Msccube

US Economy Still Has a Ways to Go

I think the US equity market is facing serious problem.

Let us compare the current situations with the Japanese situations happened 15 years ago. Japan was facing the burst of bubble economy. They had serious problem with the real estate sector and their banks were carrying huge bad loan.

Japan 15 years ago:

1. Japan was the second biggest economy in the world.
2. Japan was facing the collapse of housing market.
3. Japanese banks were carrying huge amount of bad loan, and the government tried to save the bank.
4. Japan had excellent industrial bases.
5. Japan has had huge amount of foreign reserves.
6. Japan was not facing high priced oil at that time.

Today's USA
1. USA is biggest economy in the world but has larger population than Japan.
2. USA is facing the collapse of housing market.
3. USA bank is carrying huge bad loans, and facing credit crisis. The same as Japan, the government wishes to save the banks.
4. USA has excellent industrial bases.
5. USA has huge amount of foreign debt, the largest in the world. Don't even think of any foreign reserves.
6. USA is facing high priced oil today!

I would say that it makes sense to short S&P 500 and S&P financial index. After 15 years, Japan is not completely recovering from their problems although things are going better.

The Brightest Stars in the Commodities Boom, Part Two

The author cannot understand the coal market and has not even to study production and consumption of coal in different region.

Australian has produced much coal than it can consume every year since 1997. The surplus increases every year. If Australian cannot ship the coal, what will the Australian do with the surplus? They cannot eat the coal!

The author missed the important point that coal has been transformed from a LOCAL market to a GLOBAL market.

Petroleo Brasileiro: Reality Begins to Bite

"Engineers will have to overcome temperatures that range from near freezing above the ocean floor to temperatures that can melt bismuth, used for transporting uranium rods and for shotgun shells. "

The bloomberg article is a piece of junk! What is the melting point of bismuth. The reporter should check it out before writing.

According to the CEO of PBR interviewed by Financial Times, there is
no insurmountable challenges on taking out the oil. See
www.ft.com/cms/s/0/7ab...

FT.com / Companies / Energy Utilities Mining - Petrobras confident over deep water well

Petroleo Brasileiro: Reality Begins to Bite

15000 PSI pressure = 0.124GPa.

See the phase diagram of iron at arxiv.org/ftp/cond-mat...

The melting point of iron is about 2000 K.

Everything melts at 250 Celsius at 15000 PSI as reported by Blomberg?

Is something wrong?