Due to the overwhelming requests from YOUR emails and conversations Investors411 is going to be focusing more on LONG TERM INVESTMENTS. Investors will still cover trends, YSL’s, ETF’s etc., but for May one segment will focus on Long Term Investments – Dividend Producing Stocks. (see below)

Praising Bush

Investors411 has roasted and toasted Bush over the years. However, I do give former President Bush  credit in helping to catch bin Laden.

Two actions that former President Bush took helped in capturing bin Laden. No matter how you feel about the illegitimacy and uselessness of the Iraq war, these factors still count.

• Bush replaced Sec. of Defense Donald Rumsfeld with Bill Gates. Gates team was far superior to Rummy’s.  He was there in the situation room with Obama when the navy seals raided bin Laden’s hideout.
• Bush replaced incompetent generals with the far more able Petraeus. Petraeus realized it was important to win the hearts and minds of the people, an almost impossible tack when your an occupier of a foreign country. He didn’t win all the heart and minds, but he was better at it than his predecessors. His conduct lead to a better situation overall and therefore more actionable intelligence.

Yes, for frequent blogger, EW, Obama get’s the lion’s share of credit, but let’s not forget Bush.

Manipulated vs. Managed

For many moons, Investors411 has used the term “manipulated” when referring to Bernanke, the Fed, POMO, Quantitative Easing etc.  A perhaps better, and certainly softer term would be “managed.” Manipulated has a more negative connotation.

Only time will tell wether managed or manipulated is the more appropriate term.  So far “manage” works for no depression, a robust stock market, -700,00 to +250,000 employed. But many see dark clouds for the future. So lets call it – managed/manipulated

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KISS & Stocks

(Keep It Simple Stupid)

If you don’t understand a term look in up at Investopedia.com dictionary

AS ALWAYS, DO YOUR OWN RESEARCH BEFORE INVESTING!

DOUBLE CHECK ALL DATA, I MAKE MORE THAN GRAMMAR MISTAKES

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Technicals, Fundamentals & Analysis

Investors411 record - 6 years of beating benchmark S&P 500

• OIL (WTIC) traded all the way from @$102 to $95 and settled at $98 Down almost 13% for the week
• Silver stopped the bleeding and rallied over 2% Friday after a 25% to 30% fall for the week.
• Other commodities fell less severely and stocks were down
• The major question in investors minds is the indecision  between deflation (double dip recession) and inflation.
• This week - Europe Crisis, Commodity Rally/Rout, Economic Conditions
• Big rally at open fell apart because of rising dollar.
• Thursday’s weekly jobs number (horrible last week) is the big number for the week.
• NB – A lot of $$$ has come out of commodities and is looking for somewhere to park - so advantage bulls

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Shorter Term Forecasting Indexes

There are hundreds of forecasting tools, – These two tools have worked

When they stop working Investors411 will use other Indexes

• The Dollar (USD) [Any daily price move over +/- 0.50 is significant. Dollar usually moves inversely to stocks] Second big move higher +0.97% on Friday. Sure looks like dollar bulls won the week long war (see Thursday’s Investors411) This move wiped out almost 11 days of the dollar falling. For stocks = Bearish
• McClellan Index - (MO) [The very rough guideline is over +60 = overbought market = sell positions or short stocks, & -60 = oversold market = buy stocks .] Mo on Friday  rose to -13.31 Below zero which is bullish, but not yet overbought = Neutral

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Dividends

Dividend producing stocks have two potential advantages.

• The potential for capital appreciation
• A second revenue stream from a dividend which is payed out to investors by the company

See chart above for long term results

Filters

In order to choose from the aprox. 1600 dividend producing stocks they had to be filtered for certain criteria. So that you may do this yourself the FREE sites I used were -

• Yahoo Finance – The preceding link is set to KMP,  a dividend producing for stock I own. Yahoo Finance simply organizes it all on one page. Charting to the right, daily activity including the dividend rate (6.10%) & up to the date news in the center, and all the fundamentals listed to the left
• Dividends.com – Again, the preceding link is set to KMP. In my Google Search I write the ticker symbol “KMP” then the word “dividend” and Dividends.com link is one of the top choices. Up comes a some very relevant information on KMP and its dividend that’s FREE. Great for an initial search. Dividends.com is mostly a PAY site that offers a two week FREE trial and uses some proprietary filters.
• Lists of Dividend Stocks – All you have to do to get many recommendations on top dividend stocks is, again, use Google – It FREE- WSJ, Seeking Alpha, CNBC, Motley Fools, Jim Jubak, and a host of others offer their top picks.  Hunt away.
• How Dividends Work – At Dividends.com , Wikipedia and Investopedia there’s more information.

