"The Spill" - Frontline's Investigation Into BP's Corporate Push To Put Profits Over People

Business/Economic/Housing/Layoff News for August 23, 2010

Peter Schiff: The Fed Has A Drug Problem, Bernanke Is Addicted To Printing

Stocks Rally on Takeover Optimism; Coffee Jumps to 12-Year High

Debt's Deadly Grip

Mish's Weekend Potpourri: Commercial Real Estate Prices Tank; Late Mortgage Payments Spike; Half of Shanghai, Beijing Flats Are Vacant; Pension Fraud by New Jersey Cited by SEC

USA: Portrait of a Sagging Empire

Bond Yields Showing No Economic Spoils for Republicans in 2010

Bond bubble fear returns as investors flee stocks

How Pimco is holding the American homeowners hostage

It's doom and gloom all over again

Today’s economic crisis is less about the quantity of output than the distribution of income and leisure

Late-fee limits could cost card issuers $3 billion

Democracy or “Lobbyocracy”?

Beijing Billionaire Who Grew Up With Mao Sees No Housing Bubble


4th Straight Year Of Decline: Country clubs for golfing closing nationwide

10 Big Retailers Closing Stores

Small Investors Flee The Stock Market

Firm: N. Calif home sales drop 23 percent in July

Another top money manager says the market is priced attractively at this time

7 Reasons Why You Should Not Buy A House

Post-Mortgage Meltdown, Where Do We Go Now?

Dr. Housing Bubble: The fallacy of cheap home prices and the two income trap – dual income households underscore massive housing inflation. Nationwide home prices overvalued by 25 percent.

Homeowners’ Rebellion: Could 62 Million Homes Be Foreclosure-Proof?

Housing Fades as a Means to Build Wealth, Analysts Say

Bloomberg: Housing Slide in U.S. Threatens to Drag Economy Into Recession

Watch Out Amazon, Here Comes Rakuten!

Delta to Recall, Hire Attendants as Carrier Expands

What is real jobless rate in North Carolina? Try 17.8%

Bleak Picture for Employment

Veterinary supplier files bankruptcy, lays off 300

State of Texas considers cutting "thousands" of jobs to balance their budget

BAE Systems laying off 124 at Western Pennsylvania plant

Wells Fargo laying off 90 employees in Reading, PA

Business/Economic/Housing/Layoffs News for August 16, 2010

Matt Taibbi: "Wall Street's Big Win"

The Biggest Lie About US Companies

Fleck: A Patently Obvious Way To Add Jobs

Massive Wealth Shift in Full Swing

Mish Says We Are Now In A Depression: Corporate bonds, Municipal Bonds, Treasuries at Record Low Yields; Is this a "Fool's Game"?

Mass Delusion American Style

Oil rises, dollar falls

Survey finds oil in Afghanistan

Gold Climbs a Third Day as Signs of Waning Recovery Fan Demand

Cotton Tests 1995 Peak as Supply Drops, Levi's Raises Prices

Jim Rogers Says Wheat, Agricultural Commodities Set for Steep Price Rises

Tastes Like Chicken: Hot New Plan For Conveying Taxpayer's Dollars To Wall Street Banks

Asian Stocks Fall to Three-Week Low as Yen Gains on Japan GDP

US 'Virtually Certain' to Fall Into A New Recession: Rosenberg

Infographics: How The Great Recession Has Changed Life In America

Signaling The Death of the American Dream

Another Threat To The Economy: Boomers Cutting Back

Recession-Worn Seniors Tap Social Security Early

The Reality Of The New Going Back To School List: Don't Forget The Janitorial & Bathroom Supplies

The Bears Have Seized Control Again

Is a Crash Coming? Ten Reasons to Be Cautious


Shadow Inventory Piles Up On Banks' Books

Your House Might Be "Under Water" For Years

When will the FHA blow up like Freddie Mac and Fannie Mae?

Labor Unrest In China Results In Upswing Of Strikes For Better Wages

The Chronically Unemployed: They're known as 'the 99ers,' and their numbers are growing

Greater A&P Grocery Chain To Lay Off Over 2,000 Employees

Trenton, NJ Could Cut 400 Jobs This Week If State Aid Does Not Arrive

New Jersey's Non-Profit Legal Aid To Pink Slip 100 Workers

Business/Economic/Housing/Layoffs News for August 2, 2010

US infrastructure commentary: "The Unpaved Road To Serfdom"

Greece turns to military as truck drivers refuse to end strike

'Disastrous' - Former Fed head, Alan Greenspan, says Republican plan to extend Bush tax cuts would kill the struggling recovery

Nielson: The End Game is Either Hyperinflation or Debt Implosion - Got Gold?

