Have nothing to do with the [evil] things that people do, things that belong to the darkness. Instead, bring them out to the light... [For] when all things are brought out into the light, then their true nature is clearly revealed...

-Ephesians 5:11-13

Tag Archives: Warren Buffett

Three Stock Market Indicators Spell Trouble for Pension Fund Managers

This article was published by The McAlvany Intelligence Advisor on Monday, April 24, 2017:

Warren Buffett speaking to a group of students...

Warren Buffett

Michael Lombardi is a bear. Canadian-born, Lombardi has been dishing out investment advice for decades. He is getting nervous. And so should pension fund managers trying to make up for lost time.

In his March newsletter, Lombardi looked at the Warren Buffett Indicator:

Keep Reading…

Update on Warren Buffett’s “The Bet” (or How Your Money Finds Its Way to Wall Street)

This article was published by The McAlvany Intelligence Advisor on Wednesday, March 1, 2017:

Warren Buffett speaking to a group of students...

Warren Buffett speaking to a group of students from the Kansas University School of Business (Photo credit: Wikipedia)

In the latest shareholder letter just released by Berkshire Hathaway, Warren Buffett brought his fans up to date on “The Bet.” On its face it seems simple: Buffett was willing to bet good money that any S&P 500 index fund would beat, over a period of time, the performance of the best money managers in the business. But no one took him up on his wager:

Keep Reading…

Harvard’s New Endowment Manager Shakes Things Up After Dismal Performance

This article appeared online at TheNewAmerican.com on Tuesday, February 28, 2017:

English: Harvard University Harvard Yard Harva...

Harvard University Harvard Yard

The new CEO of Harvard Management Company (HMC), N.P. “Narv” Narvekar, fired half of his staff last December, and in a letter announcing the moves, stated:

Major change is never easy and will require an extended period of time to bear fruit. Transitioning away from practices that have been ingrained in HMC’s culture for decades will no doubt be challenging at times.

 

But we must evolve to be successful, and we must withstand the associated growing pains to achieve our goals.

To each of those approximately 115 staffers who were let go, Narv offered his condolences: “It is exceptionally difficult to see such a large number of our colleagues leave the firm, and we will be very supportive of these individuals in their transition. We are grateful for their committed service to Harvard and wish them the very best in their future endeavors.”

Narvekar is the eighth permanent or interim chief executive in the last decade at the helm of HMC as returns from its $35 billion endowment continue to under-perform not only the stock market in general but its peers at Yale, Columbia, and other Ivy League schools, as well.

The company’s performance was so bad that

Keep Reading…

Hanjin Bankruptcy: a Harbinger for the Global Economy?

This article appeared online at TheNewAmerican.com on Thursday, September 8, 2016:  

English: A Delmas operated Container ship NICO...

South Korea’s Hanjin Shipping was the world’s seventh-largest container shipping company, moving (until last week) 100 million tons of cargo on its 200 cargo ships from manufacturers to retailers across the globe. Last week, following years of losses as the global economy has slowed, Hanjin declared bankruptcy. That move stranded 90 of those ships as off-loading companies refused to unload them over concerns that they wouldn’t be paid.

Even an offer of $90 million from what’s left of Hanjin (including $36 million from the personal assets of its chairman) fell far short of the necessary $543 million estimated to unload all of its ships that are now circling ports around the world.

Concerns are mounting that

Keep Reading…

On Cue, the US Mainstream Media Claims Brazil’s New President as “Free Market”

This article was published by The McAlvany Intelligence Advisor on Friday, September 2nd, 2016: 

Português do Brasil: Michel Temer durante a co...

Michel Temer

The mainstream media lavished unwarranted praise on Brazil’s new president, socialist Michel Temer, on Wednesday following his ascension to the post after Dilma Rousseff was ousted from it. The Wall Street Journal called it a “new start” for Brazil, while USA Today mischaracterized the crook as “a center-right” politician and “a pro-business, free-market advocate.” The New York Times gushed that Rousseff’s impeachment and Temer’s inauguration “puts a definitive end to 13 years of governing by the leftist [read: communist] Workers’ Party.”

