Archive for November 20th, 2009
The Secret To Happiness According To Kids | Seven Ways to Create More Time In Your Day | Secrets to Long Life | How to Get Rid of Cold Sores
Friday, November 20th, 2009
For this weekend here are four articles you might find interesting. Enjoy and Have a Great Weekend!
Melina Bellows: The Secret To Happiness According To Kids
November-19-09, 11:29 AM
As the New York Times recently pointed out, many parents have found themselves out of work and at home–and it ain’t good. “For many families across the country, the greatest damage inflicted by this recession has not necessarily been financial, but emotional and psychological,” reports Michael Luo. “Children, especially, have become hidden casualties, often absorbing more than their parents are fully aware of.”
Seven Ways to Create More Time In Your Day
November-19-09, 11:41 AM
Do you ever feel like you have way too much time on your hands, and far too little work and life to fit into it? Unless you’re a teen on summer break, I reckon it’s unlikely! Most of us would love to have an extra couple of hours in each day. With two more hours, we could find time to exercise, to read some of the books that are gathering dust on our shelves, to spend time with the kids…
Don’t Overeat - Secrets to Long Life
November-20-099:36 AM
Ask Walter Breuning his secret for living as long as he has, and he’ll reply modestly, “There is no secret about it.” Breuning, who became the world’s oldest living man on his 113th birthday September 21, adds that kindness and common sense have played a crucial part to his longevity. Learn the six things that have allowed him to lead a long and happy life.
How to Get Rid of Cold Sores - Nutrition
November-20-0910:13 AM
Q: Are there any foods I can eat-or avoid-to help prevent cold sores?
Tags: Bellows, Common Sense, Gathering Dust, Happiness, Hidden Casualties, How To Get Rid Of Cold Sores, Kindness, Long And Happy Life, Longevity, Michael Luo, New York Times, Nutrition, Oldest Living Man, Parents, Psychological Reports, Read Books, Recession, Seven Ways, Shelves, Summer Break
Posted in DXD, Emerging Markets, Markets | No Comments »
Chron’s Disease: Breaking the Bathroom Talk Taboo and Diet Key to Successful Treatment
Friday, November 20th, 2009
“Canada has among the highest rates of Crohn’s disease and ulcerative colitis in the world,” says CCFC National President Victoria Prince. “Each November, we will celebrate the courage of more than 200,000 Canadian men, women and children living with these debilitating diseases and encourage Canadians to help make finding a cure for IBD a priority.”
As part of our weekend reading we would like to raise awareness of the Inflammatory Bowel Diseases, Chron’s and Ulcerative Colitis.
Breaking the bathroom talk taboo is the key to successful treatment. Many who suffer from Chron’s and IBD do so in silence because they are uncomfortable about discussing symptoms such as diarrhea and bleeding from the bowels. Often the discussion of these symptoms with their doctors is set aside by the patient out of embarrassement. Or worse, in the case of the patient’s openness, doctors have been known to misdiagnose the symptoms as acid reflux or some other lesser ailments.This means that Chron’s or IBD cases may go undiagnosed for many years. Early recognition of these symptoms can make a substantial difference in treatment.
Educating yourself as much as you can about the condition is critical in regaining control of your life and reducing the pain, discomfort, and symptoms of Chron’s and IBD. An important book by one of Canada’s highly respected experts in this field, at Toronto’s Mount Sinai Hospital, Dr. Hillary Steinhart, provides a comprehensive overview and no-nonsense advice on living with these conditions.
On another note, while the medical establishment claims that Chron’s and IBD are not yet curable, one well documented biochemist and cell biologist, who specialized in the study of the effect of food on the human body, believed that these ailments could be cured by adhering to what she defined and authored as, ‘The Specific Carbohydrate Diet.” Elaine Gottschall passed away four years ago but she is survived by her landmark book on diet, “Breaking The Vicious Cycle: Intestinal Health Through Diet.”
Tags: Acid Reflux, Biochemist, Canada, Canadian Men, Ccfc, Cell Biologist, Chron Disease, Chron S Disease, Crohn S Disease, Debilitating Diseases, Elaine Gottschall, Hospital Dr, Inflammatory Bowel Diseases, Medical Establishment, Mount Sinai Hospital, Pain Discomfort, Regaining Control, Specific Carbohydrate Diet, Steinhart, Ulcerative Colitis, Victoria Prince
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Eliot Spitzer’s New Crusade Against Obamanomics
Friday, November 20th, 2009
Are Obama’s economic policies actually working? Eliot Spitzer says No!
Spitzer is taking aim at the [Obama} administration’s approach, accusing it of shying away from the kind of comprehensive reform that the financial system needs. The Obama administration is not so different from the Bush administration, at least so far as their approach to the banking crisis goes, he claimed:
“The fundamental error of this administration is that it is continuity. They have embraced the Bush Administration view that if you solve the problem of big banks everything else flows from that. They are wrong. Too big to fail is too big. They don’t get it. The only two people I know who don’t appreciate that are Tim Geithner and Larry Summers. Paul Volcker, Alan Greenspan, Henry Kaufman, Mervyn King — every major academic has said, We must get rid of too big to fail.”
