Huffington Post: Wall Street Derivatives Bailout?

Source:  The Market Oracle

 

 

by Zach Carter

Huffington Post

 

WASHINGTON -- Wall Street lobbyists are trying to secure taxpayer backing for many derivatives trades as part of budget talks to avert a government shutdown.

According to multiple Democratic sources, banks are pushing hard to include the controversial provision in funding legislation that would keep the government operating after Dec. 11. Top negotiators in the House are taking the derivatives provision seriously, and may include it in the final bill, the sources said.

The bank perks are not a traditional budget item. They would allow financial institutions to trade certain financial derivatives from subsidiaries that are insured by the Federal Deposit Insurance Corp. -- potentially putting taxpayers on the hook for losses caused by the risky contracts. Big Wall Street banks had typically traded derivatives from these FDIC-backed units, but the 2010 Dodd-Frank financial reform law required them to move many of the transactions to other subsidiaries that are not insured by taxpayers.

Please read more here.

Sheikhs vs Shale: New Economics of Oil

New York Times: Law Lets I.R.S. Seize Bank Accounts on Suspicion, No Crime Required

 

by Shaila Dewan

New York Times

ARNOLDS PARK, Iowa — For almost 40 years, Carole Hinders has dished out Mexican specialties at her modest cash-only restaurant. For just as long, she deposited the earnings at a small bank branch a block away — until last year, when two tax agents knocked on her door and informed her that they had seized her checking account, almost $33,000.

The Internal Revenue Service agents did not accuse Ms. Hinders of money laundering or cheating on her taxes — in fact, she has not been charged with any crime. Instead, the money was seized solely because she had deposited less than $10,000 at a time, which they viewed as an attempt to avoid triggering a required government report.

"How can this happen?” Ms. Hinders said in a recent interview. “Who takes your money before they prove that you’ve done anything wrong with it?”

The federal government does.

Using a law designed to catch drug traffickers, racketeers and terrorists by tracking their cash, the government has gone after run-of-the-mill business owners and wage earners without so much as an allegation that they have committed serious crimes. The government can take the money without ever filing a criminal complaint, and the owners are left to prove they are innocent. Many give up.

Please read more here and here.

The Trading Report: Guess What Happened The Last Time The Price Of Oil Crashed Like This?

Source: Bloomberg

 

(TheTradingReport.com) There has only been one other time in history when the price of oil has crashed by more than 40 dollars in less than 6 months.  The last time this happened was during the second half of 2008, and the beginning of that oil price crash preceded the great financial collapse that happened later that year by several months.  Well, now it is happening again, but this time the stakes are even higher.  When the price of oil falls dramatically, that is a sign that economic activity is slowing down.  It can also have a tremendously destabilizing affect on financial markets.  ... energy companies now account for approximately 20 percent of the junk bond market.  And a junk bond implosion is usually a signal that a major stock market crash is on the way.  

Please read more here and here.

Forbes' Columnist Gaurav Sharma: An Instructive Approach to Energy Trading Tenets

Danke

Merci

Gracias

Arigato

Thanks

This was a great Thanksgiving with family and friends - the first one in New Orleans in a very long time. However, it was a bit touch and go with our turkey though. But that's a story for another time. LOL!

More seriously, I received an email from the marketing department at Wiley Publishers - packed with lots of great news about my energy book:

Kinda like receiving lots of early Christmas presents. Thanks LBS, Mr. Sharma and Wiley!

Chinese millionaire builds luxury homes for poor residents in his old neighborhood... for free

 

Xiong Shuihua was born in Xiongkeng village in the city of Xinyu, southern China and said that his family had always been well looked after and supported by residents in his childhood.

 

So when the 54-year-old ended up making millions in the steel industry he decided to repay the favour - for free.

 

A millionaire Chinese businessman has bulldozed the wooden huts and muddy roads where he grew up - and built luxury homes for the people who lived there

A millionaire Chinese businessman has bulldozed the wooden huts and muddy roads where he grew up - and built luxury homes for the people who lived there

 

Xiong Shuihua (pictured) was born in Xiongkeng village in the city of Xinyu, southern China and said that his family had always been well looked after and supported by residents in his childhood

Xiong Shuihua (pictured) was born in Xiongkeng village in the city of Xinyu, southern China and said that his family had always been well looked after and supported by residents in his childhood

 

After making his millions, the business tycoon decided to return to the village and give everybody a place of their own to live

After making his millions, the business tycoon decided to return to the village and give everybody a place of their own to live



Now that's what I'm talking about! Please read more about this amazing gentleman here.
  • Xiong Shuihua paid for wooden huts he grew up in to be knocked down
  • Tycoon then spent millions replacing them with luxury flats for residents 
  • He has housed 72 families to repay them for their kindness in his youth
  • A further 18 families who were particularly kind will be given villas to live in
  • Elderly and low paid residents will also be given three meals a day for free
  • Flats constructed in Xiongkeng village in the city of Xinyu, southern China 


Read more: http://www.dailymail.co.uk/news/article-2850436/Millionaire-Chinese-businessman-bulldozes-run-huts-village-grew-builds-luxury-flats-residents-instead-free.html#ixzz3KTZflRbB 
Follow us: @MailOnline on Twitter | DailyMail on Facebook
  • Xiong Shuihua paid for wooden huts he grew up in to be knocked down
  • Tycoon then spent millions replacing them with luxury flats for residents 
  • He has housed 72 families to repay them for their kindness in his youth
  • A further 18 families who were particularly kind will be given villas to live in
  • Elderly and low paid residents will also be given three meals a day for free
  • Flats constructed in Xiongkeng village in the city of Xinyu, southern China 


Read more: http://www.dailymail.co.uk/news/article-2850436/Millionaire-Chinese-businessman-bulldozes-run-huts-village-grew-builds-luxury-flats-residents-instead-free.html#ixzz3KTZflRbB 
Follow us: @MailOnline on Twitter | DailyMail on Facebook

Happy Thanksgiving

 

Our gratitude is riches, complaint is poverty!

Quote by Vivian Burnett

Cartoon by Bruce Sallan

Models That Work

 

Some of the students in my Energy Trading classes seem to really like Bollinger Bands (BB).  I mean really seriously like them. During our midterm trading competition one team has so many BB's crammed into a screen of charts, that it made me dizzy looking at them. LOL!

One of my students (who is not a big fan of BB) emailed the photo above - taking a jab at his fellow BB-loving classmates. LOL!