Everything is Rising and the sky is FALLING!

Did you get your notice?

Trust me I don't have answers, I just fly planes and strongly dislike what the media is trying to spoon feed me... very far from an economist. In fact there are many readers (bankers, investors, etc) who read this blog whom are far more qualified on this topic than I.

Here is what we are being told. We are seeing two things happening that are destroying our economy. 1 a mortgage crisis, 2 oil skyrocketing (widening the gap while the rich get richer and the poor get poorer.) There is it for us laymen.

As for #1, perception is reality. I know it is an election year, and the place the economy needs to be is in the pooper. So one half of one percent of mortgages were in trouble. That was the match used to create a media wildfire. Now we see markets tightening, lending tightening, risks willing to be taken are drying up. So in comes the invisible hand, wearing Bernanke's glove. He, and the people in his position are brilliant. Let me restate, I am not. Simply, let those institutions that offered those terms they shouldn't have, to people who shouldn't have accepted, and are unable to make personal financial decisions, not become the burden of our entire economic system. We are ALL collectively getting to pay together for their mismanagement. Ah yes, socialism, ala communism. My opinion, let the small problem die, not give the entire economy cancer. I guess I am uncompassionate, like Ron Paul.

The media capitalized off of all this and started pumping the crisis out at Biblical proportions. I tell you, the media is powerful. They were fanning these flames towards Washington, Wall Street, and right at your street in any-town USA. Fear. And they got responded to; Bernanke hasn't put down the axe in months, and we got plenty of political fodder for our presidential wannabes. Followed up by a gift, NOT A TAX CUT, by those watching out for us in Washington.

Now to oil... I mean BIG OIL! Folks I have seen it for myself. My airline is based in Houston TX and they have toilet paper rolls that are five dollar bills strung together. They send 100 bills down to Hugo Chavez, who passes them to Cuba to be rolled by the new Castro into cigars, that gets sent back to be lit up by the MEN of OIL, barely smoked at all then discarded. (ok that actually made me laugh) But it is true as $5 dollar gasoline by this Summer... Well, back to perception is reality right, the media has already told us $4, so are you bracing/planning for it? By saying it and hearing it somehow we acknowledge it. I digress.

Who is this BIG OIL that Obama and Clinton are going to tax and fund universal health-care while roping in the uber wealthy and getting it spread back to the middle class via Gov programs. BIG OIL is: http://en.wikipedia.org/wiki/Image:Big_Oil.svg#fil

Oil companies employ Hundreds of Thousands Americans.

Who owns oil companies?

"API hired Robert Shapiro, noted economist and former Undersecretary of Commerce under President Clinton to find out who owns the stock in America's oil and natural gas industry and just who is profiting from high profits.The study revealed that:Almost 43 percent of oil and natural gas company shares are owned by mutual funds and asset management companies that have mutual funds. Mutual funds manage accounts for 55 million U.S. households with a median income of $68,700.

Twenty seven percent of shares are owned by other institutional investors like pension funds. In 2004, more than 2,600 pension funds run by federal, state and local governments held almost $64 billion in shares of U.S. oil and natural gas companies. These funds represent the major retirement security for the nation’s current and retired soldiers, teachers, and police and fire personnel at every level of government.

Fourteen percent of shares are held in IRA and other personal retirement accounts. Forty five million U.S. households have IRA and other personal retirement accounts, with an average account value of just over $22,000.

Fourteen percent of shares are owned by individual investors who purchase stocks on the open market.

1.5% of shares are owned by corporate insiders – company executives and CEO’s."

Do you get it? If they tax BIG OIL, they are cutting at the majority of us! (Not JR or any of the other people from Dynasty.)

The media again, is helping to drive the price of oil. The markets react to artificial news and up oil jumps $1 here, a $1 because the media report that hurricane season should produce at least 7 storms for the Gulf.... The media also wants you to connect the dots between oil rising and inflation. While only partially true, the answer is that inflation hits everything the same. It takes more dollars to buy the same stuff. The stuff is the same, your dollars are just worth less. That brings this all full circle.

That STUPID STUPID stimulus package. Our politicians (and I am ashamed Bush signed off on this) in its simplest form is intended to be a gov funded shopping spree! Go out and spend! The dollars will trickle (up) through businesses, hit bottom lines and stimulate the economy. My personal opinion is that this money should have been used to buy back our currency. We beat China up about this, and here we go printing money. Foreign currency and Gold are rising as fast as our currency is dropping. My opinion is the money would have been better spent on bringing back value to our currency, than trying to get Americans out to Wal-Mart.