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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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
net xports as determined by a linear function is almost as nonsensical as ignoring the post-2000 changes in the modern price regime.
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.
This is lame..lame…lame. I could do a better job. Even the fuzzy animals are sub-par!
Lame lame lame? Ok, Mr/Ms anonymous; tell us a better story!