Archive for the ‘Biblical Economics & Money’ Category

Alert: "Batten down the hatches"

Monday, June 30th, 2008

The Federal Reserve Bank's lack of action to backup their bullish dollar comments appears to be sending a "flash point" signal to the worldwide credit markets.  Since last year I have been warning of a financial storm that could wreak havoc in the global markets.  The hurricane warning flags are ...

The Demise of the Business Model

Sunday, June 29th, 2008

What is a Business Model? A business model is a framework of creating value by a company. What is a framework? A framework is a basic conceptual structure used to solve or address complex issues. Source: http://en.wikipedia.org/wiki/Business_model#Do_Business_Models_Matter.3F Now that I have defined the business model, let's look at the relevance of ...

Hubbert’s Peak

Saturday, June 28th, 2008

Recent record oil prices would suggest that we revisit the primary driver of high prices.  Throughout our lives there has always been an abundance of oil.  When Jed Clampett shot his rifle and discovered oil on the show "Beverly Hillbillies", the view of oil was one of abundance.  Oil discoveries ...

Unequal Weights and Measures: Airlines

Saturday, June 7th, 2008

This week the airlines were in the news with their massive personnel cuts and downsizing plans.  See: http://www.bloomberg.com/apps/news?pid=newsarchive&sid=als_9FvReWTY  Something just didn't seem right.  The reason given for cutting jobs, schedules, and increasing fares by up to four times the previous prices just didn't add up.  Being the financially oriented guy ...

Inside the eye of the hurricane

Thursday, June 5th, 2008

We can see the sun and the wind has subsided, the ocean is still, all is calm, or is it?  The following graph illustrates the seriousness of the problem:   http://research.stlouisfed.org/fred2/fredgraph?chart_type=line&width=1000&height=600&preserve_ratio=true&s%5b1%5d%5bid%5d=BORROW   That hyperbolic blue line is the total borrowings from the Fed, ...

"It’s the Supply Curve, Stupid"

Saturday, May 31st, 2008

To borrow the phrase used by Bill Clinton, "It's the economy, stupid!"  Much has been written about the recent rise in energy prices.  Many writers quote other writers, government reports, and industry statistics.  What most do not consider is overall supply.  Having first hand knowledge of oil well depletion curves ...

The Sharks have begun their frenzy

Monday, May 19th, 2008

Remember when I wrote: "The Sharks are moving in"? http://www.servias.org/?p=107  They are now beginning to feed.  It will be a great feast.  Lawyers will have record income from the fallout of the sub-prime mortgage crisis.  Directors of Countrywide Financial will be sued along with the corporation.: Judge Says Countrywide ...

Crisis Window

Saturday, May 17th, 2008

America is now in a window of "crisis".  Financial TV talking heads are telling us the worst is over as they look from inside the eye of the hurricane.  They are attempting to spin every piece of bad news into good news.  I believe it is their heads that are ...

Financial Bottom Fishing

Wednesday, April 30th, 2008

From time to time the market gives us an opportunity to pickup some cheap investments.  The challenge each of us has is to not be moved by the media.  Those in power are well acquainted with the power of persuasion.  Torture is persuasion on steroids.  If you bombard people with ...

Another Record Day in the Price of Oil- Russian Output Falls

Tuesday, April 15th, 2008

Record oil prices continue! See: http://online.wsj.com/article/SB120820608486613923.html?mod=googlenews_wsj Although not the largest exporter of oil, the Russian contribution is just as critical to the overall price structure as any other producer.  You may want to revisit my earlier writing on The Coming Energy Crisis from a Mathematical Perspective at http://www.servias.org/?p=68. ...