BloggingStocks http://www.bloggingstocks.com BloggingStocks http://www.blogsmithmedia.com/http://www.bloggingstocks.com/media/feedlogo.gif BloggingStocks http://www.bloggingstocks.com en-us Copyright 2012 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/<![CDATA[Commodity Metals Decline on Investor Emotions]]>http://www.bloggingstocks.com/2010/05/26/commodity-metals-decline-on-investor-emotions/http://www.bloggingstocks.com/2010/05/26/commodity-metals-decline-on-investor-emotions/http://www.bloggingstocks.com/2010/05/26/commodity-metals-decline-on-investor-emotions/#commentsFiled under:

All over Wall Street investors seem to be running scared. A broad array of stocks have taken a two day beating, with very little rational justification. The European instability excuse is losing its viability. Profit taking is handily tossed around as justification, but that proposition is near entirely exhausted. The "market correction" excuse just doesn't hold up under scrutiny. Yet again this week, the street's traders are deferring to the bears. The single most valid explanation I can come up with is this: The investment community on a whole has lost its nerve.

Continue reading Commodity Metals Decline on Investor Emotions

Commodity Metals Decline on Investor Emotions originally appeared on BloggingStocks on Wed, 26 May 2010 15:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>aluminumbubblecommoditycommodity metalscommodity pricescoppergoldinthenewsWed, 26 May 2010 15:00:00 EST<![CDATA[Greenspan Says Market Forces, Not Federal Reserve Rates, Created Housing Bubble]]>http://www.bloggingstocks.com/2010/04/07/greenspan-market-forces-not-fed-created-housing-bubble/http://www.bloggingstocks.com/2010/04/07/greenspan-market-forces-not-fed-created-housing-bubble/http://www.bloggingstocks.com/2010/04/07/greenspan-market-forces-not-fed-created-housing-bubble/#commentsFiled under: ,

The former head of the world's most powerful central bank once again provided tutelage to Washington-based investigators regarding the source(s) of the financial crisis.

Former U.S. Federal Reserve Chairman Alan Greenspan, testifying Wednesday before the Financial Crisis Inquiry Commission, reiterated that the supply of money globally -- not the Fed's monetary policy on interest rates -- was the primary driver of the extended low interest rate period that contributed to the U.S. housing market bubble, the bursting of which set in motion the financial crisis.

Continue reading Greenspan Says Market Forces, Not Federal Reserve Rates, Created Housing Bubble

Greenspan Says Market Forces, Not Federal Reserve Rates, Created Housing Bubble originally appeared on BloggingStocks on Wed, 07 Apr 2010 17:30:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>bubbleGreenspaninthenewsmortgage ratesmortgagesreal estate bubbleWed, 07 Apr 2010 17:30:00 EST<![CDATA[Comfort Zone Investing: Is China the Next Dot-Com?]]>http://www.bloggingstocks.com/2010/03/27/comfort-zone-investing-is-china-the-next-dot-com/http://www.bloggingstocks.com/2010/03/27/comfort-zone-investing-is-china-the-next-dot-com/http://www.bloggingstocks.com/2010/03/27/comfort-zone-investing-is-china-the-next-dot-com/#commentsFiled under: ,

Comfort Zone Investing: is China the next dot.com?Back in the late '90s all you had to do was put a ".com" after your official name, and you were golden. Investors bought your stock with a frenzy, never mind the details. It was the fact that the company was on the Internet, that's what mattered. Basic stock analysis? Forget about it. Didn't need it. The company was on the Web. Good enough for investors.

Analysts were digging deep into rationalizations on how to pump these stocks even higher. The usual numbers didn't apply, like price to earnings, because, well, there were no earnings. They were coming. Sometime. Way in the future. What mattered was the number of eyeballs that a site grabbed. The reasoning: the more eyeballs that looked at a site, the bigger the potential to convert those viewers into buyers. The only problem: very few viewers clicked on the banner ads. They saw them, but simply ignored them, much like hitting the mute button on their TVs.

