“Crocs” Devour $200 Million Dollars Of Foreign Investors Money At Year End?

News Analysis: Putting $200 Million Dollars into “Crocs” a Company whose “fourth-quarter revenue will be at the low end of what it had expected, and its quarterly loss will match its worst prediction” seems an unusual Investment Strategy some say. Additionally, its C.E.O. is retiring? Perhaps, if the money being spent is only the money of “Mere Investors”,  but not of the Owners of a Private Equity Fund, one can understand. Or perhaps Surplus Investor Funds needed to be allocated at years end?

Private Equity Funds typically get a “Piece of the Pie” of what is invested and a “Piece of the Profit”. How can the Funds lose? Very difficult. How can Investors lose? Very easy, for they have already ‘lost’ a portion of their investments (the Ownership Percentages which the Private Equity Funds receive up front). 

Going into 2014, Investors had better be prepared for a “Carnival Roller-coaster Ride” down the tracks after a little more climbing occurs over the next several months.

Assuredly, Smart Investors will use their OWN intellects in making the Final Investment Decisions for themselves and NOT be fed a “Croc” by any of the  Private Equity Funds in the World. Caveat Emptor.

Reality.

Reference: http://www.ntnews.com.au/business/crocs-gets-a-226m-bailout-ceo-john-mccarvel-retires/story-fnk2tq5v-1226792561541

Climate Change Suggested By Formican Evidence

News Analysis: Formican (Ants) activity, in seeking water, in the Northeast Australian City of Townsville has Pest Abatement companies flourishing this December. A ‘drought’ has brought about this situation. This December, 9.4 mm of rain fell. In December, 2012 it had 14.4 mm and 180 mm in 2011. The Ants are entering abodes to seek water.

It is interesting to note, as some say, “Nature’s Creatures’ Adaptations To Environmental Changes Evidence Solutions Of The Highest Functional Order.”

Reality.

Reference: http://www.townsvillebulletin.com.au/news/townsvilles-ant-epidemic-trailing-through-homes/story-fnjfzs4b-1226792244786

★ Wealth Advisers: Thousands Are Available Now (To Increase Bankers’ Wealth)

News Analysis: Banks are hiring additional Wealth Advisers, beyond the present Thousands, (to increase the Wealth of Bankers). As more of these people are hired, one must ask: What “Real-World” Experience do they have in: Aeronautics, Agriculture, Building Construction, Manufacturing, Mining, Science, Shipping, or Technology? These are Core Industries, in varying degrees,  for Countries World-Wide.

All too often, the Public is addled by the Marketing by Financial Institutions (FI’s)  into thinking the ‘FI’s’ have all the answers of the Financial Future of Humanity; Hardly!

The end-result desired by the ‘FI’s’ is ‘significant’ Profitability Increases for themselves FIRST. As a follow-on, Client’s Monetary Growth above (however slight) a country’s Consumer Price Index  is Acceptable. A Party interested in Wealth Retention will be appeased by such mediocre performance, hopefully.

2013, was a well ‘Manipulated Market’ for Stocks (as one views a Snap-Shot). To those ‘FI’s’ who point to Clients’ Wealth increases in 2013, one can ask: “Please repeat this performance in 2014”. Many experienced International Investors  think ‘FI’s’ will be “Rolling Sevens” as in a ‘Crap Game’. To add ‘legitimacy’ to 2013 Stock Market Performance, one can expect that 2014 will also come in ‘Like a Lion’ (but ‘Go Out Like A Lamb’).

The “Legitimacy Factor of 2014” in support of 2013’s “Manipulated Market” should ‘Peter-Out’ in approximately a May-June, 2014, time-frame. By continuing out several months into 2014, the Public may think that all-is-well and invest their funds without discretion. ‘FI’ Wealth Managers will be more than happy to accept the funds. The public will be reassured by the ‘FI’s’ that “2014 will replicate or out-do 2013 AND continue into 2015!” Retail and Investment Bank Managers will be “Shorting their Investments while ‘Going Long’ for their Clients”; this is REAL WORLD History for many Wall Street Bankers in particular. “Fleece the Freiers” is their Mantra.

