Congress and President Bush have reached a tentative agreement on an economic stimulus package.  Details are not concrete, but it looks like a minimum of $300/person ($600/couple) to $600/person ($1200/couple) and $300 per child, up to a maximum of $1200/family.  Individuals must make less than $75,000, and couples must make less than $150,000.  After those salary levels the rebates start to phase out 5% per $1000 of salary.  Remember, this has not been approved and may change.  The incentives also include business tax breaks that create reasons to invest in plants and equipment, more beneficial (to the business) expensing rules, and allow a partial claim of taxes paid in previous years for losses incurred now.  Looks like a great compromise to us, and could certainly spur better GDP growth this year.  Combined with continued interest rate cuts and healthy bond insurers this could take us out of the woods.  I do not agree that lending institutions need to relax qualification standards and start lending to more people and business'.  That is what got us into this mess to begin with.  Make it hard for everyone to get a loan in our opinion.  Requirements should continue to include great credit, collateral, and significant down payments which should become a standard in our opinion.  Old school lending.

So far our stock picks are rocketing today, we will see if it holds.  If the market health continues to develop over the next 10 days we will be releasing a new stock pick or two.  Health will be defined by very small increases in index value over many days, with single day declines included.  If the market just rockets back up that is either very unhealthy or symptomatic that there was never a serious problem.

All News Releases