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-- -- Marshal our boxing your fellow with the Roosevelt institute and portfolios tragically with Madison street partners -- blows your president of the estate.
Senator -- -- start with you -- touching it on this move by the NI AEA today and in particular the economy we had Ben Bernanke yesterday.
Do you think that this is signaling.
To the world -- the US that the US economy is not as soft patch anymore this is not.
-- -- Yeah we certainly believe that it's more than just the soft patch in the economy.
There's so many headwinds and Bernanke kind of talked about some of those -- yesterday.
Talking about retail.
Sales talking about growth of the economy being a little bit less than -- anticipated.
-- talked about Japan there's a number of issues we don't like in the economy we think this is a great time to be playing defense in this type of an economy.
Until I -- -- there's a lot of questions today about the IAEA's move one of them is that this was some type of prop up for the Euro zone that were basically supporting Europe in some -- in our economy giving up the possibility.
It's a possibility I wouldn't describe it is major possibility.
I don't think people should be surprised by the move today.
The fact is we've been warned for weeks that the American government and various other governments would very unhappy with the that the move in the oil price.
You had the saudis themselves that that -- oil is fundamentally overvalued because the president of gulf today think the same thing you have the president an excellent thing that.
More fundamentally realistic price to 6570 -- so we shouldn't be surprised by this move taken by the US government today.
You know -- on the equities side -- this and I -- -- to -- late developments.
The oil companies Nicole hit it.
-- -- the losers today in those companies have been some of the biggest drivers on the equity side along with the banks now what's.
Well they sure have but you know what they're actually still quite cheap even with oil prices coming down actually took a look at ConocoPhillips annual report just last night.
And if any investor out there wants to see -- really well written letter by CEO of the company it's just getting it all right.
Take a look at ConocoPhillips is an annual report I don't know in the shares in -- my clients but.
It's clear these guys are making a lot of money and whether oils -- a 105 or 85 dollars a barrel they're still gonna make a lot of money so this could be a good entry point on.
These -- well there also -- natural gas but that's another -- -- -- Dennis just a question Rafer filled the trading -- why is it oil's plunge today a huge bipolar overreaction guys sixteen million barrels is above gets the US uses almost twenty million barrels every single day this is not think.
-- -- -- -- -- -- -- -- So I can explain why I can explain why basically it's not a question of quantity it's a question of quality if you look at the global oil market -- -- -- The problem is -- over supplied with heavy oil Saudi -- -- and more OPEC's gonna -- more the problem is we don't have the high quality stuff.
Now what we're doing by releasing this oil from the reserve -- going to be putting more high quality oil.
Back into the market it's the miss -- -- and now it's not a heck of a lot of oil.
But it is when you consider it's going to be better quality what Europe need -- right this is definitely gonna help -- that's where the problem it's.
But -- trickle down to the US if you look at the import into -- New York Harbor.
-- they've -- down dramatically over the last few weeks crude supplies gasoline supplies -- do -- -- the impact the US especially on these cubs.
Mark -- and I go back to the US economy to question where around the US economy is -- some type of -- do you think that the second half of 2011 is not going to be.
As good as we originally.
A lot of us thought it was going to be good Borough for several months now I mean I think -- as your previous guess that that indicated that Europe's been pulling off a cliff.
There's been signs the slowdown in China you've had a very very significant slowdown in Japan as a consequence of the earthquake.
And the data in the US has been closer to one and a half 2% growth.
Rather than 33 and a half -- think -- that's -- forecast by the market for the markets have got it wrong for.
A considerable period of time that clearly.
Declining oil price is one of the things that policy makers -- will act as a quasi.
Fiscal stimulus though by.
In the same way that -- tax cut would if you have a significant -- -- -- that does put a lot more disposable income.
Into lower middle class income hold -- hands and and that's going to be very very important.
-- greeting going forward because clearly we're not going to be getting anymore monetary or fiscal stimulus for the foreseeable future.
And Dave this is -- -- not just consumer staples this can affect a lot of the major players that the -- that we -- in the Dow thirty S&P the sectors with Bennett overall a lot of these could be affected to the downside.
Are you watching that side of the equation today.
-- we certainly are in terms of the downside we.
We're certainly would be more apt -- -- financials.
The news about the financial -- the banks has been consistently bad.
There's been negative -- -- by Moody's there's been deleveraging the balance sheets there's non performing assets on many banks financial sheets.
They're leading the Dow down we would be more apt to hold.
Short position on the financials and general boat okay the feeling that.
We have been worrying and worrying about the impact of 200 dollar oil -- -- on the world economy worried about growth.
Now oil is plunging clearly -- set up for a plunge anyway speculation probably helped drive -- higher stocks are down 17200.
Yet stock should be up -- -- that kind of news because one dollar gas pump there's -- hundred billion dollars in purchasing power for consumers.
And you know what James let's talk about volatility today I mean look at the vexing this huge spike in the -- the volatility and that that tells us that things are.
Unstable you concerned what I am concerned and reassure the sentiments of some of our other commentators that for a long time.
There have been pundits out there saying that the economy is gonna pick up the second half of the the second quarter has a lot of temporary negative factors I don't think that's the case.
You see no indications in any of the economic data of a pick -- a pickup in growth.
And until you see a long steady chain of good economic numbers -- on defense as well.
Nicole look at that Charlotte the -- -- -- we've got a very volatile environment right now this may not go away.
-- -- -- back -- of the twenty market what's interesting is the sell off that we're seeing in how broad based it is an every time we have this type of selloff -- you have.
Almost all thirty Dow names in the red and a majority yes and -- -- in the red.
So many folks are coming in and step and it -- portrayed it would say.
Not everything is bad right and so this is when people get in there and they start to pick and choose what they might consider buying whether it's a sector a particular need we start to see the baby out with the bath water.
Pat Marshall doesn't one last thing do you before -- -- all of you go and you run a great piece about the ball tally all the expectations you have when it comes.
To Greece and the future the unions are planning protests there next week.
The Europeans are starting to dig and saying wait a minute if you don't come to the table what the deal the Greeks are digging and saying maybe they want to change the landscape are you.
Nervous about what's next for us out agrees.
Yeah I I think that the -- being put -- an awful position.
They're being asked to.
Back government spending time but 60% unemployment.
But they're being asked to undertake public -- -- by Phillip -- Which will hurt future revenue opportunities for the government so there's no way they can make good targets and I think yet.
The goal post consistently getting guard getting moved on -- -- the economy continues to deteriorate.
And the worry that they could extend into the US particularly at the the -- negotiations go on and and that the pressures from school retrenchment.
Accelerate here as well so it -- great concern that I have globally.
I agree if you are a look at what's gonna happen if you get contagion within of the banking system -- -- so lots to look forward to sue.
Including all -- all -- today thanks to all of you Marshal our back Madison street partners portfolio strategist.
Dave blows your president obvious statement has group the cold -- of course thanks all of you appreciate it.
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