Thursday, May 27, 2010

Wow, I think I have whiplash

That was a pretty strong move in the markets throughout the day and the computers goosed it into the close again for 3+ gains everywhere.

Again take note of the fact that this was done on virtually no volume, but that's a story for another day. The markets seem to be in love with the idea that the Chinese weren't dumping their Euro holdings (yet). If you have ever wondered what it's like to be on the losing end of a Financial Cold War, I think we might get the chance to find out one day.

Completely off topic, but seriously BP -- you stopped pumping mud early in the morning because it didn't appear to be working and then you slowly start leaking (pun intended) that it is working to the media. WT#? You weren't pumping mud all day and now you tell us late in the evening?

The best analogy I've read for this top kill procedure is imagine a fire hydrant springs a leak. If you hook up another fire hose to a tanker full of heavy liquids and push the fire hose up against the leaking hydrant it might work - or it might crack the hydrant in half. Now, just imagine doing this at 5,000 below the surface of the Gulf of Mexico. Good luck with that.

In an interesting media development, the best commentary on the oil spill, in my opinion, hasn't been on TV but rather on a blog called The Oil Drum. Lots of industry engineers have been offering some really good (and often depressingly accurate) assessments of the situation.

Oh, and Iceland appears to be heading for their "Elizabeth, this is the big one" moment. Katla - the larger Icelandic volcano is making everyone nervous and Iceland's president "has warned governments around Europe that a significant eruption at the volcano is close."

Have a safe long weekend, buckle up and obey the speed limits -- the Staties are out in force this weekend - if you're not from MA, you'll have to Google Staties :)

Cheers!

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