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KDakotaFund (25.22)

December 2010



Evans-Pritchard: Italy Next to Crumble in Europe

December 31, 2010 – Comments (4)

Investors fearful of the spread of the eurozone crisis to its bigger economies have begun to demand higher returns on Italian sovereign debt, up 10 basis points to 4.86 percent on 10-year bonds following a weak short-term auction.

The fear is that the Italian economy will slip into the miasma of Greece, Portugal, and Spain, reports Ambrose Evans-Pritchard in London daily The Telegraph.

Part of the problem, Evans-Pritchard reports, is that Germany turned against issuing eurozone bonds to support the failing southern economies and rejected an increase in the 440 billion euro ($585.05 billion) EU rescue fund.

Full article   [more]



David Rosenberg: Housing Double-Dip Straight Ahead

December 30, 2010 – Comments (7) | RELATED TICKERS: DRV , SRS

[I've been bombarded by negative stories about the expected double-dip regarding housing prices in recent days, so I thought I'd pass along a couple of them.]  [more]



Capitalism and Tax

December 29, 2010 – Comments (1)

A 1954 cartoon illustrates forgotten lessons of capitalism and taxation.  [more]



Bailed Out Banks on Brink of Bankruptcy — Again Read more: Bailed Out Banks on Brink of Bankruptcy — Again

December 28, 2010 – Comments (4) | RELATED TICKERS: FAZ , SKF , SEF

About 100 banks bailed out by the government are teetering on the brink of bankruptcy again, The Wall Street Journal reports.

The banks in question took more than $4.2 billion from the Treasury Department under the Troubled Asset Relief Program (TARP), which was created for healthy banks only.

Seven TARP recipients have gone under already, taking more than $2.7 billion in TARP funds with them.

Full article   [more]



US Sinks $2 Trillion Deeper Into the Red as Debt, Benefits Soar Read more: US Sinks $2 Trillion Deeper Into the Red as Debt, Benefits Soar

December 22, 2010 – Comments (3)

The U.S. government fell deeper into the red in fiscal 2010 with net liabilities swelling more than $2 trillion as commitments on government debt and federal benefits rose, a U.S. Treasury report showed Tuesday.

The Financial Report of the United States, which applies corporate-style accrual accounting methods to Washington, showed the government's liabilities exceeded assets by $13.473 trillion. That compared with an $11.456 trillion gap a year earlier.

The government's net operating cost, or deficit, in the report grew to $2.080 trillion for the year ended Sept. 30 from $1.253 trillion the prior year as spending and liabilities increased for social programs. Actual and anticipated revenues were roughly unchanged.

Full article   [more]



10 Companies That Could Go Bankrupt

December 18, 2010 – Comments (0) | RELATED TICKERS: YHOO , BGPIQ.DL , CVS

It doesn't take an auto repair shop in an old Circuit City building or a "for lease" sign over the QuickDrop slot in an old Blockbuster storefront to remind consumers that even the strongest companies can be bowed by bankruptcy.

Blockbuster's video empire and A&P's nearly 150-year-old food retail business were among the businesses that declared bankruptcy this year, but were far from the only ones in financial peril. The Street took a look at some companies' recent struggles and identified 10 for whom bankruptcy may be beckoning, either next year or the not-so-distant future. Some balance sheets and share prices hide the pain better than others, but all of the following have fundamental flaws in either their business plan or management that lead to situations like A&P and Blockbuster's -- where what was unthinkable even five years ago seems inevitable soon enough.  [more]



Jonathon Hoenig - Why Cornering a Market Doesn't Work

December 17, 2010 – Comments (3)

Headlines were made around the world this summer amid reports that Armajaro, a commodity fund controlled by British financier Anthony Ward, had taken delivery of 240,000 tons of cocoa, nearly 7% of the world's supply, worth upwards of $1 billion.  [more]



This Is Definitely Worth 4 Minutes of Your Time

December 16, 2010 – Comments (13)

Professor Hans Rosling is a sword-swallower. Crazy, I know. But as freakish and mesmerizing as that talent may be, the data that he has been compiling about developing countries is even more mesmerizing, and I promise it will surprise even the most worldly and well traveled among us.  [more]



Jonathan Hoenig - How Companies Can Pretty Up Their Stock

December 14, 2010 – Comments (0)

Just like Macy's window displays or Beverly Hill's Rodeo Drive, people browse through the stock market looking to shop. To that end, beyond innovative products or stellar earnings, there are a few tips and tricks companies can use to help motivate us to buy their wears, that is, their shares.   [more]



Eerie Similarities Surround European, Wall Street Crises

December 04, 2010 – Comments (3)

You’ll have to excuse many in the markets if it feels like that old Bill Murray movie “Groundhog Day.”  [more]



The Road to a US Insolvency Crisis

December 03, 2010 – Comments (1)

Today's auction of 10- and 30-year US Treasury notes and bonds won't tell us as much about the US economy as auctions used to -- because the Federal Reserve has started buying up the notes as part of Fed Chairman Ben Bernanke's "quantitative easing" effort.   [more]