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Archive for the ‘Economic’ Category

Spend your way out of debt

Posted by hanson807 on June 29, 2010

sounds like a hokey infomercial. What idiot would recommend to someone going broke that you spend more money? Well, lots of people like Krugman do. He is not the only one who points to the recession spending of 1981-82. Scot Sumner bends over backwards to agree with him also. It simply isn’t possible to spend our way to prosperity. They have never known or maybe just never acknowledged where wealth comes from. It is not printed by the government. Those bills you have in your wallet are just like a written check, they are only worth something when there is money in the bank. If you print another check book, that isn’t the same as putting money in the bank.

We got lucky after WW II, and we got lucky after 1980. Both had new industries that didn’t diminish old industries and contributed millions of jobs and wealth to the economy to recover from recession/depression. Today we don’t. That doesn’t mean we couldn’t. We actually have one close at hand but it would take some courage.

We could drop all taxes on the medical system. We could make all medical 100% tax deductible. We could reform the laws concerning medical malpractice and the laws concerning testing of new drugs. What could happen is to have the US become a place to take medical holidays. People would come from world round to be treated in our country. We could develop new drugs, procedures and treatments with a fury never seen before. We are developing pharmaceuticals faster now than ever. If we open ourselves up to development, we could start the next giant leap forward if we had the courage to get out of the way.

We could also turn to robotics and batteries. These fuel industry and engineering. Again, we would have to make an effort to make these fields attractive. Reduce the taxes on the industries, reduce taxes on exports and imports of metals. Again we are looking for something to fuel the recovery. Wealth made, not confiscated from those who work.


Posted in Economic, Politics | Leave a Comment »

Cap And Trade

Posted by hanson807 on July 29, 2009

for what? The US oil consumption is down. Coal production and consumption is down. We are in a depression currently and even electrical use is down. So it appears that we are cutting back on our energy consumption. The cost of doing business is already limiting our energy consumption, so why do we need a cap and trade?

The European Union currently has a failed system. Although some analysts, those who are liberal and at universities at least, are saying it is a success. But what Success? Even the report from Pew Reports says that it was a failure from 2005 to 2008, but now from 2008 on its a success. Of course manufacturing is diving so the use of coal, gas and other power sources is dropping. Starting in 2008 the consumption has declined as the economy dropped. This should be solid proof that the only way the system will work is in declining markets. Other than that, it is a dismal failure. Also, it relies on member states to report actual quantities and has no means to measure them. So they can lie and aren’t caught.

Here is a best case scenario of what kind of corruption we will likely see. Senators and Congressman through friends and front companies purchase closed or out of business steel mill or other similar plants, receive their allotment of CO2 credits then sell them in the market and make millions. Secondly, it sets a new artificial low mark for the steel mills. The price of steel or any other material will have to pass what could be made by selling the credits. If the price of the commodity drops below what they could sell the carbon credits for, they close the doors and lay the off the workers. The credits and their value have now become an artificial floor for prices in the US. Foreign competitors now know how to kill our industry, price just under the Cap and Trade value and bankrupt us. A fake market will fool everyone but the dollar. It can never be fooled.

The only true answer to lowering the use of carbon based fuels is to have alternatives that are viable. The problem is, as alternatives show up and they are viable they price of the carbon based fuel goes down. The alternatives, by the nature of being alternative will be expensive. Third world countries won’t use them they will use the less expensive fossil fuels. Nuclear is viable but opponents can force the price of nuclear power up by unreasonable demands during the production of the plant. They can drive the price up by telling the nuclear plants they can’t store spent fuel on site, you can’t reprocess the fuel and use it again, and we will make sure there is no where to ship the waste. So we want to use less fossil fuels but we don’t want to use nuclear. Vote accordingly.

The cap and trade is being pushed by a bunch of folks who plan to benefit monetarily from the system. They can set up a bureaucracy and put the jobs in plum list for the incoming administrations. This will be another road block to get around to prosperity.

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If Real Healthcare Reform

Posted by hanson807 on June 20, 2009

was what the democrat party was after, they could do it without taking over the healthcare system. There are steps the congress and the senate could take to make healthcare more affordable for everyone and add an incentive for people to get healthcare.

