[Posted 7:00 AM ET]
The 9/11 Commission Report
Back on 12/21/02, as many were calling the newly-appointed
9/11 commission nothing more than a political sideshow, I
offered up that chairman Tom Kean was “one of the truly
outstanding men in all of America.” Under his leadership, as
well as that of Lee Hamilton, the final work does a great service
in defining our nation’s future as well as its past. The latter, in
bringing to light all manner of details including the heroic action
of the passengers on Flight 93 that crashed in Shanksville,
Pennsylvania rather than into the White House or the Capitol.
There is no doubt had the terrorists succeeded in this one
instance we would be living in a very different country today, not
the one that bounced back in such spectacular fashion.
Governor Kean noted in his remarks following release of the
report that the 9/11 attacks “were a shock, but should not have
come as a surprise.” Certainly it wasn’t a surprise for those
reading this column before that fateful day, and if you have been
with me since it shouldn’t come as a surprise that I believe there
is a good chance we lose this war; at least our way of life as we
know it today. But that also doesn’t mean we throw up our
hands and wait for the inevitable.
Perhaps the commission report’s best single point was in
reinforcing where homeland security dollars should go, as in to
those who need it most, not some fire department in Montana or
Wyoming. But one can’t be optimistic when you see the
political process in action. Katie Couric, of all people, best
expressed the frustration of the average American when she
blasted Senator Joseph Biden in an interview for “Today” Friday
morning. Individuals such as Biden and John McCain talk of
action and sacrifice but, collectively, Congress always goes back
to the same old game of political patronage and pork winning out
over the national interest.
And it’s the president, whomever that may be, who needs to be
honest with the people. I’ve expressed the frustration countless
times in this space that we need to understand that we must do
everything possible…everything…to protect our homeland. Not
just attempt to secure our ports, air and rail transport, let alone
chemical plants, but also against the missile threat. To this last
point critics of national missile defense, post-9/11, always say
“See? We are addressing the wrong threat.” To which I have to
remind everyone, again, we have to do everything. It is
inconceivable for any president not to.
Of course to even come close to accomplishing this requires
sacrifice and I’ve repeated many times that means money, lots of
it, which in turn leads to ever-soaring budget deficits and shaky
financial markets. That’s an irrefutable fact, though I remain a
pessimist partly because there is no way our politicians have the
strength to fully educate the people in the paramount issue of our
time. Many are weak, and others are corrupt.
After all, when was the last time you heard an American
politician echo my chief sentiment lo these many years, that
being “Another major terrorist attack on the U.S. or a major
European city will send the global economy into Depression.”
No one has the guts to spell it out that clearly, but that is the
essence of the debate, acknowledgement of which means there
then should be one. The public would be galvanized and
Congress would be forced to act. But that’s not about to happen,
despite the flurry of activity this weekend, so some of us will
continue to sleep with one eye open.
Iran / Iraq
Directly tied to the above gloom and doom is success or failure
in the Persian Gulf. The London Times last weekend had an
interview with an unidentified senior Bush official who said the
goal of a second Bush term is to topple the Iranian regime
through people power, “fomenting revolt.” The same official
went on to say the administration would not hesitate to launch a
preemptive strike against Iran’s nuclear facilities unless Russia
cooperates and holds back on the delivery of the fuel rods it is
currently slated to supply sometime in 2005.
Then a few days later the same London Times reported Israel
may launch a preemptive strike against one particular facility,
Bushehr, if Russia goes ahead, though ironically this week
Russian officials met with their Iranian counterparts to discuss
plans for properly disposing of any spent fuel should Russia
proceed.
Of course if Israel were to act, it should expect a fierce Iranian
response. But now at week’s end there was a story that Israeli
intelligence doesn’t believe Iran can develop a nuclear weapon
until 2007, though we’ve certainly learned how badly all
intelligence services can miss the mark, and with tragic
consequences.
