Who is John Galt ?

November 13, 2006

Hello,

The next few years should be very interesting as politicians prepare for the 08 elections it looks to be a time for a lot of house cleaning on both parties. Democrats long out of political power have been busy running off a litany of new or some would say old initiatives, but unless you been it, done it, you can’t comment on it. Various forms of celebrations by there supporters have taken place in style including taking hostages. Auto makers and the news media continue to push for nationalized medicine. I don’t know about you but I am not interested in assuming the big 3’s health care burden. I have my doubts however that there is going to be much in the way of policy changes, just a whole lot of electioneering.

On the positive side the momentum seems to be building to relax some of the regulatory burden of Sarbanes-Oxley, but there also now seems to be a significantly less chance that new oil exploration in the US will be allowed which is already beginning to push prices up at the pump. Again I don’t think the new congress will be that much different than the old congress there is simply to many contradictory influences showing them selves in these election results.

Meanwhile the Producer Price Index showed a record drop suggesting inflation is well under control and the bond market is suggesting the FED may cut rates. Either way perhaps the summer economic slow down was just what the Doctor ordered. Frequent readers of this blog will note that I often muse over why Wall Street goes bonkers every summer over a slow down in economic activity when common sense and lots of life experience tells everyone that NO ONE BUYS ANYTHING IN AUGUST . The latest economic data some good and some bad suggests that the demise of the free world will once again be put off to another day.

James

www.jamesfoytlin.com


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