**Update…Brian is in Norfolk, VA. Lost power Thursday AM. Don” t expect a new column until late Saturday at the earliest.
[Posted 7:00 AM ET]
Iraq
I was underwhelmed by President Bush’s speech last Sunday
evening. Sure, the text was fine but this is what was needed last
May, with constant reminders of the required commitment
afterwards. It’s no mystery that the President’s approval rating
has fallen from 71% in April to 52% this week (USA Today /
CNN). He’s losing credibility and as I’ve warned, support for
the effort in Iraq is soft. Yes, according to a Time survey, 72%
still believe the U.S. has done a “good job” there, but you’ll
recall earlier figures that show only about 50% want the U.S. to
stay beyond 2 years. That’s dangerous.
I have a ton of new readers in just the past few weeks and so
regulars need to forgive me if from time to time I repeat a few
things for those who’ve recently climbed aboard.
Call me a neocon. I believed in Deputy Defense Secretary Paul
Wolfowitz’s vision for a new Middle East. I still do. A
politically stable Iraq will lead to positive change in Syria and
Iran, for starters. But I was incredulous that the Defense
Department had zero plans for tackling the essential services
once Saddam fell, such as electricity and water. We lost many of
the hearts and minds in that critical first 60 days; including those
who may have been tempted to turn on the remnants of Saddam’s
regime before it could gain a new stronghold.
There are all manner of apologists coming out with stories on
how well things are going in parts of Iraq and I don’t doubt this
is the case, but the Big Picture is nowhere near as good as it
should have been and I blame the White House for
miscalculating sentiment, let alone failing to come clean with the
American people until now as to the costs.
But I’m upset for different reasons than the vast majority of the
critics. The case for war is gradually being eroded when it didn’t
have to be that way, and it’s unbelievable to me that Vice
President Cheney, for example, has allowed Halliburton to pick
up at last count $2 billion in reconstruction contracts. Can this
administration have such a tin ear and fail to recognize the
problems this creates in terms of perception and public opinion,
including around the world?
I want the apologists to know it’s not just Democrats asking
questions, loyal Republicans such as yours truly, let alone the
likes of Senators McCain, Hagel, and Lugar are as well. I still
strongly believe this was a just war, brilliantly executed, but it’s
as if everyone in the White House sat back on April 9 and had a
cigar while patting each other on the back….all through May,
June, July, and August. Thank God the American servicemen
and women continue to perform their duties in the best tradition
of this nation’s military. The same can’t be said of their civilian
leadership.
Wall Street
It’s more than a bit ironic that as all of Wall Street’s economists
hiked their growth estimates for the second half of the year, we
suddenly had some less than exciting news on both the economic
and corporate fronts after a long stretch of seemingly rosy
numbers.
Retail sales for August were up, but less than expected (so much
for the tax cuts), mortgage delinquencies are on the rise, non-
financial U.S. household debt rose at an annualized rate of 12%
in the second quarter, consumer sentiment fell (when an increase
had been forecast), and the mortgage lending industry has begun
to lay off workers as the refinancing boom is over.
Then on the corporate front, the likes of Nokia, Texas
Instruments and Oracle issued mediocre, at best, reports, while a
Smith Barney analyst, in downgrading IBM, noted “sentiment
was ahead of reality,” referring to Big Blue’s recent rise. This
last point is basically echoed by Merrill Lynch strategist Richard
Bernstein, who has decried the excessive speculation that has
returned to the equity market.
I also took note this week of the departure of Sun Micro’s Bill
Joy, Silicon Valley’s iconoclast on all things tech-related. Just
last August 16 in this space I discussed Joy’s opinion that there
was little to get fired up about in the sector; in other words, no
next big thing…meaning, don’t look for a lot of job creation
here.
And there’s the issue of healthcare. Out of pocket costs for
individuals have now risen 48% in 3 years, which, again, kind of
negates any positive benefits from the Bush tax cuts, by my way
of thinking.