This was followed up by promises from the new socialist-in-chief himself:

Keep Reading…

Is this Another Reason MSNBC’s Ratings are so Abysmal?

This article was published by The McAlvany Intelligence Advisor on Monday, October 5, 2015:  

MSNBC

Even the liberal Huffington Post was embarrassed at just how bad MSNBC’s ratings are. The network cancelled three shows in July, and brought back the discredited Brian Williams. Wrote Larry Atkins:

The changes had come as a result of MSNBC’s plummeting ratings. MSNBC’s Nielsen ratings for the second quarter of the year dropped five percent in total viewers and 17 percent in the key adult demographic 25-54. Its primetime lineup’s ratings dropped by 10 percent. It was a continuation of a long time trend.

Last Thursday’s farcical interview by Chris Hayes of Josh Fox proved the point. Touting his latest attack on fracking, Fox was allowed to promote his latest “documentary” Gaswork: The Fight for C.J.’s Law, allegedly all about safety and health issues being ignored by the energy development industry. Hayes never asked about credibility issues raised by detractors of his previous efforts, Gasland and The Sky is Pink. In Gasland it was the “flaming faucet” incident about which Fox was publicly challenged by Irish filmmaker Phelim McAleer. That exchange can be seen on YouTube, despite efforts of Fox and his lawyers to have it removed. In it McAleer got Fox to admit that methane in water was common, with flaming water incidents dating back to 1936, but claiming weakly that this was “not relevant” to his purposes inGasland.

In The Sky is Pink Fox claimed that breast cancer was linked directly to fracking activities in the Barnett Shale region in Texas, claims which were later successfully refuted by credible national experts looking into the matter.

Did Hayes ask Fox about any of this? Did he ask Fox about the “flaming faucet” incident that brought the wrath of McAleer in his rebuttal, FrackNation? Did he ask Fox if he was ready to admit that his claim in The Sky is Pink was false? Did he ask Fox if he was ready to apologize to the women and their families living over the Barnett formation for scaring them half to death over his discredited claims?

Of course not. In the 4 ½ minute segment that ran Thursday night Hayes jumped in bed with Fox, providing him with nothing more than an echo chamber reflecting the network’s anti-fracking position.

McAleer learned about Fox’s latest attack in time to launch his own rebuttal, GasHoax, also on Thursday, at Brietbart.com. It’s as if McAleer has found his niche: tracking down Fox and demanding answers to questions that Hayes wasn’t willing to ask.

For instance, in speaking about The Sky is Pink, McAleer said:

Fox’s breast cancer film was widely reported by the mainstream media but has since been dismissed as nonsense by every respected cancer expert in the region.

 

Fox has never corrected the record or apologized for scaring women and families.

Fox’s most recent attempt to smear the fracking industry is based upon the tragic accident that resulted in the death of C.J. Bevins, a 21-year-old oil field roughneck who was crushed against a trailer by a forklift back in 2011. Ignoring the fact that it was an accident, and had nothing to do with chemicals, Fox managed to twist the narrative to support his agenda: the fracking industry’s use of chemicals is putting workers’ lives at risk. In his film, said Fox:

We interview many workers who have been asked to clean drill sites, transport radioactive and carcinogenic chemicals, steam-clean the inside of condensate tanks which contain harmful volatile organic compounds, polycyclic aromatic hydrocarbons, and other chemicals, and have been told to do so with no safety equipment.

Fox claims to have interviewed workers who were ordered to cover up toxic chemical spills, that the industry is paying them to “poison their own communities in order to feed their families” and that “if you get hurt, you’re on your own.”

In the same manner as FrackNation, McAleer rebuts Fox’s claims in Gaswork, interviewing experts who state that there is no increase in health or safety claims due to fracking. Although neither film is available yet in theaters, their trailers can be found under Sources below.

McAleer concluded:

Josh Fox is an unethical journalist. Everyone knows that, except Chris Hayes and MSNBC, apparently. They need to ask him tough questions, not give him a platform so he can scaremonger and spread fear.

