10/15/07

Economics

fiscal profligacy (Government spending as a percent of GDP is too high and the looming explosion in entitlement expenditures will make it worse. There is no good solution save spending discipline.). Republicans still don’t have the message on government spending:

http://www.politico.com/news/stories/1007/6303.html

a rising tax and regulatory burden (Government has never proven that it could solve economic problems efficiently or satisfactorily.) Why lower taxes are better than higher taxes:

http://article.nationalreview.com/?q=MjUwOTAzN2YzNjRkOTkxMDVjMzc2Y2JlODA3YjFkN2E=

And this, an analysis of the declining tax rate for all income groups. Guess who got the biggest reduction? (this is short and a must read):

http://www.poorandstupid.com/2007_10_07_chronArchive.asp#1892154705209303782

Politics

Domestic

The headline which I saw in the Drudge Report was to the effect that ‘general criticizes handling of Iraq war’. Lost was the first part of his speech contained herein:

http://www.powerlineblog.com/archives/2007/10/018743.php

International War Against Radical Islam

The Market

Technical

Fundamental

News on Stocks in Our Portfolios

A positive write up on General Electric (Dividend Growth Portfolio):

http://www.thestreet.com/_htmlbooyah/newsanalysis/manufacturing/10384173.html

Citigroup (High Yield Portfolio) reported its third quarter earnings per share of $.47 versus expectations of $.44 and $1.10 reported in the comparable 2006 quarter. C had announced last week that it would be taking a large write off--so this is no surprise. In a separate announcement, the company joined with other large banks to create a $100 billion fund to prevent the mass liquidation of sub prime loans. This gives added visibility as to how the financial system will adjust to the needed corrections in the sub prime mortgage lending market.

EPS: 2006 $4.25, 2007 $4.30, 2008 $4.95; DVD: $2.10 YLD 4.7%

http://finance.yahoo.com/q?s=C

Medtronic (Aggressive Growth Portfolio) is voluntarily suspending distribution of defibrillator leads (connects patients to defibrillator). The financial impact of this move is uncertain.

EPS: 2006 $2.41, 2007 $2.70, 2008 $3.05; DVD: $.47 YLD 0.4%

http://finance.yahoo.com/q?s=MDT

A positive write up on Verizon (High Yield Portfolio):
http://www.bloggingstocks.com/2007/10/15/verizon-vz-utility-expert-calls-for-gains/

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