Odds and Ends

Ramblings regarding what's recently relevant...

(1) Maybe its me, but its only been a few days and I've already heard enough about Hurd (of HP and his dinner expenses/relationship with an independent contractor turned Hollywood actress). What's important for investors is whether or not the previous earnings generated under Hurd were legit and if the company will change its direction philosophically or business aim-wise. It appears that the answer to these are: yes and no. If that remains true, the drama isn't our business and the company should be fine.

(2) Alan Greenspan has one-uped Tim Geithner calling for a repeal of ALL bush tax cuts. While evidence does show a multiplier effect as to the benefits of tax cuts, Greenspan articulates a great point -- he's in favor of tax cuts, just not with borrowed money and deficits needing as much attention as they do now. Again, the consistent theme of leveraging yourself to economic prosperity arises. Personally, I hope this time the choice is one of moderation and that at least some aspect of the tax cuts are repealed. And I'm as libertarian as they come. But as long as I'm living in the US, taxation and public responsibility for all is the name of the game. Maybe I'll find Ayn Rand and Dagny Taggart's hidden community some day.

(3) The Fed meeting tomorrow may address the idea of additional quantitative easing measures. I'm doubtful any direct action will be taken soon and think the Fed may wait another quarter to see the exact reality of the economic picture. Again, if the economy can sputter along at a rate 2% growth, while consumers save, deleverage and yet spend enough to keep businesses operating stably -- that may be navigating the best and healthiest route for the longer term.