Thursday, July 1, 2010

Govt. Belt Tightening Now Is a "Recipe for Disaster," Dan Greenhaus Says

Should governments spend more money to stimulate the economy or should they reduce spending and deficits as the G20 meeting concludes that they should?

"A Gigantic Ponzi Scheme, Lies and Fraud": Howard Davidowitz on Wall Street

Just as I pointed out way back when... it's fraud!!!

Saturday, June 26, 2010

The Soviet Union Used a Small Nuclear Explosion a Few Times to Stop Uncontrolled Blowouts

Watch this film of a nuclear explosion stopping an uncontrolled fossil fuel blowout. I read that they did it underwater too!

BP may not want to succeed in capping the Gulf well because the government would never let them back into that reservoir but if they can find a way to capture all the gushing oil then that will pay for the cleanup.

Thursday, April 29, 2010

1000 Awesome Things

I heard about this website/blog on CBC radio. It looks pretty awesome too.
They say it is getting 100,000 hit a day. Wow!

I'm sure this blog will get to that level at some point in the distant future.

Sunday, April 18, 2010

Khan Academy

You can learn all sorts of lessons completely free at the Khan Academy. Take advantage of this. If I had this when I went to school, wow...

Thursday, January 14, 2010

Will Google Leave China?

We will have to watch what happens with this story.

Wednesday, January 13, 2010

Find A New Bank

Here is an interesting movement that aims to get individuals to move their money to another bank and thereby cause the banks to begin treating individual customers with greater care and fewer fees.
How would you evaluate how Canadian banks operate compared to the big banks in the USA?

The Move Your Money Movement Has Legs and Will Travel

Tech Ticker is on to the move your money campaign.

US Taxpayer Bailouts of the Financial Industry Was Not Necessary

Back on March 24, 2009 I shared a post from Tech Ticker http://finance.yahoo.com/tech-ticker that US taxpayers should not be bailing out the big banks.

Since that time the US government has changed the rules for companies accounting for the value of assets on their books. The rules was changed from what was know as "mark to market" which made companies value assets at the value the market would place on them if sold. Since the market had completely dried up for those "toxic assets" which included sub-prime mortgage backed securities, credit default swaps, and many other "financially engineered, synthetic products" called derivatives and what Warren Buffett has called "financial weapons of mass destruction" many companies were faced with the unenviable prospect of having to value these assets at zero dollars on their balance sheets.

Big banks knew that by valuing the aforementioned assets at zero or next to zero it would devastate the wealth of assets held by these companies, other institutional investors and countless individual investors who own equity stakes in those companies if required to make such unimaginable re-valuations. Knowing this, US law-makers changed the law so that companies were required to value assets at their "book value" only. This had the affect that the financial crisis was completely ended in March of 2009 when this change in accounting rules took effect. On that day in March when that law came into force and now requires companies to account for asset values at their original book value or purchase value(until and if they are actually sold and valued again at their sold value) the US stock market has been rising and pricing in the new and higher and artificially inflated asset values.

Those companies are no longer worthless. However, when these investments reach maturity or in the case of derivatives, when their underlying counter-party contracts expire, their real value which is closer to zero, will have to be realized. At that point these companies will be in for difficult times again.

Volkswagen Stock

On June 20, 2007, I predicted that Volkswagen stock would be a great investment. It turns out that it was the best performing large cap stock in 2008. http://news.morningstar.com/quarterendnet/Performance.aspx?page=bestWorstStock&docid=268320The stock price peaked in October of 2008 and has since come back to a level which makes it a buy again at these valuations.