Crude Oil Rises on Signs U.S. Will Revive Bank Bailout Plan

According to Bloomberg:

Sept. 30 (Bloomberg) — Crude oil rose, rebounding from its biggest drop in seven years, after U.S. lawmakers said they intend to salvage a $700 billion bank-rescue package that may avert an economic slowdown.


Oil fell more than $10 yesterday and global stock markets were battered after the House of Representatives failed to pass a rescue bill and European governments bailed out three banks. The U.S. Senate will try to revive the financial package tomorrow.

“The market is being totally driven by what is happening in Washington,” said Nauman Barakat, senior vice president of global energy futures at Macquarie Futures USA Inc. in New York. 

“What happens to oil prices depends completely on whether the rescue package is approved or not.”Crude oil for November delivery rose $3.74, or 3.9 percent, to $100.11 a barrel at 1:38 p.m. on the New York Mercantile Exchange. 

Prices are down 32 percent from the record $147.27 a barrel reached on July 11.“We won’t be seeing oil near $150 anytime soon,” said Sarah Emerson, managing director of Energy Security Analysis Inc., a consulting firm in Wakefield, Massachusetts. 

“Even if we get the bailout, there’s no guarantee that it will work.”

Read the full article at Bloomberg

-This bail out will be the key reason why oil prices goes up and down wildly that my gut is telling me about previously. The wild large flucuation due to bail out, possible fed Interest rate cut and more uncertain manupilation by the USA Government and Feds.
Well my guts are telling me about the larger wave is coming…hold on to your boat! :)

Popularity: 1% [?]

House rejects $700B bailout!! Market Crashed!

According to Yahoo!News:

WASHINGTON – In a vote that shook the government, Wall Street and markets around the world, the House on Monday defeated a $700 billion emergency rescue for the nation’s financial system, leaving both parties’ lawmakers and the Bush administration scrambling to pick up the pieces. Dismayed investors sent the Dow Jones industrials plunging nearly 800 points, the most ever for a single day.

“We need to put something back together that works,” a grim-faced Treasury Secretary Henry Paulson said after he and Federal Reserve Chairman Ben Bernanke joined in an emergency strategy session at the White House. On Capitol Hill, Democratic leaders said the House would reconvene Thursday, leaving open the possibility that it could salvage a reworked version.

All sides agreed the effort to bolster beleaguered financial markets, potentially the biggest government intervention since the Great Depression, could not be abandoned.

But in a remarkable display on Monday, a majority of House members slapped aside the best version their leaders and the administration had been able to come up with, bucking presidential speeches, pleading visits from Paulson and Federal Reserve Chairman Ben Bernanke and urgent warnings that the economy could nosedive without the legislation.

In the face of thousands of phone calls and e-mails fiercely opposing the measure, many lawmakers were not willing to take the political risk of voting for it just five weeks before the elections.

The bill went down, 228-205.

- The market collapsed all around the world….

  1. Dow takes a dive as bailout bill fails in Congress

  2. Japan stocks lower in early trade [2]
  3. Singapore stocks plunge in early trade

  4. Malaysian shares to fall on US bailout fallout

  5. Taiwanese shares opened 6.6 per cent lower, with the main TAIEX share index down 394.91 points at 5,534.72.

  6. Australian shares slipped 5.4 per cent to 4,553.4, while New Zealand’s NZX-50 Index lost 4.2 per cent to 3,052.4.

  7. South Korea’s blue chip Kospi Index was down 4.7 per cent to 1387.51.

  8. Wall Street blue-chip stocks suffered their worst single-day point decline on Monday as markets went into convulsions after US lawmakers rejected a massive rescue of the financial system.

- Let’s restructure the market now and regain the confidence once again…hopefully without another world war like in the past.

Popularity: 1% [?]

Doomsayer Doubt $700 Billion Bail Out Plan Can Work

According to Yahoo!News:

NEW YORK – Wall Street gave Washington’s $700 billion rescue plan for banks, brokerages, credit unions, thrifts and insurance companies a mediocre grade on Monday.

