Nov 26

Atmospheric Carbon Dioxide levels at a dangerous point

One of the major ingredients of the emissions that cause global warming is Carbon Dioxide (CO2). The levels of carbon dioxide in the atmosphere has been steadily increasing for the past many years (even decades), and except for a few naysayers, it has been accepted that global warming is here to stay. However, efforts to reduce or cap the emissions on a global scale have not been as successful as one would have expected, given the threat to our way of life. There have been many holdouts, in the form of the United States that is the number one producer of such emissions, along with developing nations such as India, China and Brazil who are powering their way to the table of largest emitters. The economic downturn has in fact turned the conversation totally away from this area, but the fact is that even with a recession, emissions will continue to grow, instead of getting capped.
Scientists are now wondering how close we are to a tipping point, when the amount of agents that cause global warming reach such a point that changes start to become more rapid (one example of a tipping point is when the rate of ice melt in the poles and in Greenland becomes so high that less light is reflected because of less ice and more water, thus increasing heat absorption and more ice loss, and so on):

ONDON, England (CNN) — A team of international scientists led by Dr James Hansen, director of NASA’s Goddard Institute for Space Studies, say that carbon dioxide (CO2) levels are already in the danger zone. Concentrations of CO2 in the atmosphere currently stand at 385 parts per million (ppm) and are rising at a rate of two ppm per year. This is enough, say the scientists, to encourage dangerous changes to the Earth’s climate. As a result we risk expanding desertification, food shortages, increased storm intensities, loss of coral reefs and the disappearance of mountain glaciers that supply water to hundreds of millions of people.

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Nov 26

Global Markets: Reality Check, Again #3

Global Markets: Reality Check, Again #3

#fullpost{display:inline;}We are not talking about an earnings dip, the economy entering recession, time frame for inventories to clear, and so forth.  We are talking about survival of the financial system…we are talking about the rules of the game, changes to those rules while the game is in progress.

The country will be there after the mess is cleared, we will be there.  There will be banks and industry and government.  Unfortunately, we don’t know their names yet…such is the uncertainty and it is reflected in the highest continuous volatility of financial markets in recorded history.

Stay grounded in reality when you choose to take a risk…here is a potpurri of articles which ought to shake even someone on a double doze of prozac.

Crooked Bank, Nitwit Bank, Bad Bank…..What to do about Banks like Citi?

“(One approach) is that, when a bank suspends payment, it would simplify matters to hang (or, in any case, to jail) all its officers and directors at once, whether its suspension be due to its roguery, to their stupidity, or only to their bad luck.”

I think public trading should be suspended in the shares of any enterprise seeking bailout money

State of New Jersey is Insolvent

Western Financial System we knew has collapsed

If I may paraphrase that great ensemble of Nobel-prize winning financial wizards, Monty Python’s Flying Circus:

“This financial system is no more! It has ceased to be! ‘It’s expired and gone to meet its maker! ‘It’s a stiff! Bereft of life, it rests in peace! If you hadn’t nailed ‘it to the tax payer’s perch it’d be pushing up the daisies! ‘Its metabolic processes are now ‘istory! ‘It’s off the twig! It’s kicked the bucket, it’s shuffled off its mortal coil, run down the curtain and joined the bleedin’ choir indivisible!! THIS IS AN EX-FINANCIAL SYSTEM!!”

There are hundreds of articles now…the humour helps.

Nov 26

Global Markets: Lemming behaviour

Global Markets: Lemming behaviour

#fullpost{display:none;}Every time a different piece of equipment is attached to the patient in ICU, traders, like lemmings in heat rush like a herd and bet on the patient winning the next marathon.

And, of course, all lemmings perish by cliff diving over the precipice. Am I the only person fed up with the following headline every day:

Today, the Treasury announced…..or Today the Fed announced…

The markets in Europe took off like idiots in heat because the Treasury announced….you should know by now that a Treasury or Fed announcement is BAD NEWS…..not GOOD NEWS. You know it is a good game when you do not hear from or about the umpires. You know it is a bad game when only the umpires are in the news and the players are nowhere in sight.

The Fed or Treasury or both cannot make an economy….where are the players…can the media please find the players and let us know how they are and when will they play.

Till then…sayonara..boring to watch umpires gesticulating and blowing whistles.

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