Lastly, some have asked of our President, how can we really
contribute to the war on terror aside from shopping? I’ve replied
it’s the deficit…that’s our sacrifice. An economy that grows at
4% or better for the next few quarters could produce greater than
expected tax revenues, but costs of all sorts, including Iraq and
for homeland security, are skyrocketing, let alone other items
such as a prescription drug benefit that we’ve discussed before.
It won’t happen overnight, but eventually we’re going to get
hammered.
Street Bytes
–The major market averages were basically unchanged on the
week, though down. The Dow finished at 9471, S&P 500 1018,
and Nasdaq 1855.
–U.S. Treasury Yields
6-mo. 1.01% 2-yr. 1.62% 10-yr. 4.25% 30-yr. 5.16%
Bonds rallied anew for two main reasons; a flight to safety in
front of 9/11 and the less than booming economic data. The core
producer price index was also sanguine, but here there is more
than a bit of disagreement. Some of us see a big spike in
inflation down the road. In many products and services, i.e.,
healthcare, it’s been in the pipeline for years. So as I mentioned
last week, if the economy is really on a sustainable growth path,
then 4% official inflation is just around the corner, sometime
next year, and that will force the Fed to finally raise rates. In the
meantime, if the job data remains weak, don’t be surprised to see
one final cut in interest rates, the Fed having already told you it
wouldn’t hesitate to do so. That would only make things worse
when the inflation picture inevitably turns.
–China: As the debate continues over what to do with the
currency, the yuan, some of the talk emanating from Congress is
more than a bit disconcerting (not that this is unusual, come to
think of it). While the cries for protectionist action in the U.S.
are thankfully just that, and not actual legislation, the mood is
bound to turn uglier as more and more jobs shift overseas. For
China’s part, don’t expect them to revalue, making U.S. and
other nations’ goods more competitive, until Beijing sorts out its
problem loan issue, and with a new surge in lending for
speculative projects it will take quite a while to do so. More on
China below.
–Dick Grasso, part cinq (5). I never thought I’d be writing about
the New York Stock Exchange chairman five weeks in a row, but
both he and the board continue to give us ammo. My position on
the man long-time reader Bud calls Dick Grasshole is well-
known by now. My disdain for this charlatan goes back to the
days following 9/11 when he openly touted buying stocks to be
patriotic; idiotic and dangerous advice for investors looking for
informed guidance at that critical time.
But let me quote the lead editorial in Friday’s Washington Post,
following the latest revelation on Grasso’s compensation,
including the disclosure of an additional $48 million (which he
said he was now foregoing) on top of the $140 million he is
already slated to pull out.
“…the more details that come out about Mr. Grasso’s pay, the
smellier the whole thing gets…There is the incestuousness, even
smarminess, of the process…”
One of the things we learned this week is that Grasso lied when
he said he had nothing to do with setting his own comp, which in
case you missed it was $11.3 million in 1999, $21.8 million in
2000, $25.8 million in 2001, and $12 million in 2002.
Meanwhile, our old friends Kudlow and Cramer continue to
defend the chairman. ‘He’s such a leader,’ ‘he alone is
responsible for the market reopening after 9/11,’ ‘the NYSE has
done a great job,’ and ‘how can you criticize his compensation,
it’s the capitalist system?’ On and on, blah, blah, blah, barf.
And what of this $5 million “leadership” bonus for 9/11? That’s
insane. I said last week this 9/11 hero worship for Grasso made
absolutely no sense. He did his freakin’ job and for this he’s
paid $5 million?!
Jim Cramer went so far as to say the reason why Grasso is being
pilloried in the press is because he’s not a WASP. We’re
blasting him, Cramer, because the compensation is obscene by
any rational standard, especially for a regulator.
[As an aside, Cramer was doing a show on the mutual fund
scandal and said, speaking of the executives involved on this
front, “How can someone live with themselves?” Then,
incredibly, four minutes later he admitted that he had asked
Fidelity for the same treatment back in 1997! Well we all know
this to be true because back then, Cramer did all he could to cut
corners and scam the system.]
