In investing you have opportunities that open up because dogmatic investors say “I don’t do ... ”
A 65-mile stretch of the Mississippi near New Orleans remained closed Monday after two vessels collided and caused an oil spill on Saturday in foggy conditions about 30 miles west of New Orleans. As NBC news reports, the Lindsay Ann Erickson crashed with the Hannah C. Settoon, which was pushing two barges carrying barrels of light crude oil that spilled into the river. Clean-up efforts are underway.
Asian equities are trading lower across the board on the back of some negative credit stories from China. Shanghai Securities News noted that ICBC and some other banks have curbed loans to developers in sectors such as steel and cement. Slower gains in home property prices in China’s tier 1 cities are also not helping sentiment. Beijing and Shenzhen prices rose 0.4% in January, which looks to be the slowest monthly gain since October 2012 according to Bloomberg. Elsewhere there are reports that a property developer in Hangzhou (Tier 2 city in China) is reducing its unit prices by 19%. Our property analysts noted that given the strong gains seen in Tier-1 and some bigger Tier-2 cities in 2013, a slowdown or negative trends in price growth should not be a surprise. Nevertheless, it has been a very weak day for Chinese and HK markets with the Shanghai Composite and the Hang Seng indices down -2.0% and -1.2% lower as we type. Across the region, bourses in Japan and Korea are down -1.0% and -0.6%, respectively.
Tickets to see this year's frigid battle between Seattle and Denver would have cost no more than $85 if they had kept pace with the government's perspective of inflation (CPI). If Super Bowl tickets had tracked the S&P 500's reflationary trajectory, they would cost $275. Instead, in what is the biggest surge in face-value prices YoY ever - more than doubling last year's - the highest Super Bowl tickets this year cost $2,600 face value, a record high. However, resale tickets – where the market really sets the price – tell a quite different (and more) negative story. It’s not simply a lukewarm economy.
Philadelpia may have booed Santa Claus, but last night it was New York's turn to boo a not so jolly, calorie-challenged man, embattled NJ governor Chris Christie, during the ceremonial Super Bowl “handoff” at Times square. However, in the aftermath of Friday's NYT revelations that evidence exists that Christie was aware about the real reason behind the bridge closures as they happened, onlookers only had a brief 30 seconds during which to boo Christie before he promptly departed the stage on his own.
The Shocking Reasons that Americans Are Right to Be More Afraid of Bad Government Policy than Terrorism
Speaking in New Orleans, the President is expected to discuss the economy and we are sure say "sorry" again for that... Perhaps the most interesting thing is that the local Democratic senator - up for re-election - will be skipping the speech. As USA Today notes, Sen. Mary Landrieu who is expected to face a tough re-election battle next year because of her support of Obama's health care law, has a long-standing commitment that will force her to miss the speech (but some political analysts suggest that the decision to skip the speech might be motivated in part by a desire to avoid images of her standing side-by-side with Obama).
One has to wonder if somewhere deep down a change is occurring in America. While stock prices soar to record highs, it is clear a growing number of 'real' people are realizing the nonsense that watching a 'market' as anything indicative of reality has become. The latest 'shift' is the appearance on New Orleans local TV of a two-minute primer on an "alternative" school of economic thought - Austrian Economics. While the anchor is careful to add the caveat that the mainstream economists think the world would be a terrible place if they didn't help us along, the brief clip begins with some useful common sense, "the market alone should decide the value of products and services. If a company is not successful, it should go bankrupt." Indeed...
"I have been cursed at a Chinese border. In Dubai, my passport was studied by three veiled women for over an hour and my suitcase completely dismembered. In the Philippines I had to bribe someone in order to get my visa extended for a few days. Borders, they can be tough, especially in countries known for corruption.
But never, ever, will I return to the United States of America."
- Excerpt from a must read article by Niels Gerson Lohman
David Stockman, author of The Great Deformation, summarizes the last quarter century thus: What has been growing is the wealth of the rich, the remit of the state, the girth of Wall Street, the debt burden of the people, the prosperity of the beltway and the sway of the three great branches of government - that is, the warfare state, the welfare state and the central bank...
What is flailing is the vast expanse of the Main Street economy where the great majority have experienced stagnant living standards, rising job insecurity, failure to accumulate material savings, rapidly approach old age and the certainty of a Hobbesian future where, inexorably, taxes will rise and social benefits will be cut...
He calls this condition "Sundown in America".
On the eve of the eighth anniversary of Hurricane Katrina the Greater New Orleans Community Data Center, which has been tracking recovery indicators since the early months after the storm, issued a snapshot of post-Katrina statistics... and the results are mixed. From the good (63% of New Orleans students passing vs 30% pre-Katrina); to the bad (rising adult unemployment and child poverty rates); to the ugly (rapidly collapsing population dynamics reflecting a very 'detroit'-like scenario), it seems there is still work to be done...
A study carried out recently by Nature Climate Change took a look at and analyzed past and present floods in the world and was able to predict the future floods that will take place concerning 136 cities.
A new study carried out by the economists at the World Bank has examined the risks that coastal cities around the world face due to global warming’s effect on extreme weather events, and rising sea levels. The study determined the cost of flooding in 136 of the world’s largest coastal cities by matching average annual losses against the city’s gross domestic product (GDP), and predicted that by 2050 the cost could reach $1 trillion a year, if governments don’t start to take the “prophecies of doom” more seriously and prepare strategies to minimise the effects of severe weather and build flood defences. Over 40% of those costs will likely occur in just four global cities; New Orleans, Miami, and New York in the US, and then Guangzhou in China.
Over two years after Zero Hedge first accused Goldman and JPMorgan of becoming monopolists in the commodity warehousing business (see "Goldman, JP Morgan Have Now Become A Commodity Cartel"), and two weeks after the NYT's reminder the world of just this leading to the latest Kangaroo Court congressional hearing on the matter, which may or may not have resulted in JPMorgan announcing it would exit the physical commodities business, the long overdue legal fight began this Friday when lead plaintiff Superior Extrusion sued Goldman and London Metal Exchange owner HKEx for engaging in "anticompetitive and monopolistic behaviour in the warehousing market in connection with aluminium prices" and accusing the firms of violating the Sherman anti-trust act. Precisely what Zero Hedge said, some 26 months ago.
When Bad Government Policy Leads to Bad Results, the Government Manipulates the Data … Instead of Changing PolicySubmitted by George Washington on 07/30/2013 15:09 -0400
Problem ... What Problem?