Gold Has Got Its Groove Back

One bln tonnes of coal found in Mozambique

BP seeks to permanently seal oil well in Gulf of Mexico

5 reasons why the California real estate market will weaken from August to December of 2010: California budget delay, inventory growth, and three other important factors.

How Australia's banks could trigger a property crash

Warren Buffett's Mr. Fix-It: Full Version

Spoiler Alert: U.S. Unemployment Is Now Rising, Not Falling

Restaurant Index shows contraction in June

Homeless shelter network closing 11 of 15 locations in Seattle, forcing homeless into the streets

Last Friday was the last day on the job for 192 San Jose, California city government workers

Business/Economic/Housing/Layoff News for July 30, 2010

America Sits Out The Clean Energy Race With China

“Unused Rooftops”: The Future of Solar Power

US Faces Water Supply Crisis

A New Spotlight on Japanese-Style Deflation

Euro nears level not seen since European bailout package

Another slap on the wrists of Banksters: Citigroup Inc. agreed on Thursday to pay $75 million to settle a lawsuit brought by the Securities and Exchange Commission that the bank failed to disclose $40 billion in subprime exposure to investors

The Great Ethanol Boondoggle

Goldman's Leading Indicator Plummets To A Seven-Month Low, Predicts An ISM Collapse Next Week

The New Normal: Americans Cutting Back — Even If They Don’t Have To

Henry Paulson calls for shrinkingFreddie Mac and Fanny Mae

More Foreclosures Expected as Housing Crisis Continues

Dr. Housing Bubble: Real City of Genius – The Westside of Los Angeles. Three short sales in Palms, Santa Monica, and Culver City. $100k to $300k in discounts in prime Southern California locations. Short sales still too expensive even with large discounts

6 Reasons Why The Housing Market Has Not Recovered

Don't Count on Housing to Lead the U.S. Recovery

MISH: Housing Bubble will Not be Reblown; Foreclosures Increase in 154 of 206 Metro Areas with Population Over 200,000


President of the Dallas Federal Reserve explains why there is no job growth in the USA

"A Modern-Day Depression": Rosenberg Sees "Tough Slogging" for the Economy

BP May Attempt ‘Static Kill’ of Well Before Aug. 1

Prudential Insurance Sued Over Veteran Life-Insurance Claims, Lawyer Says

SEC Brings GIGANTIC Insider Trading Case Against The Famous "Swift Boating" Wyly Brothers Of Texas

Investing Advice:Finding the Right Dividend ETF: Aristocrats and Achievers

OMB nominee got $900,000 after Citigroup bailout

Justice Department sues Oracle for fraud

Microsoft Working on iPad's Rivals

Google Develops a Facebook Rival

Fed's Bullard: Fed would act if recovery fails

U.S. Economy Grew 2.4% in Second Quarter, Below Forecast

Americans cut back on visits to the doctor

PricewaterhouseCoopers laying off 500 people in Tampa

New York state government to fire 1,000 workers

First Data pink slips 355 employees worldwide (50 in Omaha)

Business/Economic/Housing/Layoff News for July 27, 2010

Oil well just off course of Louisiana hit by barge this morning, 20 foot high oil spew still not capped, booms surrounding spill

US shopping center vacancy rates rose in 2nd qtr

Cap-And-Trade Advocates See Tougher Battle After Elections

Taleb: Government Deficits Could Be the Next 'Black Swan'

Unless women take control of Wall Street and America, 'The End' is near

The Illustrated Guide To Larry Summers' FinReg Hypocrisy And Hallucinations

The Government's Role in the Housing Bubble

Sickness, late pay, faulty equipment & lies . . . what it's like to be one of the non-inmates working for BP cleanup crews

With scores of coastal residents out of work after the spill, BP is hiring inmates to clean up its mess—and getting lucrative tax breaks in the process

Undersea oil plumes linked to BP Oil Volcano

As counties across the USA run defecits, more asphalt roads are returned to gravel

Derek Thompson of The Atlantic - "The Scariest Unemployment Graph I've Seen Yet"

James Howard Kunstler: "What Is It?"

