Why Oil is going lower.

Many countries, like Russia, have borrowed to fuel their growth. They now need to sell oil to service that debt. Not being able to refinance is forcing those countries to sell oil at any price.

Poll Result: Taxes and Fairness

Is it better to:

Lower taxes to achieve more money 71%, (5-2)
Raise taxes to achieve "fairness" 28%

Well I guess there is still a lot (28%) of envy out there.

Palin on SNL

Lorne Michaels on Palin:
"I think Palin will continue to be underestimated for a while. I watched the way she connected with people, and she's powerful. Her politics aren't my politics. But you can see that she's a very powerful, very disciplined, incredibly gracious woman. This was her first time out and she's had a huge impact. People connect to her."
link

Alex Baldwin on Palin:
"When you come on a show like that, you are prepared in advance to get worked over. Palin knew that. Palin came on to be a good sport. And she was. She was polite, gracious. (More so than some of the famous actors who come through there, believe me.)"

link

Expect More Layoffs

With an Obama win almost a certainty, corporate executives are already planning more layoffs to offset the expected tax increases. It is possible that most of the job loses will occur even before he takes office.

Palin - CNN

National Review

"Editor’s note: Byron York’s recent article in National Review on Sarah Palin’s time as governor of Alaska became a campaign issue Tuesday when CNN’s Drew Griffin distorted its meaning in a high-profile interview with Palin. CNN’s problems aside, what was the story really about? And what did it say about Palin's readiness for office? Now, for the first time, York’s article is available on the web."

The question begins 1:25 into clip below.



part one:

Greed -The falling economy.

As we approach a world-wide recession let us not forget that is was caused be greed. From the Chinese toys and milk producers who destroyed their industries trying to make a few more cents. To the Florida condo investors, buying to flip and not to own. From the executives of Country Wide and all the other banks who sold/bought home loans without evaluating the properties or the owners. To the millions of consumers who buy everything on credit. To the OPEC nations which allowed oil to go to $140 a barrel.

Relatively cheap energy is the foundation of the modern economy. When the OPEC nations allowed the price to skyrocket pass $80 a barrel they were setting up the world economy for a fall. Although they made money from their oil in the short run, they are now losing more in the asset values of the stocks they bought with the oil money. Like Matha Stewart, who saved a few thousand from insider-trading but lost millions, the OPEC nations are now experiencing the results of their short-term thinking.

Good Times Ahead?

The euro is trading at $1.28, close to what the original mark was supposed to be at $1.18. Oil is under $67. Gold is down to $725 an ounce. In times of trouble to world comes to the U.S. The stock market is falling, but the volume is around 1 billion versus 3 billion shares traded daily. The Dow is 8500, fire sale prices for those who can wait 5 to 10 years.