"A major break in the growth model" means supposedly cheap Chinese stocks are to be avoided, says Deutsche's John-Paul Smith. Beijing, he argues, realizes it has lost control over regional governments that have built up huge debts by pursuing projects of dubious value. Policy is now focused on restoring discipline - as highlighted by the sacking of Bo Xilai. [View news story]
Perhaps many parts of China's economy doesn't need to grow any more. China now commands 23% of worlds auto production.. from having just 3.5% 11 years ago. The US lost its share from 22% to 10.8% during the same period.
China's auto industry for example is done destroying the US auto industry and can now just coast.
WSJ's Greg Millman is not a fan of Delta's (DAL) move into refinery operations. The airline isn't able to manage the capital invested in the refinery for optimal return, he says; even if it could, the refinery is one of the least economical in the U.S. "Once shareholders see the consequences of this deal unfold, they'll demand that Delta divest the refinery operations." [View news story]
good luck meeting the EPA requirements that was the reason for the closure in the first place.... too costly.
"A hurricane is approaching," says a Chinese official, where 8 of 10 of the country's largest shipbuilders have yet to receive an order this year. Monetarists will take note of China's M1 data, in April the weakest since modern records began. "If China were a normal country, it would be hurtling into a brick wall," writes Ambrose Evans-Pritchard. [View news story]
I wrote about their auto production plateauing and we knew that Q1 auto sales were down 3.5% in China year over year. But appreciate China captured 23% of global auto production in 2011 Vs having only 3.5% in 2001.
Western world needs to be put through bankruptcy reorganization now.
There's more downside ahead for MEMC Electronic (WFR -24%) after its latest quarterly miss, Wunderlich says: "We have serious reservations about the future of MEMC given that there is still a tremendous oversupply of polysilicon worldwide, its vertically integrated solar business has no barriers to entry, and the solar gold rush is over as subsidies and stimulus run out." [View news story]
I think the next boom to solar will be that it'll act as a hedge on energy prices and that will itself justify the cost of having solar panels on your roof top.
10 year bond at -2% interest or solar panels that lock in your electric rates for the next 25 years?
U.K. gamblers seem convinced that Greece's exit from the euro is a foregone conclusion to the point that bookmakers have had to suspend betting on it. This follows a surge in bets that had pushed the odds down to 1/4 at William Hill, for example. The company has also closed betting on the euro still existing by the end of 2015. [View news story]
lol.. meant, prostrate.
Here is exact lines from book Money and Man pg. 43.
"The disintegration continued, and there seemed no power great enough to stop it. The treasury was empty, agriculture prostrate, industry demoralized, trade stagnant, and the only commercial activity was a maddened, consuming, parasitic speculation. In A.D. 301 Diocletian issued his famous price fix- ing decree as the last measure of a desperate sovereign."
U.K. gamblers seem convinced that Greece's exit from the euro is a foregone conclusion to the point that bookmakers have had to suspend betting on it. This follows a surge in bets that had pushed the odds down to 1/4 at William Hill, for example. The company has also closed betting on the euro still existing by the end of 2015. [View news story]
The treasury was empty, trade stagnent, industry demoralized, agriculture prostate and the only commercial activity was an all consuming parasitic speculation.
Eglin Gruseclose describing Rome in around 300 A.D.
An investor is someone who buys an asset for it's income stream, usually via dividends if it's a stock or interest payments if it's a bond, or rental payments if its real estate.
A speculator is someone who buys an assets in the hopes of selling it at a higher price.
The EIA slashes its forecast for average gasoline prices during the summer driving period; instead of the $3.95/gallon estimate it put out in April, the agency now expects prices to average just $3.79 during April-September. The report marks the fifth straight weekly drop, and it helps ease fears U.S. prices will soon push above the $4 mark. [View news story]
yeah, because demand is collapsing faster than expected.
stunning " prices down 4.3% from last year yet demand down 6.1% from just last year"
Green Mountain (GMCR) Chairman Robert Stiller is hit with a margin call following the plunge in the company's stock and forced to unload 5M shares. (Form 144) [View news story]
Dot com bubble, RE bubble and now this consumer discretionary stock bubble .. like Alan Greenspan said in 2007, "we can't improve ourselves" so smart folks like this stiller never learn.
Great stuff as you're on to something here. I tried to look into so called "peak conventional" oil as a indicator of when both the prices of food and gas really started to take off. A book can be written about this stuff.
Transition is right.. this trend is going to get more painful I'm afraid.
Sell In May And Go Away? Not This Year [View article]
One stat that makes me worry about all this talk of recovery in the economy is gasoline demand being down some 6.8% according to Mastercard this year Vs last.. and prices were only 1.3% higher last year Vs this year. That's a huge drop in demand when we now have more people working too.
So auto sales may be up, but we're driving them a lot less.
The disastrous coal-driven electricity system in India may give a reprieve to the battered solar industry in the near future. The power sector problems there have become so acute due to mismanagement that it's starting to impede growth. As fossil-fuel grid power reaches near-parity with solar in the region, solar manufacturers see an opportunity - a country with plenty of sun and flat idle land that is starved for energy. [View news story]
We just witnessed China going from making 2.1 million cars in 2001 to making over 18 million by 2010.