But that didn’t happen. Instead MSNBC continued its slide into irrelevancy by giving Josh Fox airtime to its steadily shrinking audience.


Sources:

Breitbart.com: ANOTHER HEALTH HOAX FROM GASLAND’S JOSH FOX

MarcellusDrilling.com: Phelim McAleer to Release GasHoax Ahead of Josh Fox’s GASWORK

Gashoax trailer 4:30

EcoWatch.com: What the Industry Doesn’t Want You to Know About Fracking

Trailer for Gaswork  2.39

Background on Gasland

Background on FrackNation

Bio on Josh Fox

Bio on Phelim McAleer

Link to Vimeo: The Sky is Pink (2012)

EmergyinDepth.org: Debunking GasLand

YouTube: Gasland director hides full facts

Chris Hayes’ interview with Josh Fox on MSNBC

Huffington Post: MSNBC’s Changes Are Needed, But It Needs to Keep Its Liberal Voice

Just how Disruptive are Uber and Lyft?

This article was published by The McAlvany Intelligence Advisor on Friday, October 2, 2015: 

According to three college professors, the answer is “very.” After interviewing 32 drivers and users of Uber, Lyft, and conventional cab services in London and San Francisco, the Uber and Lyft drivers and customers were the clear winners. The drivers had more freedom to select their working hours, many of them driving part-time to supplement their full-time work. The ride-sharing customers not only paid less than they would have for regular taxis, they felt safer, they knew more about the driver and his ratings from previous customers, and could track and follow the driver as he wended his way towards their location.

They also enjoyed getting to know their Uber or Lyft driver, discovering that they were just like them – ordinary people making a living and enjoying the process. Wrote the professors:

Keep Reading…

Crude Oil Price Declines Reveal Who’s Swimming Naked

This article first appeared at The McAlvany Intelligence Advisor on Wednesday, December 3, 2014: 

Ali Al Naimi

Ali Al Naimi

One of the most famous homespun quotes Warren Buffett ever uttered is this: “Only when the tide goes out do you discover who’s been swimming naked.” With the decline in crude oil prices of nearly 50 percent since June, more and more people are finding themselves swimming naked, or they’re about to.

Consider the formerly invincible oil cartel, OPEC, which seems to be suffering from delusions of its former glory by taking on oil producers in America. Instead of cutting production in order to “stabilize” oil prices, the cartel, led by the aging big kahuna, Saudi Arabia, has decided to

Keep Reading…

Saudi Arabia Capitulates, Cuts Oil Prices

This article first appeared at The McAlvany Intelligence Advisor on Monday, October 65, 2014:

Saudi Arabia’s announcement last week that it was cutting prices to its Asian, European, and US customers by between $.40 and $1.00 a barrel represents a major capitulation and recognition of reality. It also represents a major departure in its role as the leading member of the OPEC cartel, proving once again that every cartel eventually blows up as its members seek their own interests over those of the cartel.

For decades, the role of the OPEC cartel has been to protect the cash flow of its members by manipulating oil prices through changes in production levels. If prices got too high and demand started falling as a result, the cartel would increase the supply of crude to the world markets. If prices got too low, on the other hand, it would gladly restrict those supplies to bring prices back up to a level acceptable to the cartel.

Those days now appear to be over.

By bringing its prices down below prices charged by OPEC member Qatar and non-OPEC member Oman, Saudi Arabia is setting the stage for an international oil price war. Futures traders, who have gotten hammered as crude oil prices have dropped almost 20% since June, are holding their collective breath to see if Qatar and Oman jump ship and reduce their prices as well. Energy analysts like John Kilduff with Again Capital are estimating that crude oil prices will consequently drop to the low $80s, while Fadal Gheit at Oppenheimer is predicting prices dropping into the low $70s. Gheit explained:

It’s both supply and demand. It’s basically the perfect storm that brought all these prices down. You have plenty of supply, which you never thought possible, and all of a sudden demand is shrinking: China is slowing down [and] Europe never recovered.

