Source: http://news.feedzilla.com/en_us/stories/politics/top-stories/225046603?client_source=feed&format=rss
Monday, May 28, 2012
People Still Pessimistic About Retirement
Retirement has always been a somewhat daunting endeavor, but in recent years, pessimism toward this momentous event has increased considerably. With the current state of the economy, this shouldn't be too surprising. To help you understand this growing trend, we have compiled a few facts that you should be aware of.
Fact #1: Many people are not saving like they should.In order to stay optimistic when it comes to retirement, a person must save enough to fulfill the lifestyle he or she desires. Unfortunately, the majority of individuals have admitted that they are not doing enough to save.
According to a survey from the Employee Benefit Research Institute, results are showing that many respondents are focusing on more immediate concerns, in lieu of saving for retirement. Often, these concerns are necessary, such as medical costs and repairs to their home, but that doesn't change the fact that less people are saving for retirement, and it's difficult not to be pessimistic about that.
To put this information into straight numbers for you, a reported 60% of those surveyed had less than $25,000 saved up, excluding such things as home equity and defined benefit accounts. But if you think that's bad, just consider the fact that 30% of those specific respondents stated that they had less than $1000 in savings. That's enough to make anyone fear retirement.
Fact #2: Unemployment remains at a high level.
It's no secret that one of the biggest threats concerning the nation right now is the unemployment rate. As stated on the website for the Bureau of Labor Statistics, the average in the United States is currently 8.3%. While some members of the government attempt to spin this into something positive, since the rates for many states and cities has dropped, that number is still quite high. And the drop is slow, to be sure. For obvious reasons, this causes stress when a person thinks about retirement, because they're fearful that they will become part of the statistics.
Fact #3: Job security is a great source of stress.
Not too long ago, most employees seemed to feel that their jobs were secure, as long as they worked hard. But now that doesn't seem to be enough. In fact, some employees feel as if their job security is completely out of their control. And who can blame them? With companies like Kmart, Sears, Kodak, Circuit City, and Blockbuster all experiencing financial problems resulting in layoffs, store closures, and complete shutdowns, being confident about job security isn't an easy feat.
Fact #4: Medical costs continue to increase.
You've probably noticed that many people seem to be on a health kick. Fast food restaurants are even getting in on it, and the belief is that if companies don't keep up with the growing trend of being healthy, they will go the way of the dinosaur.
Unfortunately, as you grow older, all the healthy snacks and fat free yogurt in the world often can't help your health from degrading. This concerns a great number of people trying to plan their retirement, because medical procedures, check-ups, and prescriptions are not cheap. Thanks to advanced technology, we can treat and cure more than ever before. But those treatments cost quite a bit of money.
Medicare is a great option, but future retirees realize that not every penny will be covered. This means that you must calculate health care into your retirement plan, and because of the growing costs, many are afraid that they will be unable to deal with the expenses.
Source: http://firstsecurityfinancialshow.com/blog/bid/128209/People-Still-Pessimistic-About-Retirement
Teenage Tales: Sneaking Looks In Sexy Books
Coming out as a teenager can be difficult. That's why finding Rubyfruit Jungle was important for author Emily Danforth. The book's lesbian narrator helped her figure out who she wanted to be. Have you ever found a book that helped you understand yourself better? Tell us about it in the comments.
Source: http://www.npr.org/2012/04/30/151704165/teenage-tales-sneaking-looks-in-sexy-books?ft=1&f=1057
Raising Kids Can Be “Taxing”!
Raising kids is expensive. According to some estimates, the cost of raising a child in Canada from birth to adulthood ranges from $193,000 to $250,000. Fortunately, there are plenty of tax breaks for families with children that will help lower your taxes. The first three I will describe are non-refundable tax credits – they can only be used against taxes otherwise owing. MORE
Sunday, May 27, 2012
How Europe Saved Itself. For Now.
What the solution to Europe's debt crisis has to do with a bar on the coast of Spain.
