Archive - Mar 18, 2010 - Blog entry

The outlook for natural gas is terrible. Will this be the ETF that kills the goose that laid the golden egg? Torpedoed by contango. Sarah Palin’s pet project bites the dust. Sweating bullets in Qatar. Moral of the story: read the damn prospectus first. A new 100 year supply of natural gas will be a dead weight on prices for decades. Gas companies are racing to out-produce each other in the hope of offsetting falling prices with increased volumes. It’s sad to see such a great molecule fall on such hard times. Pitiful, really. (UNG), (CHK), (DVN), (XTO).

We think that China is an indestructible economic juggernaut but its economy is very fragile and it is sitting on a property bubble which will burst. What China does in response has major implications for their economy and the rest of the world. This is the third part of a three-part series on this topic: The Consequences.

The Greek saga continues, exactly as was anticipated. For all of those who don't regularly read me, this is really not about Greece but about the start of either default or significant depression throughout a large swath of the Eurozone. Greece is the firestarter and it looks as if we are starting to burn...

Sometimes I have to actually read articles twice, because it really seems that I have somehow missed the point the first time around. Well, on my third glance at this Bloomberg article, I still don't get it: SLM Sells Debt at Higher Interest Rate Than Students Pay