Coverage - What is it, and their use Risk Management

Before the discussion on the use of hedge is not of this world, we must understand the role and impact reporting. In the modern history of futures trading in Chicago, started in early 1800 - Chicago is based in the Great Lakes region, the plants and animals in the U. S. West, which is a natural center for transportation, distribution and trade in agricultural products. Excesses and deficiencies of these products caused chaotic fluctuations in price. This led to the development of the market of grain merchants, processors, business and agriculture to trade contracts to isolate the risk and give them an opportunity.

The first commodity exchange was the creation of the Chicago Board of Trade CBOT in 1848. Since then, modern derivative products have more of the agricultural sector. Products also stock indices, interest rates, currency, precious metals, oil and gas, steel, as well as several others. The origin of the goods and Futures Exchange was designed to support. The role of speculators is useful to add trading volume and volatility is important because otherwise the small market and liquidity risks.

A bona fide hedging is someone with the products you can buy or sell. Hedging is the transfer of positions in the futures or commodity exchange, resulting in a fixed price for their products. Anyone who buys coverage are considered "long" and "to accept delivery. Someone sold accounts are called" short "or" surrender. "These elements, also known as" contracts are legally binding and apply to the Exchange.

Enter a trade or speculation or hedging being the broker or consultant on trade in commodities. And futures exchanges differ from the stock markets, although with the same directors. Various bodies such as the Board of Trade commodity futures, which are responsible for the regulation of retail brokers in the United States, but also as a consultant on trade for portfolio management.

Let's now a few examples from real life, hedge or reduce the risk of exchange-traded derivatives.

Example 1: The manager of the fund portfolio of $ 10 million, S and P 500 Index. Portfolio Manager believes that the economy is worsening deterioration of the economic benefits. In the next two to three weeks from the date of the quarterly corporate reporting. Until the report showed what the company had income of the poor, it is the result of short-term correction. Without the privilege of future research, not sure if the amount of income production. Now you have an impact on market risks.

The Director, in the opinion of their choice. The biggest risk is doing nothing, if the market falls, as expected, the risk is, until all past achievements. If you sell your portfolio early, but the danger of false and lacking in most of the rally. She also sells large additional brokerage fees to buy it later.

And he acknowledged a hedge is the best option for reducing risk in the short term. Please enter your CTA (Trade Advisor), and after a brief consultation of places selling a sum equivalent to $ 10 million of the S & P 500 index at the Chicago Mercantile Exchange CME. "As a result, is currently on the market, as expected, the losses are deducted in the results of portfolio coverage. If the report is that the result was better than expected, and his portfolio continues to grow, it becomes profitable.

Two weeks later, the fund manager calls his CTA and closes on the purchase of a new cover for the number of contracts at CME. Whatever the outcome of events in the market, Fund Manager protected during short-term fluctuations. There was no risk to the portfolio.

Example 2: ABC Electronics Company has recently launched a 5 million dollars of electronic components in the model for the future of foreign retailers in Europe. These components will be in 6 months, for two months after that. ABC to immediately realize the impact their two risks. 1. high and volatile prices of copper for 6 months, could lead to losses for the company. 2. fluctuations in currency, you can easily add to the losses. ABC is a young company can not cover losses due to strong competition in the market from others in that area. Losses from this order will lead to layoffs and closures may be.

ABC Phones of TCU and after a hearing on the two covers, like after 8 months at the time of delivery. Number 1 on the purchase of coverage to 5 million U.S. dollar for copper effectively locking in the price of today's rising prices. ABC eliminated all price risk. The threat of closing the plant more profit, that the continued decline in copper prices. In the end, ABC is not in the business speculating on copper prices.

# 2, respectively, short-sale reporting currency Euro Dollar U. S. ABC starting with the EU in payment, the increase in dollars - and the weak dollar and the EU will continue to undermine profits. As a result of hedging, which is not surprising, ABC, either in cash or copper levels. And without the risk of the transaction and full transparency of the result. With 8 months to complete and the customer takes delivery, ABC, at TCU, the coverage of copper on the sale and purchase of foreign currency to the euro contacts.

