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Can the U.S. Survive Without Manufacturing?

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by Edmundo Braverman User's RSS Feed Certified User (Neanderthal, 2714 Banana Points Points) on 2/9/10 at 3:58am

Some interesting points made here about the decline in manufacturing and whether we'll be able to sustain growth without it. Is a service economy enough to support 300 million people? Can the lack of manufacturing jobs be blamed for the past 3 "jobless" recoveries?

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Greatly Exaggerated

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by oilprice User's RSS Feed (Senior Monkey, 74 Banana Points Points) on 2/8/10 at 8:11pm

The U.S. Dollar is Finally Getting Invited Back to the Investment Party

The buck is up 6% against the euro in the last three weeks. Notwithstanding problems in Greece and Spain, and the attendant complications for the E.U., this is a pretty good performance.

Illustrating an important lesson. Don't count the dollar out too soon.
Full article at: US Dollar

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Thain Goes Back to Work

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by Edmundo Braverman User's RSS Feed Certified User (Neanderthal, 2714 Banana Points Points) on 2/8/10 at 3:14am
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It was only a matter of time before Clusterstock's 2008 CEO of the Year John Thain emerged from his self-imposed exile and went back to work. In true Thain style, he chose a company with the potential to restore him to rock star status.

Thain is joining embattled commercial lender CIT Group as Chairman and CEO, effective immediately. No word on whether the company has begun its search for antique commodes and priceless area rugs yet.

Quote:

"John is a well respected financial services executive and proven leader who is uniquely qualified to lead CIT at this critical stage," said CIT lead director John Ryan in a statement. "We have the utmost confidence in John and are pleased to welcome him to CIT."

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Major economic and social problems confronting the US

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by sanjose04 User's RSS Feed (Baboon, 122 Banana Points Points) on 2/6/10 at 1:09pm
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I was keep tracking the economy and social problems for quite a while and here are some of the lists. (Notes: The order is not based on its importance or anything. Also, these are not mutually exclusive.) I have always tried to look things in a big picture without losing sight of what really drives the economy and social problems. Anybody wants add something on this list?

1. Resolving the financial crisis- revitalizing the banks and recovering the credit market
2. Prevailing unemployment problem- the new Europe?
3. Combating government debt, both Federal and state level- How? Increasing tax collections? Cutting budgets?
4. Shrinking middle-income class
5. Widening inequalities among different states and regions
6. Weakening military dominance
7. Strengthening manufacturing base- accounts for only 9% of the total GDP
8. Weak dollar and potential risks of high inflation
9. Financial system reform- is the White House willing to? If so, how?
10. Reforming health care system and problems stemming from ageing population, especially pension systems.
11. Weak public education system
12. Remaining as the most prominent status in terms of research and technology development

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Oil Prices Fall Sharply as General Market Sells Off

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by oilprice User's RSS Feed (Senior Monkey, 74 Banana Points Points) on 2/5/10 at 7:49pm

After starting the week on a firmer note, oil prices fell sharply toward the end of the week in a general market sell-off as investors sought the dollar as a safe haven amid worries about European Union economies.

Debt problems that have plagued Greece are now spreading to Portugal and Spain, driving the euro down temporarily below $1.36 and bringing the dollar to an 8-month high. Because oil and other commodities are priced in dollars, gains in the U.S. currency usually translate into declines in oil prices.

Even a decline in the U.S. jobless rate below 10% on Friday could not stop the downward trend in commodities.

Some analysts were predicting that crude oil futures, which crashed through the longtime support level of $72 dollars a barrel to dip briefly below $70 for West Texas Intermediate in Friday afternoon trading, were sliding downward into a new trading range of $65 to $72 a barrel, after oscillating between $72 and $80 the past several weeks. Crude oil, which settled just above $71 a barrel on Friday, has dropped nearly 15% since hitting its 15-month high just above $83 on Jan. 6.

