Thursday 30 December 2010

Making Money System



Crossposted with TomDispatch.com.



After the Macondo well exploded in the Gulf of Mexico, it was easy enough (on your choice of screen) to see a flaming oil platform, the very sea itself set afire with huge plumes of black smoke rising, and the dark smear of what would become five million barrels of oil beginning to soak birds and beaches. Infinitely harder to see and less dramatic was the vast counterforce soon at work: the mobilizing of tens of thousands of volunteers, including passionate locals from fishermen in the Louisiana Oystermen’s Association to an outraged tattoo-artist-turned-organizer, from visiting scientists, activist groups, and Catholic Charities reaching out to Vietnamese fishing families to the journalist and oil-policy expert Antonia Juhasz, and Rosina Philippe of the Atakapa-Ishak tribe in Grand Bayou.  And don’t forget the ceaseless toil of the Sierra Club’s local environmental justice organizer, the Gulf Coast Restoration Network, the New Orleans-born poet-turned-investigator Abe Louise Young, and so many more than I can list here.


I think of one ornithologist I met in Grand Bayou who had been dispatched to the Gulf by an organization, but had decided to stay on even if his funding ran out.  This mild-mannered man with a giant pair of binoculars seemed to have some form of pneumonia, possibly induced by oil-fume inhalation, but that didn’t stop him. He was among the thousands whose purpose in the Gulf had nothing to do with profit, unless you’re talking about profiting the planet.


The force he represented mattered there, as it does everywhere -- a force that has become ever more visible to me as I live and journey among those who dedicate themselves to their ideals and act on their solidarities.  Only now, though, am I really beginning to understand the full scope of its power.


Long ago, Adam Smith wrote about the “invisible hand” of the free market, a phrase which always brings to my mind horror movies and Gothic novels in which detached and phantasmagorical limbs go about their work crawling and clawing away.  The idea was that the economy would somehow self-regulate and so didn’t need to be interfered with further -- or so still go the justifications for capitalism, even though it took an enormous armature of government interventions to create the current mix of wealth and poverty in our world. Your tax dollars pay for wars that make the world safe for giant oil corporations, and those corporations hand over huge sums of money to their favorite politicians (and they have so many favorites!) to regulate the political system to continue to protect, reward, and enrich themselves. But you know that story well.


As 2010 ends, what really interests me aren’t the corrosions and failures of this system, but the way another system, another invisible hand, is always at work in what you could think of as the great, ongoing, Manichean arm-wrestling match that keeps our planet spinning. The invisible claw of the market may fail to comprehend how powerful the other hand -- the one that gives rather than takes -- is, but neither does that open hand know itself or its own power. It should. We all should.


The Iceberg Economy


Who wouldn’t agree that our society is capitalistic, based on competition and selfishness? As it happens, however, huge areas of our lives are also based on gift economies, barter, mutual aid, and giving without hope of return (principles that have little or nothing to do with competition, selfishness, or scarcity economics). Think of the relations between friends, between family members, the activities of volunteers or those who have chosen their vocation on principle rather than for profit.


Think of the acts of those -- from daycare worker to nursing home aide or the editor of TomDispatch.com -- who do more, and do it more passionately, than they are paid to do; think of the armies of the unpaid who are at “work” counterbalancing and cleaning up after the invisible hand and making every effort to loosen its grip on our collective throat. Such acts represent the relations of the great majority of us some of the time and a minority of us all the time. They are, as the two feminist economists who published together as J. K. Gibson-Graham noted, the nine-tenths of the economic iceberg that is below the waterline.


Capitalism is only kept going by this army of anti-capitalists, who constantly exert their powers to clean up after it, and at least partially compensate for its destructiveness. Behind the system we all know, in other words, is a shadow system of kindness, the other invisible hand. Much of its work now lies in simply undoing the depredations of the official system. Its achievements are often hard to see or grasp.  How can you add up the foreclosures and evictions that don’t happen, the forests that aren’t leveled, the species that don’t go extinct, the discriminations that don’t occur?


The official economic arrangements and the laws that enforce them ensure that hungry and homeless people will be plentiful amid plenty.  The shadow system provides soup kitchens, food pantries, and giveaways, takes in the unemployed, evicted, and foreclosed upon, defends the indigent, tutors the poorly schooled, comforts the neglected, provides loans, gifts, donations, and a thousand other forms of practical solidarity, as well as emotional support. In the meantime, others seek to reform or transform the system from the inside and out, and in this way, inch by inch, inroads have been made on many fronts over the past half century.


