Ever wonder….

This a post by Jim Fitch of
Some Assembly Required.

Ever wonder where the adults have gone?

Coal Mine: Citigroup reports a $176 million 2Q08 loss on credit-card secutization. A pittance, but perhaps the canary for a business that previously generated over $3 billion in revenues.

Company’s Here: For the first time since the 70’s, inflation is rapidly rising around the world. Morgan Stanley reports double-digit inflation in over 50 countries. Seems globalism’s downside spreads faster than its upside ever did.

Tough Times: The wealthy have taken to telling their personal shoppers to look for bargains.

Tourist of Duty: Italy is deploying the Carabinieri, a paramilitary police force, in cities to help cut down on “the thieves, the rapists, the criminals.” Action is pending on the overpriced meals in Venice.

Catch The Wave: The crest of the next wave of mortgage defaults will either be (a) a larger number of foreclosures or (b) a smaller number of more expensive foreclosures.

Export Land Model: OPEC internal oil consumption is increasing at 8% a year and in ten years will match Saudi Arabian production. Since they cannot sell what they use at home, world net exports will fall 20% from their 2005 peak. That oil fell on world markets today tells us about the time horizon of world markets.

Pillow Talk: Jet Blue is charging customers $7 to use a pillow and blanket, $4 each if sharing the blanket… US Airways, charging $2 for water and but $1 for coffee is “vigorously moving towards more a la carte options.” And truth in pricing.

Some Assembly Required reflects my somewhat cynical view of the world on a daily basis. Think of it as having coffee with a curmudgeon. Come visit.

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  1. Anonymous

    This is all related to regulation and enforcement:

    Jet Blue is charging customers $7 to use a pillow and blanket, $4 each if sharing the blanket

  2. Juan

    net xports as determined by a linear function is almost as nonsensical as ignoring the post-2000 changes in the modern price regime.

  3. Anonymous

    On the Export Land Model: This model seems to assume consumption will exponentiate year over year until it matches local production–a misguided Malthusion view. I would think in those small OPEC countries, the consumption level will plateau rather soon, long before that dreaded end.

  4. Anonymous

    This is lame..lame…lame. I could do a better job. Even the fuzzy animals are sub-par!

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