Continue reading Comfort Zone Investing: Is China the Next Dot-Com?

Comfort Zone Investing: Is China the Next Dot-Com? originally appeared on BloggingStocks on Sat, 27 Mar 2010 10:30:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>bubbleChinaComfort Zone Investingfeaturedforeign investinggrowthSat, 27 Mar 2010 10:30:00 EST<![CDATA[Dr. Doom Nouriel Roubini believes the bubble is about to burst]]>http://www.bloggingstocks.com/2009/11/10/nouriel-roubini-believes-the-bubble-is-about-to-burst/http://www.bloggingstocks.com/2009/11/10/nouriel-roubini-believes-the-bubble-is-about-to-burst/http://www.bloggingstocks.com/2009/11/10/nouriel-roubini-believes-the-bubble-is-about-to-burst/#commentsFiled under: , ,

Dr. Doom is back. Last week, New York University economist Nouriel Roubini decided to speak out about the current economic recovery, warning that it cannot last. I'm not quite sure how this blog missed my radar screen, so I must thank Robert J. Samuelson for bringing it to my attention yesterday.

Roubini contends that while there was a massive rally in "all sorts of risky assets" has caused the dollar had weakened sharply and government bond yields have "increased but stayed low and stable." These risky assets that Roubini discusses are equities, oil, energy, and commodity. Dr. Doom believes that the prices for these risky assets have risen too far and too fast compared to macroeconomic fundamentals.

Continue reading Dr. Doom Nouriel Roubini believes the bubble is about to burst

Dr. Doom Nouriel Roubini believes the bubble is about to burst originally appeared on BloggingStocks on Tue, 10 Nov 2009 10:30:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>bubbledotcomDr. Doomeconomic recoveryfeaturedFederal Reservehousing bubbleinthenewsNouriel RoubiniTue, 10 Nov 2009 10:30:00 EST<![CDATA[Five signs that green is the next bubble]]>http://www.bloggingstocks.com/2009/10/07/five-signs-that-green-is-the-next-bubble/http://www.bloggingstocks.com/2009/10/07/five-signs-that-green-is-the-next-bubble/http://www.bloggingstocks.com/2009/10/07/five-signs-that-green-is-the-next-bubble/#commentsFiled under: , ,

We're tired of bubbles, right? Anyone 30 or older has lived through two big ones so far, with a brief period of prosperity separating the decimation of dot-com largesse and mortgage-fueled paper wealth. It could take until 2014 for the jobs lost to be replenished, and there's little reason for optimism.

So, with the economy in the tank, we can focus elsewhere -- maybe on saving the planet. If we can't put green in our wallets, maybe we can add some to our lifestyles. Or, you could do both. Green technology could be the next boom in the United States, even if we do lag some parts of the world, and investing in clean solutions is really nothing other than investing in the next big thing. Even if you don't give a damn about climate change (or don't think it exists at all), the green market could likely become your employer -- or trigger the economic growth that will create your next job.

Some signs are visible already.

Continue reading Five signs that green is the next bubble

Five signs that green is the next bubble originally appeared on BloggingStocks on Wed, 07 Oct 2009 12:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>barack obamabatteriesbatteryboombubblebustcleanclean technologycleantechgreen techgreen technologyinthenewsobama administrationsolar cellsventure capitalventure financialventure fundingWed, 07 Oct 2009 12:00:00 EST<![CDATA[What can we learn from the Beanie Baby bubble?]]>http://www.bloggingstocks.com/2009/08/26/what-can-we-learn-from-the-beanie-baby-bubble/http://www.bloggingstocks.com/2009/08/26/what-can-we-learn-from-the-beanie-baby-bubble/http://www.bloggingstocks.com/2009/08/26/what-can-we-learn-from-the-beanie-baby-bubble/#commentsFiled under: , ,

There was a very interesting piece written by Karen Blumenthal in The Wall Street Journal yesterday. Blumenthal takes a look at the Beanie Baby craze and how we can all learn from the "Beanie Baby Bubble." Blumenthal has studied bubbles and has determined that there is a pattern that drives these economic phenomena - be it Beanie Babies, real estate, or "Dot Coms."