As the House prepared to vote on the package that was finalized late Sunday, stocks were poised to open lower on concerns that the measure, aimed at prying open credit markets, would not pass.

Stock futures fell sharply and demand for safe-haven Treasuries drove yields lower. The dollar was mixed, gold prices rose and oil fell.

President Bush urged Congress Monday morning to pass the banking system bailout bill, saying it is needed to “keep the crisis in our financial industry from spreading” across the economy.

Failure could lead to severe market disruptions, analysts said. But even if credit markets start to stabilize, the realities of a weak economy are likely to weigh on markets, they said.

Just after Bush spoke, the FDIC said Citigroup Inc. would acquire the banking operations of Wachovia Corp.

The move came only days after the government seized Seattle-based Washington Mutual Inc., the largest bank failure in U.S. history, punctuating the urgency of passing the plan.

“When you start thinking of the broader issues, a lot of this is very troubling,” said Joseph Battipaglia, chief investment officer at Ryan Beck & Co. “We have in front of us a recession in the general economy, the consumer is dramatically retrenching their habits by cutting spending, and our financial system has sputtered.

This isn’t necessarily a confidence builder because now everybody knows how precarious the financial system really is.”

  1. Dutch-Belgian banking giant Fortis NV was partially nationalized with a $16.4 billion rescue from the governments of Belgium, the Netherlands and Luxembourg, after investor confidence in the bank disappeared last week.

  2. The British government nationalized mortgage lender Bradford & Bingley, taking over the bank’s $91 billion mortgage and loan books. The Icelandic government bought a 75 percent stake in Glitnir, the country’s third largest bank, for $878 million to ensure broader market stability after it suffered liquidity issues.
  3. In Germany, the country’s second biggest commercial property lender, Hypo Real Estate Holding AG, said it had secured a multibillion euro line of credit from several banks.

The proposed $700 billion bailout is aimed at reviving a market for mortgage-backed securities that has all but disappeared as credit has tightened.

“This gives us a much stronger background to work in compared to the past three weeks,” said Ned Riley, chief investment officer of Boston-based Riley Asset Management.

He added, however, that “we’re still not out of the woods relative to all the other problems facing the economy, and there will be doomsayers who predict this package won’t work.”

- Yes, the doomsayer is almost out in the street…there! There’s one of them… on the street! It’s just another member of the public withdrawing their life savings out from their previously trusted banks.

These are the people that you need to be convinced to put back their money back into the bank in rows after rows and able to give them huge amount of interest…or a simple word call “stability”.

For major banks to use public savings deposits to loan out to other party to gather interest is just one of the ways the banks can earn money but if there are no more savings inside the bank, the liquidity is gone and there won’t be any more money to loan out.

The $700Billion bail out will supply them “unlimited” resources for them to “loan” out with hopes to get interest rates back as “profits” for investors (taxpayers & other countries investors that loan money to USA).

The problem is, will it be enough to win back the confidence of the people? Will the people willing to once again put in their REMAINING hard earn savings into a second round at the “gambling table” after a shocking or devastating loss?

Will more property investors comes back into the game and claim that the bottom had been reached and it’s prime time to invest in property in USA once more as it is the cheapest right now?

Do people really wants to loan money from banks again to finance their property purchase once more even though they know they might not be able to pay back in the future…if their salaries are getting harder to pay for the ever increasing interest rates?

What is the fundamental problems that had initially caused the property market collapse, there are many version or theories to this and the official reason is SUBPRIME Loan which loan money out to people without not much financial backing or reasonable income to support the repayment which resulted in bankruptcy and foreclosure of the property.

However, why do property market crash in value that forced the banks to write off all these as toxic debts instead of getting higher value in the foreclosure of the properties?

Why do property goes down in value? Why can’t the owners sell them at a profit any more?

These are the reason behind this may hit any average American people with the “shock and awe” effects that my theory is very simple…it’s basic demand and supply.

There is oversupply of houses at very inconvenient locations that required costly fuel to travel around town, cities and sometimes may had to take planes around the country just to commute to work.