US Debt: Money Managers' Least Favorite Investment
Filed under: Bank of America
NEW YORK (AP) - Ask the people who invest billions for a living to name their favorite picks for 2012 and you'll get a smorgasbord worthy of a holiday party: Brazilian stocks, U.S. junk bonds, and government debt from Colombia. Ask them what they dislike and they'll name one of the top-performing investments this year: U.S. government bonds.Investors can rattle off a long list of reasons to avoid Treasurys. They pay next to nothing and are bound to plunge in value whenever interest rates begin climbing from their historically low levels. It seems nobody likes Treasurys, yet everybody keeps buying them anyway.
"Our least favorite asset is Treasurys," said Christine Hurtsellers, chief investment officer for fixed-income at ING Investment Management during a recent press briefing. "We still have a lot, but it's hard to make the argument for them."
It's a tricky problem for bond-fund managers at a time when everyday Americans are trusting them with more of their savings. Among investors, there's a solid belief that Treasury prices must fall and push interest rates up at some point. But those who have bet on a Treasury market collapse this year got burned.
Bill Gross, the bond-world version of investment sage Warren Buffett, dropped nearly all Treasury holdings from the fund he manages at Pimco in early 2011. He argued that if Republicans held up lifting the government's borrowing limit, the country would risk default. Borrowing rates would spike as the world's investors dropped U.S. government debt, just as they have in Europe.
Most of what Gross predicted came true. The debt-limit fight raised worries about default and led to Standard & Poor's taking away the country's AAA credit rating in early August. But instead of spiking, U.S. borrowing rates plunged as traders sold everything else to buy U.S. government debt. The race into Treasurys helped drive the entire bond market up 3.8 percent from July to September. Gross got the big picture right but his big bet against Treasurys didn't pan out. Pimco's Total Return Fund lost 1.2 percent, its worst quarterly performance in three years.
It's been a recurring story since the financial crisis hit in 2008. For three years running, pundits have predicted that investors will eventually refuse to finance the U.S. government's $15 trillion in debt and the Treasury market will collapse. But worries over the U.S. economy and the perilous state of Europe's financial system keep drawing banks and money managers from around the world back to the U.S. dollar and Treasurys.
That demand continues to push U.S. government bond prices up, the main reason why the Treasury market has returned 8.5 percent this year, despite microscopic yields, according to Bank of America (BAC)-Merrill Lynch data. The benchmark for stock market funds, the S&P 500 index, has returned less than 1 percent, including dividend payments, and that's with a 7.4 percent surge over the past week.
"It's been a pretty strong year for bonds," said Michael Gitlin, director of fixed income at T. Rowe Price, "and it's largely a result of Treasurys."
Judging by the gauges money managers usually check before making a move, buying Treasurys still looks like a bad idea. Consider this sample:
- The benchmark 10-year Treasury pays just 2 percent a year. Take inflation into account and the payout on Treasurys equals negative 1.5 percent, what finance types call the real rate.
- Treasury yields pay less than top-grade corporate bonds at 3.7 percent and even less than the stock market's 2 percent dividend yield.
If there's so little to like about U.S. government bonds, why are the world's investors still buying Treasurys instead of dumping them? In a word, it's Europe.
As the crisis seemed to spread from country to country this year, the world's traders plowed more money into Treasurys. The higher the demand for U.S. debt, the lower the interest rate, or yield. So when it looked like Greece might default on its debts earlier this year, the yield on the 10-year Treasury note sank below 3 percent. And when attention turned to Italy and its government debts the yield sank even further, dipping below 2 percent in September. The shift of money out of Europe and into the U.S. has pushed Europe's borrowing rates to dangerous levels while causing U.S. interest rates to sink.
"You can hate the budget situation and hate the low yield, but if there's a panic it's the asset that outperforms," said Robert Robis, head of fixed-income strategy at ING Investment Management (ING).
A good reason to hold Treasurys, in other words, is that the Treasury market remains the world's favorite hiding spot. So, for many fund managers Treasurys aren't exactly an investment. Buying Treasurys is like taking out an insurance contract, Robis said. They're protection against global financial trouble.
