Category: Investments


Is a run on the Greek Banks Infectious?

Greece’s banks have lost 72 billion euros in deposits since the start of 2010, or about 30 percent, according to data compiled by Thomson Reuters. Five of Greece’s top banks saw 37 billion euros taken out last year, including 12 billion from EFG Eurobank (EFGr.AT) and 8-9 billion apiece at National Bank of Greece (NBGr.AT), Piraeus (BOPr.AT) and Alpha Bank (ACBr.AT).”


Greece’s Best Option is Orderly Default?… Nouriel Roubini writes



It is time to recognize that Greece is not just suffering

from a liquidity crisis but it is also facing an insolvency crisis..

“The Old/New Normal”


“But before ringing in the New Year with a rather grim foreboding, let me at least describe what financial markets came to know as the “old normal.” It actually began with early 20th century fractional reserve banking, but came into its adulthood in 1971 when the U.S. and the world departed from gold to a debt-based credit foundation. Some called it a dollar standard but it was really a credit standard based on dollars and unlike gold with its scarcity and hard money character, the new credit-based standard had no anchor – dollar or otherwise. All developed economies from 1971 and beyond learned to use credit and the expansion of debt to drive growth and prosperity. Almost all developed and some emerging economies became hooked on credit as a substitution for investment in tangible real things – plant, equipment and an educated labor force. They made paper, not things, so much of it it seems, that they debased it. Interest rates were lowered and assets securitized to the point where they could go no further and in the aftermath of Lehman 2008 markets substituted sovereign for private credit until it appears that that trend can go no further either. Now we are left with zero-bound yields and creditors that trust no one and very few countries. The financial markets are slowly imploding – delevering – because there’s too much paper and too little trust. Goodbye “Old Normal,” standby to redefine “New Normal,” and welcome to 2012’s paranormal.”

PIMCO’S BILL GROSS’s SUMMARY OF PREDICTIONS FOR 2012

For 2012, in the face of a delevering zero-bound interest rate world, investors must lower return expectations. 2–5% for stocks, bonds and commodities are expected long term returns for global financial markets that have been pushed to the zero bound, a world where substantial real price appreciation is getting close to mathematically improbable. Adjust your expectations, prepare for bimodal outcomes. It is different this time and will continue to be for a number of years. The New Normal is “Sub,” “Ab,” “Para” and then some. The financial markets and global economies are at great risk.

READ MORE SOURCE ARTICLE: William H. Gross, Managing Director PIMCO

[Picture Via: ftd.de/]


[Picture Via: Source]

5. John Paulson: Paulson & Co. $30 billion under management.

4. Bill Ackman: Pershing Square Capital Management oversees about $9 billion.

3. Mark Spitznagel: Universa Investments

2. David Einhorn: Greenlight Capital

1. Jim Chanos: Kynikos Associates


SOURCE: 5 hedge-fund managers to watch in 2012

RARE EARTH METALS UNDER EXPONENTIAL DEMAND


[Graphic Via: investmentu.com]

Products like aerospace components, fluorescent lamps, wind turbines, hybrid vehicles, battery-electrodes, magnets, camera lenses, self-cleaning ovens, PET Scans, lasers, fluid catalytic cracking catalyst for oil refineries and compact fluorescent light bulbs that rely upon rare earth metals will become exponentially more expensive. Read More>>>>

Leeb Capital Management Brochure

View Bloomberg Presentation:
Dr. Stephen Leeb is a bestselling financial author, wealth manager, and publisher of a family of investment newsletters. He is a recurring guest on CNN, FoxNews, NPR and Bloomberg TV, and has been called “one of the country’s foremost financial experts.”

Education
Leeb earned a BS in Economics from the Wharton School of Business, and a Masters in Mathematics and a PhD in Psychology from the University of Illinois. His graduate degrees were obtained in three years.

 

ACCESS THE COMPLETE LIST OF RARE EARTH METALS
View full article »

Are Old Economic Models Out the Window?

53% of Fund Managers Predict US Gloom

“The monthly release from the investment bank found that 53% of a global panel of managers surveyed believe a ratings downgrade of the U.S. could take place before the end of 2013, with about 36% predicting a rating change in 2012. The survey covered 258 panelists with $665 billion of assets under management in all, while the global survey panel consisted of 188 managers in charge of $514 billion in assets.”
[Via: marketwatch.com]

Wall Street’s number one investment strategist and Financial Thought Leader, Francois Trahan will explain why the old economic models are failing and why safety is the best strategy for investors.