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7/10/2012 12:00 AM
Aluminum Takes Off
Market Commentary
By Charles Payne, CEO & Principal Analyst
The market is marking time, sure the bias is to the downside, but there isn't panic. Heck, there isn't even frustration. Maybe this is like the final stage of death, or maybe it's a lazy summer with little hope outside of Fed intervention. Still, for the second consecutive session that seemed as if we'd witness a disastrous finish, buyers emerged. Not a lot of buyers, but enough to turn the tide from disaster. I'm not sure if it's the release of consumer credit in May, which came in more than twice as high as expected with credit card debt edging higher along with non-revolving.
I'm still smarting over the latest shot across the bow of true middle class Americans-those that have achieved household income above $250,000, but well below a million dollars a year. It was the basis of our question of the day, which elicited a tidal wave of responses and nobody thought that was the magic number denoting rich.
* $250,000 is not rich
* No. I'll bet many of us just reaching that income level still have student loans to pay off, making that income much lower in perspective
* With mortgage payments, taxes, children, insurance(s), college, food, fuel, utilities and the unforeseen, $250,000 seems paltry
A Flood of Nonsense
The $250,000 bush tax cut offer is just the latest in a string of Obama comments that go from odd to giant fibs. Last week, it appeared President Obama was grasping for straws, disrespecting successful Americans, and bragging about the auto bailout. Through his very friendly treatment by the mass media, the idea that somehow there would be no automotive jobs in this nation without government intervention is taken as gospel-but it's a lie.
Before getting into details on all the odd statements made, one of the more curious was:
"What happened in Toledo can happen in cities like Cleveland, it can happen in Pittsburgh, it can happen in other industries," Toledo has an unemployment rate of 7.6, which is higher than Cleveland's 6.7 and Ohio's 7.3% (May). Moreover, Pittsburgh is considered the blueprint for how to revitalize a city. After years of decay and unemployment near 20%, Pittsburgh reinvented itself. Now, the former symbol for urban squalor and plight is called "most livable city" by Forbes magazine.
Pittsburgh took up the challenge of a world of declining manufacturing and manufacturing income. One example is a 48 acre US Steel mill that sat abandoned for years and was turned into a technology center that now generates $1,000,000 in tax revenue each year. The city is home to 33 colleges and universities and is also becoming a major hub in the bio-tech industry.
It would be crazy, insane for Pittsburgh with its 6.6% unemployment rate to become Toledo. As for the bailout ... I don't think it's worked. Check out the real truth about the great GM bailout story.
* Taxpayers own 32%
* Stock has to hit $53.00 before we get back the more than $30.0 billion owed
* Company has largest unfunded pension in America
* Stock is below its IPO price of $33
* Company sales are mostly driven by fleet, which is largely government (36%) versus 8% retail in most recent report
* Company is losing market share to Japanese and European rivals
Alcoa Hits it out of the Park?
I typically fret when earning season begins because it begins with Alcoa, a perennial loser and underachiever, but not last night. The company beat the street by a penny and offered strong guidance that also suggests the global economy isn't dead. Global demand for aluminum this year is expected to be up 7%; China will grow 11%.
Today's Session
Just as President Obama has decided it's a good thing raising taxes on successful small businesses the NFIB has released its latest on optimism. This line from the report says it all: "there was no good news in the June survey."
I hate that the media is trying to paint the message as a tax cut for the so-called middle class when this is solely about higher taxes. Optimism was down 3 points to a 91.4 reading, which erased gains from earlier in the year.
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The following is a concise statement of the Tarraforming Earth theory. The Tarraforming Earth book is available on Amazon and Iuniverse. Forward this to anyone that may be interested or contact the author at jessiedubose@yahoo.com.
The word terraforming was coined by science to convey the process of converting alien environments to mimic that of earth. This theory changes the spelling to “tarraforming” to indicate the inverse of the process. The theory suggests that the effort was not to mimic the home planet but to install life forms that could exist on an evolving planet. For this scenario to be plausible there must be an extraterrestrial civilization (XTC) available to perform the task. The members of which will be referred to as the XTB. The XTBs are what religion refer to as pagan gods and science refer to as mythical gods. Lessor XTBs are referred to as angels. Hints to ancient contact with the XTC are contained in the bible.
Religion teaches that God created the world. This is believable if one separates the geological and life processes. The formation of earth was a geological process which did not require God's input, but the life process was the result of direct input by God. The most significant input was when God told his assistants “let us make man in our image, after our likeness:”. Genesis 1:26.
Another passage from the bible supports the possibility of extraterrestrial life. “In my father’s house are many mansions: if it were not so, I would have told you. I go to prepare a place for you. And if I go and prepare a place for you, I will come again, and receive you unto myself; that where I am, there ye may be also”. John 14:2-3
The ancient aliens and ancient astronauts researchers have asked many questions for which science has no answer. These questions are being continually asked, but no answers have been forth coming. This theory will supply a framework within which answers can be proposed that does not require denials currently used by science. It will also allow many religious questions to be answered.
The XTC has been involved in tarraforming projects ever since the earth became habitable. Projects exist into the present as evidenced by the numerous UFO reports. It will be proposed the tarraforming projects were responsible for installing life forms through out earth's history. It is assumed that the tarraformers would install a life form and monitor its evolution. The observation periods could be as long as millions of years. The evolution process was frequently interrupted by various catastrophes. This is when the XTC waits for the dust to settle before installing new life forms or previous lifeforms modified to suit the new environment.
Jessie Dubose on 7/10/2012 12:18:44 PM |
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