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Rogue Aluminium Shipments Suggest Chinese Metal Stockpiles are Being Re-Exported

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by oilprice User's RSS Feed (Senior Monkey, 74 Banana Points Points) on 2/5/10 at 3:23pm

This might be the year's most important news. Which got almost no press globally.
Something strange happened in Japan in December. Shipments of aluminum from Mozambique and Brazil showed up in the northwestern ports of Fushiki and Fukui.
Shipping aluminum to Japan isn't weird. The nation is an important consumer. But shipping South American and African aluminum to northwest Japan is strange.

These are minor ports. Usually such imports would be unloaded on the Pacific side, at Yokohama, Osaka or Nagoya.
Where did this "rogue aluminum" come from? Traders think it might be from China.

Full article at: Aluminium Shipments

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Dave Is Saved!

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by Edmundo Braverman User's RSS Feed Certified User (Neanderthal, 2714 Banana Points Points) on 2/5/10 at 7:07am
Miranda Kerr.jpg

Looks like Miranda Kerr enthusiast David Kiely gets to keep grinding it out at Macquarie. After an internal review, the company has decided not to sack Dave after his unfortunate Internet browsing on live TV.

Anyone else think this is just hysterical? I always worked with the kind of guys who would do this sort of thing to you if they had the opportunity. I once sent a colleague a video with instructions to turn his speakers up because the audio was really low. It was a video of kittens for about 10 seconds, and then it switched to a guy screaming, "The boss is a c**t!" over and over again at max volume. He told me he got his ass reamed for that one.

So, all is well with Dave at Macquarie.

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Big Game This Weekend!

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by Edmundo Braverman User's RSS Feed Certified User (Neanderthal, 2714 Banana Points Points) on 2/5/10 at 3:52am

Alright, so I'm not going to harp on how big a Saints fan I am, because I've done that enough already. Hopefully we see one of the longest winless streaks in sports history become history on Sunday.

But I have to admit, I have almost as much fun watching the Super Bowl commercials as I do watching the game itself (especially since this is the first Super Bowl I've had a vested interest in since the Chargers/49ers Super Bowl in 1994). Some commercials just don't make the cut, though, and lately that's what ad agencies are going for more and more. Who could forget the Bud Light Swear Jar? Well, they've done it again with this slightly-disturbing-though-soon-to-be-classic follow up:

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Warren Buffett Demoted to Double A

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by DoctorEvil User's RSS Feed Certified User (Baboon, 132 Banana Points Points) on 2/4/10 at 6:04pm
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In a ballsy move by the front office, it seems that Warren Buffett's "stuff" just ain't what it used to be. Buffett, who has been a journeyman player for years, has fallen out of favor with the S&P, receiving news today that Berkshire Hathaway is no longer AAA caliber.

As Buffett packed up his locker and prepared for his descent to the minor-minor leagues, he was heard mumbling something about how he would buy the franchise and turn it into a Panty Hose Factory. The coaching staff reported that the billionaire knuckleballer seemed "depressed" upon hearing the news and admitted that his liquidity had clearly suffered in the off season. "He can't believe he was only paying himself $100K."

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The Problem With Price Forecasting - Is There a Better Way?

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by oilprice User's RSS Feed (Senior Monkey, 74 Banana Points Points) on 2/4/10 at 1:20pm

David Threlkeld of metals trading advisor Resolved Inc. got some press this week.
That happens when you predict a catastrophe.

Threlkeld was quoted by Bloomberg repeating an ominous prediction he first made in May 2006. The call? That the copper market is heading for a catastrophic collapse. With the LME price falling to below $1 per pound.

Threlkeld has some credentials. He was one of the first to expose rogue copper trader Yasuo Hamanaka in the mid-1990s. And point out that Sumitomo's hoarding of copper was having an undue effect on prices.

His arguments on the coming copper crisis make some sense. Basically, that most of the world's buying today is from speculators. Investors who will dump the inventory back on the market at the drop of a fedora if sentiment shifts.

