Peace, Love, Harmony and Mergers!

I hope you all had a relaxing weekend and have recovered from the amazement that comprised the Opening Ceremony of the 29th Olympiad! Oh yes people, I am an Olympic Junkie...I can't get enough of the stuff. I hunt it out day & night. Clearly I have a problem when I cannot break away from the TV set because I may miss a point in the fiercely fought Badminton Match! I don't know how I will sleep during the next few weeks, as I have to keep up with medal counts, Hand-Ball Games and all those inspiring Olympic stories. It will be hard, but I can persevere. There are few occasions where an idealistic little hippie like me can truly witness the world at its finest. People cheering each other on, meeting friends from across the world, learning about one another’s cultures, and most importantly, coming together as one and, for a brief moment, forgetting all the conflicts of the world to celebrate national pride and athletic achievement. It is a beautiful sight to behold. Excuse me; NBC is on the phone wanting me to write their next story about Olympic Magic!

Maybe all this Olympic spirit has spread to the markets which are enjoying a hike. Consumers are enjoying their 25th consecutive day of decreased prices at the pump. Now, the real challenge will be for consumers to keep their demand at the lower levels of today, because you know those oil companies will raise prices as soon as our unquenchable thirst for oil rears its ugly head! But even with gas prices going down, the experts are shouting my mantra. You want to "Inflation Proof" your portfolio? Well, it is time to look toward commodities. Rumor has it you should make sure 10% of your portfolio is in commodities or commodity focused mutual funds, because no matter what, inflation, no inflation, recession, no recession, people need their commodities. Very similar to how I need the Olympics, but I digress.

In other news, it's time to start playing Monopoly! My favorite childhood game is getting a facelift. Long gone are the days of 1920's Robber Barons, now we have new bullies in town. It seems as if big trash is about to get a lot bigger. Waste Management announced it will raise its bid for Republic Services. Already the largest company in the trash business, Waste Management will now be able to play "King of the Trash Hill" with no fear of competition. Not to be outdone, UPS is also looking to expand their business. They are hoping those crazy Europeans will like their Brown Uniforms and make them #1 as they plan on buying out Dutch Competitor, TNT. Good luck to both companies. Maybe they can figure out a way to get both Boardwalk & Park Place, then they would really be kings!

Now onto the Hollywood Minute! Yes folks, Hollywood was out in force on the Outer Banks this weekend. Complete with a stunning bride, a handsome groom, and enthusiastic paparazzi! Congrats Beth & Zak...what a great wedding & a great love! It wasn't all glitter in Tinsel Town however. I am sad to report that both Bernie Mac & Isaac Hayes passed away this weekend. Our deepest condolences go out to their families and friends. Rest in peace!

Good News Day!

For the first day in quite some time, I won't be reporting that the housing sector is stinking up the joint! In fact, there was a 5.3% increase in pending home sales for June! That number is still off by 12% from the previous year but we'll take small victories on the trail to recovery. More good news coming to us via Wallyworld. When they pulled their new store sales (stores opened for 1 year) out of the overall picture, they show a 3% increase for July. This is largely believed to be a result of consumers spending their government stimulus checks. Out of curiosity, how would one know that? I can't imagine consumers are cashing their checks at Wallyworld. I suppose you could associate the timing of the check delivery and the increase in sales but I think that's a stretch. Just my opinion.

One more bit of good news to report. Nestle, SA is showing a 6.1% increase in profit growth. They own such brands as Nescafe, Perrier and Jenny Craig. The company reports it grew in all areas except bottled water. Hey, when consumers run out of money tap water will do! I'd like to throw in my two cents and add that the Jenny Craig brand grew in areas other than profit. Seems Ms. Kirstie Alley has gone up about 6.1% in size as well! They have since fired her as their spokeswoman. Guess it's back to wearing tent coats and watching Cheers re-runs for her! Here's the deal (for those who now think me to be mean)...don't parade yourself around on TV and tell me that $350 worth of pre-packaged crap can change my life and then a year later you are back on the Ho Ho's! It's ok to be fat. Except that you love to eat. I do.

On a less controversial topic, go to the pump and fill up now. Light, sweet crude is rearing it's ugly head at $120 a barrel. It's not $140, but we all know that these oil giants use any excuse to pass higher prices on to the consumer. Perhaps instead of stimulus checks the government should have sent gas vouchers! Also reporting not so pretty numbers...unemployment. We are at the highest level of unemployment since March of 02. That's a six year high for the numbers challenged. I think Jenny Craig is hiring. Sorry. I'll stop.