Wise Investors understand that a “One-Year Performance Snap-Shot” is hardly indicative of a Substantial Enduring-Over-Time Investment Market. It is more suited to ‘Day-Traders’. It is also very indicative of a “Artificially Created Bubble”! Where is the Support for this 2013 Market? There is minimal: Manufacturing of Big-Ticket Consumer Items such as “Business Jets” and Yachts: Large Service Contracts; Large Private Employment of Persons with College Degrees or Advanced Degrees.

It appears that, regarding Employment (at least in America) the Federal Government has had the largest employment increase. The National Security Agency and Transportation Security Administration are both bulging with employees many people think. These employees lessen the Unemployment figures which the ‘White House’ loves to allude. 

For 2014, a Wise Investor will have to consider: “Should my Gains remain (by ‘Cashing Out’) or ‘Play and possibly Pay’ on or before a Stock Market Collapse?”

As 2013 ends today, the “Bubble Masters” will be celebrating the New Year with Champagne (as they gleefully anticipate the next Incipient Bubble; of their creation).

Reality.

 Reference: http://www.bizjournals.com/sanjose/news/2013/12/30/wells-fargo-bofa-hunt-talent-to-serve.html?page=all

Super-luminous Supernovae (Magnetars) Lit The Skies 10 Billion Years Ago

News Analysis:  Magnetars (Magnetized Neutron Stars) whose Magnetic Fields are a Hundred Trillion times that of Earth have detonated 10 Billion Light Years away (a Light Year Being 5.8+ Trillion Miles). Their Rotational Energy combined with their collapsing core caused ‘Hyper- Explosions’ (Super-luminous Supernovae).

The detonations of Super-luminous Supernovae are 100 times more powerful than Supernovae explosions (which were the brightest ‘Fireworks’ in the Universe). The Ultra-Violet Light emanating from these ‘Hyper-Explosions’ are all but invisible on Earth; its atmosphere blocks out the wave-length.

A treat for both Astronomers and Cosmologists is the fact that Super-luminous Supernovae are rare events. They detonate maybe once for every 10,000 normal Supernovae.

How many other ‘Super-Dynamic’ Events have occurred, or will occur, in Space of which Man, in his Arrogance, is Completely Ignorant?

The “Passive Heavens” are anything but “Passive”, one can assume.

Reality.

Reference: http://www.sciencedaily.com/releases/2013/12/131218133835.htm

NYK Shipping Lines Builds Japan’s First Dual-Use LNG/Heavy Fuel Tugboat

News Analysis: Japan’s Nippon Yusen Kaisha ‘NYK’ Shipping Line has received Japanese Government Funding for this New-Build. This advanced approach to controlling Maritime Harbor Atmospheric Pollution is commendable. It is hoped this vessel will be a precursor for such vessels operating in the heaviest of Harbor Atmospheric Pollution areas of the World, such as the Port of Los Angeles, in Southern California. NYK Shipping Lines maintains a technological advantage over many competitors. It realizes there is only One Precious Atmosphere in the World; it must be protected. 

Reality.

Reference: http://www.nyk.com/english/release/2446/002945.html

California, U.S.A., The “Golden Arm” State

News Analysis:  The World’s “Sixth Largest Economy”, California,  also has a Plethora of Customers for Narcotics. Not limited to: “The Movie Industry” (‘Users’ whom have been well reported for decades – Especially when they “Overdose”); Various Novel Writers who use Illegal Methamphetamines; “Silicon Valley IT Nerds”; Los Angeles/Orange County ‘Professionals’; and of course, the oldest Narcotics-User-Profession of all – Medical Doctors (with their immediately available, Abundant Supply).