Their market share of global auto production went from 3.5% in 2001 to 23% by 2011.
Granted, that's China, and not sure about India's ability to make things happen, but seeing that kind of transformation in China has to make you think what's possible today in terms of just how fast things can be made to happen.
"A major break in the growth model" means supposedly cheap Chinese stocks are to be avoided, says Deutsche's John-Paul Smith. Beijing, he argues, realizes it has lost control over regional governments that have built up huge debts by pursuing projects of dubious value. Policy is now focused on restoring discipline - as highlighted by the sacking of Bo Xilai. [View news story]
China's auto industry for example is done destroying the US auto industry and can now just coast.
WSJ's Greg Millman is not a fan of Delta's (DAL) move into refinery operations. The airline isn't able to manage the capital invested in the refinery for optimal return, he says; even if it could, the refinery is one of the least economical in the U.S. "Once shareholders see the consequences of this deal unfold, they'll demand that Delta divest the refinery operations." [View news story]
April Consumer Price Index: flat vs. +0.1% expected, +0.3% prior. Core CPI +0.2% vs.+0.2% expected, +0.2% prior. [View news story]
"A hurricane is approaching," says a Chinese official, where 8 of 10 of the country's largest shipbuilders have yet to receive an order this year. Monetarists will take note of China's M1 data, in April the weakest since modern records began. "If China were a normal country, it would be hurtling into a brick wall," writes Ambrose Evans-Pritchard. [View news story]
Western world needs to be put through bankruptcy reorganization now.
There's more downside ahead for MEMC Electronic (WFR -24%) after its latest quarterly miss, Wunderlich says: "We have serious reservations about the future of MEMC given that there is still a tremendous oversupply of polysilicon worldwide, its vertically integrated solar business has no barriers to entry, and the solar gold rush is over as subsidies and stimulus run out." [View news story]
10 year bond at -2% interest or solar panels that lock in your electric rates for the next 25 years?
U.K. gamblers seem convinced that Greece's exit from the euro is a foregone conclusion to the point that bookmakers have had to suspend betting on it. This follows a surge in bets that had pushed the odds down to 1/4 at William Hill, for example. The company has also closed betting on the euro still existing by the end of 2015. [View news story]
Here is exact lines from book Money and Man pg. 43.
"The disintegration continued, and there seemed no power great enough to stop it. The treasury was empty, agriculture prostrate, industry demoralized, trade stagnant, and the only commercial activity was a maddened, consuming, parasitic speculation. In A.D. 301 Diocletian issued his famous price fix- ing decree as the last measure of a desperate sovereign."
U.K. gamblers seem convinced that Greece's exit from the euro is a foregone conclusion to the point that bookmakers have had to suspend betting on it. This follows a surge in bets that had pushed the odds down to 1/4 at William Hill, for example. The company has also closed betting on the euro still existing by the end of 2015. [View news story]
Eglin Gruseclose describing Rome in around 300 A.D.
What Does Long Term Actually Mean? [View article]
A speculator is someone who buys an assets in the hopes of selling it at a higher price.
Tis that simple.
The EIA slashes its forecast for average gasoline prices during the summer driving period; instead of the $3.95/gallon estimate it put out in April, the agency now expects prices to average just $3.79 during April-September. The report marks the fifth straight weekly drop, and it helps ease fears U.S. prices will soon push above the $4 mark. [View news story]
stunning " prices down 4.3% from last year yet demand down 6.1% from just last year"
http://reut.rs/KKsZ08
breaking point being reached everywhere.
Green Mountain (GMCR) Chairman Robert Stiller is hit with a margin call following the plunge in the company's stock and forced to unload 5M shares. (Form 144) [View news story]
The Inflation's In The Poverty [View article]
Transition is right.. this trend is going to get more painful I'm afraid.
Apr. ADP Jobs Report: +119K vs. +201K prior (revised from 209K) and expectations of 183K. [View news story]
Epic fail of all this stimulus.. some $5 trillion under Obama
so great, now we have far more debt and a far smaller real physical economy.
Sell In May And Go Away? Not This Year [View article]
So auto sales may be up, but we're driving them a lot less.
Arrow Electronics (ARW): Q1 EPS of $1.01 misses by $0.07. Revenue of $4.88B (-6.4% Y/Y) in-line. (PR) [View news story]
The disastrous coal-driven electricity system in India may give a reprieve to the battered solar industry in the near future. The power sector problems there have become so acute due to mismanagement that it's starting to impede growth. As fossil-fuel grid power reaches near-parity with solar in the region, solar manufacturers see an opportunity - a country with plenty of sun and flat idle land that is starved for energy. [View news story]
Their market share of global auto production went from 3.5% in 2001 to 23% by 2011.
Granted, that's China, and not sure about India's ability to make things happen, but seeing that kind of transformation in China has to make you think what's possible today in terms of just how fast things can be made to happen.