Me, Becoming More Cynical?

Me, Becoming More Cynical?

Several readers commented that in my last Analysis, I was becoming more cynical. Me, cynical? Really? LOL. Gee, I must really watch myself that I don’t write any more Analysis that are less cynical. That might ruin my reputation.

 

Now it isn’t that I set out to be cynical, it’s just after many years of reading, studying, watching …. whether it’d be my professors, the media, our political and religious leaders, Wall Street …. I just have so much evidence that supports the opposite of what they tell us. 

 

Only a few years ago, in early 2000, we were led astray by Merrill Lynch’s and Goldman Sachs’ analysts, telling us that internet stocks were a screaming buy, only to find out after the whole scheme fell apart, that they were talking amongst themselves (and laughing as well) that these stocks were garbage.

 

All these years, His Holiness the Pope had been telling us that he was infallible in all things spiritual, only to be told that indeed, there really is no Limbo, where unbaptized babies went. Maybe the Pope should declare himself fallible after all. Goodness, gracious, the Pope a mere man? God forbid. (Note: I apologize to my Catholic readers if I just assaulted your sensitivities, but being an ex-Catholic, I just can’t help it.)

 

When I was a new stockbroker, I was told that we are not in the business of making our clients money, but rather making money from our clients. By the way, the test for becoming a stockbroker was how well you can BS. Really, I kid you not. Recognizing the game for what it was, I passed with flying colors. ha ha ha

 

By the way, have you noticed how politicians cut everything from education, health, prisons, state workers, but not their own pay or staff? And California will now release 440,000 prisoners because they can’t meet federally mandated healthcare for the prisoners. Forgive me if I am scratching my head over this one, but how come prisoners have federally mandated free healthcare, while the ordinary citizen doesn’t.

 

Nah, no reason to be cynical.

  

Cash for Clunkers

Cash for Clunkers is the brilliant idea from California Senator Dianne Feinstein. By encouraging consumers to turn in their older non-fuel-efficient cars for newer more fuel-efficient cars, the government has figured out a new way to stimulate the economy. The problem is, it’ll all end by Labor Day. Then what? By the way, charities who benefit from people donating their old clunkers are hurting big time. Thank you, Senator Feinstein.

  

The Wall Street Journal backs me up here: “The subsidy won’t add to net national wealth, since it merely transfers money to one taxpayer’s pocket from someone else’s, and merely pays that taxpayer to destroy a perfectly serviceable asset in return for something he might have bought anyway. By this logic, everyone should burn the sofa and dining room set and refurnish the homestead every couple of years.”

 

The Economy
Right now, railroads are hurting. Railcar loadings are down about 20% from last year’s levels, railroads have abandoned half a million freight cars and idled over 5,000 locomotives. CSX Railroad has even closed a local freight yard and is using it entirely for storage.

 

Repeat after me. “I am not cynical about government statistics.” Uhuh. 

 

Last But Not Least, A Prayer

‘Lord, if you can’t make me a better man, don’t worry about it. I’m having a real good time like I am.’
 

Stay tuned.

Since the stock market started rising in March, and the news from the housing market has improved, everyone’s talking about economic recovery and the end of the recession. Last week, the non-farm payroll numbers came out. They were stronger than expected, sending the stock market to a new nine-month high…

So why is business in the railroad industry still deteriorating?

This month’s issue of Trains Magazine features a study of the number of locomotives held in storage by the major, “Class 1″ railroads. The number of idled locomotives has increased 57% between March and June. 57% in 3 months!!

The Association of American Railroads released its weekly report on rail car loadings. For the first seven months of 2009, total U.S. rail car loadings were down 19%, while container and trailer transportation fell 17.2%. All 19 major commodity categories tracked by the AAR saw car loads decline in July. The biggest declines were metallic ores (down 58.9%), metals/metal products (down 47.7%), and crushed stone/gravel (down 25.8%), all commodities used in building and manufacturing. Clearly, the message from the railroads is that the economic recover is a mirage.

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