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Is Apple bribing investors?
March 19th was a great day for Wall Street, for technology business, for S&P 500 index and for generally exhausted from uncertainty in this crisis investor. On that day Apple announced it will pay dividends and will buy back some shares in a 3-years operation that will cost billions of dollars.
This generous decision by Tim Cook and his board kicked up all the market and created new hopes for an end of already years long markets confusion. Apple is paying, Apple has big cash, Apple will save the technology and the business at all...
But let's look a little ahead and analyze what is happening, out of emotions...
Is Facebook a bubble?
What do you think about US government bonds? 2% income per year and an absolute guarantee that nominally you will have your money back, as the government can print as much money as it needs. At current moment no more than 1/3 of US bonds are purchased by investors. The rest are bought by FED... Now let's look at Facebook Inc. and its bombastic IPO. According to some unofficial trade practices (shares owned by insiders traded privately out of stock exchange) current value of this company is about $100 billion. But what do we really have for this money?
Read more...Iran project-war is an excuse, and not a reason for high oil prices
Every day you will hear tens of comments that the war risk in Middle East and possible Israel+USA strike on Iran is moving up the oil prices that at the moment are reaching record highs in euro and are close to new records in dollars. Generally this logic is true. Political risks do influence markets and war risks influence markets strongly. But besides from the risks something other is needed and is more important for the prices. That is the money supply and the general inflation situation. Without enough money on the market, even an alien invasion will not be able to skyrocket the oil prices.
Read more...Spain stopped reforms before starting them
Spain has not even started the real reforms needed to revive its economy, and the government already announced that the reforms will be stopped. This is the real meaning of the prime-minister comment that country will not meet the deficit target for 2012. As a part of resolving European debt crisis, EU members decided to implement strict budget rules including a 3% max of sovereign deficit.
Read more...Greek bailout - part 2 of collective madness
What is my opinion on the new Greek bailout?
It is a clear bullshit. The so-called European solidarity is a parody of solidarity. What does the word "solidarity" means? Solidarity is when a stable and richer person helps a person in problem that is much poorer. The purpose of the solidarity is to help the poor to become more rich and stabilize himself.