The terrible things done, often in our name and thanks in part to the complicity of our silence or ignorance, matter. They are what wells up daily in the news and attracts our attention.  In estimating the true make-up of the world, however, gauging the depth and breadth of this other force is no less important. What actually sustains life is far closer to home and more essential, even if deeper in the shadows, than market forces and much more interesting than selfishness.


Most of the real work on this planet is not done for profit: it’s done at home, for each other, for affection, out of idealism, and it starts with the heroic effort to sustain each helpless human being for all those years before fending for yourself becomes feasible.  Years ago, when my friends started having babies I finally began to grasp just what kind of labor goes into sustaining one baby from birth just to toddlerhood.


If you do the math, with nearly seven billion of us on Earth right now, that means seven billion years of near-constant tending only to get children upright and walking, a labor of love that adds up to more than the age of this planet. That’s not a small force, even if it is only a force of maintenance.  Still, the same fierce affection and determination pushes back everywhere at the forces of destruction.


Though I’m not sure I could bring myself to watch yet again that Christmas (and banking) classic It’s a Wonderful Life, its premise -- that the effects of what we do might best be gauged by considering what the world would be like without us -- is still useful. For the American environment, this last year was, at best, a mixed one.  Nonetheless, polar bears got some protection and the building of at least one nuclear power plant was prevented; the work of groups like the Sierra Club continued to keep new coal-fired power plants at bay; and Californians defeated a sinister oil-company-sponsored initiative, to name just a few of the more positive developments.  Erase all the groups at work on the environment, hardly noticed by the rest of us, and it would have been a massacre.



The Alternatives to “There Is No Alternative”


We not only have a largely capitalist economy but an ideological system that justifies this as inevitable. “There is no alternative,” as former British Prime Minister Margaret Thatcher used to like to say. Many still argue that this is simply the best human nature, nasty to the core, can possibly hope to manage.


Fortunately, it’s not true.  Not only is there an alternative, but it’s here and always has been. Recently, I had dinner with Renato Redentor Constantino, a climate and social justice activist from the Philippines, and he mentioned that he never cared for the slogan, “Another world is possible.” That other world is not just possible, he pointed out, it’s always been here.


We tend to think revolution has to mean a big in-the-streets, winner-take-all battle that culminates with regime change, but in the past half century it has far more often involved a trillion tiny acts of resistance that sometimes cumulatively change a society so much that the laws have no choice but to follow after. Certainly, American society has changed profoundly over the past half century for those among us who are not male, or straight, or white, or Christian, becoming far less discriminatory and exclusionary.


Radicals often speak as though we live in a bleak landscape in which the good has yet to be born, the revolution yet to begin. As Constantino points out, both of them are here, right now, and they always have been.  They are represented in countless acts of solidarity and resistance, and sometimes they even triumph.  When they don’t -- and that’s often enough -- they still do a great deal to counterbalance the official organization of our country and economy. That organization ensures oil spills, while the revolutionaries, if you want to call them that, head for the birds and the beaches, and maybe, while they’re at it, change the official order a little, too.


Of course, nothing’s quite as simple as that.  After all, there are saints in government and monsters in the progressive movement; there’s petroleum in my gas tank and money in my name in banks. To suggest that the world is so easily divided into one hand and the other, selfish and altruistic, is impossibly reductive, but talking in binaries has an advantage: it lets you focus on what is seldom acknowledged.


To say there is no alternative dismisses both the desire for and the possibility of alternative arrangements of power. For example, how do you square a Republican Party hell-bent on preserving tax cuts for the wealthiest 2 percent of Americans with a new poll by two university economists suggesting that nearly all of us want something quite different? The pollsters showed a cross-section of Americans pie charts depicting three degrees of wealth distribution in three societies, and asked them what their ideal distribution of wealth might be. The unidentified charts ranged from our colossal disparity to absolute equality, with Swedish moderation in-between.


Most chose Sweden as the closest to their ideal. According to the pollsters, the choice suggested that "Americans prefer some inequality to perfect equality, but not to the degree currently present in the United States.”


It might help to remember how close we had come to Sweden by the late 1970s, when income disparity was at its low ebb and the Reagan revolution was yet to launch.  Of course, these days we in the U.S. aren’t offered Swedish wealth distribution, since the system set up to represent us actually spends much of its time representing self-interest and moneyed interests instead. The Republicans are now being offered even larger bribes than the Democrats to vote in the interests of the ultra-affluent, whether corporate or individual. Both parties, however, helped produce the Supreme Court that, in January, gave corporations and the wealthy unprecedented power in our political system, power that it will take all our energy to counteract and maybe, someday, force into retreat.


