $700B Congressional bailout bill) to bailout the auto industry. This action would end run the Congressional decision to not bailout the auto industry yesterday. The TARP fund is beginning to look like a “slush fund”.
Why would President Bush want to do this? Is he afraid he will be labeled the “President Hoover” of the 21st Century. Your question tonight is “What are the benefits of giving the money to the auto industry?”
Here are Today’s numbers:
Dow Jones 30 Industrial – 8630 (up 65 points)
10 Year Treasury Bond – 2.58% (down 0.06%)
Euro – $1.3372
Gold – $821 (down $6)
Oil – $46.28 (down $1.70)
Gasoline – $1.08 (no change)