The United States experienced another interesting first on Wednesday. For the first time in the history of our union, the Securities and Exchange Commission brought charges against a State. The powers that be in New Jersey had been deceiving and misleading investors in regards to the fiscal well-being of the Garden State, and the SEC busted 'em. Bravo.
[Read more...]The Continuing Decline of US Productivity
August 11, 2010 By Leave a Comment
Two charts for the history books today… let's get right to 'em:
Worker productivity fell at a 0.9% annual clip from the first quarter this year to the second, the government announced yesterday. Thus, we've found an end of an incredible boom for this D-list data point. Companies have been asking more and more out of fewer employees for the last three years, and the threat of joining the 14.6 million “officially� unemployed has compelled workers to comply.
[Read more...]Is the BP Oil Spill a Good Thing?
July 23, 2010 By Leave a Comment
“This disaster in the Gulf will bring so much joy, such great future for the US!â€? Marcio Mello said yesterday during his presentation at the Agora Financial Investment Symposium. If you are unfamiliar, Mello is the geological legend responsible for Brazil's massive deep-water oil discoveries in the last few years. He shared his thoughts at our annual Symposium yesterday…
[Read more...]5 Ways to the US Government Can Fix the Economy
July 22, 2010 By Leave a Comment
A pop quiz: How much money did the US government inject into the American “financial system� from June 30, 2009, to June 30, 2010?
Drumroll…
$700 billion.
That's right…the same amount promised to the financial system in TARP, back in 2008, when they were literally on the brink of destruction. Over the last 12 months, as the S&P 500 rose as much as 30% (up about 15% now, after the summer correction), evidently banks, brokers and lenders needed another $700 billion… just trust ‘em…really.
[Read more...]Chinese Energy Consumption Surges Forward
July 21, 2010 By Leave a Comment
China is now the largest energy user in the world, the International Energy Agency announced this week. The country consumed 2.252 billion tons of “oil equivalent� last year. The US – formerly the largest – managed to burn just 2.17 billion tons.
So it goes… Another inevitable milestone of Asian growth and Western decline. Like most facets of this takeover, the changing of the guard has been swift:
[Read more...]Trade of the Decade Update
July 20, 2010 By Leave a Comment
Breaking news: Our New Trade of the Decade Is Off!
Well, half of it…temporarily.
“This is what we got dead wrong,� Rob Parenteau candidly admitted on the top floor of the Fairmont Hotel Vancouver last night, where we gathered for the second annual meeting of the Richebacher Society.
[Read more...]Another Government Sponsored Bull Market
July 19, 2010 By Leave a Comment
“Canada Woos Chinese Touristsâ€? reads a recent CBC News headline. Unbeknownst to most of us in the States, China deemed Canada an “approved destinationâ€? for Chinese tourists late last year. That's an odd concept for some Western ears (more below), but the government's blessing has nonetheless caused a flood of Chinese tourists…global recession be damned.
[Read more...]
Indian Markets Open the Foreign Floodgates
Ease of access is a staple of market booms. It's hard to imagine American stocks, for example, surviving these days without support from retail, institutional and international investors alike. In the same way, much of China's incredible market boom is thanks to Hong Kong, whose exchange opens the gate to millions of investors who want a piece of the world's hottest market.
[Read more...]