Bad Mixed Bag

Durable Goods did what?

Orders for Durable Goods Reverse 3-Month Decline
By JENNIFER BAYOT
Published: May 25, 2005
http://www.nytimes.com/2005/05/25/business/25cnd-econ.html

Durable Goods Orders Jumped In April
By REUTERS
Published: May 25, 2005
Filed at 10:44 a.m. ET
http://www.nytimes.com/reuters/business/business-economy.html

Both try for a bright Picture, neither can hide a 0.2% decline in Durable Goods after volatile Transportation is excluded. Dollar amounts were actually the lowest spent since December.

Fitch Cuts GM Debt Rating To Junk
By REUTERS
Published: May 25, 2005
Filed at 5:02 a.m. ET
http://www.nytimes.com/reuters/business/business-autos-gm-fitch.html

GM is losing it's SUV market (down 20%), and has almost $300 bn in Carrying debt. Investment Funds (only Some) must divest GM bonds, because they cannot carry Junk bonds. Freed debt estimate: $20-30 bn, if We are lucky.


Oil Leaps To $51 As US Crude Stocks Fall
By REUTERS
Published: May 25, 2005
Filed at 12:06 p.m. ET
http://www.nytimes.com/reuters/business/business-markets-oil.html

$51.23/barrel for Light Crude, all because Crude Oil stockpile slipped, though Crude inventories are 9.57% higher than last Year's.

Gasoline stocks increased by 600,000 barrels to 215.4 million and distillate stocks rose by 1.9 million barrels to 105.7 million.

The rationale for the Rise in Oil price:
American Consumers are expected to consume more than ever, and China will use an additional 8% of Oil this Year than last. Facts:

Refineries raised Gasoline production by only 0.2785%, and is doubtful to raise Gasoline production by more than 1.85% of current production using current Refining capacity. China faces a similar constriction. Both the United States and China will have to import Refining capacity, rather than simple Crude Oil. Crude Oil inventories are actually overstocked, without the construction of additional Refining capacity. This Author will again say that Speculators drive the Oil market pricing, not economic shortages of Oil.
=======================
Email from Samuel H. Willamson
Titled: The Economic Issues of Social Security

He excellently excerpted several Papers presented to the Democratic Policy Committee. These Papers show why the Bush Plan for Private Accounts for Social Security will lead to the loss of security for both the Social Security program and Recipients. Access to the Papers:
http://democrats.senate.gov/dpc/dpchearing.cfm?A=21
lgl