Watch Spitzer make his case against Obama’s effectiveness as manager of the financial crisis below:
Eliot Spitzer arguing against Obamanomics from Intelligence Squared US on Vimeo.
Tags: Alan Greenspan, Banking Crisis, Banks, Bush Administration, Case Manager, Continuity, Economic Policies, Eliot Spitzer, Financial Crisis, Fundamental Error, Henry Kaufman, Intelligence, Larry Summers, Mervyn King, New Crusade, Paul Volcker, Taking Aim, Tim Geithner, Watch Case
Posted in Markets | No Comments »
Velocity of US money supply at long last edging up
Friday, November 20th, 2009
Despite ballooning Fed reserves to bail out banks, money supply as measured by the growth in money supply with a zero maturity (notes and coins, check accounts, savings deposits and money-market accounts collectively) continues to slow.
The slowing growth is contra to what normally happens when the Fed lowers the Federal funds rate.
In real terms the growth rate is also slowing.
The slowing in MZM growth is a consequence of US banks’ tight lending standards. The trend is likely to continue until the banks relax these standards.
Velocity of MZM is at long last picking up after it started falling in the first quarter of 2007 - six quarters before economic growth slumped. The increase in MZM velocity effectively points to increased economic activity. Further increases in this velocity are essential for sustained economic growth.
Bottoms in consumer sentiment and MZM growth coincide, emphasizing the importance of improved consumer sentiment to get the economy going.
Lastly, the US bond market is an excellent indicator insofar as MZM velocity is concerned. Currently the yield on the 10-year note is pointing to further improvements in money velocity. The US bond market therefore also suggests that consumer sentiment is likely to continue improving and that the current improvement in the economy is sustainable, albeit probably at a slow rate.
Note: The source for all graphs is Plexus Asset Management, based on data from I-Net Bridge.
Tags: Asset Management, Banks, Bottoms, Bridge, Coins, Consequence, Consumer Sentiment, Economic Activity, Federal Funds Rate, First Quarter, Graphs, Improvements, Money Market Accounts, Money Supply, Money Velocity, Mzm, Quarters, Sustained Economic Growth, Us Bond Market, Zero Maturity
Posted in Markets | No Comments »
John Paulson’s Big New Bet on Gold
Friday, November 20th, 2009
Gold is getting a great deal of sponsorship, in general, but it is even more notable, when some of that sponsorship is coming from the likes of this era’s new contrarians. John Paulson, who personally made $4-billion betting against subprime mortgages in 2007, has shifted his focus to gold during the last 9 months, and now he is ramping it up yet another notch. On another note we’ve also covered in the recent past, David Einhorn’s now well-known accumulation of gold bullion, as well as S&P500 Puts.
Yesterday’s Wall Street Journal discusses Paulson’s latest plans:
John Paulson, who scored about $20 billion of profits between 2007 and early 2009 wagering against the housing market and financial companies, is launching a hedge fund dedicated to buying up shares of gold miners and other bullion-related investments, according to investors.
He is starting a new fund with his own money:
Mr. Paulson told his investors he personally would invest between $200 million and $250 million in the new fund, which he said will begin on Jan. 1, according to an investor at the meeting.
His theory on gold differs, in that Paulson seems to have recognized quite rapidly that central banks’ appetite has shifted in favour of the shiny stuff, and that their appetite is not strictly based on concerns of inflation. If you read between the lines, Paulson is suggesting that will be the gravy (when it indeed happens), and the real impetus is the constrained supply:
He noted that central banks around the globe have gone from sellers of gold to buyers, and that the global supply of gold is constrained.
While harmful inflation isn’t on the horizon, he said, Mr. Paulson argued that there is a risk of a burst of inflation down the road. That’s because in the past there’s been a lag between a surge in money supply and higher inflation. Gold often does well when inflation rises.
Mr. Paulson told investors that the Federal Reserve will prove reluctant to raise interest rates, given the weakness in the economy, which also could pave the way for higher inflation, at least at some point, another reason for his growing conviction about gold.
This is an interesting development for the stocks of gold producers. At the very least Paulson and other investors who are devoted to this theme will add key support to the market’s appetite for gold equities and bullion.
John Paulson Making Big New Bet on Gold
Tags: 9 Months, Central Banks, Contrarians, David Einhorn, Global Supply, Gold, Gold Bullion, Gold Gold, Gold Miners, Gravy, Hedge Fund, Housing Market, Impetus, inflation, John Paulson, Money Supply, New Bet, P500, Shiny Stuff, Subprime Mortgages, Wall Street Journal, Wea
Posted in Gold, Markets | No Comments »
Bill Gross: Investment Outlook (December 2009)
Friday, November 20th, 2009
Bill Gross, Co-Chief at PIMCO has just released his latest investment outlook, titled Anything but 0.1%. Gross reveals that he is worried that bubbles are forming as a result of zero interest rate policy. This is a must read issue.
