Tuesday, May 18, 2010

Lots of random thoughts...

The German shorting ban might be a grey swan and that crushed the Euro today. Local media in Germany is showing major signs of stress and the break-up of Euro is clearly more likely today than it was yesterday. There is also talk of major margin calls hitting the foreign exchange trading desks around the world. This is the sort of stuff that can really snowball.

Keep in mind that the falling value of the Euro is going to make US products substantially more expensive in Europe and many US companies with substantial EU exposure might be facing some serious headwinds as a result of these currency swings. Also consider,

* Oil spill overwhelming Coast Guard

* New Dupont technology enables printing 50" OLEP TV in 2 minutes.

* Speaking of the rise of the machines, you know that your office copier has a hard drive that stores every image right? If not, watch this video that shows the data pulled off just 4 used copiers.

* New tax laws aren't even written and already hedge fund managers are working to figure out ways around paying the new tax. And guess what, tax consultants don't come cheap... (BAJ TWSS).

In essence, a hedge fund manager or private equity manager gets to keep 20% of a funds profits. The current position is that this is a capital gain (taxed at 15%) because it results from investing activities, but the new tax laws aim to treat this as income because, well.... it is income in my opinion (again, I'm sure the greater tax mind in my household probably has smoke coming out of her ears as she reads that line).

Cheers!

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