Markets and EconomySTAY THE COURSE

Nothing much has changed since last week. Unemployment becomes a greater worry by the month and sooner or later if this doesn't improve the market will collapse. See my cost per hire post below where I had to use data from 1999 because it was the latest available to me. The costs are higher now. These insane costs are hurting the recovery. Then there is Mexifornia, a separate world now. The state will now pay the college costs of every illegal alien in the state at God only knows what costs. Their bonds may have to be rated junk status on the road to a diliberate default by the Left Wing Mexican government there. If this should happen, the cost of borrowing for all states running a deficit will soar, further hurting any recovery. You cannot afford to trade with any future past today. If you get a sell signal, sell with the knowledge you may buy tomorrow. Your time horizons right now need to be day to day. California, the fifth largest economy in the world, has gone Mexican and their people owe money to banks in fifty states and ten countries. Keep your eye on the ball. Volume is still a slight worry. Interest rates are still very low, the Fed is pumping money into the economy so the cap costs are low. The huge deficit will come back to haunt us some day.

And if you think speculation is still rampant in this market, check this out. Want a deal? We pay interest of, get ready for this, .0057% (point zero zero five seven percent). Would you buy this stock? To prove that there is a sucker born every minute, Microsoft stock rose yesterday to over $28 on the fantastic news that they were doubling their dividend to $.16 per share (sixteen cents per share). Wall Street, home of the genius class. No thanks. Why buy this piece of shit? In the hope they will raise their payout to .0059%? The Mafia would give you a better deal. I guess you can justify this as "Waiting for Uncle Billy to die so you can Inherit his Money" kind of a buy. The landscape is filled with shit like this, still.

One Day at a Time, as they say. Put all your eggs in one basket and then watch that basket. BTW, if you are thinking of buying the energy complex for winter check my post first: Government Doesn't Always Suck dot com.