Tony Petroski

Tony Petroski
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  • Too Much Fuel Will Extinguish The Fire  [View article]
    Mr. Inflation Trader. Bernanke cleared things up for us this morning. Questioned on whether he had pumped up another stock bubble he told us that (paraphrasing) future earnings justify these levels on the S&P...

    (Give him credit) Bernanke is leading from the front. The world over, central bankers are hoping their puffing efforts will spark the animal spirits. This is the last stand of those in thrall to a long-dead economist. If it doesn't work within the next year or so, it's off to academia to teach the next generation.
    Feb 26, 2013. 09:51 PM | Likes Like |Link to Comment
  • Electric Vehicles: Front Loading The Filth  [View article]
    Clearly Tesla understands that they are the latest fad of the environmental faux religion and are entirely dependent on government subsidy for survival.

    Nobody need invest unless your names end in ama or inton.
    Feb 26, 2013. 09:42 PM | 1 Like Like |Link to Comment
  • The Urgency of Bringing Down Unemployment  [View article]
    Looking back more than two years I must confess, I've assumed all these days that Mr. Salmon was a worthless shill for the Welfare State, a journolista without an original thought in his Marxist textbook and yet, I give him credit for this:

    "The unemployment rate has long been called Obama’s Katrina, but at this point it’s clear that it’s much worse than that: Its political toll is surely worse for the president than a bungled hurricane response could ever be. Its human toll too, probably. And while it’s never a good idea to read too much into a single datapoint, the fact that unemployment rose, unexpectedly, to 9.8% in November is undeniably bad news."

    Now that it's 2013 and we are "down" to 7.9% (give or take 10%) I'm waiting for his follow-up. Perhaps the man has some integrity.
    Feb 26, 2013. 08:36 PM | 1 Like Like |Link to Comment
  • Quantifying the Second Stimulus  [View article]
    (replying more than two years later giving me a distinct advantange over Mr.JGBHimself's comment of 2010)

    I did not assume that the three "B's" are the only ones who create and use estate-tax planning...

    I assumed that at least one, just one...please, there must be at least one...Progressive would "walk the walk" and give up his wealth to the U.S. government as an example to us all.

    Yeah, I get it. Bill Gates and lives...more lives than all the efforts of the U.S....(whew!).

    OK--then state that openly. Save lives and declare that the efforts of the U.S. government to do the same is a huge waste of money.

    Instead, Gates, Mrs. Gates, Warren Buffett, Warren Buffett's secretary and even Warren Buffett's stable boy pretend to be "down with the struggle" Progressives while they are actually plutocrats angling for Nobel Prizes so they can join Jimmy Carter and Yasir Arafat.

    It stinks of hypocrisy with a capital hype.

    "What you also either forgot, or did not learn in school, is that Bill & family are revolutionizing 'the educational/school system' for the rest of U.S.!"

    Blimey! Revolution. Can't be a bad thing. When does it start 'cause in my neck of the woods there is no hope for change.

    Mr. JGBHimself: I've just ripped you a new one. Now I'm giving you two years to return the favor.
    Feb 26, 2013. 08:17 PM | Likes Like |Link to Comment
  • The Voters In Italy Have Spoken  [View article]
    This from Mr. Shell:

    "That is the perspective from Germany, but austerity is not being practiced in the U.S., and look at the results. Today, the Conference Board reported that Consumer Confidence in the U.S. had gone from 58.4 to 69.6 in the last month, much better than the expected 62. New home sales were also much better than expected, 437K, up from 378K..."

    ...and this...

    "So Bernanke's continued expansion of the money supply, a stimulant to the economy, seems to be working..."

    Dear, dear. We are five years into "Hope and Change" and a few months into "Forward!" When do the Ivy League machinations take hold? It could not have been the vision of Lord Keynes that his disciples flop about for a decade and then, once GDP hits "growth" of 1.21% declare victory in overcoming the business cycle.
    Feb 26, 2013. 07:48 PM | 4 Likes Like |Link to Comment
  • Amid the campaign by Canadian officials to boost U.S. support for the Keystone pipeline (TRP), Gary Doer, Canada’s ambassador to Washington poses this question for the U.S.: “Do you want your oil from Hugo Chavez or do you want it from Canada?”  [View news story]
    "Gary Doer, Canada’s ambassador to Washington poses this question for the U.S.: 'Do you want your oil from Hugo Chavez or do you want it from Canada?'”