Gheit is a realist. He stated what every observer already knows: the OPEC cartel “is held together by scotch tape. They hate each other.” Now that the leader of the pack has decided to leave the pack, it’s going to be much easier for other OPEC members to join the fray and drive prices down even further.

Part of that perfect storm is the shale oil fracking revolution that has driven crude oil production in the United States to levels not seen in 50 years. Part of it is Russia’s increase in crude oil production to nearly post-Soviet era records as well. In addition, production from Kurdistan over the next 15 months is expected to more than provide China’s increased demands for energy, thus assuring that world supply will continue, in the short run at least, to outpace world demand.

Saudi Arabia’s admission of reality is already having welcome impacts. Gas prices in the United States have fallen to $3.32 a gallon on average, with more than half the states having at least one gas station selling gas for less than $3 a gallon. It’s also pulling the legs out from under the foreign policy justification of adventurism abroad in order to protect the supply of energy which America is now almost capable of providing all by herself.

As prices decline, consumers are able to redirect spending into other areas, helping along the modest economic recovery from the Great Recession. It may also prove to skeptics that, once again, Warren Buffett is right. His much ballyhooed announcement of his purchase of Van Tuyl Group, the nation’s largest US auto dealership chain, should help his company, Berkshire Hathaway, ride the wave of cheaper gas and the consequent willingness of customers to replace their aging fleet of vehicles with new ones.

It is possible, however, that prices may drop too far, causing capital that is currently flooding into the energy exploration business to go elsewhere where it will be treated better in the years to come. As Stephen Leeb, a writer at Forbes, put it: “It takes energy to get energy.” In the early 1950s, it took the energy from one barrel of oil to harvest five barrels. Today, because of improvements in technology, it takes about one barrel to produce nine in conventional fields.

But in unconventional fields – i.e., shale oil fracking – it takes the energy of one barrel of oil to discover, develop, and lift just four barrels, which, according to State University of New York Professor Charles Hall, isn’t enough to keep America’s modern industrial society operating at peak efficiency. The proper ratio, according to Hall, is that one barrel of energy must generate at least five barrels of new production, preferably more.

If the Old Farmers Almanac’s prognostications are correct, the US should enjoy another relatively mild winter, reducing chances of a spike in demand that would drive crude oil prices higher. For the time being then, Saudi Arabia’s capitulation and potential blowing up of OPEC will be enjoyed by American drivers and consumers. In the longer run, however, capital may be redirected away from the oil patch to more profitable areas if the price of crude stays too low, too long. In the meantime, America will once again enjoy the view from the catbird seat.

—————————

Sources:

Commerzbank: ‘OPEC Appears to Be Gearing Up for Price War’

CNBC: Saudi signals price skirmish as oil heads to bear market

Bloomberg: Brent Oil Falls to Lowest Since June 2012 on Ample Supply

The Old Farmers Almanac: 2014–2015 Winter Weather Forecast Map (U.S.)

Forbes: Dangerous Times As Energy Sources Get Costlier To Extract

Auto Blog: Warren Buffet buys largest private US car dealership chain

Warren Buffett’s Railroad is Testing Natural Gas to Drive its Locomotives

The quiet revolution going on in the energy sector as a result of fracking is being punctuated by changes unseen and unappreciated, such as the recent announcement by Warren Buffett’s railroad, BNSF Railway.  The largest railroad in the country, BNSF is testing the use of liquefied natural gas (LNG) to

Keep Reading…

$5 Trillion Tax Hike Coming

Barack Obama addressing a joint session of Con...

Back in February when the Congress voted to extend the payroll tax “holiday” to the end of the year, the Washington Post was the first to notice the tsunami of tax increases coming next year. But then Lori Montgomery began to add up all the other taxes that will increase on January 1, 2013, and called it “Taxmageddon.”

