This is a syndicated repost courtesy of Money Morning. To view original, click here. Reposted with permission. It’s the numbers that count in this crazy world. They can tell stories that words can’t. Here’s a look at some of the fascinating, infuriating, amusing, depressing, and altogether important numbers that the world has put up on…
This is a syndicated repost courtesy of Sober Look. To view original, click here. Reposted with permission. In recent months the US equity markets have become increasingly sensitive to movements in treasury yields. BMO Capital Markets: – U.S. equity markets stumbled this week, with the S&P 500 sliding 2.1% and the Dow now skidding almost…
Although the rent on the stored aluminum – Goldman isn’t allowed to actually own the commodity – is just pennies a day, the vast amount of the metal it has stored in its 27 Detroit warehouses and the “warehouse shuffle” strategy that enables it to extend the rental period for months on end adds up.
Through the Metro International Trade Services subsidiary it bought in 2010, Goldman has accumulated 1.4 million tons of aluminum, which it stores at about 48 cents per ton per day. That’s about $672,000 per day of revenue – nearly half a billion a year.
Experts say the warehouse shuffle game ultimately raises the price of aluminum to manufacturers – everything from beer and soda companies to automakers. That extra cost, about $5 billion over the past three years, is passed on to consumers – you and me.
The stock market today got the third quarter, and second half of the year, off to a strong start with all three benchmarks logging gains right out of the gate.
Capital Wave Strategist Shah Gilani joined FOX Business’ “Varney & Co.” to answer the big question: Will the stock market sell-off keep going?
A sense of calm appeared to settle over the stock market today – one day after the Dow’s worst of the year. The Dow was up nearly 90 points near the close Friday.
Gold prices, pushed below $1,300 an ounce Thursday, its lowest level in some two-and-a-half years, also bounced back Friday.
The markets have begun to swoon and one of the canaries was two Thai tycoons.
This pair of Thai tycoons, neither of them well-known internationally, has made a total of $27 billion in acquisitions in the past year, more than all Thai companies spent abroad in the preceding three years.
That’s the kind of statistic common in today’s global deal mania, fueled by the glut of funny money. It raises a dreaded question: what happens when the music stops, and when global leverage stops being so available?
We’re about to see….
The Thai billionaires – 74-year-old Dhanin Chearavanont and Charoen Sirivadhanabhakdi, 69 – were both well-established in the Thai business community, but nevertheless their combined $27 billion of acquisitions represented a risky gamble.
One bought a wholesaler on 50 times earnings, while the other bought the flagship Singapore brewer Fraser and Neave for $11 billion, quadrupling his holding company’s debt-to-earnings ratio.
The Trouble is Thailand has been here before – and well within living memory. It was an orgy of leveraged and overpriced acquisitions that led to the Thai banking and monetary crisis of 1997 that sparked an Asia-wide crisis and led to the Thai stock market losing nine tenths of its value.
In today’s markets, the aggressive Thai acquirers seem likely to be the first victims of any credit squeeze that might occur.
Appearing on Fox Business, Capital Wave Strategist Shah Gilani engaged in the age old debate: Bullish or bearish?
Shah made the bullish case, saying the stock market’s rising and investors may want to jump in.
Party like it’s 1999.
I’m not talking about celebrating the new millennium all over again. I’m talking about celebrating the markets roaring ahead, like they did in 1999.
Thanks to billions of dollars in quantitative easing from the U.S. Federal Reserve, fears over a looming stock market crash have been put on hold lately.