Archive for April, 2008

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. ...

Downsizing Ahead

Sunday, April 13th, 2008

Too much debt, higher energy prices, and higher food prices will bring forth downsizing in all areas.  Bigger houses and bigger cars will be a preference of the past.  You only have to go to Europe to see the result of higher energy prices.  The percentage of SUV'S in Switzerland ...

Oil Crisis is moving to the Mainstream Media

Sunday, April 13th, 2008

    Oil Demand to Hit 94.3 Million Barrels a Day by 2012, IEA Says By Mike Cohen March 17 (Bloomberg) -- The International Energy Agency, an adviser to 27 industrialized nations, expects worldwide demand for oil products to increase an average 1.9 percent annually ...

The Black Swan

Saturday, April 12th, 2008

  The term black swan comes from the ancient Western conception that 'All swans are white'. In that context, a black swan was a metaphor for something that could not exist. The 17th Century discovery of black swans in Australia metamorphosed the term to connote that the ...

Ratings Agencies have begun…

Friday, April 4th, 2008

On January 21st of this year I wrote about the expected downgrading of insurers.  See Brace Yourself: http://www.servias.org/?p=48 . This is now occurring. MBIA Loses AAA Insurer Rating From Fitch Rating Agency Over Capital.  See : http://www.bloomberg.com/apps/news?pid=20601087&sid=aUKrtfm0u4yI&refer=home This only reinforces the need to be vigilant ...

Destruction of a Currency

Friday, April 4th, 2008

In the Holy Scripture, there are examples of the destruction of a currency (or medium of exchange).  Often, currency destruction is associated with a famine.  In Genesis, Joseph was groomed by The Father for a ministry in the upcoming famine.  Man did not know of this impending event, only Our ...

Economic Priorities- Stayin’ Alive

Wednesday, April 2nd, 2008

In previous writings I have alerted you to the sequence of events that follows the bubble of greed.  Let's review the cycle.  It all started in the 1980's.  First, the economic system is growing at a slow and reasonable rate.  The Federal Reserve Bank (Fed) is expanding money supply at ...