The basic fundamental of demand and supply had just tested their last straw when oil price broke the $100 mark few months ago and people simply no longer can afford to stay at such a locations that required costly fuel to commute to work, play, study and more.

There are small towns in USA that were used to be bustling with life due to the invention of the automobile and the discovery of that black oil back in the 1950s and the usage or petroleum revolutionize how people move about in the country.

Long distance commuting is then a cheap and affordable task by simply driving to work is is more cheaper than buying a coca-cola off the store.

After the 1970s oil scare and the recent oil spikes passed US$100 per barrel, many once valuable properties became unwanted due to their location and cost of commuting.

Towns and small cities are organizing transition towns to move nearer to their work or starts working at home powered by renewable energies and once they are settled, they don’t move much causing shocks too the ” Property flippers” and caused a discount war across the countries.

Slowly, to encourage more people to buy properties that includes those financially strapped unstable income individuals…the bank pushed their sub prime mortgage loans out with “ka ching” sound of profit in mind.

Halfway through their subprime exercise, someone must had known something is wrong and managed to repackage these toxic loans with other credit to form “securities” and sold it world wide to reduce their own risk and gain more liquidity to LOAN OUT MORE SUBPRIME MORTGAGES.

Now, greed and promise of high interest returns lured even the biggest financial giants and even insurance companies worldwide to play with their client’s money (SAVINGS & Funds & Insurance Premium) into this world of toxic debts.

Earlier back in June – July the stocks exchange suddenly show signs of of public confidence in those banks involved shattered into smithereens, this may be caused by either market rumors or leakage of information from within.

Now, like the domino blocks…one by one the banks around the world shown signs of weakness and the same insider “news” shattered public confidence once more.

Rumors of more rouge traders making huge losses during the deadly game of “high stakes gambling” at the stocks exchange using public funds in certain banks caused serious lost of confidence by the public all over the world.

Why does banks allow traders conduct high risk trading without proper regulation and control in the name of higer returns?

What is the difference between putting your money into these banks & insurance than going to the casino and place a huge $700 billion bet on the roulette?

Win, the world goes back to the yearly high GDP growth world where rich people continue to be rich and powerful and the poor face higher inflation of goods and services with no end in sight.

You might as well strap some kind of dog chains on to these workers and whip them when they are not behaving, suck them dry from their income by ever increasing taxes but stagnet salary.

Poor people in developing countries that have huge land that can survive by doing small farming and eat what they grow but what will result of huge number of “slave” workers (low wage to middle class citizens) end up slaving at 2 jobs to make ends meet and pay for higher cost of food, electricity, transportation and fuel.

The final straw may be civil unrest and chaos that had been predicted by many peak oil believers and geologist that eventually there might be either a prolong civil war that may end up in a global resource war.

We must understand the whole situation and the REAL cause of all these problems, higher cost of fossil fuels bundled with greed of high flyers bank executives and the ever “growth” woshipping politicians and “ultra positive” economist that always uses cost as a way to control demand and supply.

Oil and natural gas are finite non-renewable fossil fuels and is about to face global peak production and goes into inevitable decline in supply. NO amount of money can make more fossil fuels fast enough to satisfy the increasing global demand.

Higher cost oil should cause a global demand destruction but that MEANS economic depression and sudden world wide loss of ability to afford EVERYTHING.

But many countries are surpressing the cost of oil by subsidizing the oil prices such as oil producing countries themselves, their growth in their own oil domestic demand is relentless.

The solution as discussed by previous post by the experts is probably inhumane population reduction or education to learn how to live with less fossil fuels and that means total destruction of cheap food supply, lowering imports & exports, earning much less, curb consumerism, encourage recycling, reuse and reduce, reduce international trade and total melt down of globalization.

Many countries are dependent on globalized economy and without imports and exports may spell doom for many markets including China’s manufacturing and USA ability to purchase China’s goods and starts to localize their own manufacturing to serve their own domestic market.

This may lead to serious implications like protectionism market where countries no longer export excess productions for profit but only to hoard products for local domestic demand.

Many countries will go starving, black out, civil unrest and many more. Doomsayers may get their last laugh with lot’s of food stocked up for months but end up with similar fate as the rest of the world.

