Becky from CNBC had a talk with Warren Buffett and how Buffett is a bit pessimistic. Becky’s interpretation is an excellent example of how media changes focus and does not interpret properly. Specifically Becky keeps talking about the following comment:
I made by far the best buys I’ve ever made in my lifetime in 1974.
Hi folks, starting in the new year I am going to be launching a new website called HappyAsAHippo.com. On this new website I am going to do a couple of things: Calculate the HHCPI (Happy Hippo CPI). We all hear about inflation, and how low it is, but yet we feel wrong. What I am (more…)
This post is a bit of hard post for me because it is going to sound ultra-bearish. So if you want to avoid a really bearish blog entry, then this is the one to avoid. If you want to know why I am bearish, then this is the blog entry to read. I want to add a disclaimer here. I don’t really know if the market will go down, but what makes be ultra bearish is that the pieces are not adding up. For the past three weeks while writing this blog entry, whenever I ask other folks about my problems and disconnects they nod and say what be is what be. I also wanted to wait to until the Bush administration officially unveiled their plan before commenting. (Mish does a good job of covering the plan (1,2), and thus I will avoid discussing the plan in detail).
I listened to some commentators talk about the Hugo vote, and they said something along the following lines:
This shows that Hugo is a human, and not a dictator. It is not that bad, etc, etc, etc… How conciliatory he is… He will not change… He will do more of what he is doing now, and will not change…
As we all know there has recently been pressure on China to appreciate their currency because of the trade imbalances seen in Europe and America. As well, other East Asian countries are running into problems with their markets because China’s currency is doing so much better then theirs. Here is a quick run down of the problems, which can help you to analyze the situation.
The biggest problem is that China’s currency is undervalued by as much as what some people think is up to 35%…
I could not get my mind around this deal. Why would a sovereign fund invest in CitiGroup? Why catch a falling knife? There had to be something else going on, and I kept wondering. So I did my research on the Internet attempting to get all of the possible perspectives out of this deal. I have a picture now, and one article sums things up nicely.
At Housing Panic there was a blog entry that talked about how bad the situation is, and how Goldman-Sachs is saying things are bad. I don’t trust Goldman Sachs further than I drop a ball without throwing. I have seen too many times when things that seemed biased (eg rating changes, etc). What bothers me are comments like the following:
In a grim assessment of the U.S. economy’s health, the investment bank said the Federal Reserve will have to cut its lending rate to banks by 1-1/2 percentage points to 3 percent in the next six to nine months to avert a recession.
Today’s German IFO was out and it was not as bad as was thought. And right now it would seem that the Germans don’t mind the higher Euro. It galls me that the German commentator said the reason why the Germans don’t mind is because they hedged properly, and others did not. The German CNBC commentator said the problem with AirBus is that they hedged incorrectly at 1.35, and thus their fault.
I don’t usually post links from link requests emailed to me, but I got one from Ken Fisher’s team… and I think Ken Fisher is pretty cool. I like his book. He writes for Forbes, which I should start getting since Business 2.0 went under. He’s pretty smart and has been right about the market (more…)
Here’s my latest post about AMD. Here’s an excerpt from a Frobes article: “Intel’s latest desktop processors have faster clocks speeds and use smaller transistors–45 nanometers as opposed to 65 nanometers–that allow them to do more work with less power, _all else being equal_. “We think that Intel is consolidating its performance lead in desktops,” (more…)
