Islamic Bonds Rescue James Bond’s Favorite Car

Photo:Jeronimo’s Eye, Creative Commons, Flickr Bond had been offered the Aston Martin or a Jaguar 3.4. He had taken the D.B.III. Either of the cars would have suited his cover – a well-to-do, rather adventurous young man with a taste for the good, the fast things of life. But the D.B.III had the advantage of…

Recommended Reading: March 28, 2008

RGE Monitor’s Brad Setser argues that concerns about the dollar losing its status as global reserve currency may be overstated. He argues that rapid growth in total reserves probably means that recent months have seen a net increase in dollars held by foreign central banks. Britain and America may have less in common than is…

Is the Sky Falling? (Continued)

In a previous post, I had mentioned how our current financial crisis has rippled across other sectors of the U.S. economy and overseas, sending noticeable shock waves across global financial markets. The critics and “doom and gloomers” are all lined up and waiting to unleash a heavy dose of “I told you so” to investors…

Remember the Last Time Globalization Collapsed?

“Remember Friday, March, 14 2008: it was the day the dream of global free-market capitalism died,” says the Financial Times‘ Martin Wolf. “For three decades we have moved towards market-driven financial systems. By its decision to rescue Bear Stearns, the Federal Reserve, the institution responsible for monetary policy in the U.S., chief protagonist of free-market…

Recommended Reading: March 26, 2008

Larry Swedroe, Principal and Director of Research of BAM Advisor Services, explains why a bear market is a necessary evil. “The bottom line is that bear markets are necessary to the creation of the large equity risk premium we have experienced. Thus, if investors want stocks to provide high expected returns, bear markets, while painful…

Why Commodities Will Struggle in 2008

A recent Barrons article points out that “gold and copper are each down 12% from the all-time highs seen on March 17 and March 6, respectively, while crude has fallen 11% from its March 17 high. London International Financial Futures Exchange sugar and cocoa are off 25% and 21%, respectively, from recent highs, while Chicago…

Economist Jeffrey Sachs: “We’ll Get Out of This Mess”

I attended Charlie Rose’s interview of Jeffrey Sachs at the 92nd Street Y on Tuesday night. Jeffrey Sachs, who is the Director of the Earth Institute at Columbia University and has been an economic advisor to governments in Latin America, Eastern Europe, the former Yugoslavia, the former Soviet Union, Asia, and Africa, as well as…

Recommended Reading: March 25, 2008

Social networking will become a ubiquitous feature of online life. That does not mean it is a business, says The Economist. “Social networking may end up being everywhere, and yet nowhere.” Michael Skapinker at the Financial Times no longer believes in the market’s self-healing power. “The US Federal Reserve is providing a $US30 billion safety…

Bear Stearns’ Easter Basket

It seems that the parties involved in JPMorgan’s (JPM – $46.44) takeover of Bear Stearns (BSC – $10.87) like to work on the deal on holidays, Sundays, and when the Moon is Void-of-Course.* Following are the bear facts about the “amended” deal between JPM and BSC. If The Wall Street Journal timeline is accurate, Bear’s…

Recommended Reading: March 24, 2008

Is the commodity bubble about to pop? Edward Hadas at BreakingViews.com argues that commodities have become the last refuge for speculators as other bubbles have popped. But it looks like the party is now over. The Economist talks about the biological reasons why so many people believe in God, gods and religion in general. Still…

Look Out for More Recession News to Quell Panic Rally

Today the Chicago Fed released notes on the economy showing a decrease in U.S. economic activity to the lowest level in five years.  This indicates the recession may have already begun.  Watch for more recession news to end this stock market rally as analysts look for earnings decline.  I’m taking some profits on some of…

HSBC Climate Change Suite

Photo:Singapor3, Creative Commons, Flickr Among banks and investment companies that are playing the green card, British bank HSBC Holdings (NYSE: HBC) is really a good sport with its triple threat: a climate change index, a climate change fund, and a climate confidence index.

Is the Sky Falling? A Recap and a Prediction

As we push further into 2008 and see market conditions continue to deteriorate, the number one question that investors seem to be focused on is whether things have gotten bad enough to lead to a recession. Many financial experts seem to think so, but if we are heading in this direction, are the right actions…

E*TRADE Commercial Captures the Essence of Trading

I do not endorse any one broker, but this eTrade commercial really got to the essense of what trading for one’s own account is all about. This E*TRADE advertisement caused the following emotional and intellectual reactions in me: 1. I felt guilty about investing in Pharma companies who rely more on marketing than curing diseases.…