Well its the last day of the month and the world economy standing in the mid of year 2012. Lets try to pull the events by connecting the dots and see where the world is :
1) After months weeks years of posturing and denial Spain and Cyprus formally requested aid from Europe bailout funds. More so they have officially confessed to their insolvency and the insolvency of their banking system.
Spain 10 year bond yield breached the worst level and it touched the 7% in return many od the Spain bank ratings got junk by Moodys
2) Over in the US, the city of Stockton, California filed for bankruptcy this week… Continue reading “2012 Mid Year World economy towards the path of Bailouts & Bankruptcies”
The world financial market where already under pressure from the Euro crisis, untill yesterday late night when the news broke out JPMorgan has trading loss of at least $2 bln, reputation hit . The CIO unit is where Bruno Iksil was making $200 billion-sized bets. Basically JPM has suffered massive losses at its CIO group most likely due to its IG/HY positions held by Iksil.
Below quotes from Mr Jamie Dimon
- “…Errors, sloppiness, and bad judgement.”
- “Bad strategy, badly executed and poorly monitored”
- “It could get worse. This could go on for a little bit.”
- “Badly executed, badly monitored. I’m not going to repeat it 800 times” Continue reading “Rogue Traders now JP Morgan”
I have been writing over commodities from the last 2 years and the potential of it and the hurdles it faces, In one of my recent post I raised the concerns for cotton & gold and indeed for the cotton too.
Off late the retail investors allowed entering in the Indian commodities market, which has been dominated by the big corporate, trading houses and industries by large. Commodities as a separate asset class has immense potential for the market savvy investors, arbitrageurs and speculators. Out of the three the market is more of speculation and arbitrage, Continue reading “The Great Indian commodities market”
Here is some bizarre facts the amount of leverage done on the various European economies. The contagion is spreading, was watching an interview yesterday in the night of a financial consultant from Europe, and he responded to the questions with the context of European economies :-
- How much does Greece Owe ?
- 367 billion $
- Who they owe too ?
- Mostly to the other European economies
Continue reading “Back to Europe It’s a huge pile of debt :-“
I have tried to put my comments on this subject when recently India bans cotton exports—confusing everyone, including our own government. I am not an expert on this issue but I recalled one of the issue from the Business world towards the end of 2004 have the lead story on The Rising Indian Textile Industry – The End of quota Regime. It was expected that t China will be the biggest beneficiary of No Quota regime and China would garner 50% of exports market. The other beneficiary was India as it was expected as Indian players can handle small orders which will not be possible in China. Also, China lacks innovation. India’s advantages come from three main sources its quota utilization trend in the past, market exploitation rate after third level of integration and critical export mass.
Continue reading “Cotton & India”