By the way, in searching for that Thatcher no-alternative quote, I found myself on a page at Wikipedia that included the following fundraising plea from a Russian woman scientist: “Almost every day I come home from work and spend several hours improving Wikipedia! Why would I donate so much of my free time? Because I believe that by giving my time and effort -- along with thousands of other people of different nationalities, religion, ages -- we will one day have shared and free knowledge for all people.”


Imperfect as it may be, ad-free, nonprofit Wikipedia’s sheer scope -- 3.5 million entries in English alone, to say nothing of smaller Norwegian, Vietnamese, Persian, and Waray-Waray versions with more than 100,000 articles each -- is an astonishing testimony to a human urge to work without recompense when the cause matters.


Butterfly Spotting


The novelist and avid lepidopterist Vladimir Nabokov once asked someone coming down a trail in the Rockies whether he’d seen any butterflies. The answer was negative; there were no butterflies.  Nabokov, of course, went up that same trail and saw butterflies galore.


You see what you’re looking for. Most of us are constantly urged to see the world as, at best, a competitive place and, at worst, a constant war of each against each, and you can see just that without even bothering to look too hard. But that’s not all you can see.   


Writing my recent book about disasters, A Paradise Built in Hell, led me to look at the extraordinary way people behave when faced with catastrophes and crises.  From news coverage to Hollywood movies, the media suggest that, in these moments of turbulence when institutions often cease to function, we revert to our original nature in a Hobbesian wilderness where people fend for themselves.


Here’s the surprise though: in such situations, most of us fend for each other most of the time -- and beautifully at that. Perhaps this, rather than (human) nature red in tooth and claw, is our original nature.  At least, the evidence is clear that people not only behave well, but take deep pleasure in doing so, a pleasure so intense it suggests that an unspoken, unmet appetite for meaningful work and vibrant solidarities lives powerfully within us. Those appetites can be found reflected almost nowhere in the mainstream media, and we are normally told that the world in which such appetites might be satisfied is “utopian,” impossible to reach because of our savage competitiveness, and so should be left to the most hopeless of dreamers.


Even reports meant to be sympathetic to the possibility that another better world could exist in us right now accept our Social-Darwinian essence as a given.  Consider a November New York Times piece on empathy and bullying in which David Bornstein wrote:

We know that humans are hardwired to be aggressive and selfish. But a growing body of research is demonstrating that there is also a biological basis for human compassion. Brain scans reveal that when we contemplate violence done to others we activate the same regions in our brains that fire up when mothers gaze at their children, suggesting that caring for strangers may be instinctual. When we help others, areas of the brain associated with pleasure also light up. Research by Felix Warneken and Michael Tomasello indicates that toddlers as young as 18 months behave altruistically.




Are we really hardwired to be aggressive and selfish, as Bornstein says at the outset? Are you? No evidence for such a statement need be given, even in an essay that provides plenty of evidence to the contrary, as it’s supposed to be a fact universally acknowledged, rather than an opinion.



The Compassion Boom



If I were to use the normal language of the marketplace right now, I’d say that compassion and altruism are hot. It might, however, be more useful to say that the question of the nature of human nature is being reconsidered at the moment by scientists, economists, and social theorists in all sorts of curious combinations and coalitions. Take, for example, the University of California’s Greater Good Science Center, which describes itself as studying “the psychology, sociology, and neuroscience of well-being, and teaches skills that foster a thriving, resilient, and compassionate society.” Founding director Dacher Keltner writes, “Recent studies of compassion argue persuasively for a different take on human nature, one that rejects the preeminence of self-interest.”



A few dozen miles away is Stanford’s Center for Compassion and Altruism Research and Education, which likewise draws on researchers in disciplines ranging from neuroscience to Buddhist ethics. Bornstein’s essay mentions another organization, Roots of Empathy in Toronto, that reduces violence and increases empathy among children. Experiments, programs, and activities like this proliferate.



Independent scholars and writers are looking at the same underlying question, and stories in the news this year -- such as those on school bullying -- address questions of how our society gets organized, and for whose benefit. The suicides of several queer young people generated a groundswell of anti-bullying organizing and soul-searching, notably the largely online “It Gets Better” attempt to reach out to queer youth.



In a very different arena, neoliberalism -- the economic system that lets the invisible hand throttle what it might -- has finally come into question in the mainstream (whereas if you questioned it in 1999, you were a troglodyte and a flat-Earther). Hillary Clinton lied her way through the 2008 primary, claiming she never supported NAFTA, and her husband, who brought it to us, publicly apologized for the way his policies eliminated Haiti’s rice tariffs. “It was a mistake," Bill Clinton told the Senate Foreign Relations Committee on March 10th. "I had to live everyday with the consequences of the loss of capacity to produce a rice crop in Haiti to feed those people because of what I did."