London bankers buying up 1974 book on mechanics of Weimar Republic hyper-inflation

Head of Bush's TARP program for bankers, Neel Kashkari, wants to cut entitlements such as Social Security for the Middle Class

Cities looking at giving away land and cracking down on non-profits as a means to generate more revenue

Rochester schoolboard to give pink slips to 116 teachers

United Technologies to cut another 1500 jobs for remainder of 2010

Pennsylvania state government employee layoffs still coming

Must Read Of The Day - - - Roger Ebert: "BP's Tree Fell On My Lawn"

Business/Economic/Housing/Layoff News for July 14, 2010

How the “too-big-to-fail” banks got that way, and why the current banking reform won’t solve the problem

Hotels, promoter, real estate agents say LeBron James giving South Florida boost

Mish:FICO Credit Scores Collapse - 25% of Americans Sink Below 600 vs. 15% Historically

Sell Bonds, Buy Precious Metals, Rice as ‘Refuge,’ Rogers Says

Peter Schiff unravels on Alex Jones show, advocating preemptive strike on 'nuclear' Iran

Gold climbs most in three weeks on rekindled Europe debt concern

Crude Oil Falls From Two-Week High After U.S. Stockpiles Gain

BP Gives Up Control of Cushing Oil Storage With Sale to Magellan, LP (NYSE: MMP)

Rail traffic softens further in June
Jewellery store closures mount

Boston Fed’s Rosengren: Growth Slowing, Deflation Is Emerging Risk

Mish: Did Retail Sales Rise, Or Did Tax Rates Go Up

Tech stocks help European shares to seventh day of gains

Despite Stocks' Gains, Skeptics Wait and See

Caterpillar Paces Dow; Apple's Pain Grows

The twin Financial Frankensteins of Fannie Mae and Freddie Mac continue to wreak havoc on US Taxpayers

Obama administration backs private twist to public housing

NYC's Comptroller threatens to remove pension funds from Big Banks which are dragging their feet on loan modifications for homeowners

San Diego: Home Sales Up Due To Expiring Tax Credits, Soon To Change To Strong Head Wind

Get Ready for a Cataclysmic Market Crash! (Or Maybe Not)

Meet the Man Who Made a Fortune Exploiting the Poor With Payday Loans

WSJ: "Too Rich To Live?"


First Data cuts 78 employees from its staff in Ventura, CA

Mosaic Warns 221 of Layoffs at South Fort Meade Mine

Long Beach School Board fires 357 teachers

St. Francis Hospital in Kansas to cut 105 workers

Netflix to lay off 125 in Orange County

50 Lee County, FL workers for Department of Transportation to be cut as county tax base plummets from $96.5 Billion to $55 Billion

Salinas hospital offers buyout to 138 employees but really wanted to cut 200 employees from every department

59 year old laid off lawyer has applied for over 1000 jobs in 18 months and has never been called back for an interview

80 Oakland Police Officers laid off

Business/Economic News for July 13, 2010

Homeowners vs. Home-Loan Buyers

Treat reckless corporate behavior like DUI

The New Economy: Death By Savings

Dynasty Trusts Game No Taxed Pass Downs For The Rich: America Builds An Aristocracy

The Disappearing Intellectual in the Age of Economic Darwinism

James Howard Kunstler: "Where Have We Been? Where Are We Going?"

Charles Hugh Smith - "Con Of The Decade, Part 2"

U.K. Stocks Extend Drop After U.S. Housing Data Trails Forecast



Copper falls to lowest price in a week as US Housing starts lowest in a year

San Diego developers of giant condo project have yet to sell one of their 679 units, so they are renting them out, adding to San Diego's huge "Shadow Inventory"

Bush's Treasury Secretary, Henry "Golden Slacks" Paulson, Pays $24.5 Million For Aspen Mansion

The rich do it too – Los Angeles County and million dollar distressed properties. 1,947 homes in L.A. County valued at $1 million or more are three payments behind or in foreclosure. Beverly Hills prices down 31 percent from one year ago. 14 out 100 homes on the MLS are priced at $1 million and up

Disappearing Middle Class: 60 year old Florida Keys couple lose jobs and Islamorada home

Moody's expects debt levels for housing to stay at high levels for another 12 to 18 months, says foreclosures will not slow down any time soon

