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September 30, 2006
Cara's Daily Planet, Sat., Sept. 30, 2006, 7:18 AM
Readers are invited to link and discuss other publications in this space.
I recommend a book by James Surowiecki who is a writer for The New Yorker ("The Financial Page"). It's called "The Wisdom of Crowds" (Doubleday June 2004). The sub-title: "Why the Many Are Smarter Than the Few and How Collective Wisdom Shapes Business, Economies, Societies, and Nations" explains all.
Wisdom, not the madness, of crowds is the new paradigm ie, how we will now deal with capital markets and social equity in the Third Millennium. This is the principal concept behind the Bill Cara Blog (April 2004).
Yes, 'We The People' or the 'Little People', as I call us, are the Many; and the elite Few are obviously Wall Street, the gnomes, and our elected representatives. But wisdom is not a one-sided phenomenon. I see it even as a positive development of the opposing capital and social movements called Globalization and Anti-Globalization.
Wisdom (wiki) is defined simply as the ability to discern truth and exercise good judgement. I believe it comes from the sharing of our experiences, our beliefs and our values. It is not easy for me or you to be so open about these things, you know, but we must because wisdom does not come without it.
Posted by Posted by Bill Cara on September 30, 2006 07:18:18 AM | Category: The Daily Planet
Discourse
Venezuela, Nigeria to cut oil production. Sept 30, The Boston Globe, Bloomberg News.
http://www.boston.com/business/globe/articles/2006/09/30/venezuela_nigeria_to_cut_oil_production/
For how long can the cartel control supply/demand pricing.
I hear rumors that the Amaranth - JP Morgan - Citadel affair is much nastier than reported. Specifically, I hear that not only did JP Morgan call in its loan to Amaranth to collapse the hedge fund, but that JP Morgan was also on the other side of the bet. It had a huge NG short postion that it needed to liquidate without causing a large increase in the NG price. Forcing the liquidation of Amaranth achieved that end because JP Morgan, as a lender, had inside information regarding the contents of Amaranth's portfolio, to wit, its huge NG long position.
Posted by: lessmore ![[TypeKey Profile Page]](http://www.billcara.com/nav-commenters.gif)
at
September 30, 2006 1:29 PM [link]
Hedge Funds have been purposely taken down to end commodity speculation IMO - this was by design - not market forces.
As Bill said... probably more are in trouble.
Ben & Paulson CO. seem to have a "heavy hand" - not trusting market forces: First this commodity trouncing - and then its offshoot - this 1000 point DOW "moonshot" ---> in effect creating a run out of commodities and into stocks.
No doubt hedge funds have gotten the message -
and their black boxes are chasing stocks now - not commodities.
What else can the Fed and Treasury really do?
They need to get cash into American consumer hands.
Wage growth? - not happening.
Lower the Dollar? - tried that - caused asset inflation.
Bond rally? - tried that - caused carry trade
Real Estate Bubble - been there... done that...
So... only one choice left - try for another stock bubble.
tradesman
Posted by: Tradesman at
September 30, 2006 3:57 PM [link]
Great article on Jeff Matthews blog
be sure to read the comments by Sam E. Antar a reformed CFO of a corporate fraud.
Few days old but worth reading
http://www.jeffmatthewsisnotmakingthisup.blogspot.com/
Andy
Posted by: Andy at
September 30, 2006 6:35 PM [link]
Frankly, I hope that's what JP Morgan did.
That means the hedge fund managers that would sell their grandmothers for a buck can't game the markets as easily as they'd like.
They have too much money, too much power, need to be cut down a peg or three.
Bust em all out.
Posted by: procol at
October 1, 2006 12:28 AM [link]
Canadian Income trust may get clear accounting rules by year end.
http://www.bloomberg.com/apps/news?pid=20601082&sid=aXENQdvSJvsw&refer=canada
This will benefit all investors and be to the detriment of the trusts with loose accounting.
The S&P report would be interesting to look at so I will see if I can find it.
It pissed me off that Telus is moving to an income trust not from an investment point of view but because I am a customer and I now have concerns about the future services that will be available here as Distributions will take precedence over Cap-ex.
Andy
Posted by: Andy at
October 1, 2006 4:26 PM [link]
Here is the link to the S&P report from the above article on Income Trusts.
http://www2.standardandpoors.com/spf/pdf/media/CSA%20Report%202006-Sep-051.pdf
Andy
Posted by: Andy at
October 1, 2006 4:35 PM [link]
The S&P report was more of a comentary of the problems The actual Canadian Securities Admin's staff notice can be found here.
Google is great!
Andy.
Posted by: Andy at
October 1, 2006 4:57 PM [link]
Amaranth to liquidate remaining positions
Fri Sep 29, 2006 9:45pm ET135
http://today.reuters.com/news/articlenews.aspx?type=businessNews&storyID=2006-09-30T014439Z_01_N29420601_RTRUKOC_0_US-FINANCIAL-AMARANTH.xml&WTmodLoc=NewsHome-C3-businessNews-2
White House Disputes Book's Report of Anti-Rumsfeld Moves
By Peter Baker
Washington Post Staff Writer
Saturday, September 30, 2006; Page A01
http://www.washingtonpost.com/wp-dyn/content/article/2006/09/29/AR2006092901593.html
MARKET SNAPSHOT
Dow turns in its best third quarter in 11 years
Research In Motion gains 20% on earnings, outlook; consumer sentiment lifts
By Mark Cotton, MarketWatch
Last Update: 4:35 PM ET Sep 29, 2006
http://www.marketwatch.com/news/story/Story.aspx?guid=%7B0BC2C770%2DC970%2D4E3B%2DBF60%2D58A91E904643%7D&siteid=
Stocks Broke Tradition in 3rd Quarter
Interest Rates, Oil Prices Credited for Strong Market
By Brooke A. Masters
Washington Post Staff Writer
Saturday, September 30, 2006; Page D01
http://www.washingtonpost.com/wp-dyn/content/article/2006/09/29/AR2006092901470.html
Some may interpret the contents of the article as a contrarian warning sign...
Posted by: oratier![[TypeKey Profile Page]](http://www.billcara.com/nav-commenters.gif)
at
September 30, 2006 8:07 AM [link]