There are many examples in order to reduce the risk to the financial institution or a portfolio. New products are constantly created and the two counters and currency markets. It would be useful to a consultant or a broker of commodity trade, the analysis of rate risk management solutions, or a coating.
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How to be happy in a recession

There are two issues on all our lips. "How should I go to the victims of the economic council?" And "How can I make money, profits, and improve its position in the current strain in the future?"

We have generations, if we can try, if desired, control of economic power around and dare to bear the "invisible hand" in creating wealth.

Opportunities exist, but the smart investor will be successful. It is likely that investors have led to the acquisition, sale, use this board. Business and assets that are already in the share of their value compared with just three months. Further opportunities arise this year, and this is not the voice of the world in 2010.

Investment of private capital and are not infallible, like many companies, there is an error in the busiest times in their decisions to invest. There is no reward for failure, as well as private equity firms than others, as many of us. Will there be a rotten egg and a better investment in the future. However, not all investments sky rocket, as planned supplies. Cash is in demand, with suggestions that private equity investment in exchange for money are the best shoes for growth. Already now, and will be very important in the coming years.

The starting point for those affected by the recession is to ensure order in their own homes. As the water in the stormy sea disaster waiting to happen. Now is the time to investigate the leak, remove unnecessary weight in the right time and the strengthening of the leaves. It is time for the captains of industry, is a reflection of the fact that the cold, your company or sink cut gracefully through the water. Inability to make decisions and implement aggressive in terms of operating costs, personnel and marketing sector and other questions will determine how much extra baggage and number of leaks in his ship through the storm. The lighter, the rationalization of the ships are often the strongest in this race.

With the sails trimmed require vigilant watch. Corrective measures to prevent unwanted Rogue waves and unwanted leakage rate. You want your vehicle to streamline the cleaning of the candle and the jet corrections, especially in the current environment. This strategy, all companies, the best opportunity for a sound financial basis. Of course, all this should result in the case will be worse with less traffic, as the storm strengthened.

In its business on a solid foundation, you can look for opportunities outside.

There is so much competition. Many businesses, investors and others are willing and able to provide the financial bid. In the company undermines the value of the opportunities for growth (also known as the interest of investors), but not without risk. Any investment should be based on difficulty, hardness, and industrial know-how, experience and reach a consensus. If you do not have a food, the difference between a successful investment or otherwise.

One explanation is essential to this process, and assists in the visualization (and in life as a result of) the impact of cost reduction, operational changes and sales. Sextant is wise, or turn professional investors and helps to guide through the dark sea.

If, for example, to work or already have an investment in the sector, possibly, other companies in this industry need to possess. In the past year, according to company estimates, is too high. Now, however, it is likely that assessment, the business market and have no funds for their activities. Is in trouble, in this case, it is an ideal environment for building your own turnover for the acquisition. This may be beneficial, and well, you can take advantage of economies of scale. Over time, these investments are consolidated strong investor returns.

The structure, in addition to values for the state, is important. There was little value in treating the symptoms of the plague, instead of finding a solution to the course. These resources could be a revision of the bank. For example, the percentage of the loan to value (better deal that the bank appointed a receiver, LPA). Involvement of unsecured creditors are important considerations. This may be related to the debt-equity swaps, non-formal education in the insolvency proceedings and in such a way as not to damage the economy. Lenders do not return for all, without income. Since the board affects all of us.