The above has to be brought up in the context of the 9/11
commission’s findings that al Qaeda had more ties to Iran than
Iraq. But let’s focus on the latter. We can’t turn back the clock
and I still choose to be reasonably optimistic on the Iraqi
mission.
Newsweek titled a piece “Iraq’s New S.O.B.” referring to interim
Prime Minister Allawi. I’ve seen all the articles many of you
have, such as the allegations Allawi chopped off the hand of a
terror suspect or that he personally plugged six insurgents right
before the handover. Most U.S. officials simply label the stories
“urban legends” while for his part Allawi doesn’t confirm or
deny them, well aware of one of the best maxims, “always keep
‘em guessing.”
This week Allawi exhibited more strength in launching a
crackdown on crime and with U.S. help the insurgents suffered
some heavy blows as well.
But is Allawi too ambitious as some have observed? Is he an
emerging dictator? I ask a simpler question. Can we keep him
alive? Until I see proof that he is not the ideal leader for a new
Iraq, I certainly hope so. And Allawi appears to have the support
of a vast majority of the people.
Finally, I have received quite a few notes from some of you with
an increasingly anti-war tint. I can appreciate your anger and
frustration. No conservative was harsher on our president, for
example, than I was in the days following “Mission
Accomplished.” But our sons and daughters will not have died
in vain if we now finish the mission. We have a long road ahead
of us. We must persevere. Just as in my opening dialogue, we
must do everything and it requires sacrifice on many fronts. But
most importantly, we need enlightened leaders, not just in the
U.S. but around the world.
Wall Street
Federal Reserve Chairman Alan Greenspan appeared before
Congress this week as part of his semiannual obligation to
address the state of the U.S. economy as well as monetary policy,
and the G-man averred that what we witnessed in June, as far as
economic activity, was nothing more than a “soft patch” and that
the expansion was “self-sustaining.” Moreover, the Fed will
continue its “measured” policy on interest rates, meaning teeny,
tiny increases…that is unless they’re spooked by a few inflation
numbers.
Well, seeing as back in January I called for a second half
slowdown, and it’s here, I have to disagree with the chairman
and I also don’t see how the Fed can keep raising interest rates
beyond August (25 basis points then) if I’m right and the
economy is growing closer to 2.5-3% than the 4.5-4.75% rate the
Fed is still calling for this year.
Aside from the fact the leading indicators gauge turned down in
June, housing starts tumbled; the latter after a relatively mild rise
in rates. If we ever got a spike above 5% on the 10-year,
imagine the damage to this leading segment of the economy.
But the equity market has been taking on gas due to the
decelerating profits trend. In most cases they’re growing, mind
you, but more than a few big names are adjusting expectations
downward for the second half and I wrote on 1/3/04 this would
lead to falling share prices. It’s just that simple, as Ross Perot
was wont to say.
It doesn’t help that oil remains at record levels, nor does it help
when a respected oil man like T. Boone Pickens says we’ll see
$50 before $30. And China announced this week that it imported
far more in June than the government initially expected, so the
demand side of the equation remains strong while the supply
issues are numerous. [Check out my “Wall Street History” piece
for a unique look at this topic.] Then you have the situation
involving Russia’s Yukos, which I address below, let alone the
constant terror threat.
But if I’m right on the economy, demand for oil will begin to
slacken and I’ve told you in 2005 China goes POP! Plus I have
to concede I’m convinced of a terror incident that may be rather
depressing. Add it all up and I think Greenspan is full of it,
when it comes to his excessive optimism, and it’s a good time to
lighten up, if you haven’t already done so. [Personally, I remain
about 80% cash.]
And speaking of the green stuff, I couldn’t help but think of Al
Pacino in the movie “Scarface” this week as Microsoft
announced it was paying out a one-time dividend of $3 by year’s
end. Pacino’s character, a drug dealer, says “The biggest
problem I have is what to do with all the cash!” [Cleaned up to
meet the standards of a PG-13 column.] And we all know
Microsoft has been sitting on a huge pile of it for years now.
