Daily Reading – Thursday, April 14, 2011
FT Alphaville: This year’s oil bill – $2,400bn according to Morgan Stanley
Crude oil doesn’t necessarily spring to mind when one thinks of natural wealth redistributors.
Yet in 2010 the transfer of income from oil-importing countries to oil-exporting countries amounted to some $1,600bn — or 2.6 per cent of the importers’ GDP. With oil prices now hovering around $110 a barrel that redistribution will only increase. The barrel bill, so to speak, is about to get bigger.
FT Alphaville: Glencore’s trading strategies disclosed!
Courtesy of Glencore’s intention to float filing on Thursday an insight (finally!) into the previously shy commodity powerhouse’s closely held trading strategies.
FT Alphaville: Goldman says there’s been a copper collateral crackdown
You never can tell with Goldman Sachs, can you?
On the one hand they revise their copper market outlook and advise to take profits; on the other hand they claim not to believe in the surplus inventory story.
On the one hand they say collateral financing was never an issue; on the other hand they say there has now been a major crackdown on the practice (which never really existed).
FT Alphaville: Greek-out! Again!
Greek CDS to the moon! And all because of one German finance minister.
The Big Picture: Corporate Tax Rates, Then and Now
GE paid no taxes; Goldman Sachs paid $14 moillion last year. The GAO reported in 2008 that “two out of every three United States corporations paid no federal income taxes from 1998 through 2005.”
The Big Picture: Hoenig: The New GSEs Are Citi, Bank of America
“We allowed these commercial banks with special federal protections over a decade to increase their risk profile greatly. And thus we increased the fragility of the system.”
“You’re subsidized GSEs; You’re public utilities for goodness sakes.”
-Thomas Hoenig, Kansas City Federal Reserve President
The Big Picture: Why Has No One on Wall Street Gone to Jail (Yet)?
The Times piece today is a huge 4,000 word column, highlighted by a graphic comparison of the S&L crisis, where over 1000 bankers went to jail, and the current situation.
Macro Man: Plants vs Zombies
A Portuguese, a German, a Greek and an Irishman walk into a bar. The German pays.
Casandra Does Tokyo: Credit Where Credit is Due
Shame on Michael Lewis (apparently suffering a bout of PJ O’Rourke syndrome) for his woeful Bloomberg piece satirizing of the Fed handling of disclosure relating to liquidity provision in the heat of the moment. I am all for satire and criticism and satirical criticism is even better. But one must be careful to be “more or less right”, else one becomes a demagogue – using a kernel of truth or plausibility to prey upon ignorance or misunderstanding – say for example, like Glenn Beck.
The Reformed Broker: Peak Fish and Other Insights from Agriculture 2.0
Agriculture 2.0 San Francisco was a great event. So much knowledge, so many smart people…