And how about radio personality Don Imus and his incessant
cheerleading for Grasso and the latter’s “good works,” including
support of the Imus ranch for kids with cancer? I’ve heard all the
stories about what a great and caring guy Grasso is, but I think
you’d agree, after pounding the theme for the better part of two
years now, that all these dirtballs hide behind their charity. And
for those of you who listen to Imus, understand that when he
talks of Grasso’s visit to the ranch this past summer, Grasso
jetted down in a private plane paid for by the Exchange, one of
the chairman’s many, totally unnecessary perks.
[In the interest of full disclosure, I advertised twice on the Imus
program, 2000 and 2001. The first time turned out great; the
second was a waste of $6,000 as the I-Man handled the spots in a
truly unprofessional manner.]
Finally, back to the credit Grasso is getting for his stewardship,
including during the bull run, Susan Lee of the Journal quoted
Benn Steil, a member of the Council on Foreign Relations.
“Crediting Richard Grasso for a bull market is like crediting the
groundskeeper of Yankee Stadium for the Yankees.”
–Mutual Fund Scandal, part 2: I had some rather extensive
comments last week on the topic and I continue to get a kick out
of some of the reports describing the suspect activity.
First, New York Attorney General Eliot Spitzer deserves high
praise for bringing the illegal, post-4:00 PM, trading to light.
Punishment should be swift and severe.
But there are some ridiculous statements being made pertaining
to the strategy of “buy and hold,” such as from one guy who told
Barron’s, “Only a market timer would hold any equity fund for
less than a year.”
What? I’m very familiar with one technology fund offering that
saw its net asset value decline from $93 (ex-capital gains) to $8
in the span of 2 ½ years. Was that smart, if you purchased it at,
say, $70 and rode it all the way down? [This particular fund is
up 46% in 2003 through Thursday…up to a whopping $15.75.]
I thought we already put the ‘buy and hold’ idea to bed.
Admittedly, though, there are cases where excessive, legal
market timing can cost shareholders, something which the funds
themselves should be able to police, but in the vast majority of
instances the actual impact can be measured in pennies.
One area you do need to be careful in, as a longer-term
shareholder, is with small gold funds. Here, timers can impose a
significant cost.
–Argentina defaulted on a $2.9 billion debt payment to the IMF,
but by the next day had rescheduled it. This nation and other
Latin American countries remain like the proverbial canary in the
mine.
–AIG was fined $10 million by the SEC for selling backdated
insurance policies that helped improve the earnings of a client,
Brightpoint. This is just as bad as any other instance of corporate
malfeasance.
–Airline stocks have soared, to the tune of 40-60% in just the
past five weeks, as the industry continues to recover. Thanks in
large part to reduced capacity (is someone checking on all those
planes sitting in the desert?) summer passenger loads were at
record levels. But now we’re into the fall season and the airlines
don’t have a clue what the prospects are. Ace reporter Jimbo,
though, called from an empty Newark Airport last Tuesday, not a
good sign, and I’ll form my own conclusion when I head there
myself later today for a little trip.
–An AT&T executive said telecom companies will never get a
payback for the dollars spent on laying the extensive global data
network. Many more players will go under.
–Treasury Secretary Snow wants to see greater oversight for
mortgage behemoths Fannie Mae and Freddie Mac, including
moving the function into the Treasury Department in order to
provide more investor confidence. Of course a cynic (cough…
cough) would say, well, since this won’t occur anytime soon, at
least the administration has built some political cover for when
one of these 2 blow up. Overall, the idea is a sound one.
–In another classic example of the American worker taking it up
the butt, Lucent said it was slashing medical benefits for retirees
yet again, with out-of-pocket expenses more than doubling.
Early retirees, such as our own Dr. Bortrum, took their packages
based on promised levels of benefits. It sucks and it’s but one of
many factors that help to negate stimuli such as the Bush tax
cuts…or did I already mention this?
–Microsoft acknowledged it had another serious security flaw in
its Windows software. I’ll give you some time to rush to their
site in order to download the latest patches………………………
………………….check your medical policies to see if you’re
covered while you’re at it………………………………………
…………………..
All set? Separately, the company doubled its dividend, to a
whopping annual rate of 0.6%. All together now…whoopty-
damn-do!
