Public Policy
- "Big Oil" Steering Profits to Investors-
Today the AP had an article discussing how the largest oil
companies are using most of their earnings to buyback shares and give cash
dividends to investors. The article complains that these companies spend more
on buybacks and dividends than they do on oil exploration. Uh... hello? There
are only so many places these companies can legally explore for oil. World
production of oil has most likely peaked or is relatively very close to doing
so. How can you blame the company for rewarding its investors, the people who
risk their money to invest in the businesses? Sure, gas prices are high. But
oil companies only make 7%-9% on every dollar they bring in. Heck, the
government makes twice as much money on gasoline than the oil companies. Oil
companies do not have very high margins and are taxed and regulated a good
amount by the government. I'm not saying that they deserve tax breaks or
special treatment, but the costs of taxes and regulations are passed onto two
- More thoughts on Fannie and Freddie-
U.S. plan to save Fannie and Freddie
- A New Boom In Hong Kong- China -- and Chinese ETFs -- are getting a lot more interesting. And that, of course, is saying something.
Two big China stories shot across my bow this morning. First, Russell reported that "Greater China" (China, Hong Kong and Taiwan) now sports a larger market capitalization than Japan.
- Politics, Not Economics, is Chief Threat to Emerging Market ETFs- Emerging market ETFs staged a stunning rally today and, while the jury is still out, investor interest in these fast-growing markets seems to be alive and kicking. The major themes driving this growth which has averaged well over 7% in annual terms over the past five years seem clear.
- Global Margin Call?-
Fed’s First Step:
When the FOMC members woke up on Friday morning and saw the Nikkei 225 down almost 900 points and other foreign markets down sharply, they had no choice but to unanimously vote to cut a discount rate by 50 basis points to prevent a US stock market meltdown.
Fearful of a drastic reaction by the markets and determined to show that it is not panicking, the Fed found a compromise by helping the banks with a discount rate, but waiting until the September 18th meeting to proceed with the fed funds rate adjustment.
- USPTO To Present Webcast On New Claims and Continuation Rules Thursday, August 23, 1 p.m.-
The USPTO contacted me yesterday and requested that I post the following announcement:
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