But one reason not to see the company’s move as a positive is the
simple fact Microsoft, like others in its arena with large cash
hoards, can’t find anything else to do with the stuff because, all
together now, there is no next big thing.
Finally, Alan Greenspan said he was against the proposals
floating around that would tighten regulation of the hedge fund
industry, saying they are “vitally important” to our capital market
system. Oh, give me a break. Think back over 100 years of
market history and you find speculative pools (forerunners to
hedge funds), program trading, and hedge funds as being
responsible for many of the major financial accidents of our time.
Sure, there are some good ones with solid folks operating them,
but with the recent rush into this group, both by operators and
investors, we’re cruisin’ for a bruisin’ and more than a few
individuals who can ill-afford it will take a bath.
Street Bytes
–Another very sloppy week, particularly after a solid start.
Companies ranging from 3M to Microsoft to Coca-Cola
projected less than rosy outlooks, either on earnings or sales or
both. The major averages declined yet again, with the Dow
falling 1.7% to below 10000, 9962 to be exact and a bad sign for
President Bush’s reelection bid. Nasdaq had its 4th straight
decline, 1.8% to 1849.
–U.S. Treasury Yields
6-mo. 1.70% 2-yr. 2.65% 10-yr. 4.43% 30-yr. 5.17%
This was a dumb week for the yield curve. Everyone interpreted
Chairman Greenspan’s remarks differently, with short rates
rising more than long due to the feeling the Fed may have to be
more aggressive than thought one week earlier.
Separately, foreign investors are buying fewer U.S. Treasuries
but it is far from a crisis. [Foreign buying has been financing the
deficit, as well as holding down rates.]
–The U.K. has now had 48 quarters of uninterrupted economic
growth and unemployment is at a 29-year low. Great for Prime
Minister Tony Blair who insists he’s running for reelection next
year. I still say he steps down in favor of Gordon Brown.
–Yukos:
From “Week in Review” 7/5/03: “Russia has been taking two
steps back for every one forward, recently, and I continue to urge
investors to beware the hype when analysts talk about the huge
returns in the Russian market the past year or so.”
WIR, 10/11/03: “I once made good money here (in Russia)
about two years ago…but I wouldn’t touch it if you paid me
these days.”
WIR, 11/22/03: In extensive comments I complained of more
state control in the oil sector in Russia, and I forgot that in this
column I heavily criticized recently murdered journalist Paul
Klebnikov for writing it was a good sign, not bad, that Mikhail
Khodorkovsky was arrested. I stand by that.
This week, the government announced it will sell Yukos’ largest
unit, a Siberian operation responsible for 60% of the company’s
oil output, in order to begin to collect on taxes the authorities
insist Yukos owes the state. Investors are furious that the
Kremlin won’t even be receiving fair market value, let alone as
of this writing they don’t know what it all means for their Yukos
shares. Will they get any of the proceeds? Will it all just go into
the government’s coffers? The whole thing is unbelievable, that
is unless you understand Russian history, a most tragic affair.
–The House failed to take a tough stand on the expensing of
stock options, passing a pitiful substitute. The Washington Post
then had the following comment in an editorial.
“The point of accounting rules is to give investors accurate
information about the state of a firm’s finances. If the rules
permit expenses to be concealed, investors won’t know how to
value corporations; they won’t allocate savings to the firms most
likely to use them productively, and economic growth will slow.
The idea of Congress overturning an expert attempt to forge
sound accounting rules is inimical to American capitalism.
Unfortunately, it is not inimical to the spirit of American
politics.”
–Diana Henriques of the New York Times wrapped up a Pulitzer
Prize with her investigation into how U.S. soldiers are being
ripped off by unscrupulous financial advisors. During basic
training, the advisors are pushing needless cash value insurance
policies when the Army’s own term-life policies more than meet
the needs of these financially naïve soldiers.