–3 Com, maker of computer networking equipment, announced
it was closing a manufacturing facility in Dublin and will
outsource more work to the likes of Taiwan. I’ve been waiting
for the Irish boom to end for years now (as my dream house over
there has appreciated a further 50%), but this is another sign that
can’t be ignored. Ireland’s workforce, and wages, are now on
par (roughly) with those in the U.S., so it’s only natural they
would begin to suffer the same fate American workers are.
–My mother’s investment club has decided to dissolve after 10+
years in operation. I’m trying to figure out the overall market
significance of this single act, but I’m stumped. Actually, rather
than viewing it as a contrary indicator, I prefer to think these
women simply can’t find any good investment opportunities in
equities.
–It’s good to see McDonald’s and Campbell’s Soup report better
sales. Good for the country, know what I’m sayin’?
–Shares in Research in Motion, makers of the Blackberry
wireless devices, soared 20% on stronger sales. [“Backfield In
Motion” was a 1969 #10 hit by the duo Mel and Tim, in case you
were sidetracked as I was on hearing the other’s name.]
–Former Enron executive Ben Glisan (no relation to Jackie) was
sentenced to 5 years for his complicity in the fraud operation and
he opted to go directly to jail. In fact he couldn’t even stop at
GO and collect $200.
–My portfolio: The energy holdings took a small hit, largely on
brokerage firm downgrades as prices soften. If you believe in an
economic recovery, buy them. True, I’m not totally sold on an
extensive global rebound, but I own mine for valuation reasons.
Overall, I remain roughly 20% equities, 80% greenbacks… the
latter rather crinkled.
International Affairs
Israel: The Palestinians chose Ahmed Qureia to replace
Mahmoud Abbas. Qureia (better known as Abu Ala…I’m
changing my name to Abu Editor) is far more popular among the
Palestinian people than his predecessor and he has extensive ties
with Israeli and Western leaders, having worked with Yassir
Arafat since 1965. Qureia is generally viewed as a moderate, but
none of this means anything until Arafat is expelled, as the
Israeli cabinet has now formally threatened to do. U.S. officials
are worried this would only give Arafat a world stage. [Picture
him on every European talk show, for example, let alone al-
Jazeera on the hour.]
The Bush administration is doing all it reasonably can at this
point, as the violence spiraled out of control the past few days.
Unfortunately, a missile intended for Hamas leader Sheik Yassin
(who really looks like the devil, in case you haven’t noticed)
missed its mark.
On a totally different track, Israeli Prime Minister Sharon paid a
highly significant visit to India, the first such trip by an Israeli
head of state. This is encouraging, though a problem internally
for both the Indian government (as it deals with its Muslim
minority), and Pakistan, where the majority Muslim population
there is furious and may take out its rage on President Musharraf.
Iran: The leaders here said they will freeze terrorists’ assets…
except those of Hamas. And this is all you really need to know
about the intentions of the leaders in this nest of vipers. Iran also
refuses to cooperate with the International Atomic Energy
Agency, which on Friday, significantly, set a deadline of October
31 for Iran to come clean on its nuclear program. By November,
we could be hearing talk of an Israeli strike shortly thereafter.
As I noted a while back, Israel won’t wait for Iran to actually
have a bomb.
North Korea: The 55th anniversary parade wasn’t as militaristic
as some expected it to be in that Kim Jong Il chose not to display
any new missiles, though a look at past events reveals few
instances where he did. More importantly, every other day there
seems to be a new story on the country and its refinement of
missiles thought to be capable of hitting both Japan and Guam.
And then there was a piece by Anthony Faiola in the Washington
Post on how “smitten” South Korea was recently over 300 North
Korean cheerleaders attending a regional sports competition. All
the talk among the South’s young people is of reunification.
Very naïve.
China: I wrote last week that it was a tremendous victory for
Hong Kong’s people when Chief Executive Tung Chee-hwa
shelved the Article 23 anti-subversion legislation, but added the
issue wasn’t dead. Now bear with me.