What Filters were used to generate this list.

• The chosen stock should be a dividend raiser. A stock whose dividend is stabile (good) going up (better) over a sustained period is better than one going down.
• Capital appreciation – You want the price of the stock you choose to be going up.
• Performance in a meltdown –  The 2008.2009 meltdown was used as criteria. Those stocks whose went way down may have rebounded well but this list looked for those stocks that were less volatile.
• Tax considerations – Dividends in Limited Partnerships & REITS are often taxed less.

Later this week, probably Wednesday, Investors411 will start with the sexy, high octane , high risk dividend plays. Two that I own have 19% and 14% annual dividends and some capital appreciation to boot.  We’ll start with those two and their competitors.

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Positions

Tea Leaves – Bearish dollar, lots of free cash floating around from sellers of commodities(bullish) and a Neutral MO = No clear trend. Hard to call bought probably slight short term advantage to bulls.

Disclosure - I have personal ETF positions in REMX and manage a fund that has a 5+ year position in GLD.

• ZSL trade was officially closed Friday. If you followed silver and Investors411 you made +20% on SLV in April & +30% on ZSL in May
• Would consider ZSL(double short silver) again if SLV approached last weeks low. The major part of any fall usually happens early, but there may be more to the downside in commodities in the medium term. A rebound, at least in short term, should continue in commodities.
• No trending ETF’s currently under consideration

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Check out Paul R’s Comments on stocks and sectors daily and Paul’s Corner every Tuesday and Thursday

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Longer Term Outlook

CAUTIOUSLY BULLISH

AS ALWAYS, DO YOUR OWN RESEARCH BEFORE INVESTING

Lots of you think of GW Bush like this but…

George Bush The Hero

Troubled Asset Relief Program (TARP) Treasury Secretary under BUSH Hank Paulson and Fed Chair Ben Bernanke sold Congress on the $700 billion insurance plan to save shadow banks. Phase 2 was carried out under OBAMA & his Treasury Secretary  Geithner

From screamers - Tea Party Patriots on the Right to Rachel Madow on the left the TARP gets bashed. Even Democrats run & hide when the TARP is brought up.

Yes it was a bait and switch by Paulson, yes it kept the shadows in business, And yes some fat cat CEO’s got fatter because of it (lots of blame to retiring Senator  Dem. Chris Dodd on the last point).

The Bottom Line – Simply a second great depression was averted. Lehman collapsed and if the other dozen or so major investment firms had fallen along with AIG, GE, GM (also add any other worldwide companies that had over leveraged positions) it would have started the dominos of panic and we’d be seeing unemployment at way over double what it is today. Imagine a dozen firms all bigger than Lehman’s going belly up and the other mega banks failing throughout the world. Add media hype. Result Great Depression #2

Story on this from Politico’s Ben Smith – TARP A Success None Dare Mention

FYI on TARP – From Wikipedia “as of April 12, 2010, is down to $89 billion, which is 42% less than the taxpayers’ cost of the Savings and loan crisis of the late 1980s.”

Postscript – 33 Hero Democrats in May of 2010 voted to break up those too big to fail shadow banks. 61 Republican & Democrat caved into the shadow financial institutions and their lobbyist.

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KISS & Stocks (Keep It Simple Stupid)

If you don’t understand a term look in up at Investopedia.com dictionary

AS ALWAYS, DO YOUR OWN RESEARCH BEFORE INVESTING!

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Technicals, Fundamentals & Analysis

Investors411 record – 5 years of beating benchmark S&P 500

Mantra for September - ”The Black Box/High Frequency Traders BB/HFT control the majority of trades. Jim Cramer -”BB/HFT make up 80% of trades.”

Term for the Day – High Frequency Trades - From Investopedia – “High frequency trading is an automated trading platform used by large investment banks, hedge funds and institutional investors which utilizes powerful computers to transact a large number of orders at extremely high speeds. These high frequency trading platforms allow traders to execute millions of orders and scan multiple markets and exchanges in a matter of seconds, thus giving the institutions that use the platforms a huge advantage in the open market.”

US Markets – Ended up flat in what passes now for moderate/average volume. Much less than in the past because retail investors have been exiting stock and trading is dominated by HFT’s.