    I agree with safariman, it's a darn good question. Since oil is fungible, this has always been a dilemma. When John D. Rockefeller was running Standard Oil, my grandpappy asked: "In what sense is oil purchased from John D. "mine" and oil purchased from Russia "theirs?" It depends on the price I have to pay.

    All kidding aside, the Canuck makes a great point--whatever you may think of our neighbors to the North, they are a lot more reliable than our neighbors to the South.
    Feb 26, 2013. 07:09 PM | 2 Likes Like |Link to Comment
  • Does The Increase In The Yotai Gap Again Presage A Stock Market Sell-Off?  [View article]
    Interesting article by DoctoRx.

    And up 'til now, I thought the Yotai Gap was the lowlands between mountains on Okinawa that you send the tanks through.

    "To sum up, the failure of 'Recovery Summer' in 2010 to meet expectations necessitated QE 2. By June 2011, it had become clear to me that the economy still had not healed."

    It was clear to a lot of us including Professor Bernanke. You forgot to add that "by 'Recovery Summer' 2011 it had become clear 'Recovery Summer" 2012 it had become clear to..."

    We still have hope for "Recovery Summer 2013 or perhaps '14.

    Blimey--This can't be what they teach at Harvard--lost decades. QE 6.5 becomes QE 7.5 becomes...oh, let's just call 8.0% "full employment."

    I still don't see how increases in the "Yotai Gap" signal a market sell-off. I would have thought that an economic plan built on taxing "millionaire and billionaires" their "fair share" along with modest increases in taxation on everyone else would have signaled a market sell-off.

    We are in the last stages of a world-wide academic experiment: Flood the banks with liquidity, count on the banks or their proxies re-inflating asset markets, and wait for the animal spirits to achieve escape velocity. It worked on the dry-erase board at Harvard.

    "Colonel Custer. I know we should win this one easily, but what is our plan if things turn against us?"
    -- Jedediah Bernanke, Ben's great-great-great grandfather.
    Feb 26, 2013. 06:57 PM | Likes Like |Link to Comment
  • 10 Signs We're Not In Another Real Estate Bubble (Part 1)  [View article]
    "Give me a break! Forget Rodney Dangerfield, the residential real estate rebound gets 'no respect.' Don't worry. We're nowhere close to another peak."

    I'm not worried. Real-estate owners aren't worried. Smite me with another bubble but do it within a couple of decades 'cause we're already closing in on year 9 of a real-estate depression (unless you live and work in D.C.).

    A little Dangerfield schtick:

    "What a crowd, what a crowd. I'm OK right now but last week I was in rough shape...and this economy...why it got so bad I had to move back home--when the folks saw me walk in, they packed up and moved into the neighbor's I know why tigers eat their young."
    Feb 26, 2013. 07:58 AM | 2 Likes Like |Link to Comment
  • All Time VIX Spike #11 (And A Treasure Trove Of VIX Spike Data)  [View article]
    The one-day spike in the VIX wasn't caused by the rise of a comedian in the Italian parliament nor was it caused by sudden concern over marginal reductions in the "budgeted" rise of federal spending known as "the sequestration" (the leftists missed one there--they should have called it "Fiscal Cliff II--We are All Doomed").

