The bigger story is that Greece hasn’t been abandoned by the rest of Europe…yet. Europe could probably leave Greece behind and preserve the integrity (such as it is) of the euro as a sound currency. But 50 years of harping on about social justice and economic harmony and humane capitalism is going to make it hard for policymakers to leave Greece to its own devices.
February 17th, 2010 | Dan Denning | 19 comments | ContinuedArchive for Dan Denning
Dan Denning is the author of 2005's best-selling The Bull Hunter (John Wiley & Sons). Dan draws on his network of global contacts from his base in Melbourne. He’s the managing editor of resource newsletter Diggers and Drillers and the editor of The Daily Reckoning Australia.
China and Raising Reserve Requirements May Result in Slow Demand for Iron Ore
Come to think of it, the iron ore business is a good case study for today’s conversation. Earnings are backward looking. What we all want to know is how business is going to be this year and whether stocks are already priced for any of that future earnings growth. So what’s the story?
February 15th, 2010 | Dan Denning | 10 comments | Continued
Your Garden Variety Global Financial Crisis or Something Wilder?
But first, why are companies hoarding cash? Bloomberg reports that companies in the S&P 500 have increased their cash holdings to an aggregate US$1.18 trillion dollars. The big blue chip multinationals have cut spending, frozen new hires (not literally), and generally kept cautious until more details emerge about the economic landscape.
February 12th, 2010 | Dan Denning | 121 comments | Continued
China Using Holdings of U.S. Treasury Bonds as Cudgel to Bludgeon United States
Figures in the People’s Liberation Army want the financiers to sell U.S. bonds as a way of punishing Washington for selling arms to Taiwan. Mind you this might not seem like such a good idea if the bond selling triggers a run on the dollar and swift devaluation in China’s forex reserves. But maybe China’s arsenal of U.S. bonds is a like a pile of bullets – they’re no good unless you fire them.
February 11th, 2010 | Dan Denning | 26 comments | Continued
CBA and Their Bad Debt Problem
It rode the FHOG to higher loan values and volumes and market share. If those borrowers struggle with higher interest rates or – horror of horrors – Aussie house prices grow less fast (or even fall) – we’d expect to see the bad debt problem again affect earnings growth…
February 10th, 2010 | Dan Denning | 109 comments | Continued
If Market Keeps this Way, There May Be More Beaten Down Stocks
It’s quickly becoming a market where you’re worried more about the preservation of your capital rather than capital appreciation or even dividends. Late last night we read the latest monthly report from Australian Wealth Gameplan, edited by Kris Sayce. Kris has come up with a way to hedge against the falling Aussie dollar and listed all the collateral damage that would occur if the currency falls more.
February 9th, 2010 | Dan Denning | 11 comments | Continued
Aussie Stocks Situation Presents Good Buying Opportunity For the Fearless Trader
Sometime around last Thursday afternoon the mood in the market went from concerned to “totally freaked out”. It is a trifecta of concerns that have investors on the edge. Chinese growth is slowing. The American employment picture is not good. And Europe is in the middle of a dangerous debt crisis.
February 8th, 2010 | Dan Denning | 17 comments | Continued
Modern World Economy is Built on a Foundation of Unsound Money
Now just because Ben Bernanke and the global cabal of counterfeiters don’t want something to happen doesn’t mean it won’t happen anyway. The deflating of the reflated asset bubble is going to happen sooner or later. The world’s massive inverse pyramid of debt is supported by a very small asset base.
February 5th, 2010 | Dan Denning | 5 comments | Continued
South Australia Law Will Have a Chilling Effect on Political Speech
A new law has come into effect in South Australia. The law, according to the Adelaide Advertiser, “requires internet bloggers, and anyone making a comment on next month’s state election, to publish their real name and postcode…
February 3rd, 2010 | Dan Denning | 23 comments | Continued
Australia Has Highest Household Debt to Disposable Income Ratio in World
The chart above doesn’t have the most recent data. It appears to show a gentle decline in the household debt-to-disposable income ratio. Since then, though, due to higher debts and income growth that’s not quite kept up, the ratio has turned up again. It’s around 156% today…
February 3rd, 2010 | Dan Denning | 124 comments | Continued