Brokerages, Mutual Funds & Platforms that cater to individual or small groups of investors/traders are seeing profits diminish as retail investors continue to leave stocks.

Holding onto gains is usually a bullish sign after a major rally day. But there was a divergence in the normal relationship between the dollar and stocks that have been moving in almost 100% different directions since July. The dollar took another big hit and stocks instead of moving higher were flat. (more below)

Gold like Silver last week broke out to new highs. Mea Culpa – Investors411 talked many times about buying GLD on dips but never did.

Significant Indexes

• The Dollar (USD) [Anything daily price move over +/- 0.50 is significant. Dollar moves inversely to stocks] The dollar, fell ANOTHER HUGE -1.01% yesterday.  Dollar at 81.08 and has a another major support level at just below $80. For stocks =Bullish
• The Baltic Dry Index (BDI) [measures cost of world trade. Also proxy for China & emerging markets] Fell a  -1.21% yesterday.  The BDI does not have the immediate impact that the MO or Dollar does. Two relatively minor down days in a row. Right now longer term chart pattern still = Bullish
• McClellan Index – (MO) [The rough guideline is over +60 = overbought market = sell positions or short stocks, & -60 = oversold market = buy stocks.] MO fell to +45.56 yesterday. Back to = NEUTRAL

Reading Tea Leaves

We may have missed at least a short term selling or shorting opportunity. We had the MO at +61 & the Dow climbed another +60 points in to the the AM. (just short of the +100 criteria) Investor411 has only one small long position in EWS, so I took no action in the 411 account.

The Baby Bull is still alive. But…

There has been a key divergence. The dollar is in meltdown vs. other currencies. From yesterday on the dollar  “one ugly bearish chart” This dollar meltdown should have been good news for stocks. Stocks should have rallied. But they stayed flat & the MO dropped 16 points. Sometimes it takes a day for stocks to react, but, for right now, overbought stocks went nowhere despite good news in a falling dollar.

This could signal at least a short term top.

Positions

The  Positions Section link to latest & former buys and sells  - These are positions I actually own

(I do manage 6 accounts that have other positions)

Current positions –  EWS (Singapore).

EEM (the major ETF for emerging markets) is overextended from 50 DMA. So are other breakout countries. It would be natural to see some sort of consolidation.

Along with the Baby Bull the upgrade to CAUTIOUSLY BULLISH is not yet firmly in place. We still could fall back to neutral.

Here’s the test – The MO falls to about zero or +20 and stocks rally from that point.

I’d be willing to invest/risk a bit more then. Yes its not -60 on the MO – a better entry point, but emerging markets & a falling dollar are pulling US equities along for the ride. A consolidation after a run is not to be feared. Also time to start looking at YOUR stock list

Long Term Outlook – CAUTIOUSLY BULLISH

AS ALWAYS, DO YOUR OWN RESEARCH BEFORE INVESTING!

DOUBLE CHECK ALL DATA, I MAKE MORE THAN GRAMMAR MISTAKES

Lincoln Douglas Debate

Great Debate

The comment’s section is often the best part of Investors411. Jobs, China, Deficits and revenue have highlighted this debate. Jsovjani has come up with an informative data base on revenue deficits, & revenue.

How much tax revenue growth was there under Clinton vs. Bush vs. Reagan?

I look at the numbers relatively, so this (mostly) avoids having to compensate for population growth, inflation etc. I used the year each President took office as the base. Each new president built on what was already there.

• Clinton inherited Bush Sr.’s budget and by the end of his first year 1993 it was $1,i54 billion.
• During his 8 years in office he raised tax revenue to $1,991 billion in 2001
• The total gain in revenue under Clinton was $837 billion or @ +72%
• Bush Jr. started from the Clinton base of 1,991 and ended in 2009 with yearly tax revenue of $2,105.
• The total gain in yearly revenue under Bush was @ +5%
• Reagan in 1981 yearly tax revenue was $599 billion and when he left office in 1989 it was $991 billion
• Reagan gained @ +65% Of course he did raise taxes many times. Something Republican forget.

You  use the previous year as a base number but the stats come out basically the same. There are cases where cutting taxes can raise tax revenue. But when you consider what Bush inherited and what he left us with and compare it to Clinton or Reagan – Bush tax cuts over 8 years in no way raised significant revenue.

• Clinton beats Reagan and their is a vast improvement in tax revenue building.
• Bush comes in last by a wide wide margin.

As Robert H says numbers are relative.

Stocks

The Black Boxes want to take this market higher. They did yesterday confirming the previous day’s rally.

