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The Correlation Between Crude Oil and the U.S. Dollar

CLH is most probably correct. And De Graff is also correct the fundamentals of the dollar are changed. ( However,I would not say forever).
What happens to the dollar long term depends on our response to this crisis. If while they have the financial institutions jacked up with short term liquidity they put a firm foundation under it by creating a system that encourages saving and investment instead of gross consumption for it's own sake thing could return to normalcy. This also depends on us as a country creating a energyl supply that is both abundant and affordable. Without affordable you can not grow any country's economy
long term. This means that we probably need many forms of energy for our supply not any one particular alternative fuel. This is especially true in the short term.

Pick Your Favorite Petro-Fascist

Ladies and Gentlemen, there is nothing new here except that now the public is finally waking up to the truth. But what they also do not fully realize is just how much Congress's inaction has helped contribute to our currrent situation. We need more production of every viable energy source.

What is a viable enrgy source you ask. One that is readily avialable at a reasonable cost. Such as natural gas, clean nuclear with recghargable fuel rods like the current (French design nuclear reactors), wind power, hydro-electric and geothermal. Also more drilling for our own oil plus building clean coal to liquids facilities.

What is not viable is ethanol from corn.

To put this in an easier to visualize context. The average cost of one killowatt hour of electricty in N.C. is 7 cents, the cost in Connecticut is 11.2 cents, Why the large difference?

For electricity the cost basis needs to be around 9 cents per KWH or less. For automotive fuel the cost needs to be around $4.00 per gallon or less. Anything significantly above this will sink families and businesses.

Tell your Congresmen and Senators especially the Democrats to get their heads out of the sand and act to provide abundant and affordable energy from all sources including drilling off shore.

Preparing for the Fall

This is a great article it give all young and old , experienced trader and novice a look at the historical perspective.

The fact that a Obama win in November will probably result in a 30% cumulative tax increase within 18 months, plus a wind fall profits tax on our oil companies along with a cap,tax and trade deal relating to carbon dioxide emmissions will only further sink the American cousumer and taxpayer. The result will be more increases in costs of all energy, more increases in food costs and more inflation all around followed with more government regulation and of course the extra taxes.

What will not occur is any market solution to one damn problem facing us. This is especially true of oil and energy because the Democrats and their radical environmental friends will continue to block efforts to drill for oil domesticly and off-shore. And block the building of new safe nuclear plants. plus block building more oil refineries, and coal to liquids plants. Note: Teddy Kennedy did not even want a wind farm in his back yard. So much for Democrat solutions

Heck most people are unaware that in additiion to having to import about 65% of our oil supply yearly we also have to import about
18% of our refined oil products thanks to Democrats and their radical environmentalist friends.

When the market wakes up to this reality it will most certainly head lower because withot adequate and affordable energy all else stops.

Fed Rate Cut: What Happens When We Get to Zero?

Congress needs to act to provide a real not fiction stimulus:

The problem with the proposed stimulus is that government has no money unless they first take it from us by higher taxes.

What we need is a policy that benefits the public month after month without raising taxes.
A) Cap interest rates on credit cards @ something like 14% versus the excessive usuary rates banks and credit cards charge of 25 to 32%.

B) Limit the spread between the FED rates and mortgage rates banks can charge so that the discount is passed on to prospective homebuyers by the bank.

C) Allow large corporations to write off large business investments in a two year period.

Congress also needs to immediately enact a National Comprehensive Energy Plan.

This plan needs to admit that the countries of the world are in a race to ensure they have an adequate energy supply into the future until they have a workable hydrogen solution. This is a race that if we lose we become a fourth world country over night along with a 10% or higher unemployment rate.

This means we should utilize all available sources of energy that science not politics proves is viable. Such as building more nuclear plants, build at least four more oil refineries located inland where they are not affected by hurricanes,
Use liguid natural gas to power large trucks ( approx 5 % are already powerd by this source), build clean coal technology CTL
(Coal to liquids) plants, develop geothermal energy where feasible,
Allow our oil companies to drill off our coasts and under the rockies,
Require new construction to be powered by solar for 30% of their power usage. Develop more wind farms and more hydroelectric power. Stop the ethanol farce and develop bio-diesel from trash.

Link the development an implimentation of our energy plan to a cut
in our purchase of Arab oil by approximately 3% yearly until we cut our dependence on foreign oil by 50%.

If we fail to act to get energy right all of the other things will be moot.

Buffett Blames Lenders, Not the Fed

It was not just the fact that the FED enabled easy credit after 9-11 to prevent a downward spiral. The real problems creating the bubble were three: a, The FED continued the easy money far too long. B, The bankers involved allowed greed to encourage them to discard proven lending guidelines. And c, the politicians of both parties encouraged the party saying : " you need to do more to help the poor own a house of their dreams". But all failed to differentiate between the poor versus the uncredit worthy. In this regard Hillary and Pelosi are as much to blame as Greenspan.

Cramer's Meltdown Spills Into Print

Billions $$$ still evaporated because of greed and stupidity of both bankers and Congress.

Go ahead please Hillary and Pelosi, continue to give nothing down mortgages to third generation welfare puppies, single mommies, and irresponsible kids and dead beat dads. Some one needs to tell these folks that is why banks used to require 20% down. To prevent people from just walking away.

And our schools need to educate students about responsibilities and priorities in life.

Pay attention now. 1) Pay your rent or mortgage first ( to protect your credit and keep a roof over your head). 2) Put food on the the table for you and your children. 3) put clothes on your family. 4) save 10% for a rainy day (lifes stoorms). 5) Then buy discretionary items last.

Note: Most of the people walking away from their mortgages have new cars, cell phones, big screen TV's
and a netflix account but they do not have the responsiblity to pay their rent or mortgage first.

As they say: If you think education is expensive, try the cost of stupid it will sink your ship faster.

What is wrong is to expect the American taxpayers to bail out the grrdy and stupid.

Where is All the Money Going?

You do not quote the facts accurately and also ignore the results caused by investing in mortgage derivatives or betting om mortgage futures.

Also, Warren Buffet and Carlos Slim both say derivatives are a bad idea and should be stopped. Do you think you are smarter than these guys?

When it come to the Aviation industry again you do not understand that the big airplanes are carring the (bucket and spade brigade going mostly on vacation or to see Aunt Lilly), while the private planes who have a right to fly and land on a first come first served basis not preference of any kind are carrying the CEO's who make the jobs for the bucket and spade brigade. If there is no jobs no one flies including you!
The real small planes usually do not land at large airports because it is alreadytoo costly and also does not serve their purpose.

I suggest you do more homework before opening you mouth otherwise you will just continue to show your ignorance.

Closing the Barn Door on Sub-Prime ARM Mortgages

Note: Unemployment is only 4.6% , and the FED has not raised rates, so why are people defaulting on their moatgages? Could it be because the Dumb Democrats demand giving ( no money down) mortages to uneducated deadbeats who prefer three six packs every weekend and watching net flix to paying their mortgages? And the stupid Republicans in Congress went along with this.

Consider, Europe who demands 20% down and offers only 20 year mortgages does not have these credit problems.

Greed of the bankers who should have said no and the stupidity all politicians in Congress is to blame.
Therefore, call your congressman and complaign. Say no bail out with my tax money. You created the problem so use your personal money.

Invest in the Underdogs: The Contrarian Plays Bag the Biggest Gains

Very good article.