Amendment of financing, either alone or outside the plant, is also crucial. The structure of the deal is only part of the three-legged stool. Management (plan), restructuring (in front) and the turnover of finance (funds) are the legs. If he is absent, the chair will fall. There is a core group of experts, and stormy weather in the rotation that investors not only to money they invest, either directly or jointly with other owners, and weathered the storm, and the scars of the past, knowledge and technology to the table. Sailing experienced sailors, to avoid the storm, and dashes against the rocks in pest-infested soil.
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Global Investment Scenario

In a rapidly changing economic equations with emerging economies such as China, India, Singapore, Malaysia, Russia, Brazil and so on, according to steal the attention of investors, the U.S. and Europe. This is not surprising that this new economic power is growing very fast and tables will be changed sooner rather than later. America in the "drive the bus" in global economic conditions in other parts of the world are becoming more and more attention. U.S. hit by economic recession, the Fed is confused about that to raise interest rates and inflation under control, or reduction of the economy and help it grow.

Despite concerns about the situation, Prime south of the U.S. economy at 3.8% in the third quarter, and employment data seemed to hold good. Despite the fact that the impact of subprime crisis on the carcasses and to the U.S. market slowdown may be limited, so far as economic indicators suggest that economic growth will slow. Business and consumer confidence appears to be a buffer in the United States and the euro area, as well as indicators that a very negative trend. To clear of the credit situation, investors remain nervous active credit remains vulnerable to a sell-off.

Expected that the crisis of subprime, caused more problems in 2008. Thus, there is little hope left, and, consequently, large investors have begun to invest in developing countries like India. Therefore, appears to be little point in investing in these emerging economies.

Where to invest, these emerging economies is a powerful call to make. On the one hand, China has a history of continuous supply of + 9% growth per year over the past many years, but the snow is too slow to take account of inflation. On the other hand, India is much less, trade and export-oriented China, and poor infrastructure, which will be developed. As a result, India banks on the domestic consumption growth and job creation. It is also difficult to attract to the productivity of foreign direct investment, but also to isolate India from the decline in world markets.

In this situation, the safest way for an investor to use this growth by investing in global emerging markets funds from many companies, foundations. However, if you want, right on the stock markets should be careful, because even if these countries are growing rapidly and will continue to grow, there are many people who do not have good results, and some may even lead to complete loss of capital. And if you invest all your money into the country, and then put money at your own risk.

In addition, any company or companies, regardless of their size, which tends to "global player" can not ignore long as India and China, a rapidly growing emerging markets. India has huge potential for attracting foreign investment and foreign players to find their next investment destination. India is one of the treasures of investments for the long-term growth. Despite the fact that short-term benefits can whipped cream from time to time, but not one cent of the value in the long run.

Investing in gold is also a good choice to get their money in light of reducing the cost in U.S. dollars when U.S. investors are nervous about the prospects for the U.S. Economy Back on the gold as a safe haven. Gold, therefore, it may be possible for the higher levels where they are now. You can buy into gold, that is physically or through the purchase fund of gold by many financial institutions.
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Franchising Opportunities - advice for achieving your goals owner of the franchise

Potentially there is a franchise in the future? There is a long-term projects, short-term expectations? This is a recipe for frustration and failure.

Owning and operating his own franchise is a decision that you are doing now, however, as they imagine their future will be like in the short and long term.

Career change time and planning, and will not happen overnight. Due diligence process should not be underestimated, given its value in the equation of their ultimate success.

Your world has changed. No text-enabled cellular phones, Internet-enabled cell phones, twitter, voice mail, electronic mail, pager, fax, post time is unacceptable, and almost obsolete. Currently available information, we hope that the attitude and purpose to do the same. As you read this, you know that is unrealistic to expect, right? We have led advertisers feel that we deserve immediate satisfaction, which is easy and without effort!

A simple concept Note: If you would like training a puppy, you know, take some time and a steady strengthening. Are you ready for this because you want your dog to a suitable manner. So why are you so sick puppy, and so much for us?

If seeds in the garden, they tend to water, sunlight, and hope to grow. The question is how to feed you?

The best way to ensure a smooth and effective transition to your goal, it is a reasonable approach. The failure of his project in the long-term goals for the sub-goal. Rest in practice cuts. Today, preparing soil, planting seeds for the future.

Any action you take and every move is good because you know that you need to achieve their goals. You can not rush Mother Nature, Garden, and the same is true for your objectives.

