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B4 The Bell, Thursday May 27


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:D Welcome to B$ The Bell! :D

 

Do oil shocks matter?

 

The detrimental effect of oil price increases on economic growth was first emphasized by economists in the early 1980's. In a landmark study, James Hamilton, now of the University of California, San Diego, concluded, "All but one of the U.S. recessions since World War II have been preceded, typically with a lag of around three-fourths of a year, by a dramatic increase in the price of crude oil." Surprisingly, Professor Hamilton found that oil price increases were associated with slower growth even before the 1973 OPEC oil embargo.

 

Time has been good to Professor Hamilton's hypothesis.

 

http://www.nytimes.com/2004/05/27/business/27scene.html

 

Do bankruptcies matter? Not to RCN employees, but maybe to the shareholders who will lose more than 99% of their money:

 

NEW YORK -- RCN Corp., which is trying to compete against cable companies by laying its own fiber network, filed for Chapter 11 bankruptcy protection as part of a restructuring agreement with its creditors.

 

"Today's filing is very positive news for RCN employees and customers," said RCN Chief Executive David McCourt. "RCN can reduce its debt and emerge as a stronger, more efficient company, giving us a competitive advantage in the long run."

 

RCN's stock, which rose above $70 in early 2000, was up two cents, or 12%, on the day to 19 cents a share at 4 p.m. Wednesday in Nasdaq Stock Market trading.

 

http://online.wsj.com/article/0,,SB1085652...e_whats_news_us

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Interesting...today's theme seems to be "watch the price of oil...stocks in Europe have been moving tick for tick with the price of oil...as oil price drops, stocks will rise."

 

It seems like only yesterday that they were saying that oil priced at these high levels doesn't really matter.

 

Oh, that's right...it was only yesterday.

 

It would seem as though the Matrix has managed to strong arm OPEC into gradually reducing prices, or the mouthpieces would not be telling us to watch it as an indicator of stock price action.

 

The Shell Game continues...

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SnP hit and bounced merrily off 200 day. How convenient. Something

afoot here...........WARNING....looking for something to take this

down today, like a bolt of lightening.

 

Looking to get SHORT..........up in 1121-22 area.

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I wonder if the recession-oil correlation is actually a recession-gasoline correlation

 

Plunger I think you are right with your observation that the Saudis are being set up for a terror strike by being forced to ally themselves so closely to Bush/US. The next 6 months are sure gonna be interesting.

 

listening to my local right wing radio jock this am, I'm thinking Bush starts to turn the corner about now. I think historically the challenger makes some waves early in the year, then the media gets back onside for the stretch run. Kerry is simply an anti-Bush play, with non of his own panache. Gore did well against Bush because Bush was a wildcard and Gore inherited a small bit of Clinton's momentum. Plus, the right wing spin is like religion to a lot of people, and left wing spin seems mostly incoherent, what little of it there is.

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listening to my local right wing radio jock this am, I'm thinking Bush starts to turn the corner about now. I think historically the challenger makes some waves early in the year, then the media gets back onside for the stretch run. Kerry is simply an anti-Bush play, with non of his own panache.

Maybe, but I think you're underestimating Joe Public's growing dissatisfaction with Bush and his team. It is taking time, but the anti-Bush sentiment is being slow-baked deep into the mind and soul of the nation.

 

The poo-dits will blame it on everything under the sun, but IMO it comes down to one main issue: The relentless lies and half truths (starting with WMD in Iraq) coming out of the presidency are taking their toll. Even my hard core right-wing friends have either turned, or are turning against Bush.

 

Granted, Kerry is not a great alternative, but once this train gets turned around... If only VP McCain would happen.

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Greenspan says he really has no clue as to the financial health of the consumer. But don't worry, he'll have a better idea when the results of a survey come in.... in 2006.

 

 

Only by then it may be too late...

 

CONSUMER SURVEY

 

"Although good overall information on the state of the major sectors of the economy is available regularly, our knowledge about the financial circumstances faced by different types of households is much more limited," the Fed chief explained. "Our survey fills a key part of this gap."

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Plunger:

 

Now they say when the dollar crashes, foreign investors rush in to buy U.S. Stocks, "looking for bargains"........

 

when the USD crashes, look for foreigners to buy our best companies and assets.

 

WAMU may be the first in a long line of takeovers by foreigners.

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NAVR may break out here @ 52W high w/blowout #s, and guidance above revenue consensus w/earnings in line @ .74, making target $15 w/20 PE...also watch SSPI for pullback if no news...great DD op on upcoming govvernment contracts...both have reasonable floats

 

Man with greatest number of royal genes has won American election every time...Bush is toast

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Morning Crew-Gold is having a big Woody this morning-the market won't like that. We are under the strong influence of Uranus this session look for surprises all day. Window at the open for 45 minutes as the great battle at resistance goes on. Lock n Load! ;)

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Dollar Weak = Bullish

Dollar Strong = Bullish

 

War = Bullish

End of war = Bullish

Resumption of War = Bullish

 

Falling Rates = Bullishi

Rising Rates = Bullishi

 

Rising Oil = Bullshi

Falling Oil = Bullshi

 

No Terror = Bullshit

Terror = Bullshit

 

Increasing Housing Starts = Bullshit

Declining Hosuing Starts = Bullshit

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