Since California Residents are a large ‘Customer Base’ of Illegal Narcotics Users, growers of Marijuana, for example, have established ‘Grass Farms’ in neighboring wooded areas (throughout the State) to the populations (providing lower shipping costs, interdiction by law enforcement, and greater profits). Cocaine, Heroin, and Opium Sources typically originate out of the Country.

To those Addicts who need “Medications” stronger than that provided by the “Non-American Fabrications”, they merely visit their Friendly Prescribing Physicians. Since there are Medical Doctors who are Addicts themselves, they ‘understand the needs’ of their patients.

The Medical Board of California even has a “Physician Wellness” Program for Addicted Medical Doctors since the Narcotics Problem in the Medical Community is so Acute.

To the State of California’s Credit it is trying to “Weed Out” the ‘Sham Followers of the Hippocratic Oath” and remove the Licenses of those Physicians.

Of California’s 130,000+ Physicians & Surgeons, one can realize that investigating All would be an arduous task (especially for a heavily indebted State Government). Those few who are investigated can expect, perhaps License Revocation, for a period of time. Incarceration in a State Penal Institution is highly unlikely (but a Good Story for a Film produced by the Illegal Drug Users of the “Motion Picture Industry”).

In California, in particular, as well as in other American States, there is too much profitability in the Illegal Trade by Bankers, Growers, Investors, Manufacturers, Politicians, and Tainted Law Enforcement  to reasonably expect an abatement of this Business.

Reality.

Reference: http://www.sacbee.com/2013/12/19/6015437/california-doctor-license-revocations.html

☆ European Union Banking: A “Haircut” And “Shave” For Everyone?

News Analysis: The European Union Banking Agreement recently agreed to, some say, gives False Hope regarding Control Over and Liquidation, if necessary, of ‘Non-Performing’ Banks. Contractually, many various groups would assess the viability of a Bank, and if needed, Bond Holders, Stock Holders, and DEPOSITORS would have to pay for the pending debacle (as was done in Cyprus). In this manner, Governments would not be financially  liable for Bad Management at Banks. Why a Mere Depositor who has NO CONTROL over Banking Decisions nor Ownership directly or indirectly, in the Bank, should be held liable is baffling to many people. This would be analogous to sending One’s Shirts to a Laundry and being liable for that Business’s Debts! What is the difference? As to Depositors, Very Specious Thinking brought about such a European Union Banking Decision, one might argue. 

That various groups composed of a total of over 100 persons are to efficiently and quickly assess a Bank is a ‘Mental Fantasy’, some Bankers say. Debate for weeks is not acceptable during such events.

A 55 Billion Euro Fund is to be developed for the cover collapses of Banks; many people think that is too little.

Also, are there ANY provisions to have Forensic Accountants review a “Collapsing” Bank’s Books, immediately prior to default? This, to see if any Illegal Financial Machinations occurred by the Bank’s Management? If not, why not? What Punitive Measures are in force for illegal or ‘tainted’ Banking activities?

“Bankers, in their role of ‘Bankers’, control the Monies of OTHERS, Not Their Own.” All too often, it seems that this Simple Premise ‘Escapes’ the conscious mentality of Bankers; that is when Defalcations and other problems arise.

It appears to many Europeans that, as regards to this ‘Banking Solution’, “Improper Medication” to a Patient may make him sicker than his Actual Illness.

Reality.

Reference: http://www.spiegel.de/international/business/weak-eu-banking-union-could-have-dangerous-side-effects-a-940065.html

★ 2014 Equity Investments: “Stay Long” Is A Fool’s Song

News Analysis:  As to 2014 Equity Investments, it becomes a Year of less capability of Central Banks to play “Interest Rate Lowering Games” (IRLG)  to Support their Economies. With ‘IRLG’ already, in 2013, at historic lows  in most countries, do Central Banks “lower rates into negative ranges”? Effectively: Do these Banks pay Borrowers for the Borrowing of monies from the Banks?

Since MANY Banks throughout the World already have questionable loans made to customers, if the borrowers start defaulting, en-masse, what happens to the Banks? What happens to Equity Markets? Can ALL Banks even pass ‘Stress Tests’?

