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Mid-day Update

Markets have been down, but range trading.  Most sectors are pretty weak today.  OIH (Oil Service Holders) is getting hit again, too.  At this point it’s hard to tell if we’ll continue this down trend today, or just stay flat.  The NAHB Housing Market Index came in at the expected 19.  Anything under 50 is negative sentiment by builders.  This is the third month at the all-time low number of 19, so expect some to start calling a “bottom” here.  I’m not that optimistic yet, however.

President Bush spoke on the state of the economy this morning, here’s a synopsis: 

He said he will veto any tax increase and is against raising the gasoline tax.  He’s still harping on Congress to fix the alternative minimum tax and reminds them a delay means it’s more likely that $75B in tax refund checks will be late.  He said a budget bill must include funding for troops in Iraq.  He said the Government should never bail out lenders, and says the housing bubble will take a while to work through.  He said that Congress needs to get a bill to his desk to make it easier for FHA to help keep people in their homes (even more legislative interference).  Oddly enough, he said there are too many lawsuits in the health-care industry, causing some doctors to leave the industry, which is helping increase the cost of medical care.  (With all due respect, he is completely wrong about what ails our health-care system!)  He said we need to push nuclear power plants to offset dependency on oil and that it makes ‘no sense’ that we have not been building new refineries. (Most sane thing said regarding “energy problem” yet, and he didn’t even say new-cue-ler).

Before anybody starts yelling at me for being in support of more refineries and nuclear power, governmental interference (oh, I mean support) in the “green energy” field has only contributed to the rise in commodity prices.  Saving our planet is the job of capitalism, not so-called environmentalism and government programs.  The more we stand in the way of true invention and innovation, the more we hurt ourselves in the long run.