Right now if you want to deduct medical it can only be the portion that is greater than 7.5% of your income. “You can deduct only the amount of your medical and dental expenses that is more than 7.5% of Dental Expenses your adjusted gross income (Form 1040, line Expenses? 38).(chapter 21) If this was changed so that all medical expenses were tax deductible and not subject to the above 7.5% rule, the entire cost of your medical insurance could be deducted. Then the government would have no need to raise taxes to give you money to pay your insurance. Secondly, they could give companies a tax credit equal to 15% of the money that they pay for health insurance for their employees. The company would have incentive to provide good health insurance. Again, the government would have no control and would not have a hand in selecting your health insurance or dictating cost to the company.

Other steps could be taken to reduce the time drugs and medical procedures are approved by the FDA. For new drugs and procedures a tax free period could be enacted. This would stimulate bio-medical research possibly providing much needed jobs for the economic recovery.

These are simple, government free methods of stimulating growth, lowering taxes and keeping the government out of the healthcare business. But that isn’t the goal is it? That is not what the left wants. To do these things is to admit the private sector and individuals can solve problems that the government can’t. And that is something they are not about to do.

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The Economy Continues to Slide Down

Posted by hanson807 on June 16, 2009

The oil and coal production and use have been declining now for almost a year. Parts and use of trucking has dropped significantly in the past year. Airline travel is also dropping off. Trucks are shipping 13% less freight. These kinds of declines do not show a slowing of the decline of our current economy, they show just how deep we have currently droped.

Tax receipts, the money the IRS takes in has declined 34%. This is indicative of a huge decline. That shows that the American public has taken home significantly less pay than the previous year. This means they will buy less cars and trucks, less goods and services in the following months. The current unemployment level is 9.4%. The only thing the report said was that the rate of loss of jobs has declined. That really means nothing. As the percentage grows, there are less and less jobs to lose so the percentage will continue to drop. The unemployment by mid August will be above 10%. I would predict that if it hits 12% the government will be forced to raid all 401k’s to bolster the social security funds to maintain benefits to recipients. The talk about taking the 401K money has started. More designs are being drawn up to gain control of more financial markets.

What has happened is not that complicated. We have come to the end of a cycle. The computer age, the age we are in, grew for years and bolstered our economy. As the factories became more efficient and the market began to age we reached a plateau. We had 9/11 and then the war in Iraq. The entire time we had a press that disliked Bush. So the press talked the economy down as well as all of the democrat politicians. Since most are liberal, they have wanted us to fall. The problem is, we are a keystone species. Our economy drives the economies of China who some see as a major player with the posibility of over taking the US in economy. However, with the decline in the US economy we see a corresponding and larger decrease in the Chinese economy. Amazingly enough, the talking heads beleive that the amount of government control in China will actually help their economy and enable them to improve the economy faster. Is it any wonder that these same talking heads want more control here?

I beleive we need to start looking at new technologies and industries to rescue the economy. Start investing in upcoming industries such as robotics and bio-science. We have not seen the jump in biological science that we will see. The increase in drugs and medicines is exponential. Also look for jumps in technology that hooks humans to computers. The thing not to do is beleive we can have a return to where we were. I am not saying it won’t be as good. Of course it will. As a matter of fact it will be significantly better by all measures. But the government is lying about slowing the job loss and regaining jobs. This is a change in our economy. It is an opening for a new technology to emerge and a push to leave things behind. We are having this dip because we are in the lull between era’s. The government can’t spend our way out of it. We can invest and grow our way out of it but not by old industries and ideas. Look ahead, the economy of the old era is in decline.

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The Economy Will Sink Even Further

Posted by hanson807 on June 6, 2009

The oil and coal production and use have been declining now for almost a year. Parts and use of trucking has dropped significantly in the past year. Tax revenue has dropped significantly as well. Currently it is a downward spiral. As less people are employed and factories shutter, the demand for oil and coal go down. As less people are employed there is less tax revenue and less products are purchased and then factories get shuttered.

The spiral will continue until there is no real end in site at this time. Contrary to what the government says, we are no where near the end and we have not even come close to the bottom. The government has no answer when asked what will make the economy stronger.