Revolving Door Sweetheart Deal: Ex-Senator Mel Martinez (R-FL) Named New Head Of Chase Bank's Florida Market

Hugh Hefner Wants To Buy Back Playboy And Take It Private

FDIC sues former Executives at Indymac's homebuilding loan division

Municipal broadband haters in NC dealt a blow

Take Two: US Issues Revised Offshore Drilling Band

Florida Keys Wake Up Call: Cuba Allows Spanish Company To Drill For Oil In Area Only 60 Miles Off Key West's Doorstep

Business/Economic News for July 12, 2010

Oil falls to near $75 ahead of US company earnings

Bill Fleckenstein's latest podcast interview worth hearing in which he makes a case for a flat tax

The Chinese Coal Monster

Robert Reich: "We're In A Recession Because The Rich Are Raking In An Absurd Portion Of The Wealth"

Pfizer: The Drug Giant That Makes Bank from Drugs That Can Kill You

Small investors flee stocks, changing market dynamics

Gold ticks lower but holds above $1,200

More Americans' credit scores sink to new lows

Global Housing Bubble - Based on Ratio of Price to Rent, Which Countries are the Bubbliest?

Paul Krugman: "Trending Toward Deflation"

Charles Hugh Smith: The Con of the Decade Part I

The Daily Bail: "On the camapagin trail, TARP support means big trouble for incumbents - - especially John McCain



Chinese company Datang to build 500 MW of wind energy in Pakistan

Tide turning against dirty coal for energy production

Japan, Russia to build LPG plant in Vladivostok

Japan’s Stocks Advance as Commodity Prices Gain, Yen Weakens

Housing Gets Sick on Keynesian Roller Coaster: Kevin Hassett

Hawaiian homeowners in Loan Modification Program are foreclosing more and more

As Census ends, many census workers lose jobs

Iraq oil exports hit 2 million barrels per day

Louisiana Pushes BP for Fisherman Aid

BP reportedly in talks to sell Alaska oil stake

Atlantic City to lay off additional 93 city workers, possibly many more

Avid’s Brain Dye Can Spot Alzheimer’s, Study Says

Business/Economic News for July 9, 2010

Biggest defaulters on mortgages are the Rich, not the Poor

Business/Economic News - July 8, 2010 Edition

Some families in foreclosure live rent free, worry free

Need a job in South Florida? With nearly 53,000 pending foreclosures clogging the courts, Palm Beach County Clerk and Comptroller Sharon Bock is beefing up her payroll

More Than 12 Percent of Mortgages Nationwide Delinquent or in Foreclosure

Minnesota bankruptcies highest in a decade

BP Way Off on Oil Spill Cleanup Estimates

Pension for ex-top cop in CA: "The $215,000 Man"



THE END OF KEYNESIANISM?

EU CAPS Bank Bonuses: Company Performance To Dictate Bonus Pay

The Games Realtors Play With "Original Price" and DOM (Days On Market)

Hello Friends,

Today we are going to look at what I believe is an honest mistake made by a Real Estate company which obviously hasn't kept close tabs on one of its entries to my favorite MLS in the Florida Keys. This Real Estate company in question simply keeps tabs on properties for sale down in the Keys and adds very good slideshows and a decent, quick-searchable data base set up by price, different Florida Keys, different types of homes (condos, duplexes, etc.) and so on. As this Real Estate company does officially represent the sellers of but just a few of the properties on this searchable MLS, my guess is they sell "shoppers" on using them to mediate a sale.

This particular MLS is the one with photos of most every home and business listed and can be found at www.keywestmls.com.

This particular MLS, sponsored and edited by Key West's Seaport Real Estate, is the most popular MLS which my Key West friends use. Other MLS searchable databases put together by other Real Estate company go nowhere near the lengths which Seaport provides information.

Most especially welcome on this great website is the tab for "Just Reduced" homes which, like it's title, shows all homes and their new reduced "listing" prices over the past 7 days. (And please, please, please . . . if you are new to looking for a Key West home . . . notice nowhere on the website of www.keywestmls.com is there a tab for "Just Increased" home prices. That should tell any novice that prices are still cratering in the Keys.)

