Sovereign wealth funds strike againMorgan Stanley becomes the latest financial firm to score an investment from the new power players in global finance.http://money.cnn.com/2007/12/19/markets/sovereign_funds/index.htm?source=yahoo_quote NEW YORK (CNNMoney.com) -- Wall Street bank Morgan Stanley said Wednesday it received a $5 billion injection from China's state-run investment arm, becoming the latest financial firm to look overseas for cash.
Morgan Stanley (MS, Fortune 500), addled by bad bets on risky home loans, joins the ranks of Citigroup, UBS and Bear Stearns, which all have received infusions from foreign players in recent months. [more]
COLUMBIA, S.C. - Republican presidential hopeful Ron Paul's supporters raised over $6 million Sunday to boost the 10-term Texas congressman's campaign for the White House. [more]
"The Long Demise of Glass-Steagall:
A chronology tracing the life of the Glass-Steagall Act, from its passage in 1933 to its death throes in the 1990s, and how Citigroup's Sandy Weill dealt the coup de grâce.
An avalanche comes in 2008. Its wreckage will hit both the USEconomy and banking world. The greatest deception in the bank sector this year has been the misrepresentation of the mortgage debacle as a subprime problem. That is akin to calling an iceberg only a problem for what one can see, when 90% of its mass lies below water. Ice is lighter than water. Most mortgage bonds are like acidic stones weighing down bank and investor balance sheets. Wall Street and the USGovt con artists, using tools are fraud and distortion, prefer the public and investment community to think of the ‘Subprime Problem’ as the source of distress. On mortgage bonds, collateralized debt obligation derivatives, structured investment vehicles, all dominant in the news, reports constantly stress how the problem is traced to subprime mortgages to all those unworthy home loan borrowers who never should have been given such loans, even at higher mortgage rates. The systemic threat, both to the US banking system and USEconomy, has entered a new stage. The remedy addressed is sure to force the USDollar lower and the gold price higher, to occur in the next gear. Breakouts are coming which will seem to lose control, like what was seen in September and October. [more]
Not that I trust either JP Morgan or Goldman, since I think they routinely play the market for their own insider gains with no regard for the average investor whatsoever... but after so many precious metals investors panicked last week when Goldman declared its prognostication for a decline in gold in 2008, I do find it interesting that they have this fundamental difference of opinion on this very important topic. Of course, if we're looking for suggestions of which firm might be more likely to deliver propaganda with its headlines, consider the sheer number of prominent ex-Goldman Sachs executives who now hold key positions within the Bush White House. [more]
This one rose 16+% to $2.18 today, but I'm convinced we haven't seen anything yet. Check out the chart! I bought over a year ago at more than $3, and wouldn't dream of bailing on this one. It's been hammered primarily by delays in the construction of the midwest's natural gas pipeline, and a relatively weak price environment for natural gas... but both those factors are reversing. The pipeline is almost finished, and natural gas prices are forecasted to rise significantly in the near term. A month ago it rose to $2.50, and it's sure to do so again before Christmas. It was upgraded to outperform by Morgan Keenan at the end of October... surely he too liked the fact that Gasco has all the capital it needs to operate for well over a year, and that it deliberately sat on potential production during the pipeline delay. This one's set to rocket! Look at the 5-year chart!! :) It's a triple buy in my playbook, but with its volatility it's not for the faint of heart! [more]
Article from the Washington Post, 12/5/07 [more]
The following is a reply I wrote to a fellow Caps member based upon his recommendation of the gold ETF "IAU" [his original text appears below as a reply to this post]. What started out as a short response quickly became a sort of thesis statement for my view of the American economy at this time. I hope my fellow CAPS members will give this topic some thought, as I believe the opportunity to get started now could be our last best opportunity for those not already heavily weighted in gold, silver, energy, etc.: [more]