We are on the verge of two possible revolutions that could bring us out of the depression we are in currently. I should first premise this with a discussion of the last two severe economic situations we were in. The great depression ended after WW II. But not because of WW II. It ended because we started an entire new industry. The mass production of kitchen and household appliances. It created millions of new jobs around the world making stoves, washing machines and refrigerators. Although refrigerators were created just after the first world war, production didn’t really ramp up until after the second world war. The US was broke after WW II. The war left an immense debt. Manufacturing however had some major improvements and the boom in manufacturing got us out of debt. In 1980 IBM released the IBM PC. This innovation was the start of the computer revolution. Sales and advances brought us out of the recession. For those that argue Reagan did, sorry he didn’t. He was a good president and lowering taxes as well as standing up to tyranny were good things to do, the computer age came in 1980 and that is why the economy boomed. Let me clarify why it boomed. Millions of jobs were created. Both making computers and programming them. Secondary markets on the computers themselves drove an immense amount of wealth as well. There was E-Bay and day trading. None of these jobs was a replacement of another industry. It was just a brand new industry with millions of jobs. As sales picked up, capital picked up and we were off and running.

What will get us out of this economic slide will be a new industry. The question is which one. Of course it could be two industries but I don’t know I am only making an educated prediction based on information I read. I think it will either be robots or some extraordinary medical advances.

In the Iraq war, when we started we had a few predator drones. Some considered them a waste. But we will consider them part of the flat earth society. Currently we have more than 15,000 drones and robots deployed in Iraq. Some are for ordinance disposal and some for actually patrolling the border. Well one has to ask, how about moving irrigation pipe in the field or picking tomatoes? I believe this will also alleviate the illegal alien issue as well. I think that the next big car manufacturer will be the one that builds a car without a single human hand. No cost or overhead of employees. Also consider the textile industry and what that will mean. More done by robots at home and less imports. Localized manufacturing because of robots. What will we export? Almost everything. Our imports will be natural resources for production. Our schools loaded with robot engineers and boom will rush on.

The second great advance will be medical. This is the only one that the government can crush before it gets going. Currently there have been advances in growing sheep and pigs without an immune system. Also advances in growing organs in these animals. So organ replacement is coming. This will be a huge industry and will require biomedical researchers as well as animal care facilities capable of handling the animals without immune systems. Secondly, the animals will only be used for a short time. Possibly 5 to 6 years before the researchers figure out how to regulate all the growth factors so that the animal is not necessary. Now the problem is, the government can crush this research. Some of this research is being done in Japan right now. The Japanese people have religious issues with organ transplant so they need an alternative to getting an organ from a human. Innovation is turning to these animals. Animal rights activists coupled with liberal left will use it as a wedge issue and get it out lawed. This will slow the progress immensely.

So currently we are sinking. When this liberal congress and senate pass health care regulation the economy will take a nose dive that no one has ever witnessed before. After several years we will through off the yoke of government control and a new 20 year era of growth will come because of robot development and biomedical research.

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The Real Robin Hood Story

Posted by hanson807 on March 5, 2009

is not about robbing the rich and giving to the poor. The real story involves taking from the sheriff who levied heavy taxes on the people to enrich himself. Today, people seem to be likening Obama to Robin Hood when he is really the Sheriff of the Potomac. He is opening up the tax gates for us serfs. What is he offering us?

Some say health care. He antes up over 640 billion for health care over 10 years. What would that buy? Let’s imagine we gave every man women and child a certain dollar amount every month for insurance. It would about 18 dollars a month for health care every month for 10 years. That is socialized medicine. Don’t make any mistakes though, you are going to be paying it. That money comes from your income taxes. Total spending for health care was 2.7 Billion. So he is offering a quarter of the entire amount spent to establish a bueracracy to watch the 2.7 billion a year. Why not just make all medical payments tax deductible?

It is odd that in the medical business, as is true with so many other businesses, that the cost of a particular surgery goes down over time. Let’s take the ACL in 1995 as compared to current average. The cost came down. According to the people who want socialized medicine, this can’t be true. Health care cost must be going up. But its relative. Before about 1990 the surgery was very rare and cost a ton but with the advances that were made became very common place. Feel free to pick out 50 drugs and trace the cost of all 50 for a 15 year period. They all go down. Again, it is contrary to the idea that health care costs are going up. Here is what is going up, you can have more things fixed and more drugs are available every day. How about prilosec? Do you know what the old fix was for chronic acid reflux? Surgery. So how much was saved going to the little purple pill? Was that figured in? Health care is just like a car. You bought one in 1980, it was slick. You bought one in 2008 and it costs more than the car you bought in 1980 and for what? Air bags, blue tooth, high mileage fuel efficient powerful, and a most new vehicles don’t need a tune up for over 100,000 miles. The difference in performance, handling and amenities is staggering. So you just can’t really compare them. My Grand father had a heart attack in 1945. His entire medical bill for three days in the hospital was about 300 to 500 dollars. So compared to today that is cheap. Of course all they did was make him comfortable until he died. So I am guessing if that is what you will accept if you get a heart attack today in a modern hospital, the bill will only be about 7500 dolloars for 3 days. Same care, essentially same cost when corrected for inflation. Its your choice.