Think of those doing the research on altruism and compassion as a radical scholarly movement, one that could undermine the philosophical and political assumptions behind our current economic system, which is also our political system. These individuals and organizations are putting together the proof that not only is another world possible, but it’s been here all along, as visible, should we care to look, as Nabokov’s butterflies.



Do not underestimate the power of this force. The world could be much better if more of us were more active on behalf of what we believe in and love; it would be much worse if countless activists weren’t already at work from Aung San Suu Kyi in Burma and the climate activists in Tuvalu to the homeless activists around the corner from me. When I studied disasters past, what amazed me was not just that people behaved so beautifully, but that, in doing so, they found such joy.  It seems that something in their natures, starved in ordinary times, was fed by the opportunity, under the worst of conditions, to be generous, brave, idealistic, and connected; and when this appetite was fulfilled, the joy shone out, even amid the ruins. 



Don’t think of this as simply a description of my hopes for 2011, but of what was going on right under our noses in 2010; it’s a force we would do well to name, recognize, celebrate, and enlarge upon now. It is who we are, if only we knew it.



Rebecca Solnit hangs out with climate-change activists, homeless advocates, booksellers, civil libertarians, anti-war veterans, moms, urbanists,  Zen monks, and investigative journalists and she sure didn't write this piece for the money. She is the author of 13 books, including last year's A Paradise Built in Hell: The Extraordinary Communities that Arise in Disaster, and this year's Infinite City: A San Francisco Atlas.


Copyright 2010 Rebecca Solnit






The year is almost over. Time to write the obituaries.


What kind of year was it? A flop. A failure. A loser. Just like we said it would be.


It was a “year that fizzled,” writes David Leonhardt in The New York Times.


It was the year that the economy started to recover and then slid back into a slump – only to offer reason for renewed hope in the final weeks.


When 2010 began, hiring and consumer spending were finally picking up. But then something changed in the spring – a combination of the debt troubles in Europe, the fading of stimulus spending and the usual caution by businesses and consumers after a financial crisis. By the summer, the unemployment rate was rising again, and Americans’ attitudes about the future were again souring.


Making matters worse, many of the economy’s long-term problems also became more severe this year. Health care costs continued to rise faster than inflation, and the number of uninsured continued to grow. The most recent climate data suggested 2010 would be the hottest or second-hottest year ever recorded; the 10 hottest have all occurred in the last 13 years, creating serious risks for the planet and its economy. The federal budget deficit ballooned further (though it should grow during an economic slump).


Fizzled? Nah. He just doesn’t understand what is going on. The year couldn’t fizzle out. It never had any real gas in it. It was flat and lifeless from the get-go.


No great progress for humanity was made in 2010. There were no great achievements. The health care bill was a muddled fraud. The iPad may make communication easier. Then again, it might make it harder. The year’s big movie – Inception – was a dud.


But what about the economy?


The real, private economy spent 2010 paying for mistakes it made over the last 20 years – particularly in the last 5 years. It couldn’t undertake anything new; it had to reckon with things that it did in the past.


Consumers generally paid down debt…or defaulted. Businesses hoarded cash and refused to hire new employees. Bankers made fortunes gaming the Fed’s easy money system. They took the Fed’s money and speculated. They lent out little money to the real economy.


Meanwhile, the authorities were actively making the situation worse. Not just with low interest rates. They had other bamboozle programs and crackpot projects – notably “quantitative easing.”


In Europe, peripheral countries such as Ireland and Greece were deep in debt. So, what did the authorities do? Lend them more money! Result? They are deeper in debt at the end of the year than at the beginning of it. Now, their problems are worse than ever.


In America, the year ends with the private economy a little better off and the public economy a lot worse off. Two trillion worth of debt and liabilities were added to federal accounts this year. In terms of federal finances, the average man, woman or child will be about $7,000 poorer when he rings out the old year.


This extra money was supposed to spur the economy to growth and prosperity. Did it do so? There is no evidence of it. Housing will generally be cheaper at the beginning of 2011 than it was at the beginning of 2010. And fewer people will have jobs.


Among investors, some did well…some did poorly.


But at least our Dear Readers will have something to celebrate. Just as they have had every year of this millennium. Gold investors end the year nearly 30% richer.


Bill Bonner

for The Daily Reckoning


The Economic Flop that Was 2010 originally appeared in the Daily Reckoning. The Daily Reckoning, offers a uniquely refreshing, perspective on the global economy, investing, gold, stocks and today's markets. Its been called "the most entertaining read of the day."





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Fox <b>News</b>, Hypocrisy, And “Politically Correct” Journalism

My earlier post about Megyn Kelly's absurd equation of illegal immigration and rape in a discussion about changes to the Associated Press Style Guide.