Blumenthal contends that bubbles need these characteristics: fertile ground, people getting on board, ignoring warnings, greed, and an after-party. Think about the fertile ground, when Beanie Babies first came out, there was a fertile ground. Kids, parents, and grandparents were looking for a new toy, one that could be both a cherished heirloom and a cute adornment for mantles, dressers, and the back window of Cadillacs. The ground was fertile, and this group quickly jumped on board the Beanie Baby train and pushed the prices to a point where some people would pay upwards of $100 for a $5 bean-bag animal.

Continue reading What can we learn from the Beanie Baby bubble?

What can we learn from the Beanie Baby bubble? originally appeared on BloggingStocks on Wed, 26 Aug 2009 15:30:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>Beanie BabiesBeanieBabiesbubblebubblesbubblewatchfeaturediPhonesKaren BlumenthalKarenBlumenthalWed, 26 Aug 2009 15:30:00 EST<![CDATA[The great U.S. bond bubble]]>http://www.bloggingstocks.com/2008/12/16/the-great-u-s-bond-bubble/http://www.bloggingstocks.com/2008/12/16/the-great-u-s-bond-bubble/http://www.bloggingstocks.com/2008/12/16/the-great-u-s-bond-bubble/#commentsFiled under: ,

There is an unprecedented change in U.S. bond prices to the upside. As the old adage says: stocks down, bonds up. This has never been more true than this past year. With stocks falling sharply, bonds have been rising to astounding heights.

The price of bonds moves in an inverse direction to yield, so as yields come down near zero, bond prices go up. The Treasury Bill is now at a minus zero yield and the 30-year bond at 3%. Usually, the longer the term, the higher the interest rate because of the greater risk of holding an investment for 30 years.

As the stock market fell sharply over the last few months and the Federal Reserve has cut interest rates almost to zero, the prices of U.S. Treasuries has soared to new all-time highs. For example, the forward contract in the 30-year bond that is traded on CBOT (Chicago Board of Trade), in early October traded at 112 and has since risen to 135. To give you an idea of what this means, the price increased 2400 basis points. Each 100 basis points equal $1000.00. So one bond contract is now up $24,000.00.

Continue reading The great U.S. bond bubble

The great U.S. bond bubble originally appeared on BloggingStocks on Tue, 16 Dec 2008 18:06:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>bondsbubblefeaturedTreasuryBillsTue, 16 Dec 2008 18:06:00 EST<![CDATA[Money winners of 2008: Jeff Greene shorted subprime]]>http://www.bloggingstocks.com/2008/12/15/money-winners-of-2008-jeff-greene-shorted-subprime/http://www.bloggingstocks.com/2008/12/15/money-winners-of-2008-jeff-greene-shorted-subprime/http://www.bloggingstocks.com/2008/12/15/money-winners-of-2008-jeff-greene-shorted-subprime/#commentsFiled under: ,

This post is part of our feature on Money Winners of 2008. See all 20.

Lots of people thought real estate was overpriced. Many worried that banks were giving out mortgages too cheap. But what did you do about it? (Either to help the situation or to make money.) Jeff Greene, a real estate mogul in California, actually found a way to bet against the subprime mortgage folly. He made $450 million -- at least that was the count earlier this year.

Well, he didn't just think of it on his own. He basically took the idea that his friend, hedge fund manager John Paulson, had. Paulson thought that, as an individual, Greene wouldn't be able to do this complex a transaction. According to the Wall Street Journal he even used special software so investors in a hedge fund Paulson created just to exploit the subprime crisis couldn't pass on his strategy.

