Archives for 2010

December 2010 - Page 6 of 108 - Money Morning - Only the News You Can Profit From

Quantitative Easing: The Real Reason the Fed May Go For QE3

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Ben Bernanke has a secret.

And it's a secret that very likely terrifies him and his policymaking brethren at the U.S. Federal Reserve.

That secret has to do with his latest round of "quantitative easing," a liquidity-push known as "QE2."

What Bernanke & Co. don't want Americans to know is that painfully slow growth – or even a double-dip recession – isn't their greatest fear. Bernanke's greatest fear is that without this liquidity, one or more of the massive, already-bailed-out U.S. banks could stumble and once again undermine the global financial system.

And this time around, the outcome would be much, much uglier.

To discover the Fed's real objective, read on...

Cyberwar Threat from WikiLeaks Hackers Overblown

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WikiLeaks supporters have unleashed disruptive cyber attacks on a number of Web sites to get revenge on companies disassociating from the controversial non-profit media group and its founder, Julian Assange.

Since Nov. 29 WikiLeaks has released 250,000 confidential documents detailing U.S. diplomatic interactions with other nations, prompting a number of companies to cut ties with the group – though none have claimed government pressure encouraged them to do so.

The release has caused a freedom of information debate, with some supporting the documents' release and others calling it an act of terrorism.

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AIG to Borrow from Treasury as Part of Exit Plan

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The U.S. government and American International Group Inc. (NYSE: AIG) on Wednesday announced a deal to accelerate repayment of taxpayer dollars and clear the road for the company to reclaim its independence.

Terms of the arrangement, which were outlined in September, call for the company to borrow funds from the Treasury Department to repay the remainder of its debt owed to the Federal Reserve, leaving the Treasury holding the bulk of the beleaguered company's common stock.

Once the world's largest insurer, AIG received more than $180 billion of bailout funds from the government to help cover investments that vanished during the collapse of the U.S. real estate bubble.

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Asia's Surging Economic Growth Pushes Global IPO Market to Record High That Will Continue in 2011

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Despite market volatility and a shaky economic recovery, the global initial public offering (IPO) market for 2010 is on track to hit a record high – and 2011 is poised to continue the hot streak.

A study by accounting group Ernst & Young yesterday (Wednesday) showed that funds raised through global IPOs are expected to surpass $300 billion in 2010, topping the 2007 record of $295 billion. IPOs in the first 11 months of the year collected $255.3 billion in 1,199 deals.

"New IPO filings continue to increase around the world and a large backlog has built up as companies await greater macroeconomic stability," said Gregory Ericksen, Ernst & Young's global vice chair for strategic growth markets. "We expect the current IPO momentum to continue its upward trend in 2011."

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U.S. & Euro Regulators Move to Curb Commodity Speculators

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U.S. and European Union (EU) regulators are vowing to step up scrutiny on the size and volume of commodity market bets as debate continues to rage about whether excessive speculation is driving up prices on energy, metals and agricultural products.

In an unprecedented rush, investors have pushed a total of $121.2 billion into commodities since the beginning of 2009, according to Barclays Capital. Hedge funds, pension funds and mutual funds in the United States have boosted their positions on oil, silver, corn and wheat to record highs in 2010.

In some commodities, the number of futures contracts outstanding now far outpaces the numbers traded in mid-2008, when commodity market prices shattered records. As a result, regulators in the United States and Europe are considering proposals on how to prevent the so-called speculators from manipulating the markets.

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Russian Oil & Gas Sector Headed for Major Shakeup

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SURGUT CITY, Central Russia – Welcome to Surgut City, about 1,325 miles east of Moscow in the Surgut district, which in turn is the primary area of the Khanty-Mansi Autonomous Region (KMAR).

I am here at the request of the Russian Ministry of Energy, to sit as an outside member on a task force reviewing production options for the next five years.

But the "here" that I referred to is in Siberia – in every sense of the word.

The cold snap I experienced before leaving Moscow has hit Surgut City with a much greater bite. When our government plane landed here at 3 a.m. one recent morning, the temperature had fallen to 35°F below zero. The pilot kept the engine running while we disembarked. Otherwise, the plane's oil lines could freeze.

But there was no need to worry. A heat wave was to hit the next day – pushing temperatures all the way up to minus 3°F.

For an inside look at the looming shakeup, please read on...

Three End-of-Year Tax Tips That Will Save You Money

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The end of the year is the time to perform annual maintenance on your investment portfolio. You may need to shake out some of those losses that you've overlooked, or that you've been holding on to hoping for a turnaround.

April is tax time, but you definitely don't want to wait — even until the new year — to make key investment decisions. Here are three end-of-the-year tax tips to act on immediately.

Taking losses at specific times, or making sure you file specific forms if you've made changes to your retirement nest egg can save you money when Uncle Same comes calling in April.

First things first. Let's talk about losses.

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Question of the Week: Online Shoppers Are Essential to Survival of U.S. Retailers

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U.S. retailers are learning an important lesson this holiday season.

And it has nothing to do with the prices they set for Barbie dolls, video games or HDTVs.

The lesson being learned is that the successes of future Black Fridays won't be solely keyed to "door-busting discounts," or luring shoppers to stores at 3:00 a.m. In fact, as this year's Cyber Monday proved, U.S. consumers like to shop online. And that means that the merchants with the most enticing deals and most convenient Web sites will win the race for the dollars that U.S. shoppers drop on their online purchases.

"It's the end of the store as we know it," said Forrester Research Inc. (Nasdaq: FORR) analyst Sucharita Mulpuru.

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Energy Forecast: Oil Prices Poised to Again Test Record Levels in 2011

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After starting the year at slightly more than $80 a barrel, oil prices yesterday (Tuesday) rose to their highest level in two years, with West Texas Intermediate (WTI) crude surging as high as $90.76 a barrel on the New York Mercantile Exchange (NYMEX).

But that 13% advance is just the beginning.

Crude oil prices are poised to again break the psychologically important $100 a barrel mark in a bid to move higher throughout 2011 and 2012, and some forecasters are calling for prices to zoom by as much as 65% from here.

If that happens, crude oil would approach – or possibly even eclipse – the all-time high of $147 a barrel, a price not seen since the summertime speculative frenzy of 2008.

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Asia Forecast: High Growth Rates Will Create Top Profit Opportunities For 2011

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Asia was a great place to invest this year.

While some individual Latin American markets have outpaced their Asian counterparts, the fact is that the 10.9% return of the overall MSCI Asia Index outdistanced the 10.3% return of the "Americas" region.

Investors can expect more of the same in the New Year. The fact is that the Asian region – including Australia and New Zealand – was a profit powerhouse in 2010. And Asia's prospects for 2011 are even brighter:

  • It's where a great majority of the world's growth is taking place.
  • And it's where investors can reap their biggest profits – if they pick the right investments in the best Asian markets.

In this report, we're going to detail that all for you...