The Daily Reckoning’s Dan Denning says Australia needs to get serious about the energy debate. Australia is rich in resources, but too much bureaucratic red tape is beginning to scare away foreign investors. Nevertheless, Aussie resource firms provide many excellent investment opportunities, some of which are not on the radar of institutional analysts…
Australian Federal Treasurer Wayne Swann has approved the sale of 11% of Rio Tinto (ASX:RIO) to Chinalco. The Daily Reckoning’s Dan Denning says this is just more evidence of foreign interest in Australia’s mineral deposits.
Faced with this reality, Dan says the government needs to decide whether Australia is for sale or not.
One thing for certain, as emerging giants like China and India increase their per capita income, the chase for global resources will become more intense. And Australia will be in the thick of the action…
It seems we are not the only ones frustrated with the Fed. Former Bank of England economist Willen Buiter has criticized Bernanke & Co. for bowing to the demands of Wall Street. Dan Denning in The Daily Reckoning Australia says the Fed’s policy is just delaying the inevitable backlash from years of misallocated capital…
There is still a short investment opportunity in the banking sector. The Daily Reckoning’s Dan Denning thinks that if Lehman Brothers (NYSE: LEH) were human, it would be selling vital organs by now. That’s how desperate the bank is to raise cash before it adds to its $12 billion in reported losses. But there is a reason why most bodily organs are considered vital, and Dan says we could see a few more corpses on Wall Street before this crisis is over…
Dan Denning at The Daily Reckoning Australia says the country’s world-class mineral deposits lured him away from the U.S. in 2005. New mining ventures in ’super’ deposits such as Mount Isa in Queensland may be volatile, but as older mines near the end of their productive life, they will control all the resources.
The grim tale of Fannie Mae (NYSE:FNM) and Freddie Mac (NYSE:FRE) appears to be building towards a climactic finale this week. Stocks of both have plunged since Monday, as investors bet that time is running out for these GSE twins.
The Daily Reckoning Australia’s Dan Denning says the market has called the Fed’s bluff, and knows that neither firm will survive without direct nationalization.
But this won’t guarantee any greater stability in the housing market, and will inflict more damage on the dollar.
Daily Reckoning Australia’s Dan Denning takes a look at the latest developments in the Australian energy sector. He says the country will need new energy supplies from somewhere to power its industry, and much will depend on the government’s carbon trading scheme. More from Dan…
What should investors worry about more, inflation or deflation?
Wholesale prices (PPI) are rising at the fastest pace for almost three decades. But some analysts warn that the decline in asset and stock prices could signal the start of a severe bout of global deflation.
Dan Denning in The Daily Reckoning Australia says both inflation and deflation destroy value, albeit in different ways. But as long as central banks can print more money, worldwide deflation is unlikely.
Another triple-digit swing for the Dow yesterday. The index shed 130 points a hefty jump in wholesale inflation brought Wall Street flighty optimism down to earth once again.
The Producer Price Index rose by 1.2% in July, more than double the expected rate. The rate for 2008 is now the highest level since 1981.
Who’s to blame? Addison Wiggan and Ian Mathias at Agora Financial’s 5 Min. Forcecast are pointing the finger at Ben Bernanke. The Fed has loaned, on average, $17.7 billion a day last week to US commercial banks – an all-time high.
There is a much big issue we have to tackle today. Alan Kohler framed it well over at the Business Spectator. He asks, “Is BHP is a proxy for the Great Australian Question of 2008: will Chinese industrialisation and urbanisation offset the coming global slowdown caused by the bursting of the credit bubble?”
