Archive | May, 2011

A TRIBUTE TO ADAM SMITH: The division of labour in pin manufacturing

29 May

No commentary required.

WE HAVE A SPENDING PROBLEM NOT A REVENUE PROBLEM: Michael Pento on US default scenarios

29 May

http://video.foxbusiness.com/v/963730791001

WORLD’S LARGEST FLOATING OFFSHORE LNG FACILITY: Shell approves $11bn Prelude

29 May

Shell approves the $11bn Prelude LNG offshore project avoiding the need to pipe deep and remote gas onshore. This project will allow the capture and transportation of stranded gas utilising new breakthrough technologies. 

Vodpod videos no longer available.

NIALL FERGUSON: The iPIGS, don’t forget Italy!

29 May
Vodpod videos no longer available.

GABELLI: Capitalise on Demographic Aging

29 May
Vodpod videos no longer available.

UBS’ DONOVAN – Expect more mediocre growth and the G8 will accomplish nothing

29 May

Donovan sees the G8 meetings as being essentially irrelevant and useless. He believes as usual the meetings will achieve nothing. Donovan expects Euro growth to remain tepid and even mediocre. He calls for a rational approach to appointing the next IMF Head based on their candidacy rather than their nationality. However, he does not believe Greece can withdraw from the Euro and does not see emerging markets having a real impact, but will become relevant in 15 years. These last two points regarding Greece and emerging markets I disagree with but the rest of the video summarises the current European market dynamics quite well. Again I cannot subscribe to the institutional groupthink around the non-viability of a Greek Euro exit and the non-relevance of emerging markets.

Vodpod videos no longer available.

CARL ICAHN: Wall Street – you can’t teach an old dog new tricks

28 May

Carl Icahn is concerned that little has changed over at Wall St. His bearish stance has already led him to return capital to outside investors in his hedge fund.

Commenting on Wall St. behaviour Icahn stated in a CNBC interview:

“I do think though that there could be another major problem. Now, will it happen next week, next year, I don’t know? Certainly nobody knows, but I don’t think that the system is working properly. I really find it amazing that we’re almost back to where it was, where there’s so much leverage going on in the investment banks today. There’s just way too much leverage and way too much risk-taking, with other people’s money. 

I know a lot of my friends on Wall Street will hate my saying this, but the Glass-Steagall thing or something like it wasn’t a bad thing.  In other words, a bank should be a bank. Investment bankers should be an investment banker. Investment bankers serve a purpose, raising capital and whatever, but I think today, and I know a lot of people won’t like hearing this, what’s going on today, I think we’re going back in the same trap, and I will tell you that very few people understood how toxic and how risky those derivatives were. CDS were extremely risky the way they were used, and you look at Wall Street and you say, hey, they did it, but then you can’t really blame the Wall Street guys. You can’t blame a tiger.  If you take a fierce man-eating tiger and put him in with a lot of sheep, you can’t blame the tiger for eating the sheep. That is his nature. And that’s the nature of Wall Street guys and I’m not saying their bad but that’s their nature. And the government should regulate finance.” 

Vodpod videos no longer available.

%d bloggers like this: