JP Morgan Chase has derivative exposure of almost $30 trillion, not
counting their off balance sheet, off-shore accounts. The bank says their
exposure is $50 billion. Their motto is if you are going to lie, lie big. A
Barron’s report says the stock is worth $45-$50 now after just having
visited $27.00 a share. It closed at $34.74 on 3/8/02. We expect a rally
higher in the stock off this report, perhaps to about $37.00 or $38.00. At
that level short the stock or put puts on. The hype in Barron’s is just that
and it also shows you how objective Barron’s is. They are all elitists.
The Bush administration has directed the military to prepare
contingency plans to use nuclear weapons against China, Syria, Russia,
Iraq, North Korea and Libya. Dr. Strangelove is clearly alive in the
White House. Madness reigns in Washington.
The following is from a subscriber:
"CNBC and their government boy toys are touting the new bull market:
Going to see "We Were Soldiers" tonight, - Air Force -
Neuro-Psyciatric and Trauma Medic, 1966 - 1970. Although a non-
combatant everyone we treated had been touched in a very real, very
personal way by the Nam. Everyone had a story! It was a long list of
heartache.
Someday, we will run into another enemy who shoots back -- and our
boys will not be able to fight the war with cruise missiles, Blackhawk
choppers, B 52, and nukes disguised as "fuel air explosives" and
hyper-baric weapons that are launched from a video hootch 300 miles
away! The idea of perpetual war is foreign to a nation of freedom that
respects human rights. Instead of leading we are going to kick the world
into our way of thinking. It can only result in eventual disaster for our
nation and the rest of the world.
The attacks in September should be perceived as a message of a failed
foreign policy.
And the most disgusting thing to me as a veteran, who served, is that
those who created the disaster in Viet Nam are more firmly in control
today than they were then. All of we boys, draftees, who had minds of our
own, and were not mindless "true believers", experienced daily disgust
at our tactics. Burning villages accomplishes nothing more than creating
more sappers who hate you and are willing to give their life to destroy
you.
It is apparent we are using the same tactics today in Afghanistan and the
rest of the world.
Your newsletter continues to be right on!"
STATISTICS
Arizona’s unemployment rate is up 50% in a year to 5.8% as the
national average sits at 5.6%.
The Inventories Index remained below 50 suggesting that the inventory
correction is over, yet there is no increase in capital spending.
Delinquency rates for loans on one to four unit residential properties fell
to 4.65% in the 4th quarter from 4.82% in the 3rd quarter. The rate for
conventional loans was 3.0% versus 3.13%, the FHA guaranteed loans
were down .39% to 10.97% and VA loans were 7.70% down 0.41%.
Loans in foreclosure dropped 0.2% to 0.36%. The Treasury will raise
$7 billion in new cash with the sale of $21 billion of four-week bills on
4/4/02. Average job tenure fell to seven years in 2001 from eight years in
2000 and nine in 1999. Guilford Mills is filing for Chapter 11. Waste
Management is laying off 2,000 people or 3 1/2% of its workforce.
The collapse of Enron caused the loss of over 4,000 jobs. Formica,
manufacturer of plastic laminated counter tops has filed under Chapter
11. Deere and Company plans to close its Phoenix plant in Springfield,
Illinois, putting 200 people out of work. The ISM’s survey of
non-manufacturing saw the best pace of growth since November 2000. It
rose in February to 58.7 from 49.6 in January.
National Steel has filed for chapter 11. Proctor & Gamble is cutting 750
jobs in its Clairol division or 50% of staff and closing three overseas
manufacturing plants and a distribution center in New Jersey. It is
cutting 1,440 non-manufacturing jobs. Factory orders rose 1.6% in
January, Moody’s has cut sprint’s long-term credit rating to 2 notches
above junk and Quest was cut to one notch above junk. Canon will close
its inkjet-printer units in the US and Mexico and lay off 450 workers.
Production is being moved to Vietnam and Thailand where slave labor
is cheaper. Mexico is in trouble and the US had best abandon free trade
and reset tariff barriers or we are both going down the chute.
Non-farm business productivity may have increased 1.9% in 2001, while
output increased at a 0.9% rate but hours worked decreased at a 0.9%
rate. Manufacturing productivity was up 1.1% in 2001; while output fell
at a 4.3% rate and hours worked fell at a 5.3% rate. The Bank of Tokyo,
Mitsubishi sales index was up 6.2% versus 3.1% last year. The gains
came from discount stores. The Treasury will raise $407 million in fresh
cash on 3/121/02 part of a $26 billion short-term bill offering. Freddie
Mac will sell five-year reference notes on 3/11/02. For all 2001
productivity growth was 1.9% down from 3.3% in 2000 and 2.6% in the
late 1990’s. The 2001 figures were colored by supposed growth of 5.2%
in the last quarter of 2001. Highly suspect figures. Household net worth
declined 2.4% for 2001 and US consumer credit expanded $12.8 billion
in January versus a $1.8 billion in December and $5.1 billion in
November. Unemployment fell to 5.5% from 5.6% and we don’t believe
it.
Alabama is already so broke they cannot send out state tax refunds.
Chiquita Brands Int. is bankrupt. |
