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Andy R

06/09/06 3:04 PM

#16041 RE: Frank Pembleton #16040




F- Yes no follow through on yesterdays recovery so looks like lower we go, too tepid a response in all bounces so far. I will not be convinced until for starters we see 7-10% up moves in say KGC BGO SSRI.

As for military success you mention I think we disagree as I see it as almost inconsequential as mentioned in my previous post. On the military front it is ugly and increasingly so.

Oil will remain high as long as economy is strong, this is what is the question. I also think many misunderstand military expenditures in that these are real dollars being spent, not some figment and drive the economy bigtime, from nuts and bolts to aircraft. As ME conflict etc have expanded so have expenditures, Iran would be very expensive. US will use its oil reserves as Bush recently mentioned but certainly something to think about as per investments.


The other support is conflict and supply threats such as ME, South America, Nigeria which are not going away. Not to mention the varacious appetite of say China and India for resources such as oil. Note China about to start drilling in GOM off Cuban coast etc.. A good example.