Also, you might want to consider the French system. To be fair, the french government said it was a much lower number, 3000. The amount we lost on 9/11. Europe is said to have lost 52,000 to a heat wave. Of course it was a long time ago, it was 2003. Well at least they didn’t lose anyone in a hurricane. Wondering why I brought these up? That is government help. The same people who whinned about both of these things happening seem to think the way to help the medical system is to put people in charge who handle crisis like this. I guess they are used to mass casualties. Maybe its not a bad choice.

If they really wanted to help, the answer is easy. Allow full deduction on taxes of all medical expenses including the insurance payments. If they did that, more people would be covered and more people would see the doctors. Of course, maybe the real game is to gain control for the government of 12% to 20% of the economy.

Posted in Economic | 3 Comments »

A Billion Here, A Billion There

Posted by hanson807 on February 10, 2009

pretty soon it adds up to real money. Let’s just start by looking at the White House’s agenda for the economy off of the white houses webpage. Every single item listed under economy is government spending. Look at his health care. Not only is it spending on stupid stuff, he wants you to spend money on generic drugs and not reinvest in pharmacies in our country, and on pg 140 he proposes 1.5 trillion to the NIH for research. One has to ask, if research is important, why not buy drugs from the pharmacuetical companies instead of the generics? After all the generics are cheap because the pharmacuetical companies spent billions of dollars developing and testing the drugs, and the generics don’t have too. So they can ride on the backs of the big pharmacueticals, at least until they can’t afford to do research anymore. Then, we lose. We are going to cough out 550 million on page 128 for Indian health centers, that should stimulate the economy. On page 148 a new cabinet post is created “Office of the National Coordinator For Health” and we give 2 billion to start that office. Three billion will go to “Prevention and Wellness Fund”, thats on page 153. But hey, 335 million to prevent AIDS and other STD’s, that just smacks of economic stimulation.

Education gets a boost in Subtitle C – Education. The department of education will get 13 billion. Its right there on page 163. But on page 167, they toss in another 13.6 billion for special ed. Then on 169 they toss in another 15.6 billion for financial aid. 14 billion will come on page 171 for modernization and school repair, followed by 6 billion to more modernization. That is 7% for education. Of course if you go back to Title XIII State Fiscal Stabilization Plan, another 79.9 billion is to be controlled by the department of Education. That makes it 17%. And we know the Department of Education is good with money, they are so good, they don’t bother to keep books. And apparentlly, they don’t really have a standard for cutting checks to folks. Not sure where that fits into economic stimulus, but I don’t think it really matters to those who want to pass the bill. I guess on page 182 do they do make a point that if iron or steel is used it has to be made in the USA. Smoot-Haley, no lesson learned. Also on page 183 they want to make sure at least 25% is spent rehabing the school to green standards. Nice.

Okay, just a bit of Irony. On page 204, I can’t make up material this good, Social Security Administration Limitation on Administrative Expenses will get 900 million dollars. What is it going to be used for you ask, because maybe it sounds reasonable(okay, not really). Seriously, I didn’t make this up. $400,000,000 for the construction and associated costs to establish a new National Computer Center, which may include lease or purchase of real property: Provided, That the construction plan and site selection for such center shall be subject to review and approval by the Office of Management and Budget: Provided further, That the Committees on Appropriations of the House of Representatives and the Senate shall be notified 15 days in advance of the lease or purchase of such site: Provided further, That such center shall continue to be a government operated facility; and (2) $500,000,000 for processing disability and retirement workloads: Provided, That up to $40,000,000 may be used by the Commissioner of Social Security for health information technology research and activities to facilitate the adoption of electronic medical records in disability claims, including the transfer of funds to ‘‘Supplemental Security Income Program’’ to carry out activities under section 1110 of the Social Security Act. Honest to god, do they read this crap after they write it?