• The MO moved up to +27.04 NEUTRAL but approaching +60 or oversold levels.
• The BDI took another big -3.87% hit yesterday= Bearish

Looks like another 1 to 2% gain will get us to overbought territory on the MO and a time to take some short positions.

Barr

Iran Day 11

Iranian protestors – Photo from Andrw Sullivan blog

Neda Agha-Soltan has become the hero of the Iranian revolution from American media (LA Times here ) to Arab media here In fact al Jazeera has a whole section devoted to "Iran in Crisis" here Al Jazeera is an outlet for mostly Arab Sunni’s and Iran is Persian Shia’s. No love lost between these two groups. You heard and saw Neda’s story at Investors 411 3 days ago.

More of the same in Iran. Less on street demonstrators and more violence. Previously listed best  sources are still telling the story to the world. Some predictions from BBC – What’s next for Iran here

One issue that many on the far left are not going to like to hear. Israe l has certainly made mistakes in its two recent wars with Iran and her proxies (Hamas & Hezbollah). But seeing how the Iran’s "Supreme Leader" treats his own people you can see how hard it is to make some peace with him or his clients. Of course, the first the recognize and lavishly praise Ahmadinejad’s & "Supreme Leader’s" victory was Hamas (here) and Hezbollah (here )

Barack "Hoover" Obama?

Yesterday Abby posted an article by Kevin Baker on Obama from Harper’s magazine. Unfortunately you have to be a subscriber to reference the article. You can view some excerpts here The focus is that Obama has not and may not be able to change the strong intrenched interest that created the economic mess we are now in. President Hoover (his picture above) did nothing and the Great Depression grew.

Context We tore down the regulations on "free" markets and developed a massive credit debt over the last decade that has exploded. Yes, Paulson, Bernanke (more the previous Fed chair Greenspan) and Bush were leaders in creating this mess, but late last year when we stood on the edge of economic catastrophe they (PB & B) instituted a plan and prevented world economies from falling off a cliff. Bernanke, Geithner & Obama have followed through and added to that plan

Remember Lehman Brothers cause over $400+ billion dollars of debt to spread throughout the world when it went bankrupt. People were lined up in panic at insurance companies and banks. What if AIG, CitiBank, Merrill Lynch Fannie, Freddie. AIG and so many others had followed Lehman. The end result would have rippled through out the system and economic catastrophe would have been the result.

How Obama handles the economy is priority #1. Because it is the world’s economy and he is easily the most important/influencial figure. Unlike Hoover whose inaction significantly added to the Great Depression Obama has acted. But its those entrench interests that have dug in. Time will tell.

STOCKS

AS ALWAYS, DO YOUR OWN RESEARCH BEFORE INVESTING

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Technicals & Fundamentals

US markets took a major hit on a bad economic forecast from the World Bank.

The volume was again below average. It hard to be sure about making a forecast when our #1 forecasting tool – volume – gives no indication of which way prices will flow.

Major event – Fed Meets today and issues statement on Wednesday

Yesterday’s major event was The World’s Bank lowered its outlook for the world’s economy this year from -1.7% to -2.9% .  This is some truly bad new s for long term investors.

Since volume is out as a forecasting tool right now, today’s price move will act as a confirmation of yesterday’s move. Do we fall further (bearish) or rebound (bullish)?

Significant forecasting tools/Indexes for stock markets

Note - Repeated statements in brown

Right now, there are two indexes that are significantly influencing stocks in the USA & world. The US dollar in the short term and the BDI in the longer term

$USD -  The dollar is the index to watch. Dollar went up +0.57% yesterday. Any move over 0.50 is significant.  It looks like the dollar may be establishing a short term bullish pattern (see chart)  of higher highs and higher lows. Still to early to tell.

All together now -  our mantra – when the dollar goes up stocks go down . This strong inverse correlation has existed for many moons.

BDI - The Baltic Dry Index measures the flow of goods (world trade). 24 up days in a row, 6 down day in a row,  a 6 day rally and the BDI fell minimally on Friday and significantly yesterday. This is a very important chart that has just rolled over. It usually moves in one direction for an extended period of time.  If it moves past and creates a lower low than it had eight days ago it would be a serious sign of trouble Right now, the momentum is with the bears.

If trade is diminishing through out the world then a worldwide recovery is in big trouble.

