Daily Digest 5/14 - How to Fish the Markets, American Energy Boom Is Overrated
Silver Lows: A Discernible Pattern (GE Christenson)
Significant lows are separated by approximately 4.5 years, with rather wide variations. I doubt you can trade this; but, if you are investing for the long term, this indicates that buying aggressively approximately every four to five years should work out fairly well. April 2013 looks like it is at or near a multi-year low.
The Central Banks' Gold: a Story of Silent Expropriation (Nervous Nelly)
In the 1970s, the USA sold 530 tonnes and the IMF sold 732 tonnes – a total of 1,262 tonnes. In the 1980s, the world's monetary authorities made almost no sales or purchases of gold, its reserves were in a «frozen» state. In the 1990s, net sales of gold from the official reserves of economically developed countries amounted to the already considerable sum of 2,900 tonnes. At the end of 2000, the world's official gold reserves contained 3,600 tonnes less gold than in 1975.
Air NZ forced to review Japan flights (NZSailor)
The change in Japan's monetary policy is intended to have a stimulatory effect on consumer demand although this may take some time to filter through and is likely to be seen first in the Japanese domestic market, Air New Zealand said.
There's already evidence that some of the commandeered WordPress websites are being abused in a similar fashion. A blog post published Friday by someone from Web host ResellerClub said the company's systems running that platform are also under an "ongoing and highly distributed global attack."
Teaching You How to Fish the Markets (Arthur Robey)
By 1982, tiny Penn Square Bank, located in the Penn Square Mall in Oklahoma City, Okla., had made over $1 billion dollars of energy loans and resold them to money-center bank Continental Illinois National Bank and Trust Company of Chicago.
The loans went bad, quickly.
Exporting U.S. Natural Gas: Yes or No? (James S.)
We should believe what markets tell us. If they tell us we can’t profitably export certain advanced chemical products without imposing barriers to overseas sales of natural gas, that probably means we should be exporting the gas. Forcing exports uphill against market fundamentals only makes us poorer in the long run.
He prefaced his thoughts by noting that the banks are responsible players when it comes to mortgages and there are many checks and balances built in to the market aimed at weeding out risky borrowers. But the fact that Canadian consumers are sitting on record debt is a risk in itself, rendering them vulnerable to a potential rise in interest rates or unemployment.
David Rosenberg: Why cash is your least safe bet (westcoastjan)
The major geopolitical risk was Israel doing something in Iran, sending oil possibly above US$200 a barrel, and, of course, we know with hindsight that never happened. Now Israel has a new and likely less aggressive government in the aftermath of the recent election results.
Families edging out private equity in consumer deals (westcoastjan)
"Part of the reason for traditional private equity firms not being involved in the D.E. Master Blenders transaction was that the multiples were too high to make the returns work," said Magnus Scadden , Head of EMEA Consumer and Retail at Houlihan Lokey, an investment bank.
Many others are still holding back, though, including some British retailers and the US giant Gap, which is reportedly unhappy at the binding terms of the deal, when it says it is already taking its own measures to boost safety at factories it uses.
Patients can carry, or be colonized by, a microbe like MRSA, but have no signs of active disease, while those who are infected are sick and have symptoms. (All patients with C. diff in the study were infected and had diarrhea and other symptoms.)
12 reasons the American energy boom is overrated (westcoastjan)
“People who claim that natural gas will spark a broad-based U.S. economic renaissance, if only pesky environmentalists lay off, are exaggerating the benefits of the shale gas bonanza,” he writes.
Before the Industrial Revolution in the 19th century, global average CO2 was about 280 ppm. During the last 800,000 years, CO2 fluctuated between about 180 ppm during ice ages and 280 ppm during interglacial warm periods. Today's rate of increase is more than 100 times faster than the increase that occurred when the last ice age ended.
Rainforest plays critical role in hydropower generation (westcoastjan)
They found that rainforests are more critical than previously thought as they produce the rain that fills the streams that ultimately drives the rivers and the turbines.
"Rainforests generate their own rainfall, " Dr Claudia Stickler, from the Amazon Environmental Research Institute International Programme (IPAM-IP), told BBC News.
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