Showing posts from 2013

Oil Prices- Risk of Supply Shock/ Terror Not Accurately Priced In

In early August it was reported that Yemen foiled an Al Qaeda plot to take over gas and oil facilities in the country. This follows a pattern of the group attempting to do both material and symbolic damage to Western economies. Think World Trade Centers.
If At First You Don’t Succeed Al Qaeda originally tried to blow up the trade centers with massive bombs. The attempt was unsuccessful, years later, they hijacked planes on 9/11 …

Prediction Once again, the terror group will keep to its habit of choosing a target and going after it. They will conduct an all out attack on several oil installations at once, to damage and humiliate Western powers, an attempt to demonstrate they are still a viable power. Of course, oil prices would zoom upwards. This coupled with the impending war of Egypt’s army and Islamists (the potential of Suez canal disruption is factored into oil’s price by many analysts) civil war in Syria, and a potential air strike/ invasion of Iran, along with the continued in…

How The Fed is Creating Inflation + Transferring Real Wealth to the 1%

The Federal Reserve is creating inflation, buying 85 billion dollars worth of bonds on the opening market, keeping interest rates artificially low. The printed money is then lent to the banks at nearly zero, who then loan it out to huge credit worthy investment firms like Blackrock, who are awash in a sea of money, and put it to use buying real assets (real estate/ homes in this case) that will increase in value as inflation rises.

The suckers who bought high, and got foreclosed upon or gave back the keys, or sold lower, have seen their welath go to Blackrock, owned by the 1% who, again are borrowing the money at next to nothing.

Housing prices rise, inflation will as well, it is an economic law. The only thing that really has kept inflation from rising is increased productivity due to technological innovations, be they fracking, Google dictation/ smartphones, robotics, etc.

This is a huge transfer of wealth to the 1%. Not so good for a level playing field.

Think I'm wrong, explai…

Time To Buy Apple After It Got Crushed- here is why

Apple is simply too cheap and should be purchased at current levels. The risk is worth the potential reward.