You can play with the chart and create different settings to get a better idea of what’s happening, (the same with all other links to different charts)

Reading the Tea Leaves

Still think this market has moved too high to fast and is a technical rebound. As stated two weeks ago we may see a 5 to 10% technical fall or consolidation. This week fearless forecast – Another down to flat week. The benchmark S%P 500 has already broken through support and fallen 6 to 7% from its high to  893. Next significant support level is 875 to 880. As stated above volume is NOT confirming (or has yet to confirm) the downside move. So far this still is a technical correction of a market that went too high too fast.

Both the dollar and the BDI have started to trend in the wrong direction (If you’re a bull on stocks) Add the World’s Bank prediction and you have lots of reason to hear the bear’s growl.

Got burned with this the last time I did this, but buying a little protection on any minor rally. Adding small position in SDS (ETF that does 2X the opposite of the S&P 500)

AS ALWAYS DO YOUR OWN RESEARCH BEFORE INVESTING

What’s Up? – Your Smack Down List- 20, count them, 20 smack downs – you guys are angry – The HULK is on his way; The New Your Times – a phenomenal resource – Charts, graphs and data. Consumer Rights Legislation; Barney Battles Banks; David Brooks on Obamanomics; Tomorrow - Torture

     Your  SMACK DOWN LIST

Investor’s411 is sending THE HULK (Movie version above) to Smack Down the following people, institutions, & concepts that you selected. Instead of 10 Smack Downs YOU came up with 20. To see full list of comments & reasoning scroll down on this link.

1. Alan Greenspan
2. Hit & run Drivers
3. Hezbollah
4. Hamas
5. Inflating intelligence
6. Larry Summers
7. Ahmadinejad
8. Bush
9. Cheney
10. Rumsfeld
11. Tortures
12. Junk mail
13. trashing the environment
14. Former Senator Coleman
15. Minnesota going without representation
16. MN Governor Pawlenty
17. those who cut education
18. those who cut health care
19. N. Dakota sate legislature
20. those who discriminate

For those of you who missed out on Smack Down comments or thought we missed something - tomorrow’s #1 topic is TORTURE. There will be another Smack Down List next month.

AP photo Scott Appelwhite 

Consumer Rights Legislation

Barney Frank is leading the major consumer rights bill through congress . You can imagine how hard the Shadow Banks & Credit Card Companies are fighting this bill to aid consumers. Obama meeting with big banks today. NYT story

Say what you want about, Barney Frank, but he like Elizabeth Warren is one of the heroes fighting the big money Shadow Banks. No bank(s) owns Barney Frank The Republicans and many Democrats owned by the big banks killed his efforts for consumers last year. Check out his long but enlightening “Great Economic Hole” Speech of 2/4/09

Why the NYT’s is a Phenomenal Resource

* NYT has a graph and interactive chart telling Where Your $ Bailout Money Has Gone 

* NYT has another chart/outline on Our Government’s Total Bailout Tab

* NYT has another interactive chart on Pay at the Top (CEO’s)

Obamanomics

Obama’s landmark economic speech is reviewed by conservative NYT columnist David Brooks Also see April 15th blog post on Obama’s speech.

Tomorrow TORTURE

This is the #1 topic among the blogs. Want to lead the discussion? Send in your comments below.

STOCKS

Technicals & Fundamentals

Repeat from yesterday -Forget all about the major indexes - What happens to the shadow banks (financials) absolutely dominates stock  trading.

Earning season continues – Markets have already factored in most of the bad news into this earnings reports. Apple and Ebay did hit earnings home runs. UPS struck out

XLF - The ETF that tracks financials (mostly shadow banks) rose +0.91% in decreased volume.  Financials have lead this rally and if they  collapse so will almost all other sectors (see Positions section of blog on XLF) This leading index is the one to watch.

Short Term Outlook -(again a repeat) Second technical chink in the bulls armor appeared Monday – another big volume sell off.  Volume, the #1 confirmation factor of stock price moves. But Tuesday’s bigger volume (for FLX) means we are one again going up on the roller coaster and gives hopes to bulls.

Too early to make a call on which way this may break, but short term traders should pay attention. The Danger signs to watch for - more big price/volume decline  and/or stocks moving lower on no news or good news. Especially in the XLF

Reading the Tea Leaves - Look for a pull back this week or before the governments “Stress Test” becomes public May 4th. 

AS ALWAYS DO YOUR OWN RESEARCH BEFORE INVESTING! 

Sorry limited time this AM – No time to format.