This process is much more than a flower, tree, because if you are gardener to plant, and decide what to eat. Repeat this process for themselves and grow. I have something in childhood that it sustained me for decades. Maybe this will help in the preparation and, ultimately, even their own franchise. The wording reads: "If you're at 1% per day is 100% in just 100 days." Think about it. This is little more than three months, all major changes.

We recommend that you use the resources here at Franchise interactive learning about the franchising opportunities, how do you think could be your financial needs and aspirations of people. When filling the form completely with each showcase a franchise, you will make investments in themselves and their future.

We would be happy to answer your questions about the franchise opportunities they represent. Remember that the franchisee has a longstanding relationship with the franchisor. A great relationship with the first conversation you have with your potential franchisor.

Will their due diligence, and if they are so comfortable, in the future open to you ... was a concession for a company that meets your expectations. More Franchiseinteractive.com find the article on "vote" for your specific situation.
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Now the recession is over? Or history repeat?

Last weekend a friend told me at dinner that there was no economic downturn. He noted that the fact that construction is on all of its elegance.
In fact, he said (no), the economic downturn is likely to be the result of excessive media praises some bad news for their approval ratings. Another of my friends agreed. Both women see in their disbelief - raising their eyebrows in skepticism silence.

He suggested that the recession is indeed a reality, not the spirit of creatures hidden in the lake. Alan Greenspan, the former head of the Federal Reserve began to convene this fall in the worst financial crisis since the accident of'29 to deliver, even if Lehman Brothers legs.

Depression era historian and replace Greenspan, Ben Bernanke, have a more positive picture. "Recently, we have tried to signal that the slowdown in economic activity may be slowing."

The question is not whether the decline of real or not, but when it expires at the end. In recent bear market concentration on the road in coming? Or, as the history of the last race, only to sign another dizzy? To give a recent article ... I believe that the current rally is guilty until innocent.

There have been several demonstrations in front of tailspins Bear in the past. There are several on the 1957-58 recession, a young woman in 1973 and returning in 1930. Three recession instilled a sense of optimism before the busy portfolio.

August 30, 1929 Dow Jones Industrial Average peaked at 380.33. October 24, 1929 Wall Street crash - sending the world economy into depression. Nine months later, the economic indicators predicted a further decline. On the stock market, on the other hand, showed a return to prosperity.

In June 1930, U.S. President Herbert Hoover, a wise tone: "Sir, you have 60 days too late. Depression is over." Markets continue to decline and bottomed in July 1932, a full 2 years after Hoover stated mission.

On 12 October 2007, Dow highest level of 14,093.10. During the summer of 2008, markets thrive despite economic warning signs. Mid-September, the markets crashed by more than 11400 points on Sept. 12, 8400 to 24 th October.

Since the Dow has a number of meetings at short notice. All of this will be removed if the Dow hits 6600 points in early March. Currently, Dow around 8300, fueling optimism that the markets are lower.

But are they? If investors penny we have waited a long time, but not back on the rebound?

Increased investment advisor said: "In markets such as the figures show us that the worst is behind us." This is likely to be another outlet, but not low-impact or injury.

Economic Cycle Research Institute predicts that the economic downturn before the end of summer. Too far? Chief investment strategist at Charles Schwab said on Good Morning America this week that a recession is already over.

"I think that probably in April, he said. Noting that the economic indicators show that the economy bottoms and begins to rotate.

Maybe.

Initial claims for state unemployment benefits up to 32000 up to 637000 during the week of May 9, the Labor Department said the total number of unemployed people receiving unemployment benefits rose to a record level of 6.56 million euros.

Continued weakness in the labor market, which is closely related to the costs, some market veterans were skeptical stock market and the recent view that the U.S. economy is on the rebound in the near future.

Nouriel Roubini, professor of economics at the University of New York, which has become known for predicting the current economic crisis, said recently: "In the past two years, the stock market in six of the past economic recoveries to zero - that is, six concentrations decline permanently disabled, and further losses. "

What is a penny stock for investors?

