Daily Digest

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Daily Digest 12/26 - The Double-Edged Sword Of Cheap Oil, Best and Worst Investments of 2014

Friday, December 26, 2014, 11:49 AM

Economy

Little College Guidance: 500 High School Students Per Counselor (jdargis)

While small private schools can often afford to provide their students with tremendous hand-holding, large public high schools across the country struggle with staggering ratios of students to guidance counselors. Nationally, that ratio is nearly 500 to 1, a proportion experts say has remained virtually unchanged for more than 10 years. And when it comes time to apply to college, all of the students need help at once.

Our brains are being “continuously reshaped” by smartphone use (jdargis)

The very tip of the thumb was even found to be sensitive to day-to-day fluctuations in phone use. The shorter the period of time that had elapsed after the last episode of intense touchscreen use, the more activity was observed in the brain.

Financial Fantasy Land Continues to Prevent Collapse: Bill Holter (pinecarr)

On Holter’s outlook for 2015, he says, “I think there is going to be a reset of asset prices, a reset of currencies and a reset on the values of everything. I also think credit will actually seize up in and around this reset. What I really think you are going to see with a credit seizure is a problem with distribution. When I say distribution, look what happened this past week in Belarus. Because the Russian ruble collapsed, the Belarusians, because their currency is tied to the ruble, they went out and made a run on their banks and went into stores and took everything off the shelves. How are those shelves going to get restocked? They get restocked via use of credit. The entire distribution chain runs on credit, and if credit seizes or even hiccups, you could very well see a panic and shelves clean up lock, stock and barrel.” This same thing could happen in America, as Holter goes on to explain, “This is human nature. If you see a run on a bank or your ATM’s don’t work or your credit cards don’t work, people are going to take whatever cash they have and buy whatever they can.”

Rise in Loans Linked to Cars Is Hurting Poor (jdargis)

And similar to how a red-hot mortgage market once coaxed millions of borrowers into recklessly tapping the equity in their homes, the new boom is also leading people to take out risky lines of credit known as title loans.

The Best and Worst Investments of 2014 (jdargis)

Semiconductor company Skyworks Solutions makes the components in mobile phones and other devices that connect them to wireless Internet. Last quarter, its sales were up 51 percent year-over-year. If you'd invested $10,000 on Jan. 1, it would be worth $25,630 today.

To hold onto subscribers, Sprint has aggressively cut prices on its mobile phone service. It reported a profit in just one of the past four quarters. If you'd invested $10,000 on Jan. 1, it would be worth $3,870 today.

Egypt And The Double-Edged Sword Of Cheap Oil (Evan K.)

The good news for Egypt: Inexpensive oil means the government needs to spend less on its fuel subsidies for its energy-hungry population of 86 million people, the third largest in the Middle East. The bad news: Rich oil-producing countries in the region are making less money on their primary exports and thus may eventually have to reduce the financial aid they’ve been showering on Cairo. The price of oil has plummeted by nearly 50 percent since June, leaving benchmark crudes now trading at around $60 per barrel, down from their peak of more than $110. If the current price of oil holds, the Egyptian government is expected to save $4.2 billion on fuel subsidies in the fiscal years that spans parts of 2014 and 2015, a 30 percent reduction, says Egypt’s Petroleum Minister Sherif Ismail.

What Pairs Well With a Finger Lakes White? Not Propane, Vintners Say (jdargis)

Since then, dozens of protesters have been arrested near the natural gas storage site, just outside this upstate village, where rolling hills fall into deep glacial lakes. Anti-gas signs have become nearly as common as grape trellises. And more than 50 local winemakers — joined by several vintners from acclaimed wineries in California, France and Germany — have spoken out against the project, saying the community’s future is tied to the land, not to the gaping holes deep beneath it.

Ten Years Since the 2004 Indian Ocean Tsunami (jdargis)

On this day, ten years ago, a magnitude 9.1 earthquake struck beneath the Indian Ocean near Indonesia, generating a massive tsunami that claimed more than 230,000 lives in fourteen different countries, one of the deadliest natural disasters ever recorded. Today, many of the communities have recovered, though painful memories and some ruined structures remain in place. Across Asia today, memorials were held in remembrance of the thousands of victims. Amid the commemorations, continued warnings from earthquake experts that early-warning systems need even more development and funding in the region. Gathered here are images of the 2004 event, a series of then-and-now comparison images, and photos from today's memorials.

Gold & Silver

Click to read the PM Daily Market Commentary: 12/24/14

Provided daily by the Peak Prosperity Gold & Silver Group

Article suggestions for the Daily Digest can be sent to [email protected]. All suggestions are filtered by the Daily Digest team and preference is given to those that are in alignment with the message of the Crash Course and the "3 Es."

2 Comments

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4163
Arthur Robey's picture
Arthur Robey
Status: Diamond Member (Offline)
Joined: Feb 4 2010
Posts: 3936
All Good at the Reserve Bank of Australia.

The chart pack offered by the Reserve Bank of Australia shows absolutely no red lights.

Of particular interest to me is the last chart which shows China's economy surging ahead with what appears to be a nice healthy real estate market.

Japan has met it's 2% inflation target.

It is All Good. (Apparently)

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