Positively, people can invest in the future technology like renewable energy individually to self sustain themselves out of this doomsday event.

Only those who are prepared can survive so get started.

Popularity: 1% [?]

Electricity tariffs to rise 21.46% from next quarter 1 Oct to 31 Dec 08

I just received a really bad news from my friend about the latest hikes in electricity tariff for our next quarter in Singapore! Everyone get your calculator out and find out how much you going to pay for your electricity in the next 3 months!

According to Channelnewsasia:

SINGAPORE: Higher oil prices have pushed up electricity prices for this quarter by about a fifth.

SP Services said on Monday households will see an average increase of 21.46 per cent in electricity bills, when average electricity tariffs go up by 5.38 cents per kilowatt—hour.

On average, all SP Services customers will face a 21.89 per cent increase.

For the period from October 1 to December 31, tariffs have been pegged to a higher “forward fuel oil price” of S$155.14 per barrel.

This price is 38.06 per cent higher than the S$112.35 per barrel in this current quarter.

The electricity tariff is reviewed quarterly and adjusted in line with fluctuations in the cost of electricity, and approved by the Energy Market Authority.

At a news conference on Monday, the Authority’s chief executive Khoo Chin Hean said that the increase is the highest so far this year.

- Similar to my previous post about the rising electricity tariff, I had plotted the graph yet again to reflect the “REAL” Changes of electricity tariff against the oil price with slight adjustment to the left scale to highest $40/kWh instead of $30/kWh to accommodate future spikes!

This is going to be one of the worst quarters since year 2001 for the household in Singapore with this spike in electricity prices! What are you going to do?

DO COMMENTS!

Popularity: 1% [?]

BBC Radio 4 discusses Peak Oil

According to Dark Optimism:

The “You and Yours” programme on BBC Radio 4 this week held a studio discussion on Peak Oil, with energy investment banker Matt Simmons, peak oil educator Richard Heinberg and the Chair of the UK All Party Parliamentary Group on Peak Oil John Hemming MP. Hear the MP3 radio at Dark Optimism now!

- I am now going to review the BBC Radio 4 discussion on Peak Oil as follows.

  1. Population Control discussed as one of the solution to peak oil….(Scary!)
  2. Doomsday Scenario
  3. Require to develop alternative energy source as soon as possible
  4. Learn how to live with less
  5. Energy Rationing either by price, poorer will suffer inevitably
  6. Energy Rationing by trade quota may be an option.
  7. Social Chaos may happen
  8. Long distance working
  9. Resource wars possible
  10. Focus on quality of life instead of standard of living advised
  11. Transition away from fossil fuels should be supported by Government
  12. Required Government to move away from denial
  13. It’s everyone’s interest to move away from fossil fuel.
  14. Saudi Arabia increasing 7% in domestic demand for oil doubling every 10 years.

The interview is rather short and I do hope to have more if possible.

Popularity: 1% [?]

Say No To Bail Out: By American Tax Payers

According to this website:

Here are some of the videos on the issue of bail out in USA.

It’s obvious to me that the American Tax Payers are not willing to simply bail out the banking giant and their fat pay cheques & bonuses.

It’s probably time for the world traders, bankers, flippers, high paying CEOs and leaders of the world reflect on their behaviors and see how their decisions may be one of the real reasons why the world financial market is in such a bad shape right now.

Let’s focus on the basic fundamentals now and seek solutions to the real problems of living life to the fullest instead of chasing the money, power and status.

Now that the banks are not trusting each other, the people no longer have confidence in their banks in USA, the world business became a much harder place to trade goods and services due to less liquidity….what other means can people earn huge amount of investment?

My solution to all these is RENEWABLE ENERGY. Go big on them…the green power will revolutionize the world economy, bring millions of new jobs to consultants, sales, electricians, delivery and power towns after towns.

Eventually those who first invested in GREEN Power may not be 100% rich but may not worry about the future hardship anymore as inflation may only hit cities that are on fossil fuels and import goods made from fossil fuels by fossil fuels.

