Did Bernanke detonate the markets, or it was the inflation...?

Today a hesitating talk from Bernanke has made most markets to explode, starting a new rally, motivated by inflationary expectations. Bernanke said he is not sure, but maybe he will print some more money to help further the economy that already has given some signals of recovery... At the moment investors heard this, the markets of almost everything skyrocketed, killing irreversibly any hopes of bear-investors.

Read more...

$8 per gallon - not just a nightmare

The news that Saudi Arabia is intending to act on oil markets to press the prices down led to a small 1% decrease of the crude-oil-price on Tuesday. On that day came the information that the top oil producer has hired 11 supertankers (2 million barrels each) to transport an extra oil to United States in response to rising oil prices. On the same day the Saudi Oil Minister Ali al-Naimi said that the kingdom was pumping 9,9 million barrels per day - the highest level in decades. He added that they have readiness to supply every request from customers and Saudi Arabia is willing to turn the taps to maximum capacity of 12,5 million barrels per day immediately. Months ago Saudi Arabia announced that it finds $100 per barrel as "ideal" oil-price.

Read more...

Is Apple bribing investors?

March 19th was a great day for Wall Street, for technology business, for S&P 500 index and for generally exhausted from uncertainty in this crisis investor. On that day Apple announced it will pay dividends and will buy back some shares in a 3-years operation that will cost billions of dollars.
This generous decision by Tim Cook and his board kicked up all the market and created new hopes for an end of already years long markets confusion. Apple is paying, Apple has big cash, Apple will save the technology and the business at all...
But let's look a little ahead and analyze what is happening, out of emotions...

Read more...

Is Facebook a bubble?

What do you think about US government bonds? 2% income per year and an absolute guarantee that nominally you will have your money back, as the government can print as much money as it needs. At current moment no more than 1/3 of US bonds are purchased by investors. The rest are bought by FED... Now let's look at Facebook Inc. and its bombastic IPO. According to some unofficial trade practices (shares owned by insiders traded privately out of stock exchange) current value of this company is about $100 billion. But what do we really have for this money?

Read more...

Iran project-war is an excuse, and not a reason for high oil prices

Every day you will hear tens of comments that the war risk in Middle East and possible Israel+USA strike on Iran is moving up the oil prices that at the moment are reaching record highs in euro and are close to new records in dollars. Generally this logic is true. Political risks do influence markets and war risks influence markets strongly. But besides from the risks something other is needed and is more important for the prices. That is the money supply and the general inflation situation. Without enough money on the market, even an alien invasion will not be able to skyrocket the oil prices.

Read more...

Spain stopped reforms before starting them

Spain has not even started the real reforms needed to revive its economy, and the government already announced that the reforms will be stopped. This is the real meaning of the prime-minister comment that country will not meet the deficit target for 2012. As a part of resolving European debt crisis, EU members decided to implement strict budget rules including a 3% max of sovereign deficit.

Read more...

Page 36 of 37


Free business joomla templates