Morning sports fans,
I have been remarkably restrained when it comes to commenting on the dumb things that are emanating from Canberra and the land of make believe over the last few months..really I have..but yesterday’s latest leak, of which there are so many, is beginning to look like the Titanic, about the rise in fuel prices makes so much sense. Get rid of the carbon tax as that makes energy more expensive but put up the price of petrol. Of course the diesel fuel rebate will be kept which is pretty silly as well if the budget was really in crisis. Of course there really is no “crisis”. Crikey if we have a crisis the rest of the world is in meltdown …yet amazingly the Dow is near all time highs…still it pays to scare the population in order to control them..and that’s what they want to do make no mistake..also relieving the ABC of its overseas broadcasting is on the agenda..sure Rupert will be pleased with this outcome.
They say that you get the politicians you deserve but I think we all must have done something really really bad in a past life to get this bunch of idiots. I thought the last lot were inept but these guys take the biscuit…divide and conquer, jobs for the boys and if in doubt say nothing and back to the future seem to be their mantra..hardly a surprise from Abbott but where is Malcolm to add some gravitas and some sense in all of this..maybe he is waiting like Macbeth in the wings for Duncan to come to his castle for the night. Of course there is an old saying that to truly knife someone in the back it is necessary to get behind them…
Overnight “Super Mario” said that he is still waiting for something to let him know when the time is right to actually do something and loosen the purse strings in Zombieland..next month he has suggested, as inflation continues to fall and the Euro stays strong..these guys are bozos of the first degree…time to act Mario baby…for two years he has held the market at bay with words…”its only words and words are all he has to take the heat away”… good jobs number again from the US and surprisingly here too…however before we all get carried away and dust off our CVs and job hunt bear in mind that there are 33,000 new job seekers a month here form immigration and kids just plain growing up and we are creating 14,000…so there is 20,000 lost somewhere.
Expect a quiet day today on our market as we head into the pointy end of the budget to end all budgets..this one will be a dozy and the squeals will be felt around the nation as we fend off the “crisis”…we will all have to pull together to do the heavy lifting(all except Politicians of course),we will all need to make sacrifices ,defer that new Audi purchase ,go back to eating plain old salt and vinegar chips and watching Foxtel and reading the Telegraph as good little people…
Idea of the Day
Should probably stop writing assignments on politics! That’s the issue with doing a BA in Media and Politics for fun!!And at my age…
So Patience is still the order of the day until the dust settles..I feel that we are in the doldrums for a few months and things will not improve until September quarter as the Northern hemisphere starts to look to sunnier climes and the budget fall out whacks any business confidnce that has built up…higher fuel price will hurt the consumer and retail sector..especially now that Coles and Woolies cant offer the discounts…more taxes..sorry I mean temporary levies…that is what tax started out as a levy to fught wars ..a war on budget crisis..let’s declare that one!!!So target remains 5300 and no reason to buy the bulk of stocks..but have a squiz at LYC if you like bottom picking…
Things to make me go mmmmm!!!
Why do the Murdoch papers which published the Packer Whacker fight concentrate on the cost of their sunnies etc…
And yesterday was the last day of trading on the ASX for Fox as they have now officially left the building..
Good jobs numbers from us yesterday…well goodish I guess…rates will have to be on hold for some time to come..not just here but around the world..so more of the same asset bubbles being built up..
Tasmanian Mountain Pepper and braised beef flavoured red Rock Chips…are you kidding me…what is going on with chip flavours these days..
Looks like Rasputin is saying one thing and doing another with the Ukraine.No sign of him pulling back his troops from the border at all according to google maps!
Retail miracles and super growth can only last so long in a small country like ours…Super Retail Group: has reported a slowdown in sales since the start of the calendar year as it cut back on discounts and saw newly opened stores cannibalise revenue from existing outlets.
This is crazy stuff.The low interest rates and free money is supposed to allow banks to lend to borrowers to enable them to buy houses an stuff to fill them.Unfortnately not much of the free money is finding its way ionto Joe Publics hands at all in the US at leats(and I suspect Europe) as the banks are hoarding the money and punting it in the market and buying houses for cash..remarkably inth elast quarter 43& of home pucrchases were for cash..that double the amount at the same time last year..lets face it why lend to people and take the risk when you can just buy the things yourself and take all the upside as well..the moneys free right?The lenders made $226 billion in mortgages in the first quarter, a 17-year low,as 61 % of home sales in Miami were for cash!!!53% in Detroit…actually there its cheaper to buy a house than a coffee!!!
Private-equity firms, hedge funds and other institutional investors have spent more than $20 billion to buy as many as 200,000 rental homes in the last two years. Blackstone has invested $8.5 billion since April 2012 to amass almost 44,000 rentals in 14 cities. So pre the GFC the banks etc lent the money to poor people to buy homes and then repossessed them when it all went to custard …this time around they are just renting them out to the same people for much better rates..so when it all goes to custard this time???
Arrium shipped just over 3 million tonnes of the steel-making raw material in the three months to March 31, compared with 1.97 million tonnes in the same period last year.
Yet another takeover announced last night from Asian business as Envstra received a new bid from CKI,from HK< which already owns 17.5 per cent of Envestra, approached the company with a conditional proposal to buy all the shares at $1.32 apiece in cash. The bid values Envestra at about $2.4 billion.
This one is an accident waiting to happen..ok a clean accident no doubt but really Tesla…come on…Tesla Motors Inc. dropped 11 percent after saying tight battery supplies will continue to restrain growth.These guys sell 7000 cars a quarter!!!!!Battery issues and R&D are being revised up 30%!!!!market Cap is $22bn…7000 cars a quarter…not sure that makes any sense!!!Bet they don’t make any money!!
And finally…..a community notice
WARNING ABOUT E-BAY
Be careful what you buy on e-Bay.
If you buy stuff on line, check out the seller carefully.
An old friend of mine just spent $95.00 on a penis enlarger.
Buggers sent him a magnifying glass.
Life is short, Break the rules, Forgive quickly, Kiss slowly, Love truly, Laugh uncontrollably, And never regret anything that made you smile.
And enjoy Eurovison this weekend…better than anything else coming out of there at least…gives you a unique insight on the issues facing the Economic block…don’t thing Russia will win..my money is on Ukraine as a sympathy vote…or this guy/girl from Austria…Arnie,Mozart and now this..classic
Any financial product advice contained in this email is general financial product advice only and does not take into account any one person’s objectives, financial situation or needs. Therefore, before acting on any financial product advice in this email, you should consider, with or without the assistance of an independent adviser, the appropriateness of the advice, having regard to your objectives, financial situation and needs.