The ING Global Bond fund, for instance, has 15 percent of its $641 million in Treasurys, less than the 20 percent in the benchmark Barclay's bond index. Robis said having none would be like betting European governments will come to a quick solution to the region's debt crisis and that the U.S. economy will soon recover its health.
"There's still a need to hold Treasurys," Robis said. "Just don't expect to make a fortune off them."
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Source: http://www.dailyfinance.com/2011/12/05/us-debt-money-managers-least-favorite-investment/
The power of Scent
I went out this morning to take out a bag of trash (sounds so romantic, doesn't it?). It wasn't terribly early but the streets were quiet. It is gloomy and grey out. It rained last night and more rain is on the forecast. But the smell...................................oh the smell captured me with one whiff.
Fresh, moist, soft...........and wham.......................I was up north, camping.
Instantly........absolutely instantly, I was unzipping the tent and climbing out in the early morning hours. That is my favourite time when I camp (ok campfire is up there too). It's quiet. No one is up yet. The air is soft and fresh, most likely because it rained the night before. With a cup of piping hot coffee, I head down to the to the spot where it over looks the water. There is a mist coming off the far side of the lake. The sun is rising up off to the left at the far end of the lake. The loon calls (no, not my family) are echoing off to the island on the right. My feet are wet from my walk across the dewy prairie grass. It's a moment of Optimism. Of Hope. There is nothing but the day ahead of you and such peace and harmony.
I love mornings like that.
I need more mornings like that. many more.
Fresh, moist, soft...........and wham.......................I was up north, camping.
Instantly........absolutely instantly, I was unzipping the tent and climbing out in the early morning hours. That is my favourite time when I camp (ok campfire is up there too). It's quiet. No one is up yet. The air is soft and fresh, most likely because it rained the night before. With a cup of piping hot coffee, I head down to the to the spot where it over looks the water. There is a mist coming off the far side of the lake. The sun is rising up off to the left at the far end of the lake. The loon calls (no, not my family) are echoing off to the island on the right. My feet are wet from my walk across the dewy prairie grass. It's a moment of Optimism. Of Hope. There is nothing but the day ahead of you and such peace and harmony.
I love mornings like that.
I need more mornings like that. many more.
Source: http://shakingthemoneytree.blogspot.com/2012/04/power-of-scent.html
Sleepy Portfolio 1Q-2012 Report Card
Background: I started the Sleepy Portfolio in 2005 to benchmark my personal portfolio, which at that time was mostly invested in individual stocks. The portfolio started off with an initial outlay of $100,000 and no new money has been added since. This is not a model portfolio; it reflects investment returns that can be obtained [...]
Sleepy Portfolio 1Q-2012 Report Card is brought to you by Canadian Capitalist -- Helping you to invest & prosper.
Source: http://feedproxy.google.com/~r/ccapitalist/~3/sKO2fshxcsY/
Top Summer Vacation Spots In Canada – Traveling to Manitoba
This Summer Let's Head Out to Manitoba
This week we are traveling to Manitoba, Canada. If you’ve never been to Manitoba in the summer time, you should honestly consider it as part of your next summer vacation. There are so many events that take place each summer throughout the province of Manitoba and there was no way that I could just pick one to highlight for this week’s top summer vacation spots in Canada. Here is a list of some of the most popular summer attractions in Manitoba and the dates that they take place on, so that you can book your trip to attend. Also, the summers in Manitoba can get quite hot so be prepared to enjoy lots of sun and beautiful weather if you travel there during the summer.
Manitoba Summer Fair June 6-10, 2012
The Manitoba Summer Fair takes place at the Keystone Centre in Brandon, Manitoba. It is a large carnival with lots of rides, horse shows, magic shows, a Hypnotist from Las Vegas, concerts, and the yummy food that you always find at a summer fair.