And in a classic example of our political system, Frank Keating,
the former governor of Oklahoma who performed so ably in the
aftermath of the Oklahoma City bombing, is now president of the
American Council of Life Insurers, a lobbying group that is fully
aware of the sham investment products this industry comes up
with. If more investors understood the fees and expenses
involved in these vehicles they would never invest in them.
When I was in the mutual fund industry, thankfully we didn’t
have variable annuities in our product mix, for example, because
I would have refused to market them. It’s a rip-off. And as I
noted long ago in this space, investors should just buy a good
mutual fund, simple term insurance, and pay their taxes.
–Martha Stewart
From Christopher Byron, author of “Martha Inc.” and reporter
for the New York Post.
On the issue of “false statements.” “Stewart’s outrageous
attempt, in both her courtroom statement on Friday and thereafter
to the press, to wave away her conviction as the criminalization
of a ‘small personal matter’ should have disgusted every law-
abiding citizen in America.
“At her trial, Stewart was convicted of not just one felony but
three – conspiracy, obstruction and making false statements –
and collectively they carried penalties totaling 20 years of prison
time and $1 million in fines. The fact that crimes of such
magnitude could have been breezily dismissed by Stewart as
‘small’ and ‘personal’ says far more about Stewart herself than it
does about anything else….
“(On) Martha’s ‘I love my company and employees’ claim: This
is her most specious and cynical claim of all – because if it were
true, she would have ended their ordeal long ago instead of now
turning her staff into hostages with whom she is trying to bargain
her way into a stay-out-of-jail pass.
“Few can quarrel that Martha’s company is suffering as she
drags out her ordeal, and it is the height of hubris for this woman
to claim that what is happening, which may now go on for years
more to come, is anyone’s fault but her own.”
Lead editorial in the New York Daily News.
“Martha, Martha, Martha. The next time you’re sitting around
with nothing to do, here’s a suggestion: Knit yourself a muzzle.
It would be a good thing…
“(Stewart), drawn to the spotlight like a moth…held a press
conference. By the time it was over, she had squandered all
goodwill. It was one of those defining moments, right up there
with, ‘I want to focus on my salad.’ But this time, it wasn’t a
head of cabbage on the chopping block.”
Martha Stewart to CNN’s Larry King: “If I was a man, no one
would say I was arrogant.” No, Martha, if you were a man I’d
say you were an a-hole.
–Speaking of which, former New York Stock Exchange
chairman Richard Grasso countersued the NYSE and his
successor, John Reed, accusing the Exchange and Reed of
defamation, saying he was “maliciously disparaged.” Of course
this is just another ploy on his part to divert us all from the truth.
The whole research scandal occurred under his watch. That’s the
bottom line here. I just want history to remember this aspect.
–Just last week I wrote, “Charles Schwab and Co. really is
having trouble figuring out what it wants to be.” This week CEO
David Pottruck was forced out by the board for total
incompetence. Founder Charles “Just Relax” Schwab is back in
the saddle, but as seems readily apparent, his once glittering
creation will be sold and shareholders shouldn’t expect much of
a premium, even though the asset base will be attractive to an
acquirer. Chuck will then play Pebble Beach every day for the
rest of his life. Nothing wrong with that, I guess, unless you
think of the thousands of employees who thought they were
making a career at Schwab, only to learn otherwise.
–Two of Schwab’s competitors, E*Trade and Ameritrade,
reported solid quarters this week. Creative destruction at work.
–Shares in Imclone dropped 20% on the news sales of its Erbitux
cancer drug, its lone money maker, were well below forecast.
–AT&T is exiting the residential phone business and will no
longer advertise and market to schleps like us – though it will
continue to service existing customers, for now – instead
choosing to focus on businesses. The company reported
declining revenues for the 2nd quarter, the 18th consecutive such
occurrence. More jobs will be lost as former chairman C.
Michael Armstrong’s handiwork is swallowed up by a Black
Hole.
