Only 1 comment last night. Where is my regular readership? I am still getting about 100 hits a day, but the lack of comments makes me think my stuff is not that good. Or it is so good and spot on that there is nothing else to say. Either way, I like all comments.
Iceland Banks Facing a Run
I admit, I really do not follow world news very much. I do notice things that will impact financial considerations though. Yesterday and this morning I heard on the radio that the Central Bank of Iceland had their interest rates at 15% to curb inflationary pressures running at around 9% (they have yet to learn the US system for making inflation come in tame no matter what) as well as to stop a flight of capital from the country's banks. This USA today story is an OK article on the event:
Good quote: "Financial experts in Iceland say the market tremors are being fueled by speculators, not reality. On Friday, the head of Iceland's central bank, Davíð Oddsson, called for "an international investigation on such attempts to bring a healthy economic system to its knees."
What is funny about the above is that here in the US we have the opposite problem. Speculators are driving our markets higher through rampant speculation while the reality is that our banking system is in REAL trouble. Pretty funny. A bunch of my friends love to travel to Iceland, and are fond of the country. I wish Iceland good luck.
FED Considers Even More Ways to Lend Money to Insolvent Banks
Mish, as usual, has the best post out there concerning the FED's considerations of new ways to loan money to insolvent banks. I really cannot add anything else to this great piece titled:
"The Fed is Terrified":
I will include a scary graph (from Mish, from WSJ) that highlights the rapid degeneration of the FED's holdings over the past 9 or so months:
Read the post already!
Wednesday Night Rip Offs
I admit, I had planned to make the FED money pit story my main thought topic for this evening, but Mish both beat me to the punch and wrote a piece far better than I would have. It happens. I ran into a couple of other stories today that after I read them I said "Wow, that rocked!". As I am a little short on time tonight I will just rip off some more great works and link to them here!
A great "5 Things You Need To Know" today which uses the insightful Jean Baudrillard work I have recommended endlessly, "Simulacra and Simulation":
A piece from Financial Week (hat tip Prudent Bear) that hits Mr. Greenspan's "It wasn't my fault at all" defense pretty hard. Lots of folks lend their voice to pile on the blame:
Way Cool Video
This BMW commercial has unbelievable video of an ACTUAL engine in operation. No CGI computer generated effects, just a real engine observed with real cameras using special filming techniques to be able to see what is happening. Great explanation here:
The opening of the valves (two intake valves for this engine), the fuel droplets coming out, the valves closing, and then the spark plug firing is about as cool a scene as I have ever seen. It is a must see:
Have a good night.