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skeedaddy
6 Comments
California: Canary in the Economic Coal Mine
7th largest economy in the world and 15% of the US GDP!
Like it or not chump, saving this state will be crucial to the turn around in our economy.
Note also that the largest percent of the 7.7 % unemployment is directly related to the housing downturn- mortgage company lay offs, building companies going out of business and laying off, Nurseries that supply the landscaping of the building industry closing down and/or laying off, real estate agents out of business and the list goes on.
Then you add in our huge 3rd world population that are mostly unskilled labor flooding the states social system costing tax payers millions of dollars. Just go into one of our inner city hospitals and you'll witness first hand.
Then you have state labor jobs being cut, school systems shutting down due to cut backs and there you have it " a self fulfilling prophecy!"
Of course, it all started with the greed of banks, predatory lending mechanisms and people being stupid enough to pay 100%-200% more than the house was worth and more than what they could afford.
Bienvenidos a Caifornia!
California, New York Facing Fiscal Crises, Cuts Inevitable
Cutting spending is an obvious necessity, but unfortunately we already have the worst educational system in the country and now they are making huge cuts in this category which simply can't be afforded long term.
Taxing corporations? California is already VERY unfriendly for corporations, so taxing them more will only exasperate the problem and the corporate drain Cali has experienced over the years.
Taxing Arnold could solve part of California's problem! I like the idea of reducing the salaries on Arnold and all the senate plus Congress (yah right like that will happen)!
Creating a budge based on taxes generated on a bubble industry was completely ignorant and the people of California should fire them all (wish that was possible)!
3 Investment Ideas for the Rest of 2008 and 2009
The BRIC nations (especial China and India) will continue to consume oil and as those cultures middle class grows so will the demand for oil and hence keeping the price where it is if not higher. These above mentioned nations are somewhat primitive in their energy methods, so don't plan on seeing solar, wind or any other alternative energy sources.
You discussed footprint energy sources, but my friend COAL leaves a huge footprint and is highly used in the electric market.
You discussed trending smaller families and the reasons why, but i think you need to do your homework. Look at the different ethnic cultures here and the baby trends within them and you'll find you're wrong. Not to mention they just announced on CNN last week about the new BOOM in babys at the current time.
You talk about the dollar, look back to the 70's and 80's and see if the dollar trend during that period matched what you're predicting.
You talked about the weak dollar, country deficit and the potential to reverse because foreigners will buy more realestate and clothing. Number one, foreigners already own too much of country (not sure much is left for them) and are the 2 mentioned segments really big enough to reverse the deficit? I think not.
You're right on wind and solar plays, but you didn't mention any so i will; ESLR- 2009 after their done losing money this year, FSLR- very profitable company in a sector that will offer opportunity in the future, CPST- speculative wind play, but long term and it's a penny stock right now.
I think if people had strong stomachs and the time to research future opportunities they'll fish out good financials that have been beaten back severly and are most likely to pull out of this mess (American Express, Wells Fargo & B of A).
Lastly, when the real estate market turns around within the next few years, so will the retailers that home owners need LOW and HD. These 2 companies are strong, have great balance sheets and are great long term plays.
better luck next time young man, but don't give up your efforts are appreciated!
Skee
Stagflation and Peak Oil: How Related Are They? (Part II)
The Agriculture Boom Goes Bust
The Agriculture Boom Goes Bust
On Jul 23 01:48 AM Jim Punkrockford wrote:
> I think we almost have it. The key will be demand. And demand has
> been strong due to high food COST, not high food demand. As soft
> commodities have come down, the demand for fertilizers will drop
> off. Also I agree that the risk reward right here is very bad in
> the short term. Disclosure I am short MOS.