Red River Exhibition June 15-24, 2012
The Red River Exhibition takes place at Red River Exhibition Park in Winnipeg, Manitoba. It is a great exhibition to attend if you enjoy carnival rides, a petting zoo, mid-way fun food, as well as live entertainment by Jason McCoy, Carly Rae Jepsen, Tom Cochrane, and quite a few other entertainers.
During the 10 day exhibition there are 3 Mardi Gras-style parades with floats, bands and lots of clowns. And each Sunday you can attend the large and delicious outdoor free pancake and sausage breakfast hosted by several local businesses.
Winnipeg Folk Festival July 4-8, 2012
You will find the Winnipeg Folk Festival at Birds Hill Provincial Park. The list of talented performers for the festival is quite huge. A few of this year’s performers include Aaron Burnett, Adam Cohen, Atomic Duo, Aisha Alfa, Billy Bragg, and so many more.
Winnipeg Fringe Theatre Festival July 18-29, 2012
Of course there is always the Winnipeg Fringe Festival. This festival takes place in a variety of locations throughout beautiful downtown Winnipeg. If you love watching live performances from independent theatre companies then this festival is for you. Over 170 companies from around the world will be presenting amazing performances this year. This event is a family event that includes many fringe performances for your kids to enjoy.
Manitoba Stampede and Exhibition July 19-22, 2012
As soon as the Calgary Stampede is over you can head east to the Manitoba Stampede. This exciting event takes place in Morris, Manitoba, which is just south of Winnipeg. You will have a great time watching Bareback Riding, Bull Riding, Steer Wrestling, Ladies Barrel Riding, and of course the Rodeo Clowns.
Have you booked your summer vacation? Where are you going? What are you doing this summer?
Source: http://tacklingourdebt.com/2012/05/07/top-summer-vacation-spots-canada-traveling-manitoba/
How to Invest in Facebook With Less Risk (If You Still Want To)
Filed under: Investing, Facebook, ETFs
Even for expert stock pickers, it's difficult to make a fully educated investment in the social media sphere. As Friday's Facebook IPO -- and its gory aftermath -- proves, any theory one might have is ultimately little better than speculation. After all, the first few trading days following any IPO generally bring a lot of short-term plays with share values jumping up and down -- and Facebook was no exception. It's also difficult to predict -- as Groupon likewise demonstrated this year -- when a social media stock will tank.
However, if you're still looking to get in on the Facebook action, but want to mitigate your risks, the social media ETF from Global X Funds might be the right choice.
A New Breed of ETF
Much like a traditional mutual fund, an exchange-traded fund is an investment fund that offers a stake in a pool of investments -- stocks, bonds, commodities. The key difference: An ETF allows for intraday trading of shares. Mutual funds trade once a day -- and if your fund is falling like a stone, a day can feel like a long, expensive time. ETFs, which usually track an index like the S&P 500, can also be attractive because of their low costs and tax benefits.
Interestingly, despite their nearly two decades of rising popularity, the first ETF to focus of the social media wasn't launched until November 2011.
The Global X Social Media Index ETF (SOCL) seeks to reflect this global industry in a single ETF and includes companies from all over the world that provide social networking, file sharing, and other web-based media applications. As more companies in the industry offer IPOs, the Global X Social Media Index ETF will add them -- though not until a bit after their public debuts. According to The Wall Street Journal's Market Watch, Facebook stock will be added to the Solactive Social Media Index -- the index SOCL tracks -- on Thursday, and the ETF will follow suit on Friday.
"Getting access through an ETF is a way to get invested in Facebook but diversify away from a specific company and get play on the social media industry as a whole," said Alex Ashby, a Global X Funds research analyst.
The Advantages Of Casting A Wide-Net In Social Media
"One of the benefits of ETFs more generally -- you get that company diversification," Ashby said. "In social media, that has more of an effect than other [sectors]. Specific companies may be a little more volatile, and we expressed caution to people looking to get in on Facebook on the first day."
Other social media stocks like Groupon (GRPN) and Zynga (ZNGA) have had periods of popularity, but also moments of heavy doubt, such as when Groupon revealed accounting issues in February. With ETFs, there are fewer drastic drops in one's portfolio, as the funds are diversified. Tremors here or there get cushioned, and that's important in a relatively immature sector.