Hollywood save me from the madness. Seems our little friend Morgan Freeman has been hiding a little secret. He and his wife of 24 years are calling it quits! I never understand this sort of thing. If you've put up with each other for 24 long years what could possibly break the back of this marriage?! Even if he cheated...he's almost 100, who cares! By the time he pays out he'll wish he had stayed the course. Lil' Kim had a birthday party and somebody ended up dead! Fresh outta jail, that girl cannot stay out of trouble! Police are not sure how the woman died but blunt force trauma is suspected. In case you haven't noticed (bcs I certainly have), blunt force trauma is the method of choice in most murders. Not that anyone needs that information but it's fact. In sad news, Brett Favre has been traded to the Jets. In better news, he's still hot and we'll watch him no matter where he plays!

I realize that I am quite feisty today. I apologize in advance. I will admit that I have eaten exactly 1.5 donuts thus causing overstimulation. I hope you have a great day!

Big Mac

Happy Hump Day! It's all about the Big Mac...as in Freddie Mac. I'm still "lol" from the Freddie quote yesterday but today is no laughing matter. The mortgage giant posted an $821 million dollar loss for Q2. That's exactly 3x larger than Wall Street predicted. Ouch! Just one year ago the mortgage giant boasted a $729 million dollar profit. The biggest losses were seen in states like Florida, California, Nevada and Arizona. CoininkyDinky...these states also showed the largest jumped in their average home price during the height of the market. Hmmm....I smell some exotic mortgage funk!

Here's a little "Did you know"...Did you know that Fannie Mae and Freddie Mac combined, hold 1/2 of the US Mortgage debt. Take a moment to digest that por favor. Let's play the blame game shall we? Playing with us today is a group of fabulous home mortgage clients we'll call "Alt-A." "Tell us a little bit about yourself Alt-A." "Well, we have a lot of members in our group, we have good to great credit and little to no cash. We enjoy not documenting our income and nothing about us really adds up when you look closely enough." "Excellent! You sound like great candidates for 100% financing on your 4th primary residence! Johnny, roll out the red carpet!"

That's a scary game to play. Most investors in the mortgage game rolled the dice on these very people. They were quick to blame sub-prime lending when everything came crashing down, when in fact it was the over extended, good credit havin folk that were give free reign to buy buy buy! "Alt-A" represents 10% of current mortgage loans. That's a big number. It's your No Docs, your stated income your no ratio type of loans. Often referred to as "exotic" mortgages. Anything "exotic" should be an exception not a rule. It became a rule and that rule was quick to be broken!

When all is said and done Fannie and Freddie are trying to work through their problems without the help of big brother (Gov't). The government is bendin over backwards to help the mortgage giants bcs they know if Fannie and Freddie fall, the mortgage market will fall like a house of cards. No one wants that. In off topic news, oil is down again! I'm running on "E" whilst I wait to see what happens at the pump. If you happen to see me stranded on the road, please don't wave and pass me by. I don't bite.

In Hollywood news, look for Peter Brady to host the new Trivial Pursuit game show. Perhaps now we'll see less of his reality show disaster and his crazy wife. If Madonna loses any more weight I'm going to send her a care package. She looks terrible! Eat something already! A-Rod doesn't like skin and bones...kidding! Jen Aniston is denying that she and her boy toy John Mayer will wed. Ok he's been with every Hollywood hoochie. I'd get him checked and double checked before I put that ring on my finga!

Have a great day!

Don't Blame Me

I strategically timed the Market Update to coincide with Uncle Ben's releasing of the Fed minutes at 2:15. From this I will determine where your loyalties lie. Nothing earth shattering is expected to come out of this meeting other than the ole wave of the magic "what we think is going to happen down the road" wand. You may want to stay out of the path of that one. We don't expect the Federal Funds rate to change. Keeping the Federal Funds rate low helps all of us now doesn't it.

