‘Stead LBO, SWF: The new carry trade
Financial Times
Aug 21, 2008
http://ftalphaville.ft.com/blog/2008/08/21/15269/
stead-lbo-swf-the-new-carry-trade/
The oil-rich sovereign wealth funds have it good, if we didn’t already know that. Citigroup’s Robert Buckland reinforces the idea in his latest Global Equity Strategy note to clients, in which he claims a new carry trade - with SWFs poised to be prime beneficiaries:
Just as the equity market looked cheap to anybody who could source capital from the debt markets between 2003 and 2007, now it looks cheap to anybody who can source capital from the oil market. And just as markets missed the point about private equity - they could afford to pay higher prices for assets given their access to cheap debt capital - maybe they are now missing the point about oil-rich investors. Most financial assets looks cheap when your source of capital is oil at over $100 a barrel.
The re-rating of global equities against oil over the past year has been just as significant as the re-rating of debt against equity that kicked off the de-equitisation trade. A combination of rising oil and falling share prices means that a barrel of oil will now buy enough equities to deliver $8 of corporate earnings per year (we divide the oil price by the market PE to calculate this), way up from the $5 that it would have bought a year ago.
Internet Censorship Alert
Internet Censorship Alert: Alex Jones exposes agenda to 'blacklist' dissenting sites (March 14, 2010)
As I predicted, the Obama Administration is trying to shut down the Internet - at least the parts he doesn't like. Barack Obamas regulatory czar, Cass Sunstein has stated that he wants to ban conspiracy theories from the internet. Think about what this means - Every video, every website, every blog, every email, that exposes or just criticizes the government for any reason whatsoever could be labeled a "conspiracy" and taken down. Your home could be raided in the middle of the night, and you could be carted of to jail for criticizing the government. All they have to do is call it a "conspiracy theory".
http://www.youtube.com/watch?v=aqAWmBLFodE
Wednesday, August 27, 2008
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