Threlkeld's call adds to an ever-present tapestry of forecasts on metals prices by thousands of analysts globally.

People watching commodities markets love to make predictions. On where prices will be a year, two years or ten years from now. Every brokerage house turns out a slate of forecast prices for oil, copper, sugar and every other hard asset.

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This Is Priceless

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by Edmundo Braverman User's RSS Feed Certified User (Neanderthal, 2714 Banana Points Points) on 2/4/10 at 4:06am

And they wanna give Wall Street a hard time about bonuses? SHEE-ITT:

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Pay Your Card But Default on Your Mortgage?

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by Edmundo Braverman User's RSS Feed Certified User (Neanderthal, 2714 Banana Points Points) on 2/4/10 at 3:53am
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In a new report bound to disturb those hoping for a comeback in the real estate market this year, TransUnion reveals that Americans across the board are opting to keep their credit card payments up to date while allowing their mortgages to go into foreclosure. I can't for the life of me understand the thinking behind this strategy, though I suspect it has a lot to do with the fact that 25% of American mortgages are under water and this trend is merely a precursor to another wave of homeowners leaving their keys in the mailbox and walking away.

So it got me thinking. When I was younger and in school, there was no such thing as a personal finance class. Responsible financial management was completely ignored by academia (of course, back then if a college kid applied for a credit card the application would've received the same reception as Aleksey Vayner's resume). It was a seriously big deal for me to get approved for an AT&T calling card with a $200 limit when I was 19. (Try to imagine a world where there were pay phones everywhere and everyone used them.)

Do the schools today do a better job preparing students for real-life finance? I've heard of high school kids with credit cards now, and I think it goes a long way to explaining this depressing chart. To put it into perspective, 4% of the world's population holds 40% of the world's personal debt. How did we get here?

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Wind Power and Renewables Under Fire over Corruption and Shortcuts

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by oilprice User's RSS Feed (Senior Monkey, 74 Banana Points Points) on 2/3/10 at 6:41pm

Wind energy business comes under fire over subsidies and corruption. We also look at the Obama administration’s geothermal program, climategate and renewable energy issues.
Full article at: Renewable Energy

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Even da Vinci Had to Interview

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by Edmundo Braverman User's RSS Feed Certified User (Neanderthal, 2714 Banana Points Points) on 2/3/10 at 6:48am
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I thought you guys might appreciate this. I came across this cover letter written by Leonardo da Vinci to a potential employer, the Duke of Milan. It should make you feel better that even one of the greatest minds in human history had to deal with HR.

Unlike some modern-day imitators (ahem, Jeremy King, Jeffrey Chiang...), da Vinci actually brought the wood. And Leonardo was something of a badass, too. I don't know why I was surprised when I read it, but it turns out he was extremely well-versed in siege technology.

Quote:

Where the operation of bombardment might fail, I would contrive catapults, mangonels, trabocchi, and other machines of marvelous efficacy and not in common use. And in short, according to the variety of cases, I can contrive various and endless means of offense and defense.

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Shia LaBeouf Is The Real Deal

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by DoctorEvil User's RSS Feed Certified User (Baboon, 132 Banana Points Points) on 2/2/10 at 7:22pm
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Edmundo was kind enough to post the link to the new Money Never Sleeps trailer. Honestly, the trailer failed to get me excited and made the film seem like another steamer courtesy of Oliver Stone. Though I keep hoping the director will return to his glory days, when he made Platoon and Wall Street back to back, I think there's a greater chance of Obama giving Timmy Geithner a happy ending.

But, what should really ease the pain, I think, is the knowledge that Shia TheBeef is a doofy green screen action hero no longer -- beginning in April, when the movie is released, he will show that he is now a master thespian, who knows a thing or two about what it takes to get hired at a little place called Goldman.

Oh yes, according to USA Today (which is now just one large pie chart), Sheba arrived in Manhattan two-and-a-half months early to learn the ins and outs of proprietary trading. Obama's timing on nixing prop trading a coincidence?? Nuh uh.

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