Central Banks can be ordered to print more Money (mere paper with ink on it); Supported by Next To Nothing. For example, if a “Super Power”, which already has $17+ Trillion Dollars in Debt, wants ‘Monetary Expansion’, it works its ‘Bureau of Printing and Engraving’ Presses 24 hours a Day, Seven Days a week and ‘Voila” More Money! No problem! Inflationary Effects of such behavior can be curtailed in the Short Term only. The effect on the populations’ thoughts are “Things are not bad. People have money”. They spend the money and a ‘Multiplier Effect” takes place creating activities financially.

However, since the money is based not on increases in Gross Domestic Product of the Country, but on Printing Capacity, a ‘Mirage” of Good Economic Health exists (Until the ‘Patient” coughs)

Covering the Costs of War, Natural Calamities (such as America’s “Hurricane Sandy” hitting New York City, Tornadoes, or Tsunamis (like the Fukushima, Japan Incident) can  be the “Cough” the Central Banks can ill-afford. The Delayed Repairs thereafter (as in Hurricane Sandy) evidence the Government’s actual lack of financial resources (to which it is loathe to admit). Additionally, borrowing more money by Central banks increases Debt Service Expenses.

One must ask, how can the Stock Markets be at “Highs” with Weak Economies and Poor Prospects for Growth in 2014? What major Manufacturing Programs are currently occurring? Where are “High-Dollar” Service Contracts being let? Are there large  areas of the Economy paying “Good Wages”?  Is National Employment at high levels?

“Markets look SIX MONTHS Ahead” is the Stockbroker’s Mantra. Current Market Prices Of Stocks are NOT supported by Economic Realities, many people think; Not of 2013, nor 2014.

In Not “Actually Solving the Economic Problems”, as aforementioned, the governments turn to their Civilian Banks who utilize the services of the “Bubble Masters”. These are the platoon of Economic Marketeers, including the Mass Media, who start ‘blowing their “Bugles” for a ‘Charge’ into a particular Industry they have already prepared. The Bankers, Brokers, and their  ‘Buddies’ win, other lose; and so it goes. One should realize: The present  “Stock Bubble” will collapse (as did the “Gold Bubble” before it and the “Real Estate Bubble” preceding the Gold Bubble)!

“Listening to Brokers will make one ‘Broker'”, many cautious people say. Brokers opine that “2014 will be a Year of Cautious Investing” while they and their friends ‘Short the market’ (to get every ‘Last Dime’ from the “Freiers”).

 A Wise Investor may think: “Do I want to risk my current gains by seeking every  last Penney or do I cash out now and Plan for Tomorrow; with my Gains of Today?” 

When Brokers say “Stay Long” (with mediocre realities), Smart Thinkers ask “Why?”.

As the Wise Investor considers to hold or sell his or her Equities, Bankers, Brokers, and their Buddies consider which new “Market Bubble” they will create; for them to Win, others to Lose.

Very Smart Investors consult Others who can correctly ‘Connect the Dots’ for determination of ‘Incipient Economic Bubbles’ so they also can Win in these ‘Carnival Games’.

Reality.

Reference: http://news.xinhuanet.com/english/world/2013-12/28/c_133003842.htm

☆ Luxembourg’s Banque et Caisse d’Epargne de l’Etat (BCEE) Flies Through “Stress Test”

News Analysis: The Bank in Luxembourg: Banque et Caisse d’Epargne de l’Etat performed very well in its being reviewed by European Banking Authorities. It has a 16.3% Liquidity Ratio, well above a required minimum of 9% as derived from  “Basel Accord” Provisions.

The ‘Liquidity Coverage Ratio’ is set up so Financial Institutions can survive “Tremors” in short-timed liquidity situations. By holding a certain percentage of High-Liquidity Assets such as Treasury Bonds or Cash (the equivalent of or greater than the Bank’s Net Cash over thirty days time), a Bank is deemed to be “Less Stressed” since it has a minimum of 100% containment.  