"When you have an industry that is very young, there's a lot of IPOs of companies that are only now reporting earnings and investors are learning how to value these companies," Ashby said.
The Risks Of Going Solo In Social
But unlike ETFs in stable industries with large cap companies, like those focused on utilities, telecommunications or consumer staples, for example, the social media ETF is full of small- and mid-cap companies that haven't necessarily developed steady revenue streams. As a result, they have more growth potential than the value plays, but also represent much more volatility.
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Ted Jenkin, co-CEO and founder of oXYGen Financial in Alpharetta, Ga., believes an ETF is a prudent way to buy into social media, because the sector has all the makings of a bubble perfect storm. "If younger investors have learned anything from the [first] dot-com bubble that burst in the early 2000s, it's that many of these companies that go public will either fail or get bought out by someone bigger," Jenkin said. "We are kind of in a dot-com 2.0 phase right now and rather than trying to pick whether Groupon, Facebook, Zynga, Zillow, Yelp, Pandora, or any of the others will make it, this portfolio allows you to get a basket of social media companies all in one portfolio providing much more diversification than picking one stock."
ETFs are also attractive as a defensive play: Because they trade intraday, you can set up more flexible stop losses than a mutual fund would allow.
Ashby, though, is more bullish on the future of social media investments.
"Most investors have experienced that previous Internet cycle where companies were growing very rapidly and applying that knowledge to current companies to evaluate them properly," he said. "And some of the metrics being used are different. Then, the thing being looked at was page views and people equating that with revenues and future growth."
Of course, page views in the dot-com boom didn't equate to future growth or the ability to monetize those clicks with advertising, for instance. "Social media companies are starting to have real revenue growth and in the early stages of monetizing the networks." Ashby said. "With an ETF, you don't have to predict which specific company is going to be successful if you believe in the industry."
How Much Can Social Media Companies Keep Growing
The big question mark, though, is whether these social media platforms can maintain their momentum.
The networks themselves are generally thought to be secure business models.
"A lot of these companies are still very focused on building a network, and they're building business with a very significant barrier to entry," said Bruno del Ama, CEO of Global X Funds. "It's difficult to replicate the network. We go on Facebook, because our friends are on there. Or LinkedIn, because all our professional contacts are there."
Social media allows businesses to connect directly with customers. According to BursonMarsteller, some 84% of Fortune 100 companies use branded social media channels, while nearly 81% of the top Asian companies do. Social media use now extends to almost one out of every three businesses, but that leaves it with plenty of room to grow, according to Network Solutions. In 2011, 65% of adult internet users said that they used a social networking site, more than double the 29% that did so in 2008, according to the Pew Research Center.
Investors see that high and rising popularity and may predict massive growth in earnings. Google, for instance, launched its IPO at a very high price-earnings multiple -- and then had a 100% annual growth rate. It's stock went from $80 a share to $400.
But investors have to avoid letting expectations of similar results get too fevered.
"You have to consider what's a realistic growth rate and what's sustainable," del Ama said.
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In Ariz. Contest, A Debate Over Government's Reach
Voters in Arizona's 8th Congressional District will decide next month who will fill the seat vacated by Democratic Rep. Gabrielle Giffords. She resigned in January, a year after she was badly injured in a shooting. One of her former aides is taking on a Tea Party candidate in the special election.
Source: http://www.npr.org/2012/05/25/153673182/early-ballots-could-decide-who-replaces-giffords?ft=1&f=1014
Nutraceutical Stock Scams a Hazard to Your Portfolio's Health: FINRA
Author(s):
Donald Liebenson
“Nutraceuticals” are health-related products that seem too good to be true. They promote weight loss, energy boosts, improved virility, and relief from the common cold. But as a new Financial Industry Regulatory Authority (FINRA) warning cautions, investing in companies that deal with these products could be hazardous to your portfolio’s health.