Here is a partial list of taxes that will increase unless Congress intervenes:

  • The 2001 and 2003 Bush “tax cuts” expire
  • Taxes on investment income
  • Estate and gift taxes
  • Income taxes
  • Marriage penalty returns
  • Child credit drops
  • Taxes on first $8700 of wages increase by 50 percent
  • Payroll taxes go from 4.2 percent back to 6.2 percent

But that is only a start. The Heritage Foundation did an in-depth analysis of all the tax increases scheduled for next year and found that Lori forgot some:

  • The Alternative Minimum Tax (AMT) will increase in size and reach
  • Five new Obamacare taxes will start
  • Some 50 “tax extenders” will go away
  • Small business owners can no longer write off business equipment purchases immediately

Adding them all together, the total is $500 billion. And that’s just in 2013. Over the next decade, the tax increases will exceed $5 trillion.

The effect of this tidal wave is already having a dampening effect on the economy. Curtis Dubay, the author of the Heritage study, wrote:

Families, businesses, and investors need to know how much tax they will pay in the future before making important economic decisions. The uncertainty caused by Taxmageddon means they are stuck in neutral while they wait for President Obama and Congress to act. This is slowing job creation and stopping many of the millions of unemployed Americans from going back to work.

Sucking half a trillion dollars out of the economy is going to have a severe negative impact on growth. Mark Zandi of Moody’s Analytics estimates that the nation’s GDP (Gross Domestic Product) would be reduced by at least

Keep Reading…

Obama’s Never-Ending Flow of Red Ink and Economic Fallacies

Warren Buffet

Image by secretagent007 via Flickr

Last week the President introduced his deficit reduction plan by saying that it would start to pay down “the big pile of IOUs” the government has issued in order to pay its bills, through a combination of spending cuts and tax increases. He asserted, “We have to cut out what we can’t afford [in order] to pay for what really matters. We can’t just cut our way out of this hole. It is going to take a balanced approach.” And to make his point clear, he declared,

Keep Reading…

Warren Buffet Wants his Friends’ Taxes Raised

Image via Wikipedia

Warren Buffett, better known as the Oracle of Omaha, earned $40 million last year and paid $7 million of it in taxes. But in his editorial in the New York Times on Sunday, he claimed that he doesn’t think he’s paying enough, and neither are his friends. So he’s asking the SuperCommittee to stop “coddling” him and his friends, and raise their taxes as part of the deficit reduction scheme they are hatching.

He began by suggesting that

Keep Reading…

County in Alabama is Bankrupt, Just Like the U.S.

Bribe

Image via Wikipedia

At the very last minute, county commissioners in Jefferson County, home to the metropolis of Birmingham, Alabama, decided to postpone a final decision on whether or not to declare bankruptcy over their excessive indebtedness. The bonded indebtedness incurred to build a state-of-the-art sewage treatment plant exceeds $3 billion, far beyond what the county can afford to service. And raising sewer fees for a fourth time in ten years

Keep Reading…

Lehman Bros.: Pinprick That Burst the Bubble

Balloon POP !!!

Image by Marc Forrest via Flickr

The culprits blamed for the failure of Lehman Brothers in September of 2008 included the company’s top executives, their accountants, their highly-leveraged loans that had started going bad, their success at hiding those bad loans by cooking the books, and their lenders demanding more and better collateral, according to Anton Valukas in his 2,200 page report released Thursday.

There is certainly plenty of blame to go around, and it looks like there will be criminal charges filed too. The biggest lie, however, wasn’t mentioned: that this implosion of Lehman Brothers caught everyone by surprise.

Keep Reading…

Captains of the Economy: The ‘Good Ol’ Boy’ Network is Alive and Well

ABC News Now

Image via Wikipedia

In its attempt to glorify “the 10 who shaped the U.S. economy the most since 2000,” ABC News did a great favor for those interested in the interconnections among the “elite” who are impacting the current world economic and political scene.

Naturally, much was left unsaid about these “captains,” especially regarding their connections to the elite currently in charge. In order, then, here is a brief look at each of these “10 who shaped the U. S. economy”:

Keep Reading…

Many of the articles on Light from the Right first appeared on either The New American or the McAlvany Intelligence Advisor.
Copyright © 2021 Bob Adelmann