Cheers! Wallstreet is looking quite dashing in money green today! At last check the Dow was up around 200 points. Nice! Strong activity in the service sector led to better than expected losses. Como? I said it that way on purpose. Remember when your mother said, "If you don't have anything nice to say don't say it all." Well had mother been a spin master she would have said, "If you don't have anything nice to say, make it sound better so no one realizes that it's not the best news." In these trying times, losing less than expected is cause for celebration. Moving out of the spin zone, Proctor & Gamble posted a 33% increase in their fiscal Q4 profit. Hey, no matter what the cost we gotta shave and clean our clothes! My monies on them all the way! If you happen to be out of gas, head on down to the local fill up station. Crude is down to about $118 a barrel. It's getting lighter and sweeter! Round these parts we are posting $3.69 a gallon. Grab the kids and head for the beach!

I found this tidbit quite scandalous. The NY Times is reporting that Dick Syron (Freddie Mac Chief) ignored "red flags" about the financing of questionable loans. Dicks response: "If I had better foresight, maybe I could have improved things a little bit," he told the Times. "But frankly, if I had perfect foresight, I would never have taken this job in the first place." I love it! How many of you would love to walk into your bosses office and say that right now?! Me too! I think he's a genius. It's the "It aint my fault excuse wrapped up in a common sense package with a shiny bow!" Love it!

Jumping over to Hollywood, Mary-Kate Olsen is refusing to talk to prosecutors about what she knows regarding Heath Ledgers death unless they offer her immunity. Interesting. Perhaps she knows where all of those pills came from....hmmmm. If you've had a chance to peep the Brangelina twins you can clearly see that they are the prettiest babies ever. Angelina states that their other 400 children like to dress them and call them their babies. Sweet...now hand over Brad. Rumors are circulating that Lindsey Lohan may wed Sam Ronson. When reporters asked her father for his thoughts he stated that given his Christian beliefs he wouldn't be walking her down the aisle. Exsqueeze me? Where were these beliefs when he was dressed in stripes and shackled at the county jail?!

Hope you are surviving the heat! Until next time...stay cool.

Breaking News...$1 menu could be $1.19...gasp!

This just in (and a portion literally copy and pasted from their website) from the Wallstreet Journal...

In an interview, Don Thompson, president of McDonald's U.S. business, said the company has tested ways to make the burger less expensive to make. Some restaurants are selling it with one slice of cheese instead of two, and billing it as a "double hamburger with cheese." Others are offering a double hamburger without cheese. Some are selling the traditional double cheeseburger at prices ranging from $1.09 to $1.19.

The company is also considering expanding what it considers the middle tier of its menu, items ranging from about $1.30 to $2. "We know customers are facing tough times in this economy," Mr. Thompson said.
Launched in 2003, the Dollar Menu has been a key driver of sales at McDonald's 14,000 U.S. restaurants and has helped it ride out dips in consumer spending. But recently, franchisees have complained that the menu has brought too much unprofitable traffic into their restaurants.
The biggest question for the eight-item menu is what to do with the double cheeseburger, considered its anchor. High dairy prices have pushed up the cost of cheese, and McDonald's predicts more pressure because its beef costs will be higher this year. Mr. Thompson said if McDonald's moves the double cheeseburger off that menu, there would still be some type of $1 burger.

Perhaps no one but me will find this worthy of "Breaking News." Considering the fact that just moments ago I spoke of cheese woes, I think we can all agree that I am on the cutting edge of economics. I partake in the $1 menu as much as humanly possible. I have excellent health care coverage that affords me the opportunity to eat on a budget. The next time you go looking for two all beef patties, special sauce, lettuce, CHEESE on a sesame seed bun....it may not be there!

Light, Sweet and Crude

Sorry I'm running a bit behind today but as they say...better late than never! I was hoping that the market would turn itself around by this afternoon but no such luck. It's a strong blood red on this hot and sticky August Monday! The biggest news of the day, Consumer Spending. It seems spending is down .2% whilst (my new fav word) prices are the highest they've been in at least 3 decades! Who you tellin?! I took chicken breast off the shopping list cause it was $10 for 3 breasteses. I thought I could keep my tacos. Nope! I went to buy a bag of shredded cheese and I almost passed out when I saw the price... $7.89! You wonder why America is fat? Back in the day, the fattening stuff was cheaper. Now I may be forced to graze in my neighbors yard for roughage!

You can thank Tropical Storm Edouard for a plunge in light sweet crude. They make it sound so yummy. It seems Edouard was so appalled at Exxon's profits that even he couldn't think of coming ashore! It's down below $120 a barrel which means...well no one ever really knows what that means. Bla bla they will send out a fearogram over supply and we'll be at $5 a gallon before you know it. I'm sorry...that was suppose to be a good bit of news. Seems it turned bitter. Apologies.