How Greene and Paulson made money involves two financial terms you've probably had to learn this year and never want to hear again. Collateralized debt obligations (CDOs) are the way mortgages are packaged and sold to investors in various slices of risk. Credit default swaps are the holders of those investments insured themselves -- by buying what was like unregulated insurance from one another. The credit default swaps are what got so many big companies in trouble -- they had to pay up on investments that went bad. So Paulson shorted CDOs and bought some credit default swaps.

Continue reading Money winners of 2008: Jeff Greene shorted subprime

Money winners of 2008: Jeff Greene shorted subprime originally appeared on BloggingStocks on Mon, 15 Dec 2008 12:42:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>bondsbubblecredit default swapgreenehedge fundMoney Winners 2008mortgagepaulsonshortsubprimesubprime mortgagesMon, 15 Dec 2008 12:42:00 EST<![CDATA[Oil pushes past $145 on dollar decline concerns]]>http://www.bloggingstocks.com/2008/07/03/oil-pushes-past-145-on-dollar-decline-concerns/http://www.bloggingstocks.com/2008/07/03/oil-pushes-past-145-on-dollar-decline-concerns/http://www.bloggingstocks.com/2008/07/03/oil-pushes-past-145-on-dollar-decline-concerns/#commentsFiled under: , , ,

Another day, another oil record.

Oil easily pushed past $145 Thursday morning after traders calculated that the already weak dollar has further to fall after the European Central Bank increased a key interest rate by a quarter point to 4.25%.

Oil rose as much as $2.28 to $145.85 per barrel -- an all-time high -- before easing back slightly to trade at $144.40 at mid-day.

Oil tends to rise when the dollar falls as investors/traders seek to preserve purchasing power of the decreased value of dollar-denominated commodities by bidding their price up. However, it's important to note that the dollar/oil correlation is not perfect: there have been instances in which the dollar fell and oil fell.

Continue reading Oil pushes past $145 on dollar decline concerns

Oil pushes past $145 on dollar decline concerns originally appeared on BloggingStocks on Thu, 03 Jul 2008 14:52:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>bubblebubblesdollarECBemerging marketseuroEuropean Central Bankgasoline pricesinterest ratesinthenewsIranIraqNYSEoiloil pricesoil shockOPECspeculationspeculatorsstock marketstocksThu, 03 Jul 2008 14:52:00 EST<![CDATA[A 'housing bubble' or a 'consumer credit bubble'?]]>http://www.bloggingstocks.com/2007/12/16/a-housing-bubble-or-a-consumer-credit-bubble/http://www.bloggingstocks.com/2007/12/16/a-housing-bubble-or-a-consumer-credit-bubble/http://www.bloggingstocks.com/2007/12/16/a-housing-bubble-or-a-consumer-credit-bubble/#commentsFiled under: , ,

There's been a lot of talk lately about the housing bubble, and a lot of folks have been placing a lot of the blame on easy credit, subprime mortgages, and predatory lending.

It's entirely right they they should do this. The heady days of the bubble were marked by unprecedented access to credit for people with poor prospects and rampant mortgage fraud (often perpetrated by heavily-commissioned real estate brokers) further exacerbated the problem of people buying houses they really couldn't afford using gimmicky adjustable-rate and other toxic mortgages.

It's easy to see how this contributed to the bubble -- an avalanche of prospective home buyers armed with funny money drove up housing prices with little or nothing in the way of down payments -- the mortgages were wrapped up and sold to Wall Street, but that's another story. It's estimated by some that more than 20% of recent subprime home loans will end in foreclosure -- You don't need a Ph.D in economics to know that an influx of new homebuyers is going to drive up prices.

So here's my question: Was the first of the 2000s a housing bubble or a consumer credit bubble that drove up housing prices?

A quick look at Google: The phrase "Housing bubble" yields 1.22 million results. "Consumer credit bubble" brings up just 4,850 results.

I would argue that easy credit and lax lending practices were by far the most important contributor to the housing bubble -- it's hard to even think of anything else that comes close.

Maybe we should start calling it the "consumer credit bubble". After all, there were plenty of areas, almost exclusively those with a low incidence of subprime loans, that haven't had the wild gyrations in home prices and sales volume that have characterized this bubble.

