10 Sunday Reads - My easy like Sunday morning reads: • Oral history: Prince’s life, as told by the people who knew him best (StarTribune) • French election explained in fi...
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For some perspective on the stock market, today's chart presents the Dow divided by the price of one ounce of gold. This results in what is referred to as the Dow / gold ratio or the cost of the Dow in ounces of gold. For example, it currently takes 9.0 ounces of gold to "buy the Dow." This is considerably less (80% less) than the 44.8 ounces it took to buy the Dow back in 1999. While the actual Dow currently trades significantly higher than its March 9, 2009 lows (currently up 60%), the most recent rally that occurred in the Dow priced in gold is fairly similar to several bear market rallies that have occurred since late 1999. It is also of interest that the Dow (priced in gold) is once again testing resistance of its accelerated downtrend.
Look around the world. The Western world that is most influenced by US economic thought, right, the Brits, the Spanish, the Greeks, the Latvians, the Icelanders, they all had their own versions of this crisis, not driven by the US crisis, but driven by these perverse incentives that I've talked about and this belief that you didn't need to regulate or supervise. - William K Black
"UBS rises on the SIX Swiss Exchange, having gained as much as 7.6% shortly after markets opened.
The bank's bottom line included a CHF595 million gain due to a fall in the market value of its own debt, compared to a CHF1.21 billion charge a year earlier."There go the accounting rules again...I really like that rule as your financial condition deteriorates you make money because you are short your own debt.
WASHINGTON (MarketWatch) -- Green Exchange got its approval from federal futures regulators this week to launch a trading platform that will list contracts tied to credits and allowances for greenhouses gases.
The Commodity Futures Trading Commission said Friday it had approved the exchange's application Thursday. The announcement of its approval comes just one day after U.S. Senate Democrats decided to table a climate-change bill. That bill would have helped spur a much larger derivatives market to help companies offset their carbon emissions.
Green Exchange was introduced in 2007 under the New York Mercantile Exchange and a group of banks and brokerages. Its products have been listed at Nymex, which is now owned by CME Group (CME 286.56, +4.84, +1.72%) . The CFTC said those products will now be listed on Green Exchange, which will become a stand-alone entity.
A spokesman for Green Exchange couldn't be immediately reached for comment.
"We think the Green Exchange has all the right elements to really compete in the marketplace, and achieving the milestone of this approval one of those elements," said Evan Ard, managing director of Evolution Markets, a founding member of the venture. "But there's still a lot of work to be done to effectively compete in the marketplace."
The CFTC's approval of the Green Exchange now sets the stage for competition between CME and its major rival IntercontinentalExchange Inc. (ICE 108.36, +1.84, +1.73%) , which this year acquired the Climate Exchange PLC (CLE.LN) in a $597 million deal.
ICE's acquisition will make it a dominant force in Europe's estimated EUR100 billion carbon market. The U.S. market is still quite small, although it has great potential to grow. Point Carbon, a consulting firm, expects the global carbon market to grow $170 billion this year.
Both CME and ICE are targeting European and U.S. markets with their ventures. But Point Carbon estimated in March that 63% of the trading in the U.S. carbon market was done off-exchange.
Without a climate-change bill, it could be challenging for both exchanges in the U.S. to build emissions-trading businesses.
CFTC Commissioner Bart Chilton, who has been advocating for a climate-change bill that will help create a large carbon futures market, said Friday he hadn't lost hope despite the Senate's inaction.
"There has been and will be green trading," Chilton said. "The question now is when we will get it together and do what needs to be done for our planet. The added benefit to doing the right thing environmentally is that it will fuel-inject the economic engine of our democracy--something last I checked, we sorely need."Well, http://jessescrossroadcafe.blogspot.com posted this CFTC's Bart Chilton On Financial Reform, Position Limits, and Curbing 'Disruptive Practices' post. I have to tell you I gave Bart the benefit of the doubt in his statements and to make his case on the video...my feeling was that he was pontificating horse manure. If there was one thing this Financial reform bill was not it is "Heroic". Nor is it particularly patriotic. There are some things that are certainly constructive in it, but not things that big players will not be able to bypass if they really want to - and I am sure they do and will!