Bond guru Bill Gross is the view that investors should be optimistic about the U.S. economy short-term. "Do not be fooled in the euphoria of sight" outbreaks "and requires a new bull markets ...", he said. "A stable and reliable income remains on the agenda."

But to pretend that you are an average of penny stock investors, who little more optimistic about the future of this market. Because the investment funds that they believe that the money that companies are interested in that at some stage, success, prosperity and reward its portfolio.

At the market bottom? Only Sylvia Browne knows. And she said no. With regard to investors' optimism, the recent demonstration of the U.S. population to rebuild the region.

If you are afraid of falling and not share in the market shares in its portfolio, now is a good time to think about change, DASS current concentration does not mean that the window of opportunity in penny stocks closed. He is still very open.
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Other countries affected by political instability: Aon

NEW YORK contracting credit markets and more countries are threatened by political instability this year, according to the analysis of Aon Risk Services.

Aon annual political risk is considered high risk, that in the past year and a new category of "high risk" for the seven countries, whose situation has changed significantly in recent years: Afghanistan, Democratic Republic of Congo, Iran, Iraq, North Korea, Somalia and Zimbabwe.

"The threats to these countries, only continues to deteriorate," Miles Johnstone, Director of Political Risk, Aon, said in a statement. "It is to such an extent that, although we have been able to reach some customers in some of these areas, which are not always available."

In particular, the report concludes that the threat of further decline in the price of oil, metals and other commodities will be more countries, the risk of instability. During the economic crisis, governments often have fewer resources to financial problems, Aon said.

"The volatility of world prices in the 1970's and early 1980's, contributed to political and economic instability in some countries," Roger Schwartz, senior vice president of Aon Trade Credit, said in a statement. "Countries that have recently benefited from high prices suffer as the (price) fall."

The report examines the country's political stability, its dependence on commodity exports, and fluctuations in the prices of exports in the short and long term financial planning and the quality of economic management.

Aon also in eight countries with low and medium risk and low risk, taking into account the impact of the credit crisis: Estonia, Greece, Hungary, Iceland, Latvia, Lithuania, Slovakia and Slovenia. Malaysia and Mauritania, as well as risky.

But a new study ranking 13 countries: Egypt, Algeria, Benin, Cameroon, Colombia, Kuwait, Lesotho, Libya, Malawi, Moldova, Morocco, Syria, Tunisia and Turkmenistan.

The United States won the 137-meters of the 209 countries that have a low risk in general. Zimbabwe rank as the country's highest risk.

Aon has a map of political risk in the year for the past 16 years. Analysis of interviews with analysts and insurance company in London, U.S. and other countries about the threat of terrorism, war, riots and strikes, the failure of government bonds and other threats in several countries. He also uses the analysis of Oxford, England based consultancy Oxford Analytica Ltd. in a country's legal framework and the vulnerability of the chain there.
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Former vice-president of AIG sentenced to 4 years in the reinsurance plan

Former vice-president of insurance American International Group Inc. (AIG) was sentenced to four years in prison for his role in a fraudulent scheme to manipulate AIG Finally, in accordance with the Department of Justice.

Christian M. Milton, 61, of Wynnewood, Pennsylvania, and vice-president of AIG Reinsurance 1982 to March 2005, was convicted by federal jury on Feb. 25, 2008 on charges of conspiracy, securities fraud, false statements by the U.S. Securities and Exchange Commission and mail fraud.

AIG shareholders have lost at least $ 544 million as a result of this scheme, according to the court.

In addition to imprisonment, Milton was the U. S. District Judge Christopher F. Droney two years probation period after his release from prison and a fine of $ 200000. Milton was to surrender to federal authorities for 60 days.