Salvatore A. Giunta to Drop the Times Square Ball and 5 Other New <b>...</b>

Salvatore A. Giunta, the first living person to receive the Congressional Medal of Honor since the Vietnam War, is this year's Times Square ball drop guest of honor. Surge Desk offers 5 facts about the famous New York tradition.

Year&#39;s Worst Ads Get What&#39;s Coming to Them - AOL <b>News</b>

The year's worst ads get honored with a very dubious award: a Tracy Award.


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Tuesday 28 December 2010

Stock Making Money

I don’t know how many times I have heard that stock picking doesn’t pay or you can’t beat the markets over the long haul picking stocks etc. That is rubbish.


Picking stocks is exactly how you beat the markets. It is true that you need to spend time developing a successful strategy for picking stocks and your casual investor is likely better off with a conservative broad basket of ETFs, but that is not my audience, nor is it any fun, so it is not relevant to this article!


We are here to look at the market differently, turn convention on its head and uncover the best darn new technology stocks in the world and make some money.


A Friendly Market


There is no way to put this delicately. I kicked some market ass in 2010. Three buyouts of portfolio holdings, all at better than 100% premium to 52 week lows and a bunch of other 50-100% gainers. Granted this wasn’t the most difficult year to pick winners. Most everything was higher, but BulwaTechReport.com holdings are names most investors are not aware of, businesses with growth and great technology that trade at sensible valuations.


To buy these names I am not taking a ‘cloudlike’ leap of faith that people will continue to pay 100x earnings to avoid having my investment chopped in half (50x earnings is still unjustifiable in historical market terms).


I am not drawing lines on charts or punching numbers into a computer, I am out there doing research, asking questions, making projections and taking a stand on new companies that I believe make for the best investments. Here is a review of some of the BulwaTechReport.com portfolio’s best 2010 performers, what I said at the time of recommendation and what I think of the prospects after the advance.


Neo Materials (NEM.TO,NEMFF.PK)


Originally purchased and recommended in August 2010 at $3.80, Neo Materials’ stock currently trades over $7/share and hit a recent high of $7.75, for more than 100% gain. While the entire rare earth sector has been on fire, I didn’t feel comfortable buying a miner given the extreme volatility in spot price for the metals, high valuations and lack of profits. When recommending Neo, I wrote this in a research report:


The rare earth space is difficult to play as many companies are unprofitable. Neo Materials offers a diversified investment in a high growth area with exposure to a variety of alternative energy markets.


The allure of rare earth is that the materials are vital to a variety of high technology and alternative energy products including LEDs, displays, sensors and micro motors. Neo Materials specifically offers refined Neodymium and other powders to end users. Neodymium, #60 on the Periodic Table, is essential to the strongest magnetic materials known to man and used in products such as electric motors.


I believe the value of these metals is in the refined end product and this interesting comment from CEO Don Bubar of miner Avalon Rare Metals (AVL) supports this:


“the mining side in the rare earth business made up only about 10-15 percent of the final product value, and digging up ore was only the first step toward a product.”


“It’s not a mining business,” he said. “It’s a sophisticated chemical processing business to produce specialty chemical products for clean technology and high technology.”


I continue to own Neo Materials. I am not as enthusiastic as I was 100% ago but I am of the old fashioned buy low camp. Still if the rare earth boom continues as I believe it will, Neo is uniquely positioned, profitable and has a sterling balance sheet. My 24 month target for the shares is $12.


The Unwanted Acquisition


Crucell (CRXL) is a biotechnology company that licenses proprietary technologies, such as the PER.C6, a human designer cell line to develop and manufacture biopharma products, it also offers MAbstract to discover drug targets and identify human antibodies and a variety of other discovery and manufacturing platforms. The company’s shares are up over 50% for the year on a bid from Johnson and Johnson (JNJ) to acquire the company and I am not happy about it! Every so often you come across a company that truly meets all the investment criteria of you model.


One of those companies was Crucell (CRXL). I recommended purchasing more CRXL in July 2010 saying:


I still believe this is the single best stock to own over the long term. It has a disruptive technology that will alter the way the industry discovers and manufactures drugs. It has relationships with the largest companies in the industry and has already been the target of an attempted takeover. Would buy more at these levels.


This company was in the never sell category and I have owned shares for over 10 years since originally purchasing for around $6/share. I still believe if Crucell stays independent, the shares could reach over $90/share equating to a $9-10 billion market valuation.


Obviously I am not the only one who believes there is value in Crucell and its technology, as Wyeth attempted to purchase the company before Wyeth was acquired by Pfizer, thankfully killing the deal. Now Johnsons & Johnson (JNJ) is doing the bidding and looks to be winning the asset of Crucell at roughly $32.50/share US.


