Crude oil up 43%
Ethanol up 21%
Heating oil up 44%
Natural gas up 77%
Unleaded gas up 40%
Cattle up 1%
Corn up 59%
Soy beans up; 26%
Wheat down 2%
Coffee up 6%
Aluminum up 33%
Copper up 26%
Platinum up 33%
Gold up 6%
Silver up 13%.

That and the credit crisis. A perfect cocktail.

Fitch Cuts Issuer-Default Ratings
Of GM, Chrysler
By JAY MILLER
June 26, 2008

Fitch Ratings cut the issuer-default ratings of General Motors Corp. and Chrysler LLC one notch further into junk territory and said downgrades of Ford Motor Co. and Ford Motor Credit Co. are also likely.

Fitch warned that Chrysler’s issuer-default rating could be lowered two more notches from the current B-minus to CCC — nearly default status — if problems with rising loan delinquencies and losses on auto loans trickle down to retail volumes. Fitch’s Web site defines the issuer-default rating as reflecting the ability of an entity to meet financial commitments on a timely basis.

Fitch, a unit of Fimalac SA of Paris, said a decline in sales in the overall minivan segment — an important product for Chrysler — has blunted the positive effects of the company’s redesigned minivan and the new Dodge Journey crossover and Dodge Ram pickup.

Chrysler’s product pipeline for the near future is “relatively modest,” the ratings company said. But it noted Chrysler’s product pipeline “is relatively modest, indicating that the Auburn Hills, Mich., company’s lineup may remain misaligned with the market.”

As with Chrysler, Fitch cited a cash drain as a major reason behind cutting GM’s rating, also to B-minus. It also called the auto maker’s lineup misaligned with market demand. Further downgrade is predicated on whether GM’s cash holdings fall below $15 billion, its ability to refinance short-term debt and if the Detroit company has to further support GMAC LLC, its 49%-owned credit arm.

GM going down the way of the dodo as Ford and Chrysler.

OPEP president saying that if Israel ever bombs Iran that the price had a good chance of going to 400$.

Hey it’s a great day for the shorts. I will tell when I will become bull. It will happen when somebody gets rid once and for all of Cramer. Not before.

It’s my ultimate contrarian indicator. I am surprised that this guy hasn’t received treats or somebody hasn’t made attempts. Really surprised. He must have good protection from the mafia. So Cramer was bullish yesterday ? You see. Hey Jim Cramer, this corrupt moron, next week will be recommending banks and cars.

Increase in inflation big time and increase in unemployment big time. The FED policies are not working. STAGFLATION. Yeah the FED policies are rotten to “core”. Besides that the markets are not listening to central bankers. Rates in the free market, are going higher and bonds are going down.

Man you gotta love these govt departments, 2.3% core inflation, like people dont eat and use energy!! baah, inflation is running rampant right across the world and the fed is keeping rates below “CORE” inflation levels even. Mind boggling!!

The exported dollars will come home to buy our industry (what little we have) and turned into real property as America goes on sale. They have no other way to protect those dollars from getting ravaged.

You should be lowering taxes when times are bad and hiking them to build a cushion when times are good. You have to modulate. The problem in the USA is that your short sighted politicians lowered taxes, on a permanent basis when couldn’t really afford it. You did it with borrowed money, not only that, with foreign money. What a mess indeed.

In the case of mutual funds/pension funds that have a balance set in the charter as a % of stocks verses bonds, if the bond side loses money, they will have to sell stocks to bring the bond side of the holdings back up. If they have set guidelines as to asset quality and the bonds fall outside of that they have to sell which if everyone has to sell at once will not be pretty. So as a side issue it will hurt the stock market.

Moving right along, as the continued slide in property tax revenue falls and the velocity of money slows, state tax will take a big hit and start to bring on deficits and rating problems with State and county etc. I know that is thinking a little ahead right now but is coming so be prepared as we move forward.

I will contribute some picks soon.