Nevertheless, Seaport Realty's webmaster makes a mistake once in a while and leaves up two MLS numbered entries for the same home. Today, I discovered one I want to share. And please keep in mind this is not to condemn Seaport Realtors for their mistake, but it is to applaud the fact that their mistake is another in a long line of proof which I have supplied over the years that Realtors are trying everything to put lipstick on the Housing Crash Pig.

Onward.

In many a past blog post I have told you why I recommend you keep your own Excel spreadsheet on falling home prices if you are seriously considering buying in the Keys within the next 6 months. Among my reasons, I told you how Realtors play this game of ripping homes off a market after an "original" price had multiple price drops and then coming back on the market a few days or weeks later with a new MLS number and new "original" price.

The reason for doing this is obvious:

1) The new "original" price is a much lower price than the old "original" price and subsequent price drops. Hence, with a newer starting price, one cannot fathom the "panic" in the seller's position, giving a potential buyer less leverage in making a deal.

2) When a new "original" price is listed, it also means the DOM (Days On Market) start afresh. Meaning a listing with only 7 days on market and an "original" price looks more enticing to sellers than one which has been on the market for 300 days and has had 5 price reductions would look to buyers. Sellers and Realtors want to "keep up appearances". Buyers are looking for desperation from sellers, i.e., deals.

3) And when a new, lower "orginal" price is lowered or reduced to a new listing price, should that price sell, the Real Estate cartel will trumpet it was only 20% off the original price and prices are firming, when in reality, the "Just Sold" price could be as much as 50-70% off the first "orginal" price. All of the above might sound confusing to a new reader, so let me show how one house in Cudjoe Key has been marketed, accidentally, with two MLS numbers - one of which shows the real drop in value on the property.

Let's start with the more benign listing, the one with the least amount of depreciation in pricing.

Here's the mansion in question:

MLS#:	550147
Original Price:	$3,795,000
Listing Price:	$3,100,000
Address:	23069 Redfish Lane
City:	Cudjoe Key
Subdivision:	Cudjoe Acres
Mile Marker:	23
Prop Type:	Single Family
Waterfront:	Yes
Days on Market:	276
Bedrooms:	5
Bathrooms:	5.5
Interior Sq Ft.	4,430
Price Per Sq. Ft.	$699.77
Lot Sq. Ft.	0
Year Built:	2007
Taxes:	$25,000.00
Tax Year:	2008
Exemptions:	Homestead

Here's the description of the property by the Realtor:

Private Gated Keys Estate With Open Water Views. Chestnut & Marble Floors, Gourmet Kitchen, Elevator, Private Boat Basin, Ramp & 2 Lifts. Lounge By By Your Pool Or Beach. 5 Bds/ 5.1 Baths + A Library & Loft. Main House Features 3bd/3.5 Baths & Thguest House Offers 2 Bd/2 Ba. True Paradise Living To The Most Discriminating Buyer Who Wants Everything...With A Sense Of Being Away From It All.

Notice the following three data points above: Original price, Listing price and DOM (Days On Market)
1. Original Price: $3,795,000
2. Listing Price: $3,100,000
3. Days On Market: 276
(By the way, to see the 9 slide photo shoot of this listing click here)

Now as I never kept track of Florida Keys mansions by entering their info on a spreadsheet, it is very possible this mansion had more than one "Reduction In Price" in the past 276 days.

Regardless, let's pretend for a moment that some well heeled buyer simply comes along today, plops down the new listing price of $3,100,000.

Well, the way the Good Deeds in the Sunday paper would report this sale is "100% of asking price". And, invariably, some of the Realtors in our town would crow that this 100% bid on the listing price is "proof that the Real Estate market is bottoming in the Keys."

In reality, the sale at $3,100,000 would represent a drop of 18-19% from the owner's "Original Price" some 276 days ago at $3,795,000. But the Good Deeds in the Sunday Key West Citizen long ago quit showing both "Original Price" and "Listing Price". So, buyers looking at the Good Deeds now are thinking, "Prices don't seem to be falling as much. That's good."


Time For Another Strong Dose Of Reality In Keys Real Estate

But what if the mansion discussed above had been on the market for a longer period of time at a much higher price? Don't you think a savvy buyer would like to know this information so he/she could drive a better bargain with maybe a panicked seller?

Well, in a case of laxity (that's my guess), the keywestmls.com webmaster did not notice the same mansion appears twice, with a different front photo shot, and a different MLS number on their www.keywestmls.com website.

