Gulf Coast Workers 1,
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Research for Online Investors

by John Dalt

6/22/10

A New Orleans Federal Court blocked Obama’s six month moratorium of deep water drilling.  This decision was made quickly so either party could appeal before the appeals court goes on summer recess.  Reuters has a quick story on the appeal with some background information.  The administration has said they will appeal the ruling, and the Interior Department announced they would not issue any new permits without lengthy review.  It is unclear if they can “slow walk” existing lease permits that may need additional approvals.  Additional permits are required for a platform to continued drilling as benchmarks are met.  Any foot dragging will be met with more lawsuits.

As we mused yesterday, a floating Chinese Yuan can go up, or down.  During Monday’s market the Yuan initially was higher, but closed lower against the dollar for the day.  The Chinese have placed a limit on the daily movement of their currency of 0.5%.  This does not sound like much, but in currencies can be quite dramatic.

We mentioned the possibility of congress taxing retirement accounts.  The Wall Street Journal had a good article on just this subject, Is a Roth IRA Safe From Taxes?

I am not qualified to answer questions on retirement planning options.  We prefer to spend time helping our subscribers make money, let the accountants help you keep it.  One of the points in the article that I did not remember was a 15% excise tax on retirement plan distributions from 1987 through 1997.  This tax was collected on distributions in excess of $150,000 per year, even if the recipient was required to make the withdrawals.

Speaking of making money, our subscribers to the Buy, Sell, Hold covered call service sold Ultra Petroleum for a 13.3% gain last Friday.  Covered calls offer the best income and downside protection in today’s market, you can read more here.  Why not join us?

May home sales dipped 2.2% on previously occupied homes.  Regional results include some interesting statistics.  Home sales in the Northeast declined 18%, the Midwest was unchanged, the South increased 0.5%, and home sales in the West increased 5%.

At current sales levels, there is an 8.3 month supply of homes on the market, compared to an optimal six month supply.  You can read more about the home sales report in U.S.A. Today.

You may want to buy a copy of Rolling Stone this weekend.  The one with Lady Gaga on the cover with machine guns.  Inside is an in depth article on General Stanley McChrystal, the U.S. commander of all NATO forces in Afghanistan.  If you’re like me and cancelled your subscription to other leftist journals, borrow one rather than give them your money.  As an appetizer the U.K. Guardian has some of the more controversial quotes and opinions expressed by the general and his staff.

The General has been summoned back to Washington, for consultation.

To the mailbag:
You are correct in your concern regarding BP and the alarming pattern of government expansion through unilateral decree.---paid up subscriber D.F.

Call it extortion, tyranny or any other name, it is illegal.---paid up subscriber R.Q.

Many thanks to R.Q. for the link to Thomas Sowell’s article Is U.S. Now On Slippery Slope to Tyranny?  Dr. Sowell is a better wordsmith than I and a better thinker.  I am gratified he makes the same points I was trying to make, with better effect.

Don't let critics change the way you think on the BP arm-twisting our government is doing.  You've got it right.  Our constitution forbids our government to exercise any right not expressly given. And I'm having a hell of a time finding the section where it mentions levying "fees" on corporations without due process in our courts.  Let them do it "for the small people" once, then the socialists will feel free to do it at whim.---subscriber M.G.

Thanks M.G.  I appreciate your input and support.  We must watch and be vigilant; my fear is it will get worse.

The information presented in this newsletter is based on generally available news releases, corporate filings, current events, interviews and the editor’s opinions.  It may contain errors and you should not make investment decisions based solely on what you believe you have read here.  Do your own research, it is your money.  If you lose it, it is your responsibility, not ours or your grandmothers!  The editor may or may not have a position in any securities discussed.  The editor may have held a position in a security earlier, or in the future.

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