Perhaps Uncle Ben (not the rice giant...the money man) can help us out? He and his pals at the Fed are suppose to leave rates unchanged when they meet on Tuesday. With the spike in unemployment, energy prices and foreclosures...I think we can all say, "Amen." Home prices are expected to drop another 10% based on available inventory. Shocking.

If you are a frequent flyer on JetBlue, you better start packing your pillow and blankie. It seems the airline carrier is going to start charging $7 a pop for these creature comforts! Good Lord! How can we keep track of everything involved in flying these days? Let's see...I get one checked bag or I get charged, that one checked bag can't be over 50 lbs or that's $25, I get 2 carry ons including my purse, then I have my blankie and pillow...does that count as three? Can't be sure! I think we should start charging them for too many rules and not enough service! Flying first class is a joke unless you are among the few who can consume $500 in liquor to make up the difference in the coach fare. I'm not saying I could or couldn't but one should crunch the numbers before making such decisions.

Hollywood is full of juice as always! First and foremost, a big "Get Well" shout out to Morgan Freeman. He was in a car accident late last night and is listed in serious condition. Witnesses say his car went airborne before landing in a ditch. They used the JAWS of life to remove him from the car. Observers say that people on the scene were trying to snap photos of the star with their cell phones. Shameful! Freeman joked, "No Freebies." The first pictures of the Brangelina twins are online at people.com. The mag paid $14 million for the pics. Wait until they find out Brad is secretly in love with me. How much will they pay for that story? For all of you football fans out there, it seems Favre is back at camp with the Packers. My husband tells me they will most likely trade him or make him fight for top quarterback. This could be my new favorite scandal.

That's all for now!

It's a Very Special Day...

Yes folks, we have an anniversary to celebrate. It seems like only yesterday, but it has been a year since Bear Stearns filed for bankruptcy spawning a spiraling credit crisis...and we are still reeling from the effects! Now I know you are expecting me to talk about the fact unemployment has reached a four-year high, or to mention GM's 3rd worse quarterly loss ever, or even how US manufacturing was flat for July, but that would be down-right depressing. Instead, I am going to take this opportunity to talk about all the things going right in the world. Yes, Polly is back and she is spreading her positive vibes all over the land!

Okay, sure we may not have as much money to throw around and spend spoiling ourselves & our loved ones. Hey, maybe we don't even have enough to cover our bills, but we have gained countless treasures over the past year. Let's review:

1. I have noticed more kids playing made-up yard games outside since their parents shut off their Internet/cable connection.
2. More family dinners. Going out to eat is expensive and often the first thing to be cut out of the budget. There is something to be said for sitting down with your family and talking about your respective days. I know my fondest memories of childhood are from around the kitchen table.
3. Realizing when push comes to shove, money isn't what can hold you and tell you everything will be alright...that job is reserved for your friends and family.
4. Acknowledging you don't have to be on the go all the time, it's actually fun to hang around town and enjoy the simple aspects of where you live.
5. Its great to plant a garden and cultivate the earth, that way you don't have to complain as much when food prices sore and you have the satisfaction that comes from a good harvest.
6. Knowing it is okay to ride your bike down the street instead of driving. Not only does it save money and give you a little exercise, but it also gives you the pleasure of fresh air and being able to stop and say hello to your neighbor.
7. Learning not to take everything for granted. Newton told us long ago, whatever goes up must come down...it truly applies to everything.
8. Living within your means, instead of always trying to have more. It's times like these when more, more, more becomes your burden.
9. Taking responsibility for your actions. Just because the bank says yes, doesn't mean you should.
10. Finally, realizing its okay to take advantage of the downtime. Whether it be to pick up a hobby, read some new books, or simply sit, enjoy it...it won't stay this simple forever.

See, while we watch our savings & stocks deplete at rapid rates we still have a lot to celebrate! This year has been rough, but we can make it and we will come back stronger and better people as a result! So go hug your friends & loved ones, pop open a beer, eat some dinner and play a good ol' game of Scrabble. Sure, it's not going out to a fancy dinner and a show, but I bet you will have more fun and laughs staying around your kitchen table. Have a great weekend.