Life is not just about making more money every day and living like what people see in the television as the rich and famous. It’s about family, love and friends and their happiness.

Many confuse happiness with money but only now do they know that GREED does not equal happiness at all with the market battered the life savings and many may lose all their hard earn money in a short week.

I know I may be adding salt to their wounds but it’s time to wake up and smell the roses and live life to the fullest as we approach the possible days of reckoning where food are no longer safe to eat, banks no longer trust worthy, rumors of war in middles east and epidemics to spread at moment notices.

There are certain sins that the bible says even in the movie SEVEN and one of these sins is GREED and we should be ashame of ourself for allowing banks to convince us that their GREED is legit and let them play with OUR money into the pool of high risk & high interest world of subprime mortgage loans.

It’s time for pay back for the banks and the world of corporate world and return to the basic fundamentals for survival instead of letting some CEOs of banking to sit around pushing one risky investment products after another and spread the risk world wide.

They should pay for their irresponsible actions and deserve no bail out, the world may feel the pinch but it’s going to be back to the basic again to see what is the actual motivation for economic growth…which is the tax payers.

Tax Payers who work hard is the ones that should receive the bail out, however it will be much more better if there is totally no bail out at all.

If funny money that is not from the tax payers money nor borrowed money from other countries….then it may be simply printed money from the M3 supply which will boost inflation to unseen levels!

This is not going to be a good week ahead as we face with either a collapse of the world market or a sudden surge of inflation world wide.

Time will tell what will happen, will the Government suddenly dictate the financial market? No more Free Market and the bubble can only go bigger?

There are rumors of more banks to be implicated in this…so sit tight…. CITI….

Popularity: 1% [?]

Translate This Website To Your Language!

I realized that many reader are from many other countries and some unfortunately does not speak the English language.

They may require translation services to read the articles posted here.

Google offered a great translation by going to Google Translate website but I find that it’s very troublesome for readers to go there every time to translate my website to other language.

So, I launch a new service here so that you can click on the language below to immediately view this site at the chosen language. ^_^

Here’s the list of language that you can read this site!!

  1. Hindi (हिन्दी, हिंदी)
  2. Simplified Chinese (华语)
  3. Traditional Chinese (華語)
  4. Slovenian (slovenski jezik)
  5. French (français)
  6. German (Deutsch)
  7. Polish (Polski)
  8. Vietnamese (Tiếng Việt)

Any other languages required? Welcomes any feedback!

Popularity: 1% [?]

Conspiracy: Inhumane Population Control Started?

In November 9, 2007, I had written an article about “The Battle For Oil – China vs USA” which touched on the sensitive subject about population control.

“Population control are very famous in the past to eradicate bad genes via artificial means of making people unable to have children or policy to reduce population such as the china’s 1 child policy.

The legalized abortion policy and many other policy to reduce the ever increasing numbers of people that made up the higher demand of the world’s energy supply…are winning only slightly.”

- Now, we are facing either an artificially created health crisis by the most populous country China with the recent Melamine tainted milk crisis which resulted currently to 4 infant death and thousands more affected. Ingestion of melamine may lead to reproductive damage, or bladder or kidney stones, which can lead to bladder cancer.[16][21][22][23][24].

My Conspiracy is China may be inevitably found a deadly way to “Control” the population in disguise. The problem is we cannot prove beyond a the benefit of the doubt that it’s really happening.

Population control had been a major issue by politician world wide from creating one-child policy & approving abortion law…that had been “natural” disasters that curb the explosion of population such as Tsunami, Hurricanes, Earthquakes, Flooding and Epidemic like SARS.

The Human caused disasters such as conflicts in War zones in Iraq & Afghanistan, terrorist attacks all over the world, chemical & biological infection warfare & the spreading of Aids through unprotected sex and needle use.

We suddenly faced with the ultimate population control method, put some melamine into milk powder that will inevitable to destroy at least some of the victims’ “reproductive” ability in the future.

The blame had been pushed around the whole industry to health government official for the sudden crisis to their food manufacturing sector in China.