Here's the first entry for the same mansion we are looking at above with new cover photo. (Also if you want to see the original 19 photo slide show, click here) :

MLS#:	107685
Original Price:	$4,499,000
Listing Price:	$3,100,000
Address:	23069 Redfish Ln
City:	Cudjoe Key
Subdivision:	Cudjoe Ocean Shores Sec 2,2b,3
Mile Marker:	23
Prop Type:	Single Family
Waterfront:	Yes
Days on Market:	813
Bedrooms:	5
Bathrooms:	5.5
Interior Sq Ft.	4,443
Price Per Sq. Ft.	$697.73
Lot Sq. Ft.	32,242
Year Built:
Taxes:	$20,589.00
Tax Year:	2009

Notice the following:

This earlier listing of the exact same property with different MLS number has been on the market for 813 days! That means this mansion has been on the market since early 2008 and is really in its third year of being marketed.

Secondly, notice the "Original Price" of $4,499,000! That is $704,000 more than what the newest listing (MLS #550147 with 276 Days On The Market) is showing as an "Original Price" of $3,795,000.

Same property, two different MLS numbers showing, two different DOMs showing, and two different, very different "Original Prices" showing. (Meaning the webmaster's slip is showing how Realtors really play the game to "juice" Potemkin pricing which many times is a facade for what has really gone on behind the scenes.)

If some rich buyer comes to the Keys today, without thinking about hurricanes and oil spills, rising sea levels, a county government in deficit, declining county services, bad schools, etc., and pays $3,100,000 (the new listing price), said buyer would actually be getting 31-32% discount from the real "Original Price". Not only is that the real discount so far, but, the Key West Citizen would be showing the sale as 100% of the Listing Price in the Sunday paper's Good Deeds. (It should be noticed that "Good Deeds" are sponsored by some Title Company here in the Keys, and it is they who obviously decided to discontinue showing "Original Price" of homes sold.)

These are the games going on all the time with the MLS as played by Realtors. They put homes on the MLS. They rip them off. They assign new MLS numbers and put properties which have been for sale for years back on the market after a few days breather to hide market inefficiencies and buyers who were in denial for a loooooong time and who are now determined to get out of their money holes.

This is why serious buyers must pay attention and do their own diligence: Realtors are not going to give you the whole story and you will not have the macro-Economic wide angle view you need to know whether you are getting a deal, whether Real Estate is really bottoming (don't worry, buyers, it is not) and whether you should rush in now to get a "deal" compared to 2006 prices (don't, rates have only one way to go . . . higher . . . and as rates go higher, even fewer people will afford "more" home meaning home prices will have to drop even further).

That said, anyone buying a home in the Florida Keys or Florida before the BP Oil Deluge is finally stopped is not paying attention to the current Double Dip Recession which may turn into a Depression forcing even more pressure downward on Keys home pricing.

Stay aware of Macro-Economic trends. Stay aware of local trends. And whatever you do, don't listen to the FIRE Economy cheerleaders who are telling you "There's never been a better time to buy a home!" They've been saying this for the last ten years. Keep in mind these are the vested interests who do not have your best interests at heart.

As always,

Caveat emptor!


Rock Trueblood

Pensacola Beach: Not A 4th Of July Destination This Year

If you have ever visited the powder white sands on Pensacola Beach or swam in the pristine green waves, this will turn your stomach:

Oil Covered Whale And Dolphins In The Gulf; Smoke From Set Fires Pollute The Air

Here's the latest video shot by Independent videographer John Wathen/Hurricane Creekkeeper:

June 15, 2010: Latest On The BP Oil Volcano In The Gulf

Say goodbye to less than $67 a barrel oil forever? Oil back above $74, Day Trader's Pick For This Week: Transocean (NYSE: RIG)

(click charts above to enlarge or click on RIG and $WTIC to see respective charts)

I've been following oil very closely since the Deepwater Horizon drilling platform sank out in the Gulf.

Back on April 15th, oil hit this year's high at $87.26. The Deepwater Horizon exploded on the night of April 20th. The next day, oil barely budged as the extent of the oil spill was not even known.

On May 3rd (first trading day of the month), oil tested the $87.26 resistance, by hitting an intraday high of $87.17.

Oil headed South on May 4th only to bottom with it's low in May on the 25th with a $67.15 low.