Listen to the newsletter, read by Bill Gross:
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On one hand Gross says it is prohibitive to stay for too long in money market instruments yielding next to nothing. On the other hand Gross says that zero interest rates are forcing investors back out on to the risk spectrum.
Ah, but this is not a vindictive diatribe, although to me, money changers resemble Mammon more than archangels, and they all make too much money, including PIMCO. My point is to recognize, and to hope that you recognize, that an effective zero percent interest rate, as a price for hiding in a foxhole, is prohibitive. Like the American doughboys near France’s future Maginot line in WWI – slumping day after day in a muddy, rat-infested pit – when the battalion commander finally blew his whistle to charge the enemy lines, it probably was accompanied by some sense of relief; anything, anything but this! Anything but .01%!
Recently, approximately $20 billion a week has been exiting those payless, seemingly godless funds in search of a higher-yielding Nirvana. Yet, as Will Rogers knew, and Lehman Brothers demonstrated to another generation, the pain of the foxhole can immediately transition to the dodging of real bullets on the investment battlefield. Moving out on the risk asset spectrum has worked wonders since March of this year, but it comes with the risk of principal loss – failing to receive the return of your money. When viewed from 30,000 feet, there is even a systemic risk that new asset bubbles are in the formative stages – perhaps because of the .01%. Gold at $1,130 an ounce, global equity markets up 60-70% from their 2009 lows, a cascading dollar now 15% lower against a basket of global currencies just 12 months ago, oil at 80 bucks, mortgage rates at 4% thanks to a $1 trillion dollar credit card from the Fed; the list goes on. The legitimate question of the day is, “Is a 0% funds rate creating the next financial bubble, and if so, will the Fed and other central banks raise rates proactively – even in the face of double-digit unemployment?” As Chicago Fed President Charles Evans said in a recent speech, “This notion is often described as an imperative to ‘lean against a bubble,’ meaning that a central bank should act to lower asset prices that by historical standards seem unusually high.”
Gross makes the interesting point, that in the “New Normal,” of lower growth, with companies transforming into low-growth utilities-like businesses, rather than looking like Boardwalk and Park Place, why not simply opt for the utilities? Buffett, for example, has taken down all of Burlington Northern.
In a low growth environment, it seems to me that a company’s stock should yield more than its less risky debt, and many utilities provide just that opportunity. Utilities and even quasi-utility telecommunication companies now yield between 5 and 6%, whereas their 10- and 30-year bond yield less and at a higher tax rate to you the investor.
Read the whole letter here, download the PDF here.
Tags: Archangels, Battalion Commander, Bill Gross, Doughboys, Formative Stages, Foxhole, Global Currencies, Global Equity Markets, Gold, Gross Co, Gross Investment, Interest Rate Policy, Investment Outlook, Lehman Brothers, Maginot Line, Money Market Instruments, oil, PIMCO, Risk Spectrum, Systemic Risk, Will Rogers, Zero Percent
Posted in Gold, Markets | No Comments »
Robert Zoellick: The World Economy and It’s New Hotspots
Friday, November 20th, 2009
In this three-part video interview, Robert Zoellick, president of the World Bank, discusses with Chrystia Freeland, FT’s US managing editor, a range of topical issues concerning the global economy, new economic hotspots, China’s currency peg and lessons from the crisis.
Part 1: China and the dollar
Zoellick talks about President Barack Obama’s recent trip to China and the effects of Chinese currency being pegged to the dollar. He also discusses increased criticism from China of US economic policy.
Click here or on the image below to view Part 1 of the interview.
Part 2: World economy
Zoellick talks about the state of the world economy, including the financial recovery, concerns about protectionism and the role the US consumer will play in the recovery. Additionally, he discusses America’s fiscal position, the weakening US dollar and the new economic hot spots.
Click here to view Part 3 of the interview.
Part 3: Lessons from the crisis
Zoellick talks about lessons from the crisis, including executive compensation, and whether the casino function of banks should be separated from the utility function.
Click here to view Part 3 of the interview.
Source: Chrystia Freeland, Financial Times, (here, here and here), November 19, 2009.
Tags: Barack Obama, China, Chinese Currency, Chrystia Freeland, Currency Peg, economic policy, Emerging Markets, Executive Compensation, Financial Times, Fiscal Position, Global Economy, Hot Spots, Interview Robert, Interview Source, Managing Editor, President Of The World, Protectionism, Robert Zoellick, Topical Issues, Trip To China, Video Interview, World Economy
Posted in Markets | No Comments »
