More Great Economic News

Discussion in 'Business & Economics' started by sandy, Jun 2, 2007.

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  1. kmguru Staff Member

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    Today, I saw a bottle of yeast (to make bread) at $7.55 vs. $4.85 in about 6 or 7 months ago.

    The truth is there is plenty of oil under Africa, but there is no pressure on the oil companies to drill them, since there is plenty of profits from past investment as oil price is going up. Shareholders are happy.
     
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  3. Carcano Valued Senior Member

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    The Chinese are knocking themselves out drilling for oil in Africa.

    World production hasnt declined yet, but demand from China and India is way up.
     
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  5. kmguru Staff Member

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    The problem with Africa is economic and political instability. Look at what happened in Kenya. Unless the local population get the benefits, Africa will remain a risky venture and hence very low extraction.
     
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  7. TruthSeeker Fancy Virtual Reality Monkey Valued Senior Member

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    Do we REALLY need more polution? :bugeye:
     
  8. kmguru Staff Member

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    What type of pollution you are thinking?
     
  9. Billy T Use Sugar Cane Alcohol car Fuel Valued Senior Member

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    Continuing with more data related to Kmguru's post 818:

    "... Mortgage woes are spreading to other types of loans as the economy weakens and unemployment rises, producing a secondary pressure trend hitting bank earnings, experts said this week, …

    Higher provisions to cover rising losses on consumer loans will likely eat into bank profits in the fourth quarter and beyond. That may squeeze the capital cushions of some banks that already have taken write-downs in the tens of billions of dollars because of exposure to mortgage-related securities. …

    Until the middle of last year, consumer loan losses were held in check as house prices climbed, allowing borrowers refinance mortgages or take out home-equity loans and use the cash to pay off credit card bills and auto loans. But as the subprime-fueled credit crisis erupted in August, such activity ground to a halt.

    {Billy T comment: Table below of already announced Bankers' write-downs for 16 top financial firms totaling $72.3 billon dollars MORE (AFTER THIRD QUATER'S EARLIER LOSSES) Citygroup will announce fourth quarter's write downs on 15 Jan 08. They are expected to be about 10 billion more. By end of January, when others have also announced Q4 write downs, we should be looking at $0.1 TRILLION dollars of losses since Q3 of 2007 !!!!}:

    UBS $13.7 bln
    Citigroup *$13.7 bln
    Morgan Stanley $10.3 bln
    Merrill Lynch $8.4 bln
    HSBC $3.4 bln
    Bank of America *$3.3 bln
    Deutsche Bank $3.1 bln
    Barclays $2.7 bln
    Royal Bank of Scotland $2.6 bln
    Credit Agricole $2.3 bln
    Bear Stearns $1.9 bln
    Credit Suisse $1.9 bln
    JP Morgan Chase $1.6 bln
    Goldman Sachs $1.5 bln
    Wachovia Bank $1.1 bln
    Lehman Bros. $0.8 bln

    Zach Gast, Center for Financial Research and Analysis:
    “Since then, credit card and auto loan delinquencies have begun to rise and will probably deteriorate further. The surprise is that that it took this long for the consumer to start struggling," he added.

    John McDonald, an analyst at Banc of America Securities:
    "Recent signs of economic weakness could lead to deterioration in other loan classes that have so far held up well, such as commercial, non-residential components of commercial real estate and credit cards,"

    American Express, AXP, shares slumped more than 10% on Friday after the credit-card giant said it was forced to record a $440 million, fourth-quarter charge to cover the cost of increased delinquencies and loan write-offs. … Another big credit card company slashed its profit forecast on Thursday for similar reasons.

    The delinquency rate on banks' consumer loans, which include credit cards and auto loans, rose to almost 2.5% during the third quarter, from less than 2% at the start of 2007, according to CFRA data. Gast expects that to rise in the fourth quarter and keep climbing in 2008.

    As loan losses climb, banks will have to put more money into reserves. Such provisioning will whittle away at banks' capital, adding another strain to the big write-downs that investors are already expecting. …"

    {Billy T comment: Nothing to worry about. :bravo:- The "good news" is that A&A will save US financial system from immediate collapse. "A&A" = Arabs and Asians. :yay: My long standing prediction is that the collapse comes between Oct 2008 and Oct 2014. Sure hope GWB gets the credit for it he so well deserves. GWB made collapse unavoidable in only 7 years by wars, doubling the debt, and a failed "serve the rich" tax policy.}

    From:
    http://www.marketwatch.com/News/Story/Story.aspx?guid={2E530903-6EAE-43CB-8C18-816A5F9B70C8}

    DON'T WORRY SANDY. Gold and price of oil will keep going up as the value of the dollar falls.

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    Last edited by a moderator: Jan 13, 2008
  10. USS Exeter unamerican american Registered Senior Member

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    ^ That's great economic news right there!! :bravo::yay:
     
  11. kmguru Staff Member

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    To contributors on this and other economic topics:

    I have noticed that Google spiders catch sciforum within an hour of new post and they show up on the first page of any relevant searching. So, your post may make a difference if people are looking for ideas to solve like US Government Commerce Department who, I was told have fogiest idea how to improve US economy, but do Google a lot.

    One government group from Ohio are visiting Southern Africa hoping to drum up business but not sure how.

    May be our discussions will give them an Eureka moment.

    So, remember - your post is seen by a lot of serious people besides our usual nutcases.