While there are signs that Beijing is content to set aside the act
for a number of years, I would add it all depends on Chinese
President Hu Jintao, who I still say has a pragmatic streak in him.
But all of Hong Kong should be watching to see how the
communists deal with Falun Gong. This week Beijing said it
would “fight until the end” as Falun Gong has continued to hack
into satellite broadcasts for the purposes of transmitting its
message. Hong Kong has lots of Falun Gong adherents of its
own. Thus, if the crackdown spreads here (beyond a handful of
arrests), there’s your sign as to the future of Article 23.
Along the same lines, Assistant Secretary of State James Kelly
(who always struck me as one of our best in the field) told the
Senate Foreign Relations Committee that China was
“backsliding” on human rights. He also voiced concerns over
China’s missile buildup across from Taiwan. We need more talk
of this kind from the administration.
Russia: Mikhail Khodorkovsky, chairman of energy giant Yukos
and Russia’s richest man, acquired the liberal Moscow News as
his power struggle with President Vladimir Putin heats up. This
would be just about the only major news outlet not in Kremlin
control. Separately, Marsha Lipman had a scathing piece in the
Washington Post on the total lack of accountability that afflicts
the entire Putin government. It’s amazing how many figures are
arrested one day on various charges, such as for corruption, only
to reemerge weeks later in a higher government position.
Sweden: It was back in 1986 that Prime Minister Olof Palme was
murdered on the streets of Stockholm, a case that has never been
solved, and this week Foreign Minister Anna Lindh was stabbed
to death while shopping. Coincidentally, the referendum on
whether the country will adopt the euro is Sunday. As of this
writing the governments says that Lindh’s murder isn’t
politically motivated.
Swedes treasure their open society and the ability of their leaders
to walk among the people without the security details common
elsewhere. This also tells you that Sweden is wide open to attack
from terrorists and, while the people probably think ‘why would
an al Qaeda type do that to us?’ the reason is because they can.
Britain: It appears that Prime Minister Blair has weathered the
storm over the prewar buildup and the suicide of David Kelly.
Blair’s Labour Party receives 39% in polls, up 5%, with the
Tories at 34% and the Liberal Democrats 19%. Of course the
Tories don’t have a real leader to challenge Blair.
Blair may also be helped (or at least not hurt) by a House of
Commons report that cleared him of purposefully exaggerating
intelligence claims, though a February assessment by the Joint
Intelligence Committee concluded that an attack on Iraq “would
increase the risk of chemical and biological warfare technology
or agents finding their way into the hands of terrorists.”
Meanwhile, Defense Secretary Geoffrey Hoon appears
determined to stay on despite his own prewar role in concealing
information, while on a different matter, the Guardian newspaper
reports that British defense giant BAE operated a slush fund for
the purposes of bribing Saudi officials in exchange for securing
arms contracts.
Spain: The government arrested a well-known reporter for al-
Jazeera on suspicions he has ties to al Qaeda. Prime Minister
Aznar just went up another notch in my book. I wish he could
remain in office.
Turkey: The Bush administration keeps talking about Turkish
forces joining the coalition in Iraq, but it fails to understand that
Iraqis are serious when they say they don’t want this.
Meanwhile, the rift between the generals and the Islamists
running the government is growing.
Liberia: I can just hear some of you now. “Hey, editor, now you
see why a lot of us didn’t want U.S. troops in Liberia. Look at
the ones we did send. They’re all coming down with malaria.”
I have to tell you, I took the medication for preventing the
disease before a trip to India in 1985 and I remember having to
start the regimen early and continue it for weeks after I returned.
The military says our guys did receive the pills before
deployment, but there is something seriously wrong to have these
soldiers still getting the illness. Did they receive the wrong
drugs? It just doesn’t make sense.
Japan: Prime Minister Koizumi should be reelected to head of
the LDP in a party vote on September 20. He deserves it.
Venezuela: Authorities turned down a petition for a recall
referendum on President Hugo Chavez, despite 3.2 million
signatures. We haven’t heard the end of this, however.