At least he didn’t take Stiglitz’s advice and did include tax cuts. Stiglitz is an unreptant socialist who believes it is the job of the government to control the common people. He even states it in his office when he talks about modifying behavior with handouts. Of course we will have real over sight. On page 16: SEC. 1222. COMPOSITION OF BOARD. (a) MEMBERSHIP.—The Board shall be composed of seven members as follows: (1) The Chief Performance Officer of the President, who shall chair the Board. (2) Six members designated by the President from the inspectors general and deputy secretaries of the Departments of Education, Energy, Health and Human Services, Transportation, and other Federal departments and agencies to which funds are made available in this Act. (b) TERMS.—Each member of the Board shall serve for a term to be determined by the President. So an entire group of people to provide over sight, not one with business experience or even a business background, and mostly lacking any ethics or morals. Perfect.

The question is, will the 5 year plan work because we are the United States or will it fail as it did in the USSR, China and the rest of the countries it was tried in? I know, you could ask the question: Why do 5 year plans fail? but that would be so petty. Why not ask what would it take to make one work? You see if you ask why the 5 year plans fail, you end up with an answer that is just obvious. Government can’t buy a good economy. It would lead you to a universal truth about money, it comes from business and it is only printed by government. Government can print all the money it wants, but only business will give that money worth. Not one thing in this bill benefits business or the people of the United States. It is all about big government. If you think the government can run the economy and save you, you’ll love this bill. If you actually read history and understand that the government generally damages the economy, you are waiting to see just how much damage this bill will inflict.

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Anticipating Unemployment

Posted by hanson807 on February 3, 2009

My estimation of the coming summer appears to be rosey compared to what is actually happening currently. If you have been paying attention to the headlines, you will note that Liz Claiborne is cutting 725 jobs, Macy’s is cutting 7000 jobs, Boeing is cutting 10000 jobs, IBM is cutting 2800 jobs, Sprint is cutting 8000 jobs, Motorola is cutting 4000 jobs, AT&T, DuPont and Viacom announced 15,000 will be cut collectively, Kodak has announced 4500 cuts, AMD will cut 1100 jobs, Starbucks will layoff a 1000, Pfizer-Wyeth plan to cut 8000 jobs, New York state is planning to layoff 3100 state workers, UAL will cut 1000 salaried positions, Harley-Davidson is cutting 1100. Others can be added but this is a list of about 60,000 jobs that are going to get cut.

Along with those cuts you should anticipate other companies and small shops to begin to close. These were their customers and they are about to be unemployed. Small craft and mom and pop stores will be closing later this summer as well. Most of the big retail stores will be cutting their inventories and over seas orders will be dropping significantly. With these drops you will see plants being shuttered. The closing of plants and reduced orders will require less resources, so you will see mining and processing plants reduce output and some cases close all together. This will drop the consumption of oil and we should see a down turn in oil use so the $40 a barrel price is going to be here for a while. Not sure I would say it is going to drop, but I wouldn’t be surprised by a $30 a barrel price by mid July.

New developing energy markets are going to be hit hard. The wind farms we have will continue to run of course, but new ones will be put on hold or canceled. The tax credits associated with these projects are going to lose value and make the project unprofitable.

Unfortunately, research and development will also decline as companies try and increase the bottom line. This is exactly backwards of what I think they should do. I beleive if they increased R&D, because the cash is going away anyway, they may be able to develop a way out of this mess. You will see more people returning to college and university. My guess is you will see more people going into science fields and health care and less in business and education. The way out is through technology and new markets.

The stimulus package we should be seeing should be an increase in R&D, a new space mission and goal of making a huge moon base. The budget should cut all road and highway maintenance. The social security and medicare program benefits have never been tied to the market, the socialists believe this is the way to go. However, the amount of money that they get is tied to employment. As unemployment climbs if we don’t cut all social programs across the board we are going to just get hammered. It will increase the length of time it takes to recover.

State employees and other government employees had better start to understand where the money is coming from. The 60,000 job cuts I mentioned early pay their salary and they are gone, so they will be taking a pay cut or a job cut. I realize they won’t like it, but I’m sure the 60,000 thousand who lost their jobs didn’t like it either.

California is in serious trouble. I don’t think they understand just how bad off California is. California is going to go bankrupt this year.

Posted in Economic | 2 Comments »

The Finishing Blow, Nationalize Banks

Posted by hanson807 on January 26, 2009

The federal government is just not going to admit any guilt in this current economic down turn. Instead, the want to nationalize banks. The troubles with our economy go back a long way. For Instance the Long Term Capital Management fund. As Roger Lowenstein points out, the crisis can’t be fixed. The houses are worth what they are worth and the banks owe what they owe.

