August 24, 2004
Hello,
So Pat Robertson on the 700 club called for the removal, death to the infidel, ok assassination of Hugo Chavez President of Venezuela. Oh the outrage .., weather it is the Mullahs calling for death to America or Bush haters calling for the assignation of the president seems to be a lot of that going around these days. It must be those high oil prices and the hot weather making everyone nuts. Today I go on a Jihad of my own. The State of Hawaii has imposed price controls on whole sale gas prices. This was tried in the 1970’s by the carter administration and it was the direct cause of gas lines and shortages. If this is adapted by other states it spells disaster for the US economy. Folk’s price controls always I repeat always result in shortages. This is the primary reason command and control economies like the old Soviet Union failed .I know there are many of you pining away for the old Soviet Union and are simply shocked that the simple law of supply and demand crumbled a vast empire, but it is none the less true and I am afraid it will have the same result where ever it is tried. No, we are not smarter or blessed with more resources, it is simply stupid policy doomed to massive failure.
This gives us a much needed strong indication of the direction of the stock market the next several months. Despite huge gains Energy continues to look like the play for the decade and currently Bio Techs still look good and Semiconductors look like they are trying to break out, but this still remains to be seen . I have and will remain suspicious of housing for some time but the sector seems as strong as ever.
James
www.jamesfoytlin.com
http://onesmallvoice.blogspot.com/
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