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Business News Update

In this update we've got snippets about the U.S. stock markets, the Federal Reserve, Asian stock markets, Halliburton and Mexican oil fields, and Brazilian energy reserves.

Click the below link if you'd like to read more.

There Will be Blood

Giant Natural Gas Reserve Discovered Near Brazil

* * *
Ah, Brazil. The oil. The natural gas. Carnivale.

It's too bad neocons decided to wage their war for oil in Iraq, eh? Imagine the spoils in places like Brazil, in Alaska, off the coast of California, in Norway, off the coasts of Florida, etc.

* * *
There Will be Blood -- Part II

Halliburton Lands Mexican Oil Fields Contract

* * *
Ah, yes, Mexico. The beaches. The ancient ruins. The oil.

What's more valuable to the long-term security and prosperity of the United States: 1. Duncan Hunter's Olympic-sized fence? 2. Close trading and business ties with an oil-rich neighbor?

Hmm.

* * *
Asian Stock Markets

Stock markets throughout the Pacific Rim dropped sharply on Monday and Tuesday.

That's a good thing.

We need to shake out these overblown stock markets -- including our own -- to build a nice base for the next bull market. Read "Wall Street on Sale," by Timothy Vick. Be guided accordingly.

* * *
Club Fed

I've already washed my hands of the Federal Reserve. I said so in print. So, I won't bother opining in detail on their latest (panic) move.

One tertiary point is worth mentioning, however:

We won't have a rational and competent Fed until each and every voting member is too young to remember the dark period of the late-1970's and early-1980's. The basic problem is that Fed officials simply can't help themselves in raising rates too far, too fast during up periods, to try to stamp out even a hint of inflation, then responding to the inevitable results of their handiwork by cutting rates and injecting liquidity into the system like drunken sailors in port.

Dogs of the Dow

The U.S. equities markets were quite volatile on Tuesday -- at first plunging and then rising on very heavy volume. Liberal Democrats in the financial media literally began screaming and foaming at the mouth.

Yawn.

There are some no-brainer stocks out there to buy. You don't even have to look that hard. Severe discounts to tangible book value. Severe discounts to book value even assuming book value further gets written off in large doses! Low P/E multiples. High dividend yields. High dividend yields even assuming dividend cuts!

Dozens of established financial and real estate-related companies fit those bills.

Incidentally, the more the Lemming blocs continue to sell off stocks the better it'll be for long-term purchasers who have the will and the means to average down. It's been that way for decades. It'll be that way decades from now. The shrill cries of twitchy traders and media-bots notwithstanding. Read "The Theory of Investment Value," by John Williams. Be guided accordingly.


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Comments (9)

The US needs more domestic ... (Below threshold)
Ray:

The US needs more domestic production (industry - oil drilling and production, steel production, auto/truck production, airplane production, nuclear power plant production, etc.)

Total, slavish free trade is a big part of the problem. We are losing the wealth of the nation. Only the moneyed elites on Wall Street make money from shuffling papers and computer keyboard keystrokes. But that doesn't create real wealth. Those people are not patriots - they're trans-national globalists.

That is nonsense, Ray, a lo... (Below threshold)
SPQR:

That is nonsense, Ray, a lot of Americans create wealth by selling services, intellectual property and other intangible wealth. Nearly half in fact.

Welcome to the 21st Century, Ray.

Ray... isolate... isolate..... (Below threshold)
marc:

Ray... isolate... isolate... isolate!

How is life in that cocoon Ray?

Ah boys, unable to argue on... (Below threshold)
Ray:

Ah boys, unable to argue on mertis so you resort to name calling and sarcasm, how cliched.

Come to Michigan, Ohio, Pennsylvania, Indiana and look around boys. Ghost towns are common. Industy has left for corrupt Mexico and totalitarian China. You fellas show a failure to discriminate crucial differences and degrees. You're like the Bushies who scream "xenophobe" or "bigot" whenever anyone suggests we actually enforce our border and immigration laws. The public doesn't fall for that anymore.

Likewise, reducing "free trade" scam does not mean abandoning "free trade" completely. Spend sometime and learn about our nation's "value added tax" (VAT) - which is their way of imposing a tariff without calling it a tariff.

In the meantime, crucial industrial skills are becoming more rare in our country. When we can't feed, clothe and build things for ourselves, we are not an independent nation.

We are now dependent. Have you moved from your daddy's basement? If so, then you're independent and should understand this reasoning, if not, then you are dependent, like our nation is becoming.

Time to become independent adults, like we used to be.

It's Patriots vs Internationalists. The showdown is coming......

Sorry SPQR, but those "inta... (Below threshold)
JP:

Sorry SPQR, but those "intangible" services and "intellectual properties" don't employ many people at all. Furthermore, you can't have a real, great nation who specializes in producing lousy movies, internet porn, lawn mowing services and restaurants.

All teen-aged boy crap, not occupations for men.

Ray makes some good points, the wealth of our nation has been leaving for years, but especially under Bush.

Engineering and manufacturing is leaving this country and what few jobs are here, foreigners on H-1B and L-1 visas from India and China fill up many of those jobs.

That's why China, Japan, Germany, Russia continue to have much domestic manufacturing. They understand it's connected to sovereignty and national independence.

I don't have to "continue r... (Below threshold)
John F Not Kerry:

I don't have to "continue reading." It's Hooverville, I tell you!

Money (wealth) leaves our c... (Below threshold)
Lor:

Money (wealth) leaves our country as we continue to buy huge quantities of goods made in other nations.

We need less spending and more domestic production.

Don't listen to the professional leg crossers on CNBC and Fox business bull-crap shows. None of them actually work for a living; they're all wealthy elite, globalists.

The economic ignorance of t... (Below threshold)

The economic ignorance of the anti-trade folks is appalling. That our public schools cannot instill even the most basic knowledge of how economies work is just one more indictment of the system.

It is appalling, Jim. JP i... (Below threshold)
SPQR:

It is appalling, Jim. JP is ignorant of just what a large fraction of our exports are services and how large a fraction of our economy is service based - and wealth producing - rather than manufacturing. JP in fact Japan is offshoring its manufacturing to places like Korea and seeing people bemoan it like you.

And Ray is living more than half a century in the past. There is no reason to want to return this country to an emphasis on manufacturing - because the reality is that it is not a growth field for anyone even the third world as there is increased automation. The Third World is fighting a losing battle of trying to cut cost of manufacturing and increased quality to compete against increased automation - and they are struggling.

Oh and Ray, there is a word for crying about name calling and then engaging in it. Go try to find it.

Few subjects have so many myths associated with them as this one.




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