Prosecutors evidence that during the trial showed that Milton and his co-defendant, Ronald E. Ferguson, Elizabeth A. Monroe, Robert D. Graham, and Christopher P. Garand, all former executive of General Reinsurance Corp. officials in a scheme to inflate AIG falsely reported reserves, which is an important indicator of financial health insurance industry analysts and investors. The research evidence that fraud took place through the use of two sham reinsurance transactions between subsidiaries of AIG and the exploitation of the General Re, in response to criticism from analysts to reduce the $ 59 billion in AIG stock losses in the third quarter of 2000.

The two sham transactions, exploitation, prosecutors have shown to increase the reserves AIG $ 250 million in the fourth quarter of 2000 and $ 250 million in the first quarter of 2001, the trend of concealing the loss of reserves due to rising premiums. Experiments have shown that this question AIG confirmed that the filing with the SEC in May 2005. Evidence in the production said that the result was disclosed to investors, AIG and through various media of 14 and 14 February, in March 2005, shares of AIG populations ranged from $ 73.12 to $ 61.92.

Five defendants were found guilty on all charges against him, instead of 16-count indictment. Then, 31 October 2008, Judge Droney found that the shareholders of AIG lost $ 544 million and $ 597 million as a result of the defendant's fraudulent scheme.

Last month, Ronald Ferguson, former chief executive of General Re, has been to two years' imprisonment and a fine of $ 200,000 for his role in the fraud. Three other former General Re - Garand, Monrad and Graham - have not yet been sentenced.

General Re is Warren Buffett of Berkshire Hathaway Inc.

According to evidence at the trial stage, each of the defendants knew that the real purpose of the transaction to allow AIG to falsely report an increase of reserves in their statements to analysts, investors and the SEC. The defendants structured a sham reinsurance transaction that is in accordance with the evidence in court, and a wrong way to the paper, make it appear as if they were AIG General Re reinsurance, when tests showed that the parties knew AIG transaction, I would like to manage its financial reporting.

In addition, evidence that during the trial showed that the defendants had a secret agreement that AIG will not have to pay for the loss of contracts, AIG would return to Gen Re $ 10 million in payment of AIG and General Re AIG paid General Re $ 5 million fee to the transaction.

According to prosecutors, Milton, when he was a former Director General of the General Director of Maurice "Hank" Greenberg, AIG resignation in 2005, has denied knowledge of the unauthorized transactions, and not to attack.

After leaving AIG in March 2005, Milton Greenberg is set to work in its current businesses CV Starr and to the insurance and investments.

Source: U. S. Department of Justice

Contact: U. S. Department of Justice Office of Public Relations,
+1-202-514-2008, TDD: +1-202-514-1888
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Recession Planning for Employees

The leaders of an interview with Price Waterhouse Coopers in the 11th annual survey of director of economic confidence showed low levels of confidence in the continuation of growth since 2003 in North America (35%) and Western Europe (44%). In North America, the figure fell from 53% last year. In the Asia-Pacific, Latin America, Central and Eastern Europe, the leaders have shown a much greater confidence in the continuation of economic growth and business growth.
Given the decline in confidence CEOS in the United States, and all the talk about a potential recession in the U.S. and Western Europe, that you made in your company or department for planning the possibility that the slowdown becomes more severe and the consequences of your employees?

Here are some of the action, I am thinking about the decline in the planning for employees, for your human resources department and other agencies as part of its business, possibly for the whole company, if recession looms.
On the whole company or a departmental response to the anticipation of a recession

* Take a look at your strategic plan, your mission statement, vision, values, goals and annual. Is your strategic framework is formulated to help you make it through a serious recession? Has it been sufficiently communicated to your staff that they are not afraid, they trust their leadership and they believe that they managed in general, a positive direction?

To take part in the conversation is an important commitment for the use of your employee's talent and dedication. Discussion of the consequences of your strategic framework: mission, vision, values and goals of each employee's work is a step that will help their "own" the strategic direction. Without this step - they are simply puzzled. Sorry.

* Be aware of your company and your industry problems. Is your product or service is needed, regardless of what happens in the economy? Your product saves time, saves money, or otherwise make themselves indispensable, even in the economy down? If not immediately determine how you can re your product or service that customers are starting to see it that way. Clients and the recognition of the brand you have created with the passage of time will become even more important in an economic downturn.