–Lucent issued a decent earnings report with revenues up 11%
year-over-year. The company upped its outlook for the rest of
’04. Time to check on the lawn……..it’s too rainy out. Next
week.
–Shares in eBay and Amazon swooned following their earnings
reports and the explanation was quite simple. It suddenly hit
everyone that these are no longer the great growth stories they
were just a short while ago. The businesses are maturing a la
Microsoft. For example, eBay’s revenues rose only 2.3% quarter
to quarter.
But a funny thing happened on the way to rational behavior.
EBay’s shares fell from $77 to $71 following its earnings release,
Wednesday-Thursday AM, but by Thursday afternoon had
rallied all the way back. Amazon, though, fell almost $6 on
Friday, while eBay did end up giving up a few after all.
–WIR, 5/15/04: “Google is making a big mistake in waiting
around before bringing its IPO. The longer it does so, the faster
interest wanes.” Are you as excited today as you would have
been months ago? [Assuming you could get some shares.]
–Shares in Taser were zapped anew following a New York
Times report that the non-lethal / lethal stun gun may have been
a contributing factor in 50 deaths. The Brothers Taser, err,
Smith, then appeared on CNBC dressed in black to set the record
straight.
–Coors is joining hands with Molson in what is said to be a
merger of equals. One member of the Molson family, however,
is being a real pain in the butt and refusing thus far to go along
with the deal. Personally, I welcome Molson into my fridge.
–Black & Decker blew past its earnings expectations and the
shares rocked. But a while back I purchased a new Dustbuster
and I’ve been disappointed by the performance (it’s weak) so I
just bought a Shark. Goodness gracious. That sucker is as
powerful as a Pratt & Whitney engine. I may have to get a
second one for the front door so when irate readers come a
callin’, I’ll just shove the Shark in their face. It’s probably
cheaper than a Taser.
–According to Quest Diagnostics, administrators of office drug
tests, Methamphetamine use rose 68% in just one year. A UCLA
study found that regular users of meth lose 1% of their brain cells
each year. [Source: USA Today]
–Inflation Update: Friend and entrepreneur Brad K., whose
company manufacturers custom-built steel pools, reports
that his steel supplier is increasing the surcharge from $90 to
$165 / ton, owing primarily to transportation difficulties. Brad
will of course have to pass this cost on at some point.
And Mark R. reports that two roast beef sandwiches at the Roy
Roger’s franchise in an Allentown, PA rest stop cost $8.50.
Mark claims this was a $6.00 meal not too long ago. I had to add
insult to injury when I reminded him that per last week’s report
on mislabeled fish, his “roast beef” could have been something
far different, not to get the Roy Roger’s folks all in a lather.
–Sales of Barbie, 45, were off 13% worldwide last quarter,
according to manufacturer Mattel. Dawn Wotapka of the Los
Angeles Times had this account of a supposedly typical
consumer.
“In fact, 8-year-old Eliza Kauffman of Piedmont, Calif., said
Barbie’s perfect appearance was downright scary. Before she
tossed her collection of Barbies, she shaved their heads.
“ ‘We started giving them bad hair days,’ she said, adding that
she wasn’t sure where her discarded Barbies had ended up. She
said she hoped that ‘they’re in a Dumpster.’”
Ah, Mr. and Mrs. Kauffman? Would you monitor your daughter
a little more carefully as she grows older? The rest of us
shouldn’t have to worry about her.
Foreign Affairs
Israel: By a 150-6 count, with 10 abstentions, the UN voted to
force Israel to tear down its security fence (an order which Israel
will ignore). All 25 European Union nations sided with the
majority. This cracks some of us up. Look, I have had problems
with parts of the fence and have expressed those opinions in this
space; things such as erecting it right through the middle of some
poor Palestinian’s farm when he has title to it. But of course,
given the terrorism that has taken place over the past 3+ decades,
Israel has every right to defend itself. So we acknowledge the
clear thinking nations that voted ‘no’. Aside from Israel, the
U.S., Australia, Marshall Islands, Micronesia (my people) and
Palau. At least Canada was among those abstaining.