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    Keep the ideas flowing
     
  12. USS Exeter unamerican american Registered Senior Member

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    Let's start, how do we improve the economy?
     
  13. TruthSeeker Fancy Virtual Reality Monkey Valued Senior Member

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    Fucking OIL!! :bugeye:
     
  14. TruthSeeker Fancy Virtual Reality Monkey Valued Senior Member

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    Kicking GWB out of office is a good start....
     
  15. TruthSeeker Fancy Virtual Reality Monkey Valued Senior Member

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    GWB is really a WMD, eh!?
     
  16. kmguru Staff Member

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    11,757
    Simple...Export...Export...Export

    There is a continent out there that is bigger than USA, Europe and China combined, has a lot of resources. So can we start with teaching them how they can improve their quality of life like India and China are doing?
     
  17. TruthSeeker Fancy Virtual Reality Monkey Valued Senior Member

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    OH GOD!!!!! WE ARE GOING TO FURTHER RUIN THE SITUATION!!!!!!! :runaway: :runaway:

    *sobs*
     
  18. TruthSeeker Fancy Virtual Reality Monkey Valued Senior Member

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    China and USA are continents!?!? :bugeye:


    Huuumm... which marvelous continent is that?
     
  19. TruthSeeker Fancy Virtual Reality Monkey Valued Senior Member

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    So..... can the US export trillions of dollars worth of goods to compensate for the trillions of dollars in debt!?!?


    Besides, what is the US going to export!? All the manufacturing plants are currently in China anyways!!

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  20. kmguru Staff Member

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    It is called AFRICA!

    If you export $1 Trillion worth goods and services, that is equivalent to about $6 to $8 Trillion worth economic value. That is due to circulation of money.


    In 2006, we exported $1 Trillion of goods and services. That is how we are surviving. Otherwise we would be singing Argentina....So, there is plenty of juice left...but we have to hurry before the Chinese and Indians get smart and plug the holes.
     
  21. Billy T Use Sugar Cane Alcohol car Fuel Valued Senior Member

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    Correcting myself in my post 826's estimate that citygroup would report about 10 billion in write downs tomorrow:

    "The loss at Citigroup may include almost $19 billion of writedowns on holdings of mortgage-related securities known as collateralized debt obligations, according to Goldman Sachs Group Inc. analyst William Tanona. CNBC reported earlier today that the company may announce a $24 billion writedown and job cuts of 17,000 to 24,000. ..."

    From:
    http://www.bloomberg.com/apps/news?pid=conewsstory&refer=conews&tkr=C:US&sid=a1r8gcqTEmD4
    a few minutes ago.

    I.e. if true, City alone will bring financial loses since close of third quarter 2007 to 0.1 TRILLION dollars! I think Citygroup is the first to report the losses for fourth quarter of 2007. - So it continues to be worse than anyone expected, even me.

    -------------------------------------------
    "... The Chinese government's apparent rejection of a planned multi-billion-dollar investment in Citigroup Inc. by state-owned China Development Bank suggests there may be limits to Beijing's status as a cash source for Western banks eager to plug holes in their balance sheets. ...

    People familiar with the situation say China's senior leadership decided against backing the investment plan, which had been in the works for weeks. The letdown comes after China's sovereign wealth fund, China Investment Corp., pumped $5 billion into Morgan Stanley in December to help rebuild its capital base. ...

    Citigroup had hoped to sell a stake valued at about $2 billion to China Development Bank as part of a second round of fundraising to improve its books, in the wake of huge losses from its exposure to U.S. subprime lending and its decision to fold off-balance-sheet investments into its own accounts. ...

    It wasn't clear exactly what caused Chinese leaders to scrap the plan for China Development Bank to invest in Citi. Yang Hua, director of China Development Bank's news department, says she is unaware of any plans for China Development Bank to invest in Citigroup or any government opposition to any such investment. Avoiding another splashy investment in the U.S. financial sector could signal China's desire to maintain a lower profile as concerns mount about sovereign wealth funds -- or it could be a sign of reluctance to pour too much money into assets when it is unclear their prices have bottomed out. ..."

    From:
    http://online.wsj.com/article/SB120030610310488191.html?dlbk

    I bet City is just floating the 19 and 24 billion rumors so that when they report 15 billion in Q4 loses, the impact will not be so bad. We should find out tomorrow how bad it was, but in view of what the Chinese just (January 14, 2008 11:41 a.m.ET) announced ( "No deal" ) perhaps announcement of Q4's loss will be delayed - I sure would not like to make that call as Citi's new CEO. - What a choice! Announce with no recovery deal or let people think even worse. (I.e. that the 19 to 24 billion loss rumors are true.)
     
    Last edited by a moderator: Jan 14, 2008
  22. spidergoat pubic diorama Valued Senior Member

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    Why? Because cutting interest rates again is a desperate move that will not be good for the dollar.
     
  23. Billy T Use Sugar Cane Alcohol car Fuel Valued Senior Member

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    Here is support for what you say:

    "... U.S. currency extended three weeks of declines as Federal Reserve officials including Chairman Ben S. Bernanke signaled last week they favor greater ``insurance'' against an economic slowdown amid the slump in the housing market. European Central Bank council member Klaus Liebscher said today he sees ``significant'' upside risks to inflation. ..."

    from:
    http://www.bloomberg.com/apps/news?pid=20601087&sid=aiNcOymVQRk0&refer=home

    PS After the dollar has collapsed, gold price will be more than $5000/ oz and Sandy will think she has died and gone to heaven.
     
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