“While some of the companies producing these products are legitimate,” FINRA announced in a statement, “others could be bogus operations with the potential to harm unsuspecting investors.
Nutraceuticals range from energy drinks and fortified foods to “natural medicines.” They may be New Age, the ploys used to lure investors are classic Old School fraud, FINRA warns.
Whether by phone, fax, email, infomercial, tweet, blog or message board post, fraudsters “may try to lure with you very aggressive, optimistic and potentially false and misleading statements or press releases that create unwarranted demand for shares of some small, thinly-traded company that often has little or no history of financial success,” FINRA alerts. “The con artists behind the scam can then sell off their shares, leaving investors with worthless stock.”
One company FINRA cites issued a press release that it “has the potential to capture 3 percent of the U.S. market within a three-year period” and “potentially generate $100,000,000 in revenues” for its “all-natural medicines” that could treat maladies ranging from the common cold to kidney disease. The company, in truth, had almost no cash on hand or a track record of sales.
FINRA suggests you be on the alert for these other scam signals:
· Price targets or predictions of swift and exponential growth. FINRA tells of one promotional mailer from a nutraceutical manufacturing company that promised it could produce “813 percent Short Term Gains.”
· Unsolicited communications promoting the opportunity.
· References to well-known companies to justify growth projections.One company FINRA cited claimed its brand could “compete with the likes of Gatorade and grad mega talent like NIKE!”
How can you avoid the perils of these potential scams? Here are recommended tips:
· Consider the source. Never rely on unsolicited communications or claims.
· Always ask, ‘Why me?’ Why would a total stranger tell you about this great investment opportunity? The answer, FINRA states, “is that there is no such opportunity.”
· Exercise skepticism. A great investment opportunity? Immediate pay-off? Be wary. Be very wary.
· Find out where the stock trades.
· Read a company’s SEC filings, if available.
· Watch for changes to a company’s name or business focus.
· Check out the person promoting the stock or investment. Depending on the type of business the firm conducts, a legitimate investment salesperson must be properly licensed and his or her firm must be registered with FINRA, the Securities and Exchange Commission (SEC) and a state securities regulator.
Related Content:
Consumer Fraud Complaints on the Rise--How to Protect Yourself Against Scammers
How to Protect Yourself Against Online Investment Fraud
Apple-0-7: Is Siri Spying on You?
Filed under: Technology, IBM, Apple
IBM (IBM) has butted heads with Apple (AAPL) in the past, but this time it's personal.Big Blue is asking employees to refrain from using Siri -- Apple's ballyhooed digital assistant -- while at work.
This may seem like an odd request at first. IBM isn't Microsoft (MSFT), a company with such deep-rooted hatred for all things Apple that CEO Steve Ballmer reportedly mocked an employee for trying to take his picture at a company meeting with an iPhone three years ago.
IBM doesn't mind if you bring your iPhone to work. Just don't hold down the smartphone's home button long enough to awaken Siri from slumber.
I Wasn't Hitting on Siri, I Swear
Wedged into the iPhone Software License Agreement, Apple warns that "when you use Siri or Dictation, the things you say will be recorded and sent to Apple in order to convert what you say into text."
As Wired magazine points out, the users are agreeing and consenting to letting the company use the voice input and user data to improve the products -- as well as Apple's other products and services.
Is it any wonder why IBM is asking employees not to use Siri while they're at work? The last thing the tech giant wants is someone to use Siri at a time when someone else at the company may be discussing an upcoming IBM product or making a business decision.
It's not just IBM
Wired also points out that American Civil Liberties Union put out a warning for Siri users two months ago.
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"Where is the nearest abortion clinic?" is an extreme example that the ACLU brings up in making the point that consumers need to be careful. Everything that they say to Siri is apparently going to a server farm in North Carolina.The ACLU offered a way out two months ago. iPhone owners can go into their phone's "settings" tab, tap "general," and then Siri. Sliding the Siri option to "off" results in Apple deleting the user data and any recent vocal recordings. Apple may still keep older recordings, but only after they have been "disassociated" -- or not connected to the -- identifiable user data.
