Posts Tagged ‘GE’

Notes From Underground: Looking Back Two Weeks and Two Years

May 18, 2014

Here’s a post from two weeks ago discussing the idea that Siemens would procure Alstom and GE had no chance of making the acquisition of a major French industrial champion. Also, I am reposting a piece from two-and-a-half years ago in reference to a comment on yesterday’s blog by Chicken. The post highlights the THE SLOWER FOOL THEORY, propagated by Richard Dennis. It does a great deal to explain why investors pursue a course of action which they inherently know is fraught with high risk for little reward. The global bond markets are now the paradigm for the theory.

April 28, 2014: George Soros In the Time of Draghi

November 21, 2011: Europe has AUSTERITY and POLITICAL REPRESSION; The U.S., FINANCIAL REPRESSION

 

Notes From Underground: George Soros In the Time of Draghi

April 28, 2014

The financial world is awash in opinion on the overvaluation of the EURO. Even ECB President Mario Draghi has hinted that he is concerned about the deflationary impact of an overly strong European currency. It makes one think: George Soros solidified his position as the master of investment by breaking the Bank of England’s effort to hold the British pound at a pegged level that the market had determined was absurdly high. The PEG level was to be defended even it if meant bringing the U.K. into a very painful recession. The BOE even went so far as to raise overnight interest rates to 15 percent in an effort to raise the cost to speculators betting against the POUND. Rates were being raised even as the U.K. economy was in the midst of a slowdown. In a day known as Black Tuesday, the BOE and the Exchequer capitulated to market forces, in which George Soros held the largest position, and Britain stopped defending the indefensible. In two years time, the U.K. was in recovery mode with a devalued POUND and lower interest rates, while the remaining European nations tied to the Deutschmark peg were struggling to find economic growth.

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Notes From Underground: The auctions had action … what am I? Bid?

January 12, 2011

The Portuguese DEBT AUCTION today went as well as could be contrived. While the EURO initially stuttered, by days end it had rallied and ended the day up 1 percent. Tomorrow, the Spanish raise cash through a DEBT AUCTION and the market there has been well set up to take what the Spanish government offers. Interestingly, it was the GREEK DEBT markets that had the largest rally as the GREEK TWO-YEAR NOTE dropped to 10.09 percent from 11.44 percent. The BUNDS were sold off as the safe haven status of German debt eased.

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Notes From Underground: From Russia WITHOUT Love–Mikhail Khodorkovsky

December 27, 2010

A few stories from Russia today. First, the Russian Judicial System rendered a totalitarian decision as the oligarch Khodorkovsky was again found guilty of some type of misappropriation of funds when he controlled YUKOS, the Russian energy giant. This is another black eye for the RULE OF LAW in Russia as the verdict appeared to be predetermined with the heavy influence of Prime Minister Putin. I don’t doubt for a moment the tragic shortage of justice in Russia, but the question is: Do the markets truly care, or as I continually remind, is MONEY FASCIST? Global investors will set aside criticism of a nation’s societal and legal injustices if the investment returns are high enough and the government is stable.

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