The Truth About the War

Finally, after years of Republican stonewalling the Senate’s Intell Report has become public. It is the lead editorial of the NYT. Finally we are getting the facts about of all the propaganda, fabrications and lies that sold the American public on the Iraq war. Last week Scott McCllelen, Bush’s press secretary revealed his insider’s view and now the Senate has published the facts. Most Update readers of are already aware of that the causes of the Iraq war were fabricated propaganda. But the more sources that bring these injustices to light the better it is for our country, democracy, morality and the world.

From the NYT

The report shows that there was no intelligence to support the two most frightening claims Mr. Bush and his vice president used to sell the war: that Iraq was actively developing nuclear weapons and had longstanding ties to terrorist groups. It seems clear that the president and his team knew that that was not true, or should have known it — if they had not ignored dissenting views and telegraphed what answers they were looking for.

Over all, the report makes it clear that top officials, especially Mr. Bush, Mr. Cheney and Defense Secretary Donald Rumsfeld, knew they were not giving a full and honest account of their justifications for going to war.

NYT editorial

Stocks

Everything moved higher. Oil prices gushed higher and stocks exploded to some of the best gains of the year

Obviously something is not right when oil prices rise 4.49% and major stock indexes also explode about 2% higher. You would expect stocks to fall if oil rises and visa versa. Volume was a bit above average for both stocks and oil – so volume did not confirm either move. The big question is which one will continue to go higher?

Reading the tea leaves – Answer – In the short term stocks should go up and oil go down. Oil prices are so extended above their 200 day or 40 week moving average they need to take a breather.

Every technical analyst on the planet knows that oil prices are way over extended. What probably happened yesterday is that a lot of traders (traders as opposed to longterm investors) got caught shorting oil and had to buy to cover their shorts when oil gushed higher. 4.49% is a huge move for oil. There was no major fundamental of story behind the price increase. Best guess is a bunch of major oil speculators colluded to drive oil prices higher and when a resistance level fell everyone was thrown into panic.

Short term it looks like energy related ETF are going to flatten or fall because oil prices are so over extended are way over extended.

NEUTRAL – Long Term Outlook

Barr

Fear mongering – McCain and Bush, the new Dynamic Duo , launched what is obviously a coordinated attack (Karl Rove is now an advisor to McCain) on Barack Obama because he is open to talking with “radicals” See front page Boston Globe and other papers.

Bush equates talking with potential and real enemies with the appeasement of Hitler. Obviously there is a huge difference between talking and appeasement. But let’s get right to the Bush quote – speaking in front of the Israeli parliament Bush states

“Some seem to believe we should negotiate with terrorists and radicals, as if some ingenious argument will persuade them they have been wrong all along. We have heard this foolish delusion before. As Nazi tanks crossed into Poland in 1939, an American senator declared: “Lord, if only I could have talked to Hitler, all of this might have been avoided.” We have an obligation to call this what it is – the false comfort of appeasement, which has been repeatedly discredited by history.”

To start, two of Bush’s major foreign policy achievements have been achieved by talking to terrorists and radicals

1) In Libya we talked the terrorist dictator Col. Quadafi and got him to drop his nuke program. Foe some of you to young to remember this terrorist took down a passenger plane over Scotland.
2) In North Korea we talked to another despicable despot/terrorist and moved him away from nuclear weapons. (a work in progress)

Nixon not only talked the talk he walked the walk and went to communist China. We are a whole lot better off now not having a billion plus Chinese waving those little red books and calling for our destruction. Detente was used with the Russian’s during the cold war whose leader promised “Our children will bury you.”

McCain’s quote on Obama’s willingness to talk with “radical’s” and “terrorists” – “It is a serious error on the part of Senator Obama. It show’s a naiveté and inexperience and lack of judgment…”

Obama’s response to Bush – “Instead of tough talk and no action, we need to do what Kennedy, Nixon, and Reagan did and use all elements of American power – including tough, principled, and direct diplomacy – to pressure countries like Syria and Iran. George Bush knows that I never supported engagement with terrorists, and the president’s extraordinary politicization of foreign policy and the politics of fear do nothing to secure the American people or our stalwart ally Israel.”

Most American’s have woken up to Bush’s fear mongering and will no longer support a President who divides the world into “you’re either with us or against us” Hillary Clinton weighed in and found Bush’s remark’s “offensive and outrageous.” John McCain should denounce Bush’s fear mongering appeasement analogy instead of accepting it.

Winston Churchill, Britain’s famous WW 2 leader, said it best

“It’s always better to jaw to jaw than to war to war.”