The effects to possible Borrowers at a Bank is that it has less money available for short term loans.

‘BCEE’ performs with a Professionalism much in consonance with the Economic Awareness And Good Practices of other Monetary Elements in Luxembourg (which is of International Financial Renown).

Reality.

Reference: http://www.wort.lu/en/view/luxembourg-s-bcee-a-model-student-52b00f6ae4b006edcdac8714

★ Bolivia’s Communications Satellite Attains Stationary Position Over Country.

News Analysis: Bolivian President Juan Evo Morales Ayma must be very proud to have witnessed the Communications Satellite Advance for his country of 10.4 Million people. The satellite can easily cover Bolivia’s Territory of  1,098,581 km2 (424,163 mi2).

The Satellite was built by a Chinese Aerospace Company and launched in China. It has an effective life expectancy of 15 years.

A little history preceding this Bolivian Satellite Activity for readers may be useful:

President Morales joined the Leaders of South American Nations in decrying the U.S. National Security Agency’s (NSA) ‘Wholesale’ Electronic Espionage of the Entire World’ in general. More specifically, the ‘NSA’ espionage on the ‘Personal Communications’ of South American Leaders was abhorred. It was allegedly thought by Bolivia’s President to be an Abomination to Good International Relations.

These South American Leaders and the World’s Population asks: Who gave the United States the Legal Right to Spy on the entire Planet; God? If the Gentleman who revealed this travesty to Privacy had not, the ‘NSA’ machinations would never see ‘the light of day’. The fact is  that 400,000+ Americans working on such programs have been “De-sensitized” to what is Legal and/or Moral on a WORLD SCALE. Much as the atrocities in World War II were committed by De-sensitized Individuals also, these Americans, some would say, were of similar ilk to those of the past.   

Having the Capability to Spy on the World’s Population does not mean one has to do so (just as having Intercontinental Ballistic Missiles handy means one should launch them – “Just Because We Can”). “The Mass Mental Pathology displayed by the Uncaring ‘Intelligence’ Minions of Washington, D.C. is very obvious”, Health Professionals may think.

Newspaper reports suggest that many Nations are urging their Citizens to acquire Non-American Made Computers, Telecommunications Equipment, and Componentry. This, as a result of the Ignorant Decisions made in Washington, D.C. One can opine the Bolivia Satellite Program is, in part due to such American Government behavior being rejected by the Country. Other Nations will probably follow Bolivia’s Lead and acquire satellites from Non-American Sources. Brazil just purchased $4 BILLION DOLLARS of Swedish Vigen Fighter Aircraft, rather than American F-18’s, due to this ‘NSA’ Transgression, news reports say.

“Reverse Dollar Diplomacy”(Ceasing the Purchase of American Goods and Services), when in the amounts of Billions of Dollars of Sales lost, might gain the attention of those in the U.S. Capitol. There apparently those in Washington, D.C., who do not yet Understand nor Care of the fact that: “The Entire Population of the World wants its Privacy to be held Private”. One might think: ‘Perhaps if the Gross Domestic Product Statistics of the U.S.  clearly evidence Negative Economic Effects of World Population Disgust with ‘NSA’ Practices, some things may change towards actual Privacy’.

To believe ANY American Politicians that the World’s Privacy Obliteration by the ‘NSA’ has Stopped or will be Stopped is UNWISE. The ‘NSA’ and its cohorts have too much Financial and Careers interest to Cease and Desist.

Investors should consider “Shorting” the stocks of American IT Companies involved with the NSA. Accrued business losses, forecasted to occur, will send their stocks on a downward spiral. Going ‘Long” on Non-American IT Companies is a wise play. There will be much Nation-to-Nation commerce that DOES NOT say “Made in the U.S.A.”. 

Reality.

Reference: http://news.xinhuanet.com/english/sci/2013-12/27/c_133002303.htm