A 'housing bubble' or a 'consumer credit bubble'? originally appeared on BloggingStocks on Sun, 16 Dec 2007 15:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>Adjustible Rate MortgagesAdjustibleRateMortgagesbubblecreditHousinghousing marketHousingMarketmortgagesreal estateRealEstateSubprimesubprime mortgagesSubprimeMortgagesSun, 16 Dec 2007 15:00:00 EST<![CDATA[Holy wheat bubble]]>http://www.bloggingstocks.com/2007/09/25/holy-wheat-bubble/http://www.bloggingstocks.com/2007/09/25/holy-wheat-bubble/http://www.bloggingstocks.com/2007/09/25/holy-wheat-bubble/#commentsFiled under: ,

The price of wheat says it all. Terrible drought conditions in Australia and poor supplies from Canada are driving prices for the crop through the roof.

This is occurring while demand is soaring as Iraq recently imported 700,000 tonnes and Algeria took in 100,000.

While prices are also being impacted by typical seasonal demand, there are plenty of buyers who put off purchases waiting for prices to moderate, which could keep prices high for awhile.

However, with that said, this is one commodity where the rug will be pulled out from under investors' feet. This looks like a short to this blogger.

Holy wheat bubble originally appeared on BloggingStocks on Tue, 25 Sep 2007 14:05:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>bubblecommoditiesdemanddroughtinthenewsseasonalWheatTue, 25 Sep 2007 14:05:00 EST<![CDATA[Buyout bubble: Getting there, but not yet]]>http://www.bloggingstocks.com/2007/05/23/buyout-bubble-getting-there-but-not-there-yet/http://www.bloggingstocks.com/2007/05/23/buyout-bubble-getting-there-but-not-there-yet/http://www.bloggingstocks.com/2007/05/23/buyout-bubble-getting-there-but-not-there-yet/#commentsFiled under: , , , ,

Defining periods of irrational exuberance can be difficult. However, one method to do so might simply be to look at the headlines. Here are this morning's:
The headlines are not too different from the 1980's LBO boom when virtually every headline was associated with a hostile buyout of some sort. Are we approaching the end of the buyout binge? Most likely not. These periods can last for years.

This buyout boom has been fueled by a number of factors. The most important factor has been undervalued stocks, which, in many cases, still remains. In the post tech-telecom bubble of the 1990s, investors went into a cocoon while U.S. company management continued to grow earnings and increase returns on investment.

What will end this buyout boom? My bet is a massive bull market which pushes valuations off the radar screen of private equity.

Buyout bubble: Getting there, but not yet originally appeared on BloggingStocks on Wed, 23 May 2007 10:53:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>AAacquisitionALboombubblebuyoutDJhostileirrational exuberanceIrrationalExuberancelboMGMMSNWSprivate equityprivate-equityPrivateEquityPSSSRRtakeoverWed, 23 May 2007 10:53:00 EST<![CDATA[Copper finally rolling over from historic bubble]]>http://www.bloggingstocks.com/2007/01/05/copper-finally-rolling-over-from-historic-bubble/http://www.bloggingstocks.com/2007/01/05/copper-finally-rolling-over-from-historic-bubble/http://www.bloggingstocks.com/2007/01/05/copper-finally-rolling-over-from-historic-bubble/#commentsFiled under: ,

InvestmentTools.com has some great charts on copper prices. It is not a pretty picture. Below are two charts, but you can find plenty more on their webpage.

This first chart goes back to 1990. For the most part, if this chart went back to the beginning of time, the price of Copper really never stayed above $1.60. However, since 2004, copper prices have broken through the $4.00 level.

Continue reading Copper finally rolling over from historic bubble

Copper finally rolling over from historic bubble originally appeared on BloggingStocks on Fri, 05 Jan 2007 09:46:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>bubblecommoditiescommoditycopperinvestmenttools.comFri, 05 Jan 2007 09:46:00 EST