Archive - Aug 2010 - Blog entry
August 20th
Hedge Fund Corners the Cocoa Market
Submitted by madhedgefundtrader on 08/20/2010 17:53 -0500Taking physical delivery turns the market upside down. Speculation is rife about secret hedges, under the table contracts, or other back room deals. Banned in the US, but legal in London. A newfound penchant for chocolate by the rising Chinese middle class. Get involved, but you might consider taking a long nap first. (NIB).
Use of Dispersants in the Gulf Proves to Have Little Benefit
Submitted by George Washington on 08/20/2010 16:18 -0500All downside, no upside...
The Deflation Bogeyman
Submitted by Expected Returns on 08/20/2010 14:21 -0500Based on the comments and emails I'm receiving lately, it appears more and more people are hopping on the deflation bandwagon. These correspondences have exposed to me an obvious misunderstanding of basic facts. While I suppose I am an "inflationist", I'm the first to admit that deflationists have some valid arguments to support their claims. But at the end of the day, their arguments are flawed; I just don't see deflation as a realistic threat moving forward.
How Much Debt Does the S&P 500 Have?
Submitted by Bruce Krasting on 08/20/2010 08:44 -0500The answer to the question above is: Much more than you think. Much more than they are reporting
Tech Sector: HP`s Outlook for 4th Quarter Much Better than Cisco`s Chambers
Submitted by asiablues on 08/20/2010 08:33 -0500My take from listening to the HP earnings call last night and a comparison of the tech sector outlook between HP and Cisco
Pivotfarm Daily News Harvest 20th August 2010
Submitted by Pivotfarm on 08/20/2010 07:32 -0500Markets in a Flash
· As European markets opened and fell this morning and a correlating fall has been seen in the EUR/USD currency pair after comments by ECB council member Axel Weber suggested that that the ECB will support the region’s banks for longer than some investors expected.
· The USD/CAD saw a strong jump north breaking the 1.0500 level as Canadian Core CPI data came in less than expected.
· The GBP looks weak today along with the EUR as European equity markets fell. The JPY and USD seem to be strong against the two.
Top Oil Expert: Geology is “Fractured”, Relief Wells May Fail and Oil May Leak for Years … BP is Using a “Cloak of Silence”, and Refusing to Share Even Basic Data with the Government
Submitted by George Washington on 08/20/2010 02:07 -0500Few people in the world know more about oil drilling disasters than Dr. Robert Bea. We would be wise to listen to what he has to say ...
Response To Pragmatic Idealist And His Article On Austrian Theory
Submitted by Econophile on 08/20/2010 01:24 -0500Dear Pragmatic Idealist: I don't know where you get your ideas about Austrian theory, but they are completely wrong.
August 19th
Why Small Banks Are The Key To Recovery-Part 2
Submitted by Econophile on 08/19/2010 23:55 -0500Money supply is declining, ZIRP and QE haven't worked, so what's the Fed supposed to do? More of the same? This article takes a look why banks are critical for an economic recovery and why the government has done everything they can to prevent it. Here is Part 2 of 2 and where I think we're headed.
Hello, We Lost Track of $25 Billion?
Submitted by Bruce Krasting on 08/19/2010 21:06 -0500A billion here,25 billion there.
Repositioning Austrian Monetary Business Cycle Theory
Submitted by PragmaticIdealist on 08/19/2010 18:34 -0500Providing a semi-critique of some over-eager Austrian monetary business cycle theorists. Some Austrians go too far and attribute all blame to the government's monetary policies in creating bubbles. But at least some blame must be attributed to investor/consumer irrationality and groupthink.
Caisse Delivers $4.1B Value Added in H1 2010
Submitted by Leo Kolivakis on 08/19/2010 18:26 -0500The Caisse de dépôt et placement du Québec, Canada's largest pension fund, announced today a return for the first half of 2010 of 2.33%, outperforming its benchmark by 307 basis points and adding $4.1 billion in value added. Given the volatility in the markets, this is impressive.
The Problem With GM
Submitted by madhedgefundtrader on 08/19/2010 17:18 -0500The hoopla over GM’s impending, politically timed IPO obscures fundamental weaknesses that have not going away. Its core customer base is dying off as fast as the reborn company can build new cars. A company with a demographic headache like no other. Driving to Beijing for a tune up?
New Jersey With The Luck Of The Irish
Submitted by Static Chaos on 08/19/2010 17:09 -0500New Jersey (and several banks for that matter) got the luck of the Irish as they were able to pull an Enron accounting trick without any consequences after settling a related suit with the SEC.
BP and the Government Are Underplaying the Difficulty of Stopping the Oil Leak
Submitted by George Washington on 08/19/2010 14:25 -0500What's REALLY going on with the oil leak?