Random Musings
–When you have a moment, take a look at President Dwight
Eisenhower’s prescient farewell address, posted on my “Hott
Spotts” link. This was the one where Ike warned of the dangers
in the relationship between the defense department and outside
contractors. To wit:
“In the councils of government, we must guard against the
acquisition of unwarranted influence, whether sought or
unsought, by the military-industrial complex. The potential for
the disastrous rise of misplaced power exists and will persist.”
I can guarantee that Eisenhower today would be disturbed by
Donald Rumsfeld’s bid to privatize many military functions.
Afghanistan’s President Karzai, for example, is tailed by
security guards affiliated with a Halliburton subsidiary, not the
U.S. Army. Can these gentlemen (admittedly, most are ex-Army
vets) be possibly screened better than current U.S. soldiers for
such duty? No.
Or what about those whom Rumsfeld wants to contract out to do
aircraft maintenance? The chances for sabotage seem far greater
…just thinking outside the box.
Of course as was pointed out in a Business Week piece, one
reason for using contractors, as in Colombia, is that you don’t
need congressional approval. The whole thing stinks.
–Eisenhower also weighed in on the matter of foreign policy
during the same brilliant speech:
“Any failure traceable to arrogance, or our lack of
comprehension or readiness to sacrifice would inflict upon us
grievous hurt both at home and abroad.”
–Commentator Pat Buchanan on the demands of France and
Germany for a more significant role in postwar Iraq.
“They are going to hold President Bush’s head under water.”
Meanwhile, John McLaughlin, long-time conservative, labels the
postwar period and having to return to the U.N. a “total
humiliation.”
–The President is incapable of firing anyone, a deep character
flaw. I also wish Karen Hughes was physically inside the White
House. While she still has the President’s ear, it can’t be the
same as before. Her judgment is clearly better than Karl Rove’s.
–Politics:
A USA Today / CNN national survey of Democratic voters
(without Wesley Clark in the race).
Dick Gephardt…17%
Howard Dean…15%
Joe Lieberman…13%
John Kerry…13%
Bob Graham…6% (mild surprise)
John Edwards…5%
Mr. Magoo…2%
Boy, the Washington Post ripped Edwards for his flip-flops on
the Patriot Act and while Democratic Party activists might howl
at references to John Ashcroft in campaign speeches, in the
general election the strategy will backfire big time.
Watching the Democratic debate the other night, my early
thoughts on the Dean candidacy, that he was but a shooting star,
were reaffirmed. I understand he has a lot of momentum, and is
helped by the fact the rest of the donkeys can’t get their act
together, but he could still flame out once people begin to pay
attention to what he’s saying. From a purely political standpoint,
though, I give him credit for standing alongside Gray Davis
when others won’t.
Carol Moseley Braun actually read a whole prepared answer
during the debate off a sheet of paper. Unbelievable.
No, I wouldn’t be surprised at all to see Hillary enter the race,
but I would be if Gore did.
As for California, both the Field and Los Angeles Times polls
show Bustamante with a 30-25 lead over Schwarzenegger,
though the Field survey (done earlier) has McClintock at 13%,
while the Times has the true conservative in the field at 18%. As
to the vote on the recall itself, Field has it 55-40 ‘for,’ while the
Times is at 50-47 against keeping Davis in office. Except for
McClintock’s emergence as a real factor in the race, little has
changed over the weeks.
–The other day a local official here in New Jersey said he was
looking into the viability of building a wind-farm (giant
windmills / turbines) about 5 minutes from where I live. Now
I’m all for alternative energy sources, but this part of New Jersey
isn’t exactly known for wind, so it’s a ludicrous idea.
But I saw an article by Barron’s Jim McTague on the whole topic
of electricity generation and here are some interesting facts.
Nuclear power is the cheapest at 1.7 cents per kilowatt-hour;
followed by coal-fired energy, 1.85 cents, natural gas plants,
4.06, and oil-fired power at 4.41. As for wind-power, even
including a federal tax credit of 1.8 cents, it comes in at 3-5 cents
under the most optimum of conditions (West Texas, North
Dakota) and 5-7 cents in less than optimum (New Jersey in the
hot, humid, stifling summertime…where the air literally doesn’t
move). However, farmers love wind-power because they can
receive $2,000 a year in rent for each turbine.
