Just yesterday the media was telling us that the sky is
falling, and that we should find shelter anywhere that we can.
Hardly reported today was the fact that yesterday the Dow
Jones shot up 391 points. The NASDAQ was up 83 points.
That doesn't exactly blend with the constant media message
that we are only a hop, skip, and jump away from the second
Great Depression. Of of our esteemed Democratic congressmen
said yesterday that: "I believe the laws of supply and demand
when it comes to oil and gas are broken and completely
malfunctioning."
Sometime ago on FOX News, Bill O'Reilly was berating the oil
companies, making essentially the same silly argument. His
opponent in the debate was an economics professor from some
small private college that I can't remember the name of, but the
professor was sharp as a tack.
After O'Reilly bloviated for minutes about gasoline pricing, the
professor asked him about the advertising rates for his show,
which he said were the highest on television, by far. "What entitles
you to charge so much?" asked the professor.
O'Reilly denied that his rates were the highest on television.
He then lobbed a grenade directly at himself by asking the
professor where he got his information.
"I called your advertising people," said the mild mannered
professor. "I also called everyone else."
O'Reilly did some mumbling, and quickly moved to a commercial.
You can't beat Live TV.
So the big money guys sent signals to the market that they
need to stop complaining and get back to work. The market
rises like a phoenix. Maybe the market doesn't need any help
from the government.
What happened here is what's called a mood swing, or market
correction.
The mortgage crisis was a mood swing, a blip, a signal that
something was wrong in the market, and it needed to be fixed.
The huge rise in the market is a signal that the market received
the diagnosis, took corrective action, and is on its way to recovery.
So my question is...what is it going to do when the medicine
arrives in June and July? What is going to happen to those billions
of dollars that are supposed to correct an illness that has already
passed?
I think there will be some mighty fine BBQ's with the
neighbors this summer. Some folks will probably be using
a spanking new stainless steel grill with a whole lot of extra
cooking surface.
And I'll bet the vodka and tequila will be top shelf too.
From the big saddle,
Jim Whelan
P.S. Do you want to create a demand for your product or service?
Call the experts at The James R Whelan Agency now, and start
getting as many customers as you can handle. 206 407 3124
Leave a comment