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2010-02-22 09:40
LAZY AMERICANS (FINAL EDITION)

The survey by the "Daily Beast" that calls America the laziest country in the world is misleading, but points to serious problems. The structure of the report was flawed. Even though I was eating a giant bowl of Fruit Loops with the television on while reading the report on the Internet I don't think that the categories reflect laziness.

* Calories consumed
* Television watching
* Internet usage
* Aversion to sports

I'm mixed on the notion that calories consumed means lazy. There is no doubt that Americans work long hours, making us susceptible to weight gain. On the other end of the spectrum are people that don't work and still get fed and housed (and soon even top notch medical care) but for them there is no urgency to get off the couch. I have to say that I get up each weekday at 3:50 am and most weekend days around 7:00 am and go straight to work. I don't get the exercise I would like but would never consider myself lazy. We have lost our desire to work with our hands, and that is sad. My family has land in Alabama that's just sitting there with trees and bushes where there was once okra, squash, chickens, and cows that sustained dozens of people during hard times.

Now, none of my relatives want to work the land. It is hard (physical) work, but if you're not making a lot of money, are unemployed, or want to feed a family it's worked blessed by God. This is the conundrum of America. We push many buttons, the products we make today weigh much less than products we made a couple of decades ago, and we get carpal tunnel from overuse of keyboards not shovels. Maybe there is an inflection point down the road where somehow technology becomes so advanced that it carves out free time even for people that work two jobs. Or, like so many stories about the future, somehow we survive a financial or environmental apocalypse and start from scratch. In the meantime, the good news is that some of the safest jobs in the country are those that generate sweat. Jobs that can't be outsourced involve physical labor.

Although my plumber is in worse shape than I am, and I've seen my share of construction workers that should be on Jenny Craig, I wouldn't say they are lazy. Be that as it may, I dismiss the idea that America is lazy even if it has regressed from physical activity. Now I'm going to get on my Nintendo Wii and workout.

This week promises to be a real donnybrook over healthcare reform. The President's plan will be posted on the Internet and there are rumors of Democrats employing reconciliation to bypass the filibuster, a gambit that politicians say is dirty and many feel ignores the desires of most Americans. I will say that Americans are more kind-hearted than they are lazy. But, are we going to come to a point in this country where people are born with a guarantee of shelter, food, and healthcare paid by others and really think that somehow these same people are going to propel themselves to a better life? On the contrary, more than likely that pool of Americans will get larger until a point there aren't enough workers to carry the load. Yet, the debate is going to be framed that people opposed to massive spending and even more entitlement programs are mean and cold.

As indicated in the "Daily Beast" survey, America has the fattest poor people in the world. Our poor people all have televisions and access to the Internet. It's not making them less poor, fat, or lazy.

After watching the weekend talk shows and reading all the usual periodical sources there is no doubt the healthcare summit will be a farce that leads to healthcare being rammed down our throats. One quote that underscores this:

"There is a certain shill, there's a trick" -Wendell Primus, Senior Health Adviser to Nancy Pelosi

I've interviewed enough Republicans to know that they have ideas on healthcare reform but they don't seem to have details or the ability to articulate them, which will make it easier for the White House to put the motions of reconciliation into motion. Doesn't make it right, and it could be the final nail in their coffin. I get the feeling when I listen to President Obama that compromise means he will adopt GOP ideas that he likes, though the real essence of compromise is adopting programs he isn't so thrilled with. Certainly, that is the way it has to be with the party of "no" and what American people are seeking.

Bipartisan Spirit

For those that say the two political parties can't work together because they have nothing in common should consider earmark spending. The FY 2010 budget features $15.9 billion in 9,499 earmark projects. The number is down from $19.9 billion, although it has been pointed out in Newsmax.com and other places that when stripping out $1.8 billion from emergency war spending and $2.3 billion for Army Corps of Engineers earmarks increased year over year.

* Eight of top ten recipients are Senate Democrats
* Top recipient in Senate is Republican Thad Cochran with 242 earmarks adding up to $497.0 million
* Top recipient in House is Republican Bill Young at $128.6 million
* All top ten recipients, except Nancy Pelosi in House, are on Appropriations Committee

So much for the pledge of no earmarks or a substantial cut in earmarks.

By the way, I interviewed David Walker, author of "Come Back America" and collaborator of www.IOUSAthemovie.com. He says that we have several deficits including budget, savings, balance of payments, and leadership. Keep in mind that David was appointed U.S. Comptroller General by former President Bill Clinton and is for a form of universal healthcare. He says that each American owes $500,000 toward unfunded promises and taxes are going up...period!

Economic Pulse

Bank failures for 2010 have reached 20, a number that is actually better than I expected coming into the year. Still, some headlines screamed "Bank Failures Up 25%"so there is different ways to look at the news. Moreover, it is interesting considering this week the FDIC updates its list of Problem Banks. These bank failures cost the FDIC $1.065 billion.


Housing Improvement Mostly Missing in 4Q Numbers and 1 Guidance
By: Brian Sozzi, Research Analyst

This morning, home improvement retailer Lowe's Companies Inc (LOW) kicked off earnings week for companies directly linked to the opening and closing of consumer wallets. As we indicated in our pre-earnings note on Lowe's and larger rival Home Depot (HD) last week, the set of 4Q09 reports and initial FY10 outlooks were likely to be the most important of those heard from each big box operator in quite a while given the obvious shift of fortunes in the U.S. residential housing market. Not only were trends in 4Q09 worthy of keen attention but the initial FY10 outlooks could have taken two divergent paths; err on the side of caution despite data suggestive of strengthening future demand from do-it-yourself (DIY) remodelers and contractors, or build in a sense of cautious optimism. Lowe's decided to pick path number one, partly explaining the stock's downward reaction in early trading.

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