nw

If oil prices keep climbing, expect a reawakening of the 'speculators are evil' witch-hunt. "If the screaming gets loud enough, you could see some pretty draconian measures."

Draconian price controls mean draconian shortages.

Along with allowing mortgages cramdowns, the House bill would also permanently increase the FDIC's coverage of bank deposits to $250,000.

One way to ensure stronger banks would be to change the FDIC insuranace coverage from 100% to say 90% of the $250,000. If depositors bore some risk they would be more careful where they put their money.

Pensions: The Biggest Story of the Week - Or the Year

"Our retirement “system” has four main legs: Medicare, Social Security, corporate or government defined-benefit pensions, and private saving (IRAs, 401(k)s, etc.)."

Perhaps children should become a main leg. I recall reading that Singapore has a law requiring children to support their parents if needed.

Citigroup: Another Ad Hoc Bailout

Citi can pay a $0.01 per share dividend, not a 1% dividend.

"Institution is prohibited from paying common stock dividends, in excess
of $.01 per share per quarter, for 3 years without UST/FDIC/FRB consent.
A factor taken into account for consideration of the USG’s consent is the
ability to complete a common stock offering of appropriate size."

Commerce Bancorp: Why Tim Long is Wrong

Wells Fargo seems to be doing pretty well these days.

Thanks, Timmy.

The Physics of Money

About the only thing I remember from college economics over 50 years ago is MV=PQ. I guess it is still somewhat valid.

Geologist: In Terms of Supply and Demand, the Oil Peak Is Past

This is old news to those who have followed Matthew Simmons or have seen the documentary, "A Crude Awakening."

1,238 Billion Barrels of Oil Reserves: Is This an Oil Price Bubble?

A very good read:

www.simmonsco-intl.com...

1,238 Billion Barrels of Oil Reserves: Is This an Oil Price Bubble?

The major problem with R/P ratios is that the P declines much faster than the R. The result is a rising R/P ratio but declining production. It is the rate of production that affects the price of crude, not the remaining reserves.