This stock was trading below $20/share only two months before JNJ made its bid at a 56% premium to the previous day’s close. I have very mixed emotion about this offer. Yes it is a nice win in the markets, but I believe I can make much more if CRXL remains independent and I am allowed to participate as a shareholder. Buried in the giant JNJ I will never get that opportunity.


There are some ‘rebel’ share holders out there that agree with me and aren’t eager to tender their shares. There is already a small discount between the offer price of $32.50 US and current quote of just under $31 because of this dissenting body of shareholders. I am considering buying shares.


The deal appears likely to go through, and at current prices that would give current share purchasers about a 4% gain and if JNJ sweetens the deal a bit for the holdouts the gain could be bigger. If the deal falls apart I will be very thankful for any selloff in reaction. I’d then re-establish a serious position in Crucell.


A Top Theme Delivers with Impressive Partnership


Stratasys (SSYS) had a terrific year with stock roughly doubling after starting the year just below $18/share and finishing around $33/share. This company is a leader in machines for rapid prototyping or 3D modeling or digital manufacture or an even fancier term– additive manufacture. The company offers 3D printing machines based on its proprietary technology Fusion Deposition Modeling (FDM). I have been writing about rapid prototyping and digital manufacture since my days at thestreet.com and this was the year the technology and the stocks really started to deliver.


In January, Stratasys announced a partnership with Hewlett Packard (HPQ) where Hewlett will distribute an entry level HP branded line of Stratasys 3D Printers. This sent SSYS shares soaring almost 50% and set the stage for a further 25% gain over remainder of the year to the current quote near $34/share.


3D Systems (TDSC) is a competitor to Stratasys and another stock that I wrote about at theStreet.com. I also owned TDSC in my bulwatechreport.com portfolio as recently as 2010 but sold it much too early in the year. After some industry due diligence, I concluded TDSC was the weakest positioned player in the field and sold only to watch the stock soar another 100% higher. This is a good example of potentially being right longer term and still losing money short term. Timing is very important! But so is sticking to your research supported conclusions.


I feel stronger now than ever that 3D Systems is facing an uphill battle competing for leadership in this exciting industry. The company’s stereolithography (SLA) and selective laser sintering (SLS) equipment produces accurate parts but is expensive to purchase and operate relative to the competition, and because it uses lasers it requires specialized environments in which to operate. RAPID PROTOTYPING IN CHINA lists some of the other disadvantages of SLA relative other technologies as:



  1. over time, the resin will absorb moisture from the air, causing the soft part of the bend and roll thin wings.

  2. helium – cadmium laser tube life of only 3000 hours, the price is more expensive. It is necessary to scan the entire cross-section cure, forming a longer time, so production cost is relatively high.

  3. choose the type of material is limited (translation – the choice of material is limited*author comment), must be a photosensitive resin. Parts made from such resins in most cases cannot test the durability and thermal performance, and photosensitive resin on the environment pollution and skin allergies.


Looking at these stocks heading into 2011 I feel Stratasys (SSYS) is still well positioned given its strong market presence, premier partner in HPQ and best in class materials. I would not own 3D Systems at current prices. The company now sports the largest market cap of the players in the space and in my opinion faces the biggest challenges.


One of the largest challenges for both companies comes in the form of a large privately help competitor named Objet Geometries. This company’s machines use a technology called PolyJet™ that deliver superior accuracy at increasingly competitive pricing and Objet offers the industry’s only multi-material 3D printer.


As a longtime supporter of Stratasys and Rapid Prototyping, it is difficult for me to say, but I would not add to positions at current levels. After comparing products from entry level Stratasys machines and Objet machines, the Objet machine delivers better accuracy than Stratasys and smooth surfaces which Stratasys cannot deliver without post processing.


Stratasys’ strength lies in its higher end machines and specialty materials that offer heat tolerance and other properties that competitors cannot offer for real world functional testing. I am concerned that the HPQ partnership for entry level machines may not be the right fit given Stratasys’ product strengths and competition from Objet and other lower end products in the near future. I hope Objet Geometries decides to offer shares to the public in an IPO because I will line up to participate as this company looks like a winner going forward.


We can only hope 2011 is as good a year for stock picking as this past year. Given the rapid evolution of new technology, investment opportunities are presenting continuously. The environment for investing in new technology companies has never been better.


Long NEM.TO and Short TDSC


By Dian L. Chu, EconForecast



China has been ranked as the top growing country among the G20 since 2001 and is expected to retain that title for at least another five years (See Growth Chart). However, the news coming out of China for the past three months has not been good. It is looking more and more that it is not a question of if China is a bubble and going to burst, but when.