* You made a plan to identify your potential risks and impacts of the economic downturn in your business or function? With the possible scenarios are likely to grow your organization? What would you do differently in the various scenarios that you believe in the short term, that is, any way you can change the potential consequences of different scenarios? For example, what areas of your department of human resources need to change or grow up to combat an economic downturn? Staffing? Benefits? Officer morale programs? Retirement Planning? Training of channels?

* You must inform you that your leadership team makes forward thinking, forward planning, as well as discuss possible less than positive contingencies. Most employees do not care what the specific plan. But it is important for their preservation and sense of well-being that there is a plan that they know the plan exists, and that they understand that somebody really minding shop. And, in my experience, even the best of bad communication all.


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Global banking crisis is the possibility of a millionaire?

Turbulence in financial markets, some of the super-rich in search of possible transactions. But it is not without risk, says Stephen Wall

Global banking crisis, his high-profile victims, and the flight of "Financial Statements". However, if you have money, which means that billions, it seems that there are several possibilities, and the famous millionaire ranks realized that with both hands.

Despite the earlier cry of pain, global banking giants have been assured in the hands of Arabic, Chinese and Singapore sovereign fund last cries, the state of the international financial world, have to answer a few of world's richest people own the world

Outstanding in the past month have been concluded a new agreement on a well-known investor and, depending on where and when you're the world's richest person, Warren Buffett. Through his holding company Berkshire Hathaway, Buffet reached an agreement to buy $ 5 billion (E3.9bn) of preferred shares in major Wall Street investment bank, sorry bank Goldman Sachs

Sacks appeal
The agreement also includes warrants to purchase additional buffet at $ 5 billion ordinary shares at a later date. Historically, Buffet warned against investing in finance, but also calling Goldman, at a time when their stocks caught up in negativity in the areas of finance, is a testament to the strength of the bank.

Mr. Buffet not only millionaire in the field or possible chances. Russian billionaire Mikhail Prokhorov has acquired a 50 percent share in the realization of the Russian investment bank Renaissance Capital for $ 500 million. Mr. Prokhorov, also in the light of the continuing decline in the market in Russia may have korobochny own business - only a year ago, Renaissance is estimated at $ 4BN.

His fall from high altitude was the result of global uncertainty and, in particular in relation to Russia, the current investor panic fueled by falling oil prices margins, liquidity concerns and fears over potential losses, particularly in banking shares.

Of course, the interest of maintaining super-rich banks, is not new, we are here several times before. Perhaps the highest profile example of our time is to save Citi in early 1990, Saudi Prince Al-Waleed Bin Talal Bin Abdulaziz Al Saud. Prince Al-Waleed has imposed $ 590m in a time known as Citicorp for about 15 percent of the population, when the game was at a price of 9 dollars. Citi-remains the largest shareholder in Abu Dhabi's investment arm paid 7.5 billion dollars to 4.9 per cent.

However, if it is a possibility, there is a danger that, as two recent examples highlight standout. The most dramatic was the British billionaire investor Joseph Lewis, of course, a place similar, but more short-term option at Bear Stearns in September 2007.

Mr. Lewis has invested $ 1 billion, the fifth-largest investment bank in the U.S. at the time that his actions were trading $ 100. If then fell in March 2008, Mr. Lewis loss amounted to $ 1.16bn.

Next was a member of the royal family of Qatar, Sheikh Mohammed bin Khalifa al-Thani game with a 280 million U.S. dollars to buy now is not the Icelandic bank KAUPTHING. The agreement gave him 5 / 01 percent to the bank the third-largest individual shareholder at the time. The failure, his status as head of equity left very little protection from massive loss.

The meaning of all this, of course, is that the super-rich long-term investors clearly see tremendous opportunities. However, markets are not always mutually millionaire, and those who are short-term gain may not be in a better position to win.

