The Road to end Free Markets

Congress is tripping over themselves to give the Fed more power to tinker with the economy. The so-called free market and financially smart Republicans have turned there back on the Milton Friedman's lassiez-faire economic policies that so many claim to hold to. The Democrats are in line to play a little one-up-manship to take the regulation as far as they possibly can.

Why can't we accept recessions as a normal part of life, as a healthy shake out, as way the invisible hand disciplines the ignorant the greedy. Congress reminds me of the parent who won't allow a child to feel the weight of the consequences of their choices and then can't figure out why the child is such a loser when faced with life on his/her own.

Nuts and Bolts of It

Look at the Inverse Head & Shoulders pattern on Fastenal Co. (FAST). According to the pattern it should move up to $55 in the next 5 months. Terrific volume confirmation with the MACD lows moving higher gives great confidence in this trade.

The "NEW" Retirement Plan

Here is an article on the new, up and coming whiz kids that will be changing the face of the internet and technology. I think you can use this information to start breeding your next new whiz kid and set yourself up for life and your retirement. Just think, if you have 2 to 4 kids, you could have a wealth of money by the time they are of age. There is another article that says you can teach your kids to be a millionaire and be rich. Think about, who better to exploit than your own flesh and blood.

Fed Speculation

The market is rallying this morning in anticipation of the Fed announcement. This kind of excitement tells me anything less than a full point will disappoint and probably lead to a sell off. Of course another interest rate cut in front of today's inflation news seems foolish to me. It supposedly takes 6 months for a cut to take affect. Cutting rates won't make banks lend money. Cutting rates won't raise consumer confidence. I sure miss Reagan's strong dollar policy that fed the markets through 1980-90s creating one of the largest bull markets the country has ever seen.

JPMorgan Calls in Bears' Note

Last week the Fed created a new program allowing large banks to provide liquidity to other financial institutions. JPMorgan (JPM) then took Fed money and loaned it to Bear Stearns (BSC) for the outlined 28 days. JPM decided to just go ahead and buy out Bear Stearns over the weekend in a very interesting move. JPM has certainly been harmed by the credit crisis too but, the diversity of product and overall size puts them in a position to expand.

Fed's Sunday Surprise

The Fed cut the discount rate today instead of waiting all the way to Tuesday when they will most likely cut the overnight rate another half a point. Finally some are saying enough is enough. That's what we were saying at the end of last year when the Euro was only 1.25 of the dollar.

What will change the world first, Communciation or Transportation.

Last month we saw the man who changed the world, Mr. Bill Gates, predict the end of the keyboard. Now he is forecasting large leaps in future technology along the same lines in voice recognition and touch screens. These are very exciting but they won't change the world like we have seen in the past. In fact, with today's commodity markets the advances that will change the world will be those that find greater efficiencies in fuel or fuel alternative. Looking throughout history those inventions that improve the way products are moved to trade and sell effect commerce the most. Taming of animals, the wheel, animal drawn wagons, boats, rail roads, steam engines, cars, trucks, airplanes, jets, speed train, etc. I would be looking f0r a company more like Orbital Sciences Corp. (ORB) to change the world this next time around versus Microsoft (MSFT). I'm interested in some discussion and debate, please feel free to comment.