Monthly Archives: July 2013

6% Treasury yields? May come sooner than you think

"The Federal Reserve will lose control of interest rates as the "great rotation" out of bonds into equities takes off in full force, according to one market watcher, who sees U.S. 10-year Treasury yields hitting 5-6 percent in the next 18-24 months. 'It is our opinion that interest rates have begun their assent, that the Fed will eventually lose control of interest rates. The yield curve will first steepen and then will shift, moving rates significantly higher,' said Mike Crofton, President and CEO, Philadelphia Trust Company told CNBC on Wednesday. Under this scenario, he sees the yield on the 10-year rising to 3.5-4 percent in a 'very short period of time.'" Continue reading →

Continue Reading6% Treasury yields? May come sooner than you think

Obama’s Auto Industry Bailouts in 2009: Taxpayers Lose, Big Time

"Despite surges in revenue and a catalog of new vehicles produced by the U.S. auto industry, taxpayers are still suffering from the 2009 bailouts, as General Motors (GM) would have to peddle their stock for $95.51 per share for taxpayers to break even, according to a government watchdog report published Wednesday. Even with a 25-percent spike in the price this year, that’s still well over twice what shares are selling for today, with the price currently lingering around $37 per share — meaning there’s little faith that taxpayers will break even on the nearly $50-billion GM bailout." Continue reading →

Continue ReadingObama’s Auto Industry Bailouts in 2009: Taxpayers Lose, Big Time

The “I Thought Bonds Were Safe” Fallacy…

"Now remember, Bernanke didn’t change rates, he just implied that rates may increase in the future. The market, however, took that rhetoric and ran. Accordingly, the bond market fell. For instance, from its high around May 1st the 30-year treasury market has fallen some 9%. Nine….freaking….percent. That’s a huge move for a seemingly steady and professional market like bonds. It’s also a devastating move to risk-averse bond investors (like my dad.) All said, safety seekers got burned. And you can thank the 'Ber-nank.'" Continue reading →

Continue ReadingThe “I Thought Bonds Were Safe” Fallacy…

5,000 Chinese factory workers strike over Indian takeover of American firm

"Cooper Tire and Rubber announced last month that it would be taken over by Apollo Tyres of India, making the combined group the seventh-largest such firm in the world. But thousands of staff at Cooper Chengshan, a joint venture in the eastern Chinese province of Shandong, have walked out in protest, the Xinhua news agency said late Tuesday. It is the latest incident to hit a foreign joint venture after Chinese workers held an American factory executive hostage for nearly a week in late June over a plan by his US-based medical supply company to lay off 30 workers." Continue reading →

Continue Reading5,000 Chinese factory workers strike over Indian takeover of American firm

Copper theft ‘like an epidemic’ sweeping US

"An electrical power station in Wichita, Kan., or half a dozen middle-class homes in Morris Township, N.J. Even on a Utah highway construction site, crooks managed to abscond with six miles of copper wire. Those are just a handful of recent targets across the U.S. in the $1 billion business of copper theft. The five leading states for the thefts are Ohio, Texas, Georgia, California and Illinois, the NICB said. The FBI says copper theft is 'threatening U.S. critical infrastructure by targeting electrical substations, cellular towers, telephone land lines, railroads, water wells, construction sites, and vacant homes for lucrative profits.'" Continue reading →

Continue ReadingCopper theft ‘like an epidemic’ sweeping US

Countering rupee devaluation: Pakistani govt slaps temporary ban on gold imports

"In an attempt to address steep devaluation of the rupee against the dollar, Pakistan on Tuesday temporarily banned import of gold to save the precious foreign currency reserves. The Economic Coordination Committee of the Cabinet, headed by Finance Minister Ishaq Dar, took the decision to ban the import of the yellow metal for one month with immediate effect. After the Indian government’s decision to discourage gold import by imposing 8% duties, the buyers had shifted to Pakistan where the commodity was allowed to be imported duty free since 2001." Continue reading →

Continue ReadingCountering rupee devaluation: Pakistani govt slaps temporary ban on gold imports

China “offers sturdy floor” in gold: UBS

"In China – now the world's second-largest economy, and likely to overtake India as world No.1 gold consumer in 2013 – private household demand for gold bullion 'does hold the promise of a sturdy price floor' says a note from fellow Swiss investment bank and London market-maker UBS. Moreover, 'In China banks are setting up and/or growing gold accumulation plans offered to the public. Better and easier access to gold via banks' growing networks combined with strong appetite from retail customers have driven the tremendous appetite from China this year.'" Continue reading →

Continue ReadingChina “offers sturdy floor” in gold: UBS

Art Basel takes art world by storm

"With private jets filling the air and lines of luxury limousines on the ready, deep-pocketed collectors from around the world have flocked to Switzerland this week for Art Basel, the biggest contemporary art fair on the planet. An estimated 110 private jets landed and took off from the Basel-Mulhouse airport, after 83 flew through there on Tuesday despite a strike that reduced the airport’s capacity and forced some wealthy patrons of the arts to change their travel plans. The art world appears to have bucked the global economic crisis, with income from global auction sales more than doubling since it hit bottom in 2009, passing eight billion euros last year." Continue reading →

Continue ReadingArt Basel takes art world by storm

Official: Cannes diamond heist actually nets $136M

"It even happened at a hotel that was featured in Alfred Hitchcock's jewel-encrusted thriller 'To Catch a Thief.' On Monday, a state prosecutor provided new details about the brazen heist a day earlier at the Carlton Intercontinental hotel - not least that the loot was actually worth more than twice the (EURO)40 million ($53 million) estimate that police had first announced. In 2008, thieves - some dressed as women - stole $118 million in rings, necklaces and luxury watches from the Harry Winston store in Paris. A robbery five years earlier at Belgium's Antwerp Diamond Center netted an estimated $100 million." Continue reading →

Continue ReadingOfficial: Cannes diamond heist actually nets $136M

(Sm)art Investing: Rich Move Assets from Banks to Warehouses

"Not everything the banks are losing is actually leaving Switzerland. Partly as a result of the many uncertainties in the financial markets, a growing share of the money is being invested in tangible assets, such as art, wine and classic cars. A total of $4 trillion has reportedly been invested in 'treasure assets.' This requires warehouse space that satisfies the most stringent security requirements. Swiss military bunkers blasted deep into Alpine rock are in great demand. But the free ports in Geneva and Zurich are even more popular because they offer what Swiss banks used to: the freedoms of a tax haven and maximum discretion." Continue reading →

Continue Reading(Sm)art Investing: Rich Move Assets from Banks to Warehouses