Since then, as the real extent of the Gulf Oil Gusher Disaster became better known, a few things have happened to cause oil to start a slow grinding upward rise in price:

1. The Federal government has announced a shake up of the MMS, meaning no more Bush/Cheney/Obama friends of Oil being planted in the governmental regulatory agency which was supposed to overlook deep sea drilling and mining in the USA.

2. The Feds placed a temporary moratorium on offshore drilling despite Governor Bobby Jindal begging the Feds to put back to work his Louisiana drill workers laid off by the moratorium.

3. BP has opened field offices in all the Gulf States to handle a raft of lawsuits brought on my failing tourism, fishing, etc.

4. Transocean and Halliburton employees interviewed by CNN and 60 Minutes have told versions of the explosion which all coincide on one point, i.e., a BP official made the choice to keep drilling despite many a worker's worries about unsafe and untried drilling practices. BP officials were under pressure to get the well drilled. Safety was not on the mind of the BP official who told Transocean and Halliburton officials that BP was demanding the drilling continue and screw safety procedures.

5. Several notable Oil experts are saying their are plumes of toxic dispersant/oil mixes which are hundreds of miles long out in the Gulf which are going to play hell with sea life. The extent of what these plumes might/will do to sea life and Gulf Coast economies is unknown at this time.

6. More than one pundit has said BP should withold paying dividends to its investors.

7. More than one pundit has suggested BP will be required to go bankrupt.

8. More than one pundit has said the Federal Government should place BP in receiver ship.

9. The bad news about the disaster and BP has affected, negatively, all oil sector stocks, but especially BP, Transocean and Anadarko (company which owns a minority share of the spewing Deepwater Horizon well).

With all of the above, oil found a new bottom in price (since the Deepwater Horizon exploded) on May 25th at $67.15


My Thoughts:

As more people realize tougher governmental regulations are coming to oil rigs, more people will realize the cost of drilling will continue to rise. And costs will especially escalate on deepwater rigs.

As a believer in Peak Oil, I want to plant one solid idea in your brain today: all the easy to find oil has been found and is decelerating in oil recovery. All the hard to find, hard to drill oil and hard to process oil (offshore, tar sands, oil shale, etc.) are going to skyrocket in expense for the next 20 years before the free world has switched transportation and energy to more greener energy.

I daresay today, we will never see oil trade for less than the May 26th low of $67.15 again in our lives.

That said, I recommend we concentrate on how to profit off what is sure to be a long trend in rising oil prices from here.

In the coming weeks, I'll toss out some ideas here from both traditional and Green energy sectors.

The Deepwater Horizon Catastrophe is a game changer in the way the USA explores for energy. Traditional energy (oil, Nat Gas, coal) are going to go up as more regulatory oversight is demanded by US citizens. Keep all of the above in mind as you invest for the short term and long term.

I recommend all day traders to follow Transocean (NYSE: RIG) at Friday's close of $46.85. I will be "scalping" this trade every day this week. Do not, repeat, DO NOT buy and hold this stock for the long term as BP is now threatening to sue Transocean and vice versa.

Transocean has already received hundreds of millions in Insurance payments for the Deepwater Horizon disaster. It won't be long 'til Congress and BP will seek to get their hands on some of that money.

Transocean's P/E is now at a miniscule 5.20.

Transocean is now 53% off its high in less than a month.

Recommendation: use both 5 minute and 15 minute charts to trade in and out of RIG. Scalp it long, scalp it short. Do not hold over night.


Sincerely,

Rock Trueblood


p.s. Asian shares rose this morning as well as oil. S&P futures (3:45 AM EST) are now 3 points above last Friday's close. There are strong down trendline resistances for the S&P 500 and the Dow Industrials. Will the bear market continue, or will we break to the upside today?

Regardless, pick your sectors well. Only buy and hold defensive stocks which will never go out of style.

Heartbreaking Photos of Wildlife Dying To Live With the BP Oil Gusher

There is no way to embed the slideshow from Huffington Post. So, all I can do is link you to "Crimes Against Nature" . . . a heartbreaking answer to all the jerks such as Brit Hume, Haley Barbour and other Neo-Con/Libertarian/Tea Party yodelers who kept asking, "Where's the oil?"

Click here for "Crimes Against Nature" - "Gulf Oil Spill - Animals In Peril".

