cook503

Memo to Bank of America's Directors: Shame on You!

Now hold on there! Before the Merrill Lynch deal, Bank of America's acquisitions were steadily building value to the company.

Look, when this blows over, Bank of America will have a ton of smart people on their research and banking desks. There is no way that I would railroad Ken Lewis because of Merrill Lynch's problems.

Too Soon to Re-enter Oil Stocks?

There may be demand destruction in oil, but not in natural gas. In fact, we're going to see demand for natural gas increase in the coming years since it is more cost efficient than oil at current prices and also far more environmentally friendly. I'd load up now, but this is for the long term; don't expect 40% returns in a month or two.

Wednesday Options Update: CHK, MER, RIGL, MYL, HRS, IR, LIZ

Any word on when the expiration of those calls are? There's been quite a bit of activity on the August calls...doesn't make much sense to me since they expire in 8 days, but maybe it's some kind of automated computerized hedging strategy.

Chesapeake Energy Pre-Call Notes: Another Quarter, Another Beat

This is probably the most volatile non-tech and non-financial stock that I have seen in a long time. However, I am bullish in the long run. Oil prices will sway, but unless China and India decide to go back to third world status, they're not dropping below $70 any time soon.

Right now is a historically weak time for natural gas. Wait it out and see what happens in the winter heating season.

A Demographic Headwind for the U.S. Dollar

Can we please reform Social Security now?

Is the Fed Being Hawkish Enough?

Raise 'em. One of the catalysts for the down turn is the high price of crude oil, and strengthening the dollar will help. US investment banks should be thankful that they have been bailed out as much as they already have been. If we are really, truly going into a recession, let's get it over with instead of killing the dollar as well.

EOG Resources: Continue to Buy on Pullbacks

Here's what I think: the government should open up the Strategic Petroleum Reserve and use it for "open market operations" to help regulate petroleum supply, like how the Fed conducts open market operations to control the money supply. It is believed by a rising number of people that the price of oil is starting to peak--for how long, we are not sure--so an open market sale from the SPR would yield a hefty revenue for the government and create a dip in the market price of oil by introducing new supply. When prices go down, the government can then refill the SPR.

Yes, it is government interference which I am no fan of, but it is government interference in a market full of government interference--cartels, state owned companies like Saudi Aramco or CITGO, and Chinese subsidies. We should play ball too.

Is Fed Rate Policy Affected by Election Year Politics?

Whichever party wins will take credit for the commodity bubble bursting.

Just watch.

James Galbraith Joins the Obamanomics Team

Repealing NAFTA is an improvement though?

James Galbraith Joins the Obamanomics Team

Regarding Saudi Arabia and Russia "setting oil prices", I honestly think that they could not lower them at this point even if they wanted to--which they don't, but that is irrelevant at this point. Increased global demand has far outpaced supply.

Now about yet another prestigious economist joining Obama's camp, I am a little surprised at the mix that he has put together. Volker's joining was surprising enough for me, since Volker always seemed rather centrist politically instead of Obama's hard left. I just don't get it. This is a candidate who is talking about "windfall" taxes on energy companies, "patriot" incentives for companies that do not outsource, and repealing NAFTA.

I just don't get it.

Is This a Recession, and Should We Care?

Interesting points, but I must say that if we are to consider this a recession, it has been (so far) milder than many if you look historically. My belief is not so much that things are going to get better soon, but that they aren't going to get as worse--if that makes sense.

Lots of people here seemed upset at the ECB's decision to raise their interest rates, and while I have some questions about that too since it looks like Europe is developing their own housing problem, some European readers made a good point: even though it is bad for the dollar and hence raises oil prices--ergo, bad for consumers--the ECB should not have to worry about reckless central banking on our part.

There seems to be two primary catalysts on this downturn: the housing and finance bubble bursting, and fuel prices. For what it's worth, in my opinion, the housing and finance mess seems to have bottomed out. Fuel prices will continue to be a problem. There are still plenty of buying opportunities out there, however, like natural gas companies. Too early though to be short oil.

Peak Oil Stocks for the Future

I'd rather let the free market decide if drilling in ANWR makes sense. This isn't the Soviet Union where the government will be paying for drilling; the money comes from private funds. If companies think that they can make a profit and add some energy supply to the US market, I say let them. If they end up losing money because of this since it might take time for wells to come on line, then it is their problem.

Of course, in the long term, a better solution is natural gas--and the free market has responded to that. Look how natural gas stocks have performed. And also of course, environmental extremists are trying to prevent drilling off of our coastal shores. Or, how environmental extremists have scared people away from nuclear power. We do have alternatives that involve real technology, and not pie in the sky daydreaming (ethanol), and all we need is the will to use it.

Visa: Already Priced to Perfection

The credit crunch is basically over. The economic shock waves are still present, but liquidity had been restored. Even if it wasn't, it would be a non-issue with the sheer volume of transactions that Visa handles. I'd ride this one up to $75 and then decide.