Meanwhile, the Palestinians are finally showing signs of tiring of
Yassir Arafat’s terrorist, corrupt rule and the infighting between
the extremist factions and reformers is picking up. But then you
have this opening line from a lead editorial in the New York
Times.
“It’s been the misfortune of the Palestinian people to be stuck
with Yassir Arafat as their founding father, a leader who has
failed to make the transition from romantic revolutionary to
statesman.”
“Romantic revolutionary”? What, are you kidding me?
European Union: Dutch Prime Minister Jan Peter Balkenende
assumed the presidency of the E.U. for the next six months, a
period that will be tumultuous owing to the pending decision on
Turkey’s candidacy for E.U. membership. Balkenende had some
interesting things to say on the topic. If Turkey meets the
established criteria for human rights, and it more or less does
already, then it has to be admitted regardless of the fact Turkey is
a Muslim nation. Balkenende also slammed the Islamic
extremists that are shaping European attitudes. But bottom line,
he concluded “we must not allow ourselves to be guided by
fear.”
Singapore: After all I’ve written since my recent trip to the
region, it’s good to see a bit of cooperation between Singapore,
Malaysia and Indonesia as this week they held the first
coordinated patrols of the vital Malacca Straits. Indonesia and
Malaysia, however, continue to have problems with any formal
U.S. presence in these waters.
China: I have been running a series on my “Hott Spotts” link
concerning this nation’s burgeoning military threat. Check it out.
Additionally, always remember that when critics of national
missile defense rail about the costs of this program, it’s being
built because of the China threat down the road, not just to
defend against North Korea which hopefully is a non-issue in the
next year or so.
Russia: Another journalist was murdered in Moscow, a magazine
editor.
Saudi Arabia: Paul Johnson’s head was found in a terrorist’s
refrigerator. The family continues to suffer, though, as the rest
of the body has yet to be discovered. God be with them.
Random Musings
–Phillip Meilinger, a Northrup Grumman analyst, addressed an
important issue in Defense News, that being while ballistic
missiles are a threat, “cruise missiles (are) the poor cousins” and
a “growing and more serious (one).” For example, while all 9 of
Saddam’s ballistic missiles were taken out in the war’s first days
last year, 5 launched cruise missiles went undetected, much less
intercepted. Meilinger asks the question, “What if these cruise
missiles had been armed with anthrax?” Today, there are some
75,000 cruise missiles – up to 300 miles in range – located in 70
countries. It is easy to ship the components and reassemble
them. Will some fall into al Qaeda’s hands? The technology to
detect and intercept them is improving all the time, but like
everything else costs money.
–The National Security Agency contracts out work to some
2,700 different companies; that’s 2,700 that could learn the
technology and then plant a bug or virus, for example. [Hillary
Kramer / New York Post]
–Stephen Flynn, a former Coast Guard commander, is receiving
a boatload of publicity for his book “America the Vulnerable:
How Our Government Is Failing to Protect Us From Terrorism.”
Flynn argues we are barely safer today than on 9/11.
–A federal judge ruled the New York Police Department cannot
search bags around the site of the Republican Convention in
August unless there is specific information about a threat. Of
course this is absurd, and yet another reason why you won’t
catch me in New York during this time. The NYPD will just
ignore the judge’s ruling, I assume, and the ACLU and protesters
will get some air time.
–I haven’t commented much on specifics with regards to this
year’s presidential campaign, though I will have a word or two to
say following John Kerry’s acceptance speech this coming week.
In the meantime, just being objective, the Democrats clearly have
an issue with John Edward’s theme of two Americas. Even the
Wall Street Journal had a powerful page one piece breaking
down the disparity in upper-income wage gains vs. the lower-
and middle-income groups that are struggling, the latter also
suffering disproportionately from higher gasoline prices, for
example.