Oil Slick Spreading Toward Florida Panhandle After Already Hitting Alabama and Mississippi

Latest news has oil already hitting beaches in both Mississippi and Alabama with an estimated time of arrival on the first Pensacola Beach in Florida sometime later today.

From a Press Association release earlier this morning:

An oil slick from the Gulf of Mexico leak was confirmed a few miles off the Florida coast today as the impact of the disaster spreads.

Officials are saying it could hit the white sands of Pensacola Beach later on Wednesday.

Escambia County officials started putting out booms on Tuesday and making other plans for the arrival of the oil which has already impacted on 125 miles of the Louisiana coastline.

Mississippi Governor Haley Barbour says oil is hitting the state for the first time.

Mr Barbour said a two-mile strand of caramel-coloured oil has been found on Petit Bois Island, a barrier island near the Mississippi-Alabama border. The discovery means Louisiana, Alabama and Mississippi have all been hit by oil.

Mr Barbour says vessels will be dispatched to clean up the oil. Officials believe the strand broke off a patch of oil on Sunday south of nearby Horn Island

Note to Watchworld regulars: Haley Barbour is the same politician who just last week expressed little concern for the oil spill. He assured his state citizens the oil spill was breaking up, was 75 miles from Mississippi, was moving westward, and the oil which was washing up in Louisiana was not that toxic as it was breaking up and was just more messy than anything. Suddenly, Barbour went silent over this past weekend. Now the oil has arrived. Now he's eyes wide open.

Also contained in the Press Release is the news that Avatar director James Cameron is offering help to fight the oil disaster:

Meanwhile, federal officials are hoping blockbuster movie director James Cameron can help them come up with ideas on how to stop the disastrous spill in the Gulf.

The Avatar and Titanic director was among a group of scientists and other experts who met officials from the Environmental Protection Agency and other federal agencies for a brainstorming session on stopping the massive oil leak. Canadian-born Cameron is considered an expert on underwater filming and remote vehicle technologies.

More than 20 scientists, engineers and technical experts attended the meeting, which also included representatives of the Energy Department, Coast Guard and National Oceanographic and Atmospheric Administration.

Private groups represented include the Woods Hole Oceanographic Institute; Oceanographic Institute at Harbor Branch, Florida Atlantic University; University of California at Santa Barbara; Nuytco Research Limited; World Wildlife Fund; and the University of California at Berkeley.

If only Mr. Cameron could call up the Navi who could bring their healing power to our ailing portion of the planet.

In another headline this morning on the Huffington Post website which read in huge cap letters "FL-OIL-RIDA: BP Oil Spill Close To Florida: Oil Sheen Spotted Nine Miles From Pensacola Beach" we read the oil is just offshore from Pensacola Beach's white sands. We also read how their request for aid from BP has gone unanswered for the past 3 weeks:

PENSACOLA BEACH, Fla. — An oil sheen was confirmed about nine miles off the Florida coast, and officials are saying it could hit the white sands of Pensacola Beach as soon as Wednesday.

Escambia County officials started putting out boom Tuesday and making other plans for the arrival of the oil. Crude has already been reported along barrier islands in Alabama and Mississippi, and it has impacted some 125 miles of Louisiana coastline.

Fla. officials say their request for about $150,000 from BP to buy sifting machines and a tractor to help remove oil from the beach's famous white sands has lingered unanswered for more than three weeks.

Santa Rosa Island Authority executive director W.A. "Buck" Lee says he is fed up with delays from the unified command center in Mobile, Ala.

Now who here still doesn't believe we're possibly heading into a Double Dip Recession and a continuing crash in Keys Real Estate?

Stay tuned,

Rock

Estimated Gallons Leaked Widget

Big Oil's Groundhog Day of "Deja Vu Land" As Produced by Rachel Maddow

Rachel Maddow completely destroys Big Oil's claim that they've gotten better at drilling for oil offshore. Maddow and her production team put together video clips from a big oil spill in the Gulf of Mexico during 1979. The similarities between it and the Deepwater Horizon Oil Catastrophe of today will make you shake your head in disbelief.

Maddow asserts at the close of her show that oil companies have gotten better in only one respect of drilling: going deeper. The 1979 rig blowout in the Gulf was only in 200 feet of water. On the other hand, Maddow says Big Oil has gotten no better at containing the risks of an oil rig failure, as they are still using tried and failed methods from 31 years ago to try and stop today's leak which is 5,000 feet below the surface.

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