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kmi

kmi
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  • Tough week for MCX [View news story]
    "ApplePay" is significantly smaller than the credit card business, and does nothing for retailers except incur another cost for software/hardware support.

    Costs to retailers for accepting credit cards I've seen estimated at some $45b, which comes right out of retail's bottom line: for entities like Walmart where margins are thin, it's a competitive DIS-advantage to accept credit cards but they do so because customers demand it.

    CurrentC would arguably help Walmart cut prices since it prices on margin. So it's pretty clear that adoption of ApplePay OVER CurrentC is not in the consumer's best interests.

    If CurrentC manages to get rolled out anyway, and both systems are extant in a retail outlet, one wonders how long it would take customers - and let's say Walmart customers in particular - to prefer the cheaper option (presuming CurrentC purchases are provided a discount over credit card purchases in the same way debit cards get discount over credit cards in many locations).

    I'll bet two things happen: CurrentC gains instant popularity and momentum; and outrage over what will be called 'premium' pricing will boil over for those being charged a higher price for using ApplePay.
    Oct 31, 2014. 02:37 PM | 1 Like Like |Link to Comment
  • Home price growth cooling fast [View news story]
    Meat's up cause last year was big year for harvesting flocks.

    Commodities across the board are down, and I agree are normalizing. I also agree housing is normalizing and expect further declines.

    There will be cries of "deflation" soon just as there were cries of "inflation" recently but most of what's going on is normalization.
    Oct 29, 2014. 10:34 AM | 1 Like Like |Link to Comment
  • Will OPEC Save The Oil Price? [View article]
    Saudi sour oil isn't the same as Nigerian or WTI light sweet, I have seen the argument made that it is light sweet that's the one in a glut, and causing the Brent-WTI spread to diminish, and that concurrently that Saudis have no control over the light sweet price so that a Saudi production cut wouldn't impact the glut driving prices down at all.
    Oct 22, 2014. 10:57 AM | 1 Like Like |Link to Comment
  • Will OPEC Save The Oil Price? [View article]
    Some of that history pertains to agreements made with banks who have been forced to exit the business post Dodd-Frank. It is arguable that the current dramatic decline has in part been promoted by the exit of banks as oil traders, and is indeed a return to a more normal supply-demand driven market.
    Oct 22, 2014. 10:54 AM | 2 Likes Like |Link to Comment
  • Will OPEC Save The Oil Price? [View article]
    Besides being illegal, consider how fast Europe killed Qaddafi when the chance arose to get better contracts on Libyan oil.
    Oct 22, 2014. 10:52 AM | 1 Like Like |Link to Comment
  • Will OPEC Save The Oil Price? [View article]
    Saudis currently have some 2m bpd of spare capacity or more. Frankly the other consideration is just how much production should they take offline (along with employment, and facilities that would take time to bring back online) in light of the fact that almost no one is serious about taking their own production offline?

    The rest of OPEC - and non-OPEC - including US shale and Russia (both of which are producing SA level quantities) will likely continue producing at capacity until costs incur pain. It is a good point to make that SA has no interest in continuing to be the only producer willing to make cuts.
    Oct 22, 2014. 10:50 AM | 2 Likes Like |Link to Comment
  • Will OPEC Save The Oil Price? [View article]
    Let me remind us that the Saudis and Kuwaitis both have a lot of dollars and are enjoying dollar strength where it is causing a double kick in the groin for others. In particular, consider Russia's recent talk about how it wanted to increasingly trade oil in Rubles. Looks pretty asinine now, although I don't know to what extent they are orhave been doing trade in the oil/rubles paradigm.

    Nigeria is also taking it in the teeth since US shale has mostly displaced their sales to the US and they are forced to go to other markets to sell product. Now start thinking about dollar strength and oil weakness vis a vis Iran and Venezuela... ouch....
    Oct 22, 2014. 10:44 AM | 3 Likes Like |Link to Comment
  • Lower oil prices could provide $1T global stimulus [View news story]
    Important to remember: rising oil prices over the last decade contributed to what many called 'real' inflation in the face of Fed's insistence on ignoring it.

    One wonders if declining commodity prices over the next decade resulting in falling prices will be defined as 'deflationary' or whether they too will be ignored.
    Oct 18, 2014. 10:43 AM | 4 Likes Like |Link to Comment
  • Obama appoints Ebola czar [View news story]
    All the liberal arts majors are commenting here. Knowing about ebola and managing command-and-control, or for that matter, managing -anything- are two different things.

    Management is management, let the specialists do the specialized work, jeez.

    I sure as hell don't do the sheetrock myself when I have an apartment renovated.
    Oct 18, 2014. 10:32 AM | 1 Like Like |Link to Comment
  • Lower oil prices could provide $1T global stimulus [View news story]
    For one... 'millions' is an exaggeration... and for another the employment of one small sub-sector of the economy pales in the face of.... well the entire rest of the economy...
    Oct 18, 2014. 10:26 AM | 8 Likes Like |Link to Comment
  • Oil servicers bounce big as tumbling crude hasn’t changed outlook [View news story]
    ETFs.
    Oct 18, 2014. 10:23 AM | Likes Like |Link to Comment
  • Oil servicers bounce big as tumbling crude hasn’t changed outlook [View news story]
    Not disagreeing but the timeframes a lot of investor are looking at for a 'bounce' are shorter than the timeframes for hedges to expire or the market to adjust to the new dynamics.
    Oct 18, 2014. 10:23 AM | 1 Like Like |Link to Comment
  • Crude oil rebounds above $80 takes hold as Goldman sees no glut [View news story]
    Did they miss the last few inventory reports, one wonders...
    Oct 17, 2014. 12:39 PM | 2 Likes Like |Link to Comment
  • Oil servicers bounce big as tumbling crude hasn’t changed outlook [View news story]
    It's called hedging, it's what producers do.
    Oct 17, 2014. 12:38 PM | Likes Like |Link to Comment
  • CNPC warns oil slump will make it difficult to meet profit target [View news story]
    Perhaps China should raise its subsidized cost of gasoline....

    And Venezuela... and Mexico... and all the other producers who expect 'economic pain' from lower oil...
    Oct 17, 2014. 12:36 PM | Likes Like |Link to Comment
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