ChipSeal

Wall Street Breakfast: Must-Know News

"Obama officials called the minimal details intentional"

This is because they are in campaign mode. Be vague, make general statements about your goals but don't commit to specifics. This way, each member of your audience will impute his own favored solution into your remarks and support the idea! Once it is being implemented, it will be too late.

"Critics are livid with the industry for handing out $18.4B in bonuses even as the companies reported losses and accepted government funds, and for lavish expenditures including private jets and expensive retreats."

I thought all that money was to stimulate the economy. What is the "stimulative" difference between loaning out the money and buying jets and paying bonuses? I dare say the bank executives seem to spend taxpayers money just as responsibly as our elected officials!

Unintended Consequences of Four Government Policies

Unintended consequence number one (Salary caps) is causing consternation at GE. Their media conglomerate will see all the talent walk away if say, David Letterman an only be paid $500,000!

Now you know why the talking heads on "news" shows are so alarmed at this!

2009 Dogs of the Dow

I seem to recall that the dogs of the Dow could be improved by investing in the "dogs" two through four. Casting out the bottom dog avoided the the likeliest to be in real trouble and cut their dividends, or to be de-listed and such, and thus improved overall performance of the theory.

Wall Street Breakfast: Must-Know News

Dear Rachael,

You have repeated the same mistake again. To wit:

"The ISM report indicated that the non-manufacturing sector improved slightly from the previous month. However, a sub-50% reading indicates sector contraction. So, a slower rate of contraction in December brought activity to 40.6%."

The sector did not "improve slightly" as you insist. It got worse. It simply got worse at a slower rate than the month before.

In my portfolio I lost 20% in one month and then lost 18% the next. My losses are not as great, but my portfolio is still shrinking. It will "improve slightly" when it has actual growth. For example +.05%!

Improvement indeed!

I am still a fan! Thanks for your reply.

Wall Street Breakfast: Must-Know News

"Economic activity in the non-manufacturing sector increased by 3.3% in December to 40.6%, according to ISM, better than the 37.0% consensus."

Whoo Hoo! A counter trend move! The sector is GROWING... right? But the very next sentence in your "news" is:

"This marked the third month in a row of sector contraction, though the rate slowed slightly."

So it is growing and contracting at the same time? Are you just making this stuff up? Do you even read what you write?

Please do better, Mrs. Granby.