Is coal the next oil?
Photo Credit: EZ Images
It seems as though coal and oil are beginning to coincide. When oil prices are high, coal prices jump because of a very small connection between the two. Certainly, the price is helped by the “clean coal” initiatives around the world that hope to reduce pollution and the emission of dangerous substances. [...]
Where will the money from oil go next?
As the commodities markets ebb, the money flowing out of the oil “bubble” is the most notable. What was a long climb to $147 per barrel has since ended with large drops all the way back to $118. Now that oil is losing its steam, the money that was feeding the monster will come back [...]
China showing true meaning of capitalism
Photo Credit: Cartoon Stock
The Chinese economy is still doing very well, regardless of what their financial markets are saying. While the Chinese stock markets are well off their highs, this dynamic is likely the result of a busted bubble rather than a fundamental breakdown. It’s obvious that speculators were simply paying too much for Chinese [...]
China South Locomotive on track with big IPO
Photo Credit: China Commodity Net
China South Locomotive reached a boom with a recent IPO. The company was looking to sell 3 billion new shares for a price of 2.18 yuan each, but when it went to make the sale, the company received offers totaling 2.27 trillion yuan for only 6.54 billion yuan in new stock. [...]
The long-term case for Yahoo stock
Photo Credit: EIBT24
Yahoo has been in the news more than any other corporation; the soap opera drama that exists with the corporate few and investor Carl Icahn was more than enough to fuel headlines. Now that the deal is finalized with Icahn giving up his proxy vote to overthrow the board and eventually sell out [...]
Japan experiencing high inflation
Photo Source: Elaine Meinel Supkis
The Japanese were fighting deflation in the 1990s, and subsequently, as their lending standards and interest rates were relaxed to boost money supply, the rapid rise in the cost of goods has taken the Bank of Japan for a spin. Low interest rates, even as low as negative during a few [...]
India’s inflation worries dire - potential credit rating loss
Photo Credit: The Hindu Business Line
In order to fight rising inflation, India’s central bank has raised its benchmark rate to 9 percent from 8.5 percent, which was double the estimated increase of a quarter point. The large increase shows the economic trouble that high inflation has caused, even though Governor Yaga Venugopal Reddy has done [...]
How Fannie and Freddie reign over the US economy
Photo Credit: Don Ryan / Associated Press
The sub-prime mortgage troubles continue to haunt the American economy, even after heating up tremendously just in the past quarter. As America’s banks fight with insolvency and a lack of credit, two mortgage powerhouses are also on the brink of going under. Fannie Mae and Freddie Mac have a [...]
Hyundai earnings expectations high on small car sales
Photo Credit: Tuning News
Hyundai is known for its compact cars meant for people on a budget. However, with oil prices sitting at $126 per barrel, people are opening up to the brand that focuses on smaller family cars and light sports cars. Net profit is expected to rise 3.4% while the total sales numbers should [...]
Traders love a lower oil price and consumer confidence numbers
With oil prices tanking from $147 to $123 per barrel, traders are eating up US equities but dumping oil stocks. If oil prices continue to fall, this will create a large disparity in the three major US indices. The Dow Jones Industrial Average and NASDAQ indices favor blue chip stocks and tech stocks; the S&500, [...]
