Saturday, July 3, 2010

"Drill,Baby, Drill!" and "No, You Can't!" Proponents

It is interesting that advocates for "Drill, Baby, Drill!" tend to also be advocates of "No, You Can't!" If the advocates succeed, what will their policies do to the U.S. economy? See video: "Barton Biggs Interview About U.S. Economy, Stocks>>>>"

Related print article:
"Biggs Sells Technology Stocks on Concern `Soft Patch' to Worsen"

"Concern governments around the world are curtailing stimulus measures too soon spurred Barton Biggs to sell about half of his stock investments this week.

Biggs, whose Traxis Partners LLC gained 38 percent in 2009 when he bought equities after the Standard & Poor’s 500 Index fell to a 12-year low, sold most of his U.S. technology holdings, he told Bloomberg Television yesterday.

Signs the U.S. economy is weakening convinced Traxis to reverse course as the S&P 500 posted a weekly slump of 5 percent, bringing its loss since April 23 to 16 percent. Biggs, 77, said yesterday he cut bullish bets by about half since June 29, when they made up 70 percent of his fund.

“I can change my mind very quickly,” Biggs, who manages $1.4 billion, said in a telephone interview following the Bloomberg Television appearance. “I’m not wildly bearish, but I don’t want to have a lot of risk at this point. I just want to have less exposure at a time like this.”

The withdrawal of government stimulus, including the U.S. Senate’s vote against extending unemployment benefits on June 30, may turn a “soft patch” into a recession, he said. The second recession in three years isn’t inevitable should “rational politicians” take action to avert it, he said.

Stocks in the U.S. have fallen nine times in 10 days, including yesterday when data on jobs and factory orders added to concern the economic rebound is slowing. On Bloomberg Television, Biggs said “policy mistakes” could curb the U.S. expansion in gross domestic product that’s forecast by economists to be 3.2 percent in 2010.

A Mistake

Biggs said it would be a mistake to rein in government spending at a time when global economic growth is weakening. The largest economies should aim to cut deficits in half by 2013, the Group of 20 said in June 27 after a meeting in Toronto." Article>>>> Barton Biggs Video>>>>

For your video enjoyment:

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