It can be anyone within the chain of production to the approving health official to be “corrupted” and tainted the milk with this chemical “melamine” that gave false higher reading in the protein level.

The whole conspiracy is tied to why such event continue to happen time after time in China? Is it a sustained effort to silently destroy their own population growth so that they can survive the future energy crisis?

This conspiracy will probably have a huge implication to the world health in general as China does exports huge quantity of their “cheaply” available “high protein” milk powder to overseas as Raw material for other products like chocolates, biscuits and ice-cream.

How many people had lost their ability to reproduce naturally or unable to give birth to normal healthy child due to their high consumption of tainted food products from China is unknown.

However, this conspiracy lead me chillingly back to a recent movie title “Children Of Men” that explores a grim world in which two decades of global human infertility have left humanity with less than a century to survive.

It’s a highly recommended movie now since it’s relevance to this current topic about population control. It’s going to be chilling to know if this population control is REAL…then our future generation may be in the “list” of targets that the world politicians may want to eliminate …either them or their ability to give birth.

China may not be the ONLY country that may have this conspiracy….if you research deeper…there may be much more in other countries….. Chilling indeed.

Popularity: 2% [?]

Oil Going North Again?

According to Yahoo!Singapore News:

SINGAPORE, Sept 25, 2008 (AFP) – Oil prices edged higher in Asian trade Thursday as investors worried a stalemate over the US government’s bailout plan for the ailing financial system will further damage the economy, dealers said.

Dealers said investor fears could be stoked by a failure of the US Congress to approve the proposed 700-billion-dollar plan to buy tainted mortgage-related assets at the root of the global financial crisis.

President George W. Bush warned the “entire US economy is in danger” and tried to pressure lawmakers who have shown opposition to what is in effect a taxpayer bailout.

“Without immediate action by Congress, America could slip into a financial panic,” Bush said in a rare live televised speech to the nation. “Ultimately, our country could experience a long and painful recession.”

Congressional approval of the plan would at least bring some calm to the market, said Tony Nunan, a Tokyo-based manager with Mitsubishi Corp’s international petroleum business.

Oil prices have experienced recent volatility and on Monday the benchmark New York contract made its biggest one-day leap ever, soaring 16.37 dollars a barrel to 120.92 before falling again.

Read the full article at Yahoo!Singapore News:

- Let me summarize that once again.

  1. OPEC cut 520,000 barrels a day
  2. U.S. $700Billion in serious doubt most investors jumps into Gold or Oil
  3. If U.S. $700Billion goes through = hyperinflation
  4. Demand From China spike after Olympic resume “business as usual” transportation & manufacturing without any restriction.
  5. Supply from Gulf of Mexico disrupted by previous hurricane Ike
  6. Supply from Nigeria disrupted by “sustained” attacked by MEND militants.
  7. The US Department of Energy’s weekly report showed crude oil stocks fell by 1.5 million barrels in the week to September 19.
  8. US gasoline reserves fell for the ninth consecutive week, by 5.9 million barrels, while distillates — diesel fuel and heating oil — dropped by 4.2 million barrels.
  9. Indonesia left OPEC officially and became Net Oil Importer
  10. Iran may have missing Uranium? (correct me if I am wrong) creating tension between Israel?
  11. Russian controlling the “safety” of oil pipeline going through the Georgia from the Caspian Seas.
  12. U.S.A. sending more “Missile Shield” around Russia?
  13. North Korea “may” go back and resume their “atomic bomb” ways.

Demand & Supply problems will be the key issue now, and probably some political tension again. The money from investors might end up in the commodity instead, however my prediction is high fluctuation and may go up and down with higher then $10 difference in a single day.

The highest spike will is about $25 in a single day…we might see something like this as an common occurrence in the future.

Up and down can create haywire in the economic system that nobody can be 100% safe.

Popularity: 1% [?]

Free Forex Live Data Feed

I realized that many traders actually uses my website to locate information not just about crude oil but also Forex trading and other essential financial information such as market quotes and many more essential live data.

Here are some of the FREE information that I can gather for you!

Do note the disclaimer in each data information provided below.


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