Archive - Jun 2010 - Blog entry

This thing might be a LOT bigger than we've been told ...

A hands on analysis behind what the coming wars between the Apple IPhone/Ipad, Google/Android, and Microsoft/Windows means to the technology business, the (fortunate) consumer, and the future of computing. The next Microsoft is about to be borne, and its a good chance it may not be Microsoft this time around.

The daily spill estimate has been ratcheted up from 1,000 barrels a day to 35,000, and now 60,000. Fitch downgraded its debt a stunning six notches from AA to BBB. Obama’s oval office salvo was directly aimed at the firm. $20 billion has been forced into an escrow account to cover damages. And now lightning has struck their crude recovery ship! Is it possible that the capitulation sell off in BP stock is at hand? (BP), (RIG).

The world’s financial press, in which leading economists and analysts publish their work, never examines the relationship between the abandonment of the gold standard and unemployment, de-industrialization, and the huge chronic export deficits of the Western world powers. Yes, Dorothy, the bankers really are responsible for the world's financial problems today so get your head out of Oz!

On Sunday, the People's Bank of China (PBOC) has ruled out the one-off revaluation that US politicians had sought. For now, analysts still expect the yuan to slowly rise. Meanwhile, the decision by China should not have come as a surprise as there are several major risks should China implement a faster yuan move as favored by many.

Some additional info came forward since I last quoted a Belgian newspaper that the Jones Act may have caused a delay in the oil spill rescue by forbidding foreign vessels and personnel to work in the U.S. Gulf.
As it has turned out, the Belgian companies shouldn't feel too bad, the U.S. also turned down an official offer by the Dutch government as well.

Short covering is unlikely to be the fuel that propels prices higher.

A picture is worth a thousand words ...

It's the worst environmental disaster in U.S. history, and probably in world history ... Could you pinpoint where the Deepwater Horizon sunk on a map? Do you know whether it is on flat ground or on a slope?

Michael Hudson analyzes the new financial class war...devastatingly brilliant.

Four investment strategies for the potential margin squeeze and drag on stock prices coming from companies unable to pass through the cost increase from the raw material side.

Calpers is ramping up its infrastructure investments, buying a stake in London's Gatwick Airport...

What were they thinking? The biggest FX loss ever?

I like her.

By going long corn, you effectively own a rising standard of living in the emerging markets, as well as challenging fresh water shortages, famine, and bad weather in grain producing countries. It also looks like the mindless diversion of one third of the US corn crop for fermentation into ethanol for fuel is not only going to continue for the foreseeable future, it will expand. Check out the new corn ETF. Sounds like a “buy” to me. (CORN).