The country has major infrastructure issues, troubling population dynamics, poorly aligned employment outcomes, inflation problems, a real estate bubble, an opaque and potentially insolvent banking system (had mark-to-market accounting been applied), geo-political problems with North Korea and Taiwan, and an underperforming stock market in 2010 (see stock comparison chart).



Smart Money Rushing Out



While the hot money is flooding into China, the smart local money is doing everything they can to get their money outside of China, which partly explains why Shanghai SE Composite has underperformed other markets for the past year or so (see Comparison Chart).



The many issues of China could conspire to become the biggest train wreck waiting to happen, and potentially dwarf any little budget problems in Europe by a factor of ten.



Big Trouble In Big China



China has a population related societal structural problem. The nation has tried to utilize the vast manpower to its advantage over the last two decades building a powerhouse manufacturing economy through the availability of low cost workers, which supplied the world with lower cost goods.



Nevertheless, the harsh reality is that the nation's infrastructure, quality jobs, food, and overall resources are too scarce to support such mass population, while achieving the government`s goal of a smooth transition to a developed middle class to sustain an internal demand model going forward.



If you think you have riots in Greece over the pension retirement age being raised is bad, just wait till riots breaking out in Beijing and other cities over the fact that a 90 cent bowl of noodle soup now costs four dollars due to food shortages, and a runaway inflation problem.



Loose Lending = Non-performing Projects



This is only reinforced by some of the news events taking place over the last three months. Let`s start with the raising of banks reserve requirements by the central bank, which is the sixth such increase in 2010.



These measures are meant to curb the excess lending which has fueled much of the overbuilding and real estate speculation occurred over the past two years as China`s central bank initially wanted to avert a recession by artificially creating demand for workers and construction projects to replace lagging demand from the developed economies.



The problem is that too much lending has occurred, and bad lending at that. Because of the cheap available credit, now you have cement companies and manufacturing firms getting bank loans to invest in endeavors such as real estate, which is outside of their core expertise and competency.



Real Estate Misery Loves Company – China & Spain



The result is a bunch of excess inventory and poorly thought-out construction projects which have no means of recouping the initial investment needed to repay the bank loans.



This practice is similar to Spain`s situation now where they have entire uninhabited building complexes that have yet to be marked to market, and will probably ultimately be demolished. But at least in Spain, even though it was a construction boom, it was engineered by developers in Spain, and not by some manufacturing outfits like those in China.



So, multiply the bad business project factor by ten and you get an understanding of the magnitude of bad loans on the books of Chinese banks. The problem is being further exacerbated by the practice similar to Spain`s of banks making additional loans to the businesses just so that they can then turnaround and pay back the interest owed on the original loans.



The only way this would work out is if these projects magically develop revenue streams. Unfortunately, in the case of Spain, a 20% unemployment rate, coupled with a still overvalued housing market in which prices still need to come down significantly, would suggest that by the time the Spanish economy recovers enough to support the excess inventory, the abandoned projects are run down and uninhabitable.



A similar scenario could play out in China as well.



True Smart Money Wary of the Write-off Domino 



Furthermore, China`s practice of overbuilding at the height of real estate valuations makes even haircuts on loan write-offs an untenable practice for banks, and by further throwing good money after bad, the ultimate mark- to-market effect could be catastrophic for Chinese Banks.



This is the main reason all the major Chinese banks have gone to the market in 2010 to raise more capital before investors wise up to the underlying deficits these banks face, as these bad loans eventually would need to be written off the books.





Victor Shih, a Northwestern University professor estimates that Chinese local governments borrowed some 11.4 trillion renminbi at the end of 2009, and that local government financing loans to be roughly one-third of China's 2009 GDP.  The most likely scenario over the next few years is that there would be increases of non-performing loans ratio from local governments. This would require a large scale of recapitalization of the Chinese banking system, which would eat up a large share of China's foreign exchange reserves and possibly slow down growth.





Although Beijing is quite capable of  a few bailouts and surviving a widespread banking crisis, it most definitely will not bode well for the financial markets.  So, insiders are removing capital from direct exposure to the inevitable re-pricing that will happen throughout Chinese markets from real estate to the stock market, and can be seen at this early stage by the underperformance of the Chinese stock market compared to other global markets. Remember, foreigners cannot invest directly in these markets, so these capital outflows are truly the smart money.



Logistic Gridlock Crimping the Middle Class



Next let`s look at the recent news regarding a severe cutback in automobile registrations in Beijing to 240,000 in 2011 from 700,000 registered in 2010 by the municipal government. Other large cities in China are bound to follow. This is most likely related to the reported 9-day traffic jam on the Beijing-Tibet expressway in August, and other extended traffic jams throughout China in 2010.



