The Economy...

The roller coaster which the Stock Market is on right now is just like an amusement park ride: frightening to people who are easily startled, but not particularly dangerous to anyone. Therefore, until the thing straightens itself out, I'm not joining the optimists OR the hysterical people selling because the sky is falling. At this point, there's no reason to believe the Stock Market WON'T straighten itself out.

Quick fact: Oil companies Citgo, Sunoco, Conoco, Sinclair and BP/Phillips DO NOT IMPORT MIDDLE EASTERN OIL.

WE TOLD YOU SO. The San Diego Union Tribune reports, with some apparent surprise, that there is considerable financial evidence that the Clinton economy was not as healthy as the Clinton propganda machine kept saying it was. There's evidence that the administration of "No Controlling Legal Authority" is as guilty of book-cooking as Arthur Anderson accountants and execs from Enron, Adelphia, Global Crossing and World Com. Will anything be done? Who knows. In order to avoid the tired old left-wing lables of "partisan" and "divisive", the administration will probably let it slide....BUT....

Many people SAID the Clinton administration official figures did not reflect the true state of the economy, quoting evidence that profits could not be as high as we were being told...we were accused of being Clinton-hating members of the VRWC, who just couldn't give the guy credit for doing ANYTHING right. To them I say "WE TOLD YOU SO."

On the other hand, when books are being cooked by by corporations with strong ties to the political left in order to bloat the price of their stock...bought and sold with virtual money...

When the political left in power has strong propaganda motive to convince the populace that the economy is great in SPITE of the evidence of said populace's pocketbooks...and when there really is no controlling legal authority over creative book-cooking, ESPECIALLY government book-cooking...

Is this news a surprise to anyone? Really?

The Bad News: 7/29 - Budget, which owns Budget Rent a Car Corp., Ryder Move Management Inc., Ryder Relocations Services Inc. and Ryder TRS Inc. as well as 44 other affiliate companies, filked for eChaptr 11 bankruptcy protection today, proving that "Budget" in name and "budget" in reality are two entirely different things.

7/26 - AOL, the world's most gigantic and nearly monopolistic media company, is tanked to a $8.50 per SHARE amid the usual accounting scandals yesterday. Shame so many liars were willing accomplices to Clinton's phony economic scheme. Back when I predicting the emminent implosion of the stock market, I was surprised to realize that people like Ted Turner, Tim Rigas and Bernard Ebbers really must have thought they could keep up the charade forever. Weird. Also terribly stupid.

Anyhow, Teddy "The Obnoxious Zillionaire Loudmouth" Turner is a zillionaire no longer. In 2000 - there's that year again - when AOL was traiding for over $96 bucks a share, Teddy's shares of AOL stock were worth around $10.5 billion. THAT, of course, was in Clintonista Monopoly money. Now that the world has woke up from it's Clinton era valuation binge, Teddy's stocks are worth approximately $1.3 bil. That's still a huge chunk of change to you and me, but it's a huge loss to Ted. I wonder...should we start telling Teddy, "Do you remember when you said.....WELL PUT YOUR MONEY WHERE YOUR MOUTH IS". Heh heh. Sorry.

7/25- Federal prosecutors announced that they will being criminal charges against at least three former WorldCom execs, Chief Executive Bernard Ebbers, former chief financial exec Scott Sullivan and former comptroller David Myers. Charges against the company are possible as well. Worldcom, the world's second largest telecommunications company, filed Chapter 11 last week. The company admitted to hiding $3.85 billion in expenses, and for falsely quoting profits starting back in....2000. There's that year again.

7/24- Three members of the Regis family, which owns Adelphia Communications (Coudersport PA) among other things, were arrested for fraud and for stealing millions of dollars from Adelphia cable. Adelphia filed Chapter 11 in June. The Rigas family resigned from the company, but had borrowed $2.3 billion in personal loans, which, during bankruptcy hearings, it offered to pay back most of.

I know the old man, John. He has borrowed money from the company to build private projects befreo. He always used to pay it back. I guess this time, his reach exceeded his grasp. I also guess the PGA golf course (which is still unfinished after two years) will remain unfinished. Really sad for the locals who had bought property in Gold, PA, hoping to make a buck from rich golfers and tourists. I know Joe, the guy who's farm John bought for the golf course. Hope John paid cash. I'd better remember to ask.

7/23- China plans to use it's huge percentage of industrial production to devalue the American dollar, upset the global economy, and build a new global economy based on Trotskyite Marxism. Hey, don't take MY word for it : it's in the Asia Times! BUY AMERICAN, WHILE YOU STILL CAN. Bill Clinton is responsible for moving so much American industry OUT of America, saying that the US GDP was "information oriented." That was great, while CEO'S used accounting tricks to bloat tech stocks with non-existant, tech-style virtual money, but that game is over.

7/18- AOL Time Warner is in probable trouble for using poossibly bogus business deals to inflate earnings. After the Washington Post broke the story, AOL stock dove 6 percent, or 80 cents a share. Apparently, AOL's fuzzily creative accounting has been going on since at least 2000. Remember all those warning I kept giving about the economy failing back in 2000? I described it as a "long downhill slide". As usual I was right. Of course, I didn't expect 9-11 to dump the economic equivilant of OIL all over that slide, either.

6/25- Adelphia cable, one of the world's largest cable companies, filed for Chapter 11 bankruptcy protection. This is not surprising, since Adelphia has been having financial problems for a couple of years, and recently laid off quite a few workers. (I just happen to know this because I know the family and many of the people who work there.)

Kmart announced it will close 284 "underperforming" stores nationwide, in an attempt to become economically viable. List of stores to be closed

The Good News: 7/29 - Verizon Wireless has announced it's NET subscriber base is up 34 percent over the same quarter last year. The BAD news, of course, is that most Verizon customers can tell you that Verizon is in desperate need of SEC investigation. The number of ACTUAL new subscribers is 723,000 this past quarter. Still substantial, though.

Oh...on a different note, I did ask, and John Regis did pay cash for the farm which he planned on turning into a PGA sanctioned golf course. $13 million. The rest of the $33 mil must have been for construction, etc.

7/26- Good news for homeowners: mortgage rates plummited to 6.34 percent today. That's the lowest mortgage rates have been for 31 years. Homeowners, I suggest you take advantage of lower rates and refinance with a fixed rate, while you CAN.

Stocks recovered somewhat yesterday. If we don't see them drop due to profit taking today, expect it on Monday.

OOooooo, some good news for change. To the great disappointment and sobbing heartbreak of the "Bush riuned the economy" crowd, the Commerce Department reported Friday that the US GDP shot UP by an annual 5.8 percent during the first quarter of 2002. That's up a little from 2001's limp last quarter GDP of 1.7 percent. So moch for GW being "weak" on "domestic policy." The left will have to change tactics...AGAIN. <G>