    The market action has been bullish lately as bad news like negative GDP "growth" has been shrugged off. High-volume selloffs like yesterday on no news is bearish and is rocking the market out of complacency. Perhaps markets don't go straight up after all. In any case, "dip buyers," you are going to get your chance.
    Feb 26, 2013. 07:31 AM | Likes Like |Link to Comment
  • President Obama is due to meet Republican Senators John McCain and Lindsey Graham today, ostensibly to talk about immigration reform, although you'd expect the looming $85B in spending cuts to crop up in conversation. There's otherwise little indication that Democrats and Republicans are in negotiations to cancel/postpone the sequestration.  [View news story]
    Why is Obama meeting with McCain and Graham. Shouldn't he be crossing the aisle?
    Feb 26, 2013. 07:19 AM | Likes Like |Link to Comment
  • A survey released by the CDC indicates Americans are trending toward eating less fast food than in the past as a percentage of their daily intake. Though some consumers are switching to healthier alternatives at McDonald's (MCD), Wendy's (WEN), and Burger King (BKW) - the healthier eating trend could also be incrementally affecting store traffic at the chains.  [View news story]
    For you lovers of big government we have a great illustration of why you have to contain it at some point. The Center for Disease Control, a bloated bureaucracy that should be cut in half in a future budget, is conducting useless surveys about fast food. NASA harries us with bogus studies about global warming while the globe is cooling.

    The key to this is monopoly power without check. Since it's so insidious, the first check is not to create boondoggles like the Consumer Finance Protection Bureau in the first place. The second check is to forbid unionization of "public" service. The third check is to close an agency from time to time as private corporations do routinely as they restructure.

    (Don't worry, I'm not holding my breath)
    Feb 22, 2013. 09:26 AM | 1 Like Like |Link to Comment
  • Goldman Sachs (GS) has become ensnared in the investigation into the suspicious trading of Heinz (HNZ) options ahead of the announcement of its $28B buyout, with the account that carried out the trade owned a "private wealth client" of the bank. Goldman, which hasn't been accused of wrongdoing, said it doesn't have "direct access" to information about who owns the account. Given Swiss secrecy laws, the SEC will have a job finding out.  [View news story]
    My bet is it's either Dodd or Frank.
    Feb 22, 2013. 07:51 AM | 1 Like Like |Link to Comment
  • Why We Should Be Entitled To More Honest Accounting  [View article]
    This one was tricky. I thought "denial," "neglect" and "chicanery" all ranked above "subterfuge," (which I thought was the power plant for German U-boats).

    "After all, how could we not trust a son's promise to his dear mom?"


    "I promise mom, after this one I go straight."
    --Herman Barker assuring his mother, Ma, he'd never rob again.

    "'Entitlements, 'redistribution' and 'compassion' are the most misused words in the American language.
    --Yogi Einstein
    Feb 21, 2013. 09:03 AM | 1 Like Like |Link to Comment
  • Dirt was flying back and forth in a New York City courtroom where attorneys from Macy's (M) are battling with their counterparts from J.C. Penney (JCP) and Martha Stewart Living Omnimedia  (MSO) over a breach of contract claim. Though most of the bantering was over the finer points of the Macy's-JCP shops contract, evidence on e-mails sent out by JCP CEO Ron Johnson delivered an interesting anecdote. When push comes to shove at the retailer, it appears RJ talks strategy with Bill Ackman.  [View news story]
    "Dirt was flying back and forth in a New York City courtroom..."

    That reminds me. When does the Kahlid Sheik Mohammed trial begin? Don't tell me he's still cooling his jets (bad pun) in Guantanamo?

    I know, New York Superior Court vs. Federal District Court and all that, but it's telling that Martha Stewart has had more face-time with a judge than the mastermind of 9/11.

    Feb 21, 2013. 08:47 AM | Likes Like |Link to Comment
  • More on Hormel's (HRL) Q4: Volume rose 2% during the period to account for a good portion of the uptick in sales. Revenue in the Grocery Products segment rose 24% Y/Y to $334M to offset a slip in Refrigerated Foods sales. The company raises full-year EPS guidance to a range of $1.93-$2.03, up from a prior estimate of $1.90-$2.00. (PR[View news story]
    Reuters is reporting bad news for Hormel: "Regulators performing a routine check discovered horse DNA in some of the Spam samples. A Hormel spokesperson said 'How did that get in there? The horse meat was meant for the chili.'"
    Feb 21, 2013. 07:41 AM | Likes Like |Link to Comment