A simple examination of the facts will show why this bailout and nationalization should not happen. Let’s say a bank has 20,000 bad loans that have gone into forclosure. The average house price was 200,000 dollars. That is 4 billion dollars in bad loans. Lets assume the issue is the bank actually borrowed the money because it didn’t have the money. Well the bank owes 4 billion but it has the houses. Problem is, the houses have dropped 20% in price. Now they owe 4 billion but only have 3.2 billion in assets. If the bank defaults then the lender of the 4 billion has 3.2 billion in houses and we have a bank that went out of business. Now the stupid part. The feds lend the bank 4 billion to pay back the loan. The bank decides to make minimum loan payments and sells the houses, mean while they loan out portions of the 4 billion to new home owners while making the minimum payments. So instead of an institution taking an 800 million dollar loss, we pony up 4 billion to make sure all those people get paid and give the culprit more of our cash to lend out or do as they wish. No where in there is the problem solved, everywhere in there is a chance the money will be used to save the culprit and make him rich and no where in there do we actually get paid back.

Now we get to nationalization. The government, who is not famous for running things well, takes over the bank. Lends itself the 4 billion. It also buys an interest and controls the lending institute that lent the 4 billion to the bad bank. It writes off the 4 billion to the lending institute, it keeps the billion it gives the bank, it sells the houses and keeps the profit and does what it wishes with the 4 billion. If I’m wrong, please tell me where we have a single rule that would stop this from happening. My expectation is that you will see the CEO’s of these government run banks, expemted from the government pay scale and you will see graft and corruption that would have made Al Capone blush.

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What The Summer Will Look Like

Posted by hanson807 on January 13, 2009

This summer is going to be a shocker for resorts. A few things are going to make it rough. First its going to be a mild summer. I have this crazy idea that the sun might actually have a lot to do with the temperature of our planet. So being in a Maunder minimum currently, I’m going to predict a somewhat mild to cool summer. Gotta go with the Astrophysics on this one. This will make some of summer spots a little less attractive. So the resorts in the mountain areas will see smaller crowds.

The confidence in America by Americans is low. While it is low, people save and buy necessities. So the resorts are going to be hurting. In turn they will have to lay off thousands. Many resturants around the resort towns will close as well. So massive lay offs this summer for resorts. As far as the airlines go, they will be cutting flights and routes. Expect a lot of the smaller airports to really suffer. You will see the oil consumption drop considerably also. I suspect we will be exporting less gasoline as the economy in the countries that purchase it from us are hurting also. Companies who did well in oil futures are going to take a big hit. Morgan Stanley will take the double big hit of a sluggish oil market and investing heavily with China. The oil futures market that Morgan Stanley helped to create will also be the reason Morgan Stanley has to close its doors later this year.

I don’t see green energy advancing. It cost far to much to erect the wind mills and there just won’t be any money for it. Germany has long subsidized the building of the wind mills but with the economy tanking, it will have to reconsider. Currently the US budget for alternative fuels is just over 4 billion. In 2007 over 9 billion was invested in wind energy, but the investors are going to dry up. The Department of Energy would like 20% of our energy coming from wind power by 2035. They feel that will require up to 7000 new windmills a year. At 3.5 million per windmill, that’s close to 25 billion in investments.

Consumer electronics will be taking dive as well as the stores that sell them. Sony is posting a huge loss and is not expecting a turn around in 2009. Many other retailers are laying off workers and sales have slumped. So expect unemployment to exceed 9% by late summer.

I would expect home gardening sales to boom. I think more people will be growing a portion of their own food to cut costs. Currently and for the next few years people will be saving money and paying down their houses. It is a guarenteed gain on the return. They also will not be thinking about selling, the price of houses will continue to drop as the unemployment rises.

Watch for auto parts houses to boom as people repair their own cars. I expect to see kits to convert older cars to hybrids. Instead of buying a new hybrid for 30 thousand, they will be able to spend 2-4 thousand and make the old vehicle a hybrid. Also for those who supply parts and rebuilt motors etc, business will boom. Expect to see more mom and pop garages doing well. Not sure who will have the first hybrid conversion kit available, if I did I would buy their stock. Also look at small companies who do research in batteries as a good investment.

Well those are my predictions. Not good or bad, just what I see coming down the pike. The idea is not to fear what is coming but plot a course that will benefit you based on the realities of the economy.

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