China is trying to build infrastructure projects after the fact; whereas with proper central planning these should have been established far ahead of the massive transition from a rural, agricultural based populous to that of a modern, large city based business and manufacturing concentration.



Simply put, it is impossible for all the Chinese citizens who want and can afford automobiles to be able to own and utilize this form of transport without a total breakdown in the transportation system. We are seeing the early stages of complete and counterproductive gridlock in the transportation system of China, and it is only going to get worse over the next decade.

No Jobs for College Grads



For all the talk about how China graduates more engineers each year, and other college educated young people who have strong backgrounds in the hard sciences than most developed nations combined, this is actually another sign of problems to come over the next decade in China.



China`s wealth and emergence into the second largest business economy hasn`t been built around the need for these types of mind and skill set. So literally you have a large mismatch between the types of available jobs in China, that are supported by the heavy manufacturing and construction intensive focus of the past twenty years, to that of the recently educated pool of graduates who have grown in sizable numbers over the past five years.



The Mind Is A Terrible Thing To Waste



This results in a large human asset class that China is currently wasting, as most of the newly educated workforce is working in jobs which require little or no advanced education at the university level. So you have highly educated university graduates in areas like engineering and accounting working low level service and sales jobs that pay less than many manufacturing jobs.



In short, there are too many highly educated Chinese citizens graduating each year for the number of jobs available needing their skill set because China`s economic model isn`t built around these type of jobs. This type of misaligned employment outcomes never ends well; it usually manifests itself in increased civil and social unrest.



8% Inflation in 2011



The next major challenge for China is a skyrocketing inflation, which at its root is the fact that there are too many people chasing too few resources. This fundamental flaw in population dynamics underpins many of the problems that China faces going forward.



Recent CPI data for November illustrates the inflation problem in China with a reading of 5.1% from a year ago comparison, this is up from a 4.4% reading for the previous month. Couple this with the latest 4% hike in fuel prices in China because of rising oil prices, you could expect future CPI and PPI reports to reflect even higher rates of inflation.



For now, most of the year over year spike has revolved around higher food prices as energy has mainly been flat for 2010 thanks mostly to government subsidies. Now that energy prices have entered the picture, China will start to experience even more inflation pressures in 2011. 



Furthermore, with the undervalued yuan pegged to the dollar, it is only getting worse for China in 2011 due to Fed's QE2 pressures on the dollar.  The real inflation rate for Chinese citizens for 2011 will probably approach 8% next year.



An Asian Contagion by China?



This escalating inflation concern is further compounded by Beijing's lack of decisive action to combat the problem by delaying a much needed currency appreciation, and hiking interest rates in a timely fashion. There is no getting around the fact that these two things need to occur as soon as possible.



By the time the Chinese government is forced to implement these tightening tools, the damage to the economy is most likely already done. The longer China delays the inevitable serious tightening measures, the harder the economic crash that will occur in the aftermath of these policy changes. And it is unlikely to end well. The resultant impact will probably take the rest of the Asian economies down with it – an Asian Contagion scenario.



History Repeats Itself



Eventually central planners and finance ministers around the world might start to understand that policies which lead to bubbles being formed in the first place are counterproductive in the long run. But until that lesson is learned, it seems like we are doomed to repeat the same mistakes over and over again.



Right now, there are more and more signs coming out of China that all is not well with its economy, and the likelihood of a more severe downturn in the future is a distinct possibility, unless its policy makers take decisive and prudent actions to minimize the damage of a hard landing.    





Dian L. Chu, | Mobile Reader, Website | | Facebook | Twitter



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Alfred Kahn, &#39;Godfather&#39; of Airline Deregulation, Dies at 93

Tagged: airline deregulation, airline industry, airlines, alfred kahn, civil aeronautics board, cornell university, m i economic economic indicators inflation, national news. Related Searches: air travel, airline news, ...

How Online <b>News</b> Evolved in 2010

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&#39;NBC Nightly <b>News</b>&#39; Wins 4th Quarter Ratings

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Thursday 23 December 2010

foreclosure list


It is hard to not laugh out loud at the amazing stupidity of those who say "It's Different Here".

Please consider 'Low-doc' home borrowers hit by rising rates

A new report shows a sharp increase in the number of 'low-doc' borrowers struggling to keep up with their mortgage repayments as interest rates rise.

Adjusted for loans that passed from being in arrears to being settled because the property was sold, the percentage of prime loans more than 90 days in arrears increased from 1.33 per cent in the June quarter to 1.37 per cent in the three months to the end of September.

However, Fitch says self-employed borrowers have been hit hard, which has pushed arrears among prime low documentation loans to a record 3