Taking into account similar to playing a future long-term investment strategy, such as Prince Al-Walid with Citi and buffet with Mr. Goldman.

Stephen Wall is a senior officer of wealth management strategies reflection Association Scorpion
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Global Oil Demand: Are You Ready for Gasoline Under a Buck a Gallon?

by David Fessler, Advisory Panelist, Investment U
Friday, December 12, 2008: Issue #900

When I started driving, gasoline still contained lead and regular was selling for 29 cents a gallon. My father remembers 10 cents a gallon.

While it’s highly unlikely we’ll ever see those prices again, you could see gasoline below $1 a gallon, and it just might hit $0.75 a gallon. It might not be in time for Christmas, but the Easter Bunny might leave it in your Easter Basket.

That’s not just wishful thinking on my part: The International Energy Agency’s (IEA) most recent monthly forecast (released just yesterday) indicates year-over-year global oil demand will shrink in 2008 for the first time in the last 25 years.

Why? Developed nations are skidding into recession and emerging nations have hit the brake pedal on economic growth. And when the United States - by far the largest oil user in the world - cuts back, the ripple effect is devastating to producers.

Oil-laden tankers are backed up at U.S. oil unloading terminals, waiting to unload. At the same time, the nation’s most recent oil inventory report shows that storage tanks are brimming with crude oil, gasoline and heating oil. But that doesn’t mean there’s no money to be made here. In fact there are a number of opportunities to profit in oil right now.

Global Oil Demand - OPEC Cuts Production

OPEC is scrambling to cut production of oil. Chances are good that they won’t cut far enough or fast enough. Supply destruction will continue to lag demand destruction for the foreseeable future. And that sets the stage for a continued softening of pump prices as well as heating oil.

And then, of course, there will be the cheaters: You can expect rogues like Venezuela and Iran to continue to pump and sell as much oil as they can possibly suck out of the ground, since there is little production accounting oversight on the part of OPEC. It was a big problem the last time we had an oil crisis back in the 1970s.

How low could it go? Merrill Lynch is on record predicting $25 a barrel. It has a fairly good chance to go even lower, before supply cuts catch up with global demand slowdown, which is still occurring.

How long will it stay low? It’s hard to say, but any increase in global economic growth would provide a boost in demand and a subsequent rise in the price of oil. Current economic forecasts, while mixed, don’t show much of an increase until the latter half of 2009 - or even early 2010.

For now, though, demand is still falling, with October alone registering a steep 8.3% decline in crude prices. Simple math says that if crude prices are cut in half from here, so, too, could the price at the pump. Car dealers with rows of gas guzzling SUVs on their lots would be jumping for joy.

But just like $147 a barrel was artificially high, so, too, would be $20 a barrel on the low side. As prices begin to stabilize in late 2009 or early 2010, oil will likely return to a trading range of $80 to $100 a barrel. It would begin to slowly rise from there as the global economy climbs out of recession and economic growth rekindles.

2 Places to Put Your Gas-Savings Cash

Naturally, there are a few ways to put your growing mound of gas-saving cash to work:

* Shares of Autonation, Inc. (NYSE: AN), one of the largest car dealer networks in the country, are off 50% from their 52-week highs. Any sustained reduction in the price of gasoline will likely have a positive impact on car sales, particularly in the hard-to-move segments of the market like low-mileage SUVs, vans and pickups.


* A more direct way to play this would be to pick up a few shares of Valero Energy Corp. (NYSE: VLO) that’s been bouncing along in a tight trading range of $15 to $20 a share since mid-October. Its profits are tied directly to the spread between the price of crude oil and the price of refined products (known as the crack spread). A widening spread bodes well for refiners like Valero.

While I’m not sure I’d be running out to buy a big SUV anytime soon, it’ll certainly be easier on the wallet when pulling up to the pump. But don’t get too comfortable with cheap gasoline. Prices will eventually revert to their natural mean. And in the case of oil, it will eventually be higher.

Good investing, more...