So the next time you see Apple's ad starring Samuel L. Jackson preparing for dinner at home with Siri's assistance, know that the night's details are going somewhere.
Motley Fool contributor Rick Munarriz does not own shares in any of the stocks in this article. The Motley Fool owns shares of International Business Machines, Microsoft and Apple. Motley Fool newsletter services have recommended buying shares of Apple and Microsoft, and creating bull call spread positions in Apple and Microsoft.
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Source: http://www.dailyfinance.com/2012/05/23/apple-007-is-siri-spying-on-you/
Toxie's In a Museum
Planet Money's pet toxic asset is part of a show about the history of banking in New York.
Source: http://www.npr.org/blogs/money/2012/05/22/153297276/toxies-in-a-museum?ft=1&f=127413671
Making the Most of a Gap Year
The transition from student life to full-time employment can be a little daunting – especially for those about to embark on highly competitive career paths. A gap year can provide a little leeway, allowing some time to think and the chance to gain some relevant experience that will stand out on a resume. In the [...]
Saturday, May 26, 2012
Take Advantage of the Rules When You Can
Over the years I have learned a great deal about the importance of knowing the rules in life (not all the rules, and I am by no definition an expert). What kind of rules? Mostly rules in systems that directly affect me, like my health insurance(s), dental insurance, rules for banking, etc., etc.,. The first [...]
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CFTC Charges Three Firms with Oil Price Manipulation
Filed under: Energy, Biz Brief
By SAN FRANCISCO -- A "manipulative" scheme that made unlawful profits on the price of crude oil was flagged in a complaint Tuesday by the Commodity Futures Trading Commission, a sign that the regulator is cracking down on potential speculation in energy markets.
The CFTC said it filed a civil enforcement action against Parnon Energy, Arcadia Petroleum of the United Kingdom, and Arcadia Energy of Switzerland in the U.S. District Court for the Southern District of New York.
Also charged were James Dyer of Australia and Nicholas Wildgoose of California for unlawfully manipulating and attempting to manipulate crude-futures prices on the New York Mercantile Exchange from January to April 2008.
The long-awaited $9 billion stock offering from AIG and the U.S. Treasury is on track to price late Tuesday despite recent market weakness. Randall Smith has details.
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The defendants allegedly made at least $50 million by cornering the supply of West Texas Intermediate light sweet crude at Cushing, Okla., the regulator alleged in its complaint. The pipeline hub there is the key point at which all crude futures are priced for trading on Nymex.
"Defendants conducted a manipulative cycle, driving the price of WTI to artificial highs and then back down, to make unlawful profits," the commission said in a statement.
The allegations come as the barrel's price has surged well above $100 in recent months. This month, crude prices slumped after CME Group (CME), the operator of Nymex, increased margin requirements for trading crude-futures contracts.
The last time crude spiked above $100 a barrel was in early 2008. At that time, speculation was at least partly blamed for the increases. When the global financial crisis hit in the second half of that year, crude slumped below $40 a barrel.
Parnon Energy is the trading and marketing arm of Parnon Holdings, which the CFTC said operates as a "common enterprise" with Arcadia Petroleum, based in London.
The affiliates traded West Texas Intermediate through a collective "WTI book" run by Dyer and Wildgoose, according to the CFTC's complaint.
Phone calls to Parnon's U.S. offices were referred to Colin Hurley, chief financial officer of Arcadia Petroleum in London. Calls to Hurley's phone weren't picked up.
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Source: http://www.dailyfinance.com/2011/05/24/cftc-charges-three-firms-with-oil-price-manipulation/
Save Money, Buy a Chest Freezer
I bought an apartment sized freezer when I was in college, and it was one of the best financial decisions I ever made. I was working at Costco at the time, and every summer they put their freezer on sale. It is this model of freezer. It’s not the largest or most energy efficient freezer in the...
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Source: http://canadianfinanceblog.com/save-money-buy-a-chest-freezer/
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