The upper-income folks, on the other hand, participated to a
greater extent in the stock market rebound off the lows (until
recently) as well as the soaring real estate market. Morgan
Stanley chief economist Stephen Roach, in a New York Times
op-ed, added that, yes, recent job growth is mostly in lower-
paying jobs, with an increasing number of the official labor count
owing their positions to part-time work.
Look, you all know who I’m voting for, but the Bush team better
be prepared for these talking points. Then again, among those
who are still undecided it could just come down to the issue of
security, particularly if there is another incident before
November.
–David Gergen, advisor to both Republican and Democratic
administrations, went on “Today” to defend pal Sandy Berger for
the latter’s pilfering of classified documents from the National
Archives. Like all the other defenders, Gergen said it had to be
an “honest mistake.” The whole time they were in office the
Clinton administration played us for chumps. Now it’s
happening all over again.
But what I’m most upset about is the fact we, the public, didn’t
know of this investigation earlier. After all, Berger has been all
over the airwaves for the past 8 months, delineating Democratic
policy, and we didn’t know this fellow may have committed a
serious crime.
–40% of cellphone usage is while we’re driving and the new
rules in some states allowing hands-free devices do not alleviate
safety concerns.
–I can’t say I’m a real Schwarzenegger fan, but his use of the
term “girlie-men” was a non-story if ever there was one.
–Gang-related homicides were up 50% nationwide from 1999-
2002.
–Spike Lee in a CNN interview. “It’s not that black kids can’t
read or write, it’s that they don’t want to read or write.” Lee
added, “Black kids equate education with acting white.”
–Incredibly, on Thursday I saw my first television commercial
for the Athens Olympics, put out by the Greece Tourism Bureau.
Ah, guys? It’s less than 4 weeks from today. You might want to
give people a little more lead time in the future…not that you’ll
ever get the Games again.
–Uh oh, I did intimate I would reveal my lunch habit this week.
Well, you see, sports fans, I do have the two glazed donuts with
my coffee each morning, but a year ago my cholesterol count
was “elevated” so not wanting to give up my sugar habit, I
thought I’d do something about this burgeoning problem at
lunch. Thus, it’s Quaker Oatmeal at least five days a week.
[French Toast flavor.] Plus I’m exercising more. In about a
month I’ll find out if this new regimen has had any effect. As for
dinner? Sorry…won’t go there…wouldn’t be prudent.
–Time to upset a few folks, even if it is about the comics. I’m a
big fan of them, though I have just a few ‘must reads’ on my list.
Conservatives won’t like that I’m a big fan of “Doonesbury,” for
example, and I read “Peanuts” every day. For his part, Charles
Schulz could really nail it more often than not.
So you have this 1970 strip that ran in my local paper this week.
Linus and Lucy are watching television.
Linus: I have a question….What would happen if there were a
beautiful and highly intelligent child up in heaven waiting to be
born, and his or her parents decided that the two children they
already had were enough?
Lucy: Your ignorance of theology and medicine is appalling!
Linus (looking distraught): I still think it’s a good question.
–But I can’t end with that one. So for you fans of “For Better or
For Worse,” is Liz going to have an accident on her new
motorcycle? Dark events are a common occurrence in this one,
after all.
—
God bless the men and women of our armed forces.
God bless America.
—
Gold closed at $390…$16 decline on the week.
Oil, $41.71…new weekly high.
Returns for the week 7/19-7/23
Dow Jones -1.8% [9962]
S&P 500 -1.4% [1086]
S&P MidCap -2.1%
Russell 2000 -2.9%
Nasdaq -1.8% [1849]
Returns for the period 1/1/04-7/23/04
Dow Jones -4.7%
S&P 500 -2.3%
S&P MidCap -0.8%
Russell 2000 -3.2%
Nasdaq -7.7%
Bulls 52.6
Bears 20.0 [Source: Chartcraft / Investors Intelligence]
Have a great week. I appreciate your support.
Brian Trumbore