But did you know that you can earn $1,800 per month for a cell
phone tower? I’m going to bring this up at my next condo board
meeting.
–Newsweek’s ‘Conventional Wisdom Watch’ compared Donald
Rumsfeld to Baghdad Bob. Both are full of it.
–In Singapore, a man tested positive for SARS, but this appears
to be an isolated case.
–Time for my weekly shot at our nation’s youth, or rather the
inactive ones. Every study shows that teenagers not involved in
sports or the arts smoke, drink, do drugs and engage in sex far
more than their peers. And I’m floored by the latest research
which reveals that ½ of all 12th-graders drink at least once a
month. They aren’t even close to being ‘legal,’ but then these
are some of the same folks downloading music illegally, too.
–New York’s Mayor Bloomberg, when questioned on the
“Today Show” about air quality in the city following 9/11, gave
a truly pitiful performance and basically said, “What’s the big
deal?”
–According to U.S. News, the Marines have practically zero
military equipment on hand (the stockpile having been used up in
Iraq) should they have to handle a conflict in North Korea. I
have little doubt this is the case.
–Canadians are evenly divided, 46-46, over same-sex marriage.
[National Post]
–Rolling Stone editor Anthony Decurtis summed up the appeal
of Johnny Cash. “His voice had the characteristic of honesty.”
–It’s all about the salmon. So I’m reading a piece in the London
Times discussing the new Perricone Diet and I’m thinking my
ritual of “Salmon Sunday” needs to be extended. Perricone
claims “that you can give yourself a nutritional facelift in just 3
days by eating fresh salmon three times a day.”
[Your editor received zero remuneration for the above product
endorsement, though he will be granted deferred compensation in
the amount of $140 million, to be paid out during the next
salmon run.]
–Finally, are we safer, two years after 9/11? Yes. Are we more
focused? Possibly. I just wish President Bush, who has the right
instincts, would follow them more than the ideas he’s receiving
from some in his staff.
But I have to say something that may tick off more than a few of
you. Here in the New York area, much is being made of the
pending December deadline for filing claims for the federal
restitution fund if you have a loved one that was a victim of the
attacks. On the local news channels you see constant stories of
those blaming the process and with the announcement this week
that families can now file lawsuits against the airlines, Boeing,
and the Port Authority, we’ll have even more of these reports.
The compensation being offered by the federal government is
fair. 9/11 was an immense national tragedy, and mistakes of
omission were made. But to place the blame squarely on
American Airlines, for instance, for not having reinforced
cockpit doors is wrong.
But if you believe I’m off-base in this assessment, I urge you to
think of the victims of Oklahoma City. I’ve been there twice in
the past few years and I think of those families all the time. New
Yorkers, in particular, don’t appreciate the sentiments of some
throughout the rest of the country. The families of Oklahoma
City received nothing, compared to what the 9/11 families can
get. It’s an injustice that needs to be righted. To my friends out
in the heartland, you’re in my prayers.
—
God bless the men and women of our armed forces.
God bless America.
—
Gold closed at $376
Oil, $28.27
Returns for the week 9/8-9/12
Dow Jones -0.3% [9471]
S&P 500 -0.3% [1018]
S&P MidCap -0.6%
Russell 2000 +0.0%
Nasdaq -0.2% [1855]
Returns for the period 1/1/03-9/12/03
Dow Jones +13.6%
S&P 500 +15.8%
S&P MidCap +21.2%
Russell 2000 +32.9%
Nasdaq +38.9%
Bulls 54.1
Bears 19.4 [Source: Chartcraft]
Note: They say that timing is everything, and so it is that I’m
spending the coming week on North Carolina’s outer banks, just
in time for Hurricane Isabel, possibly. Don’t expect much from
yours truly next Saturday, it could be a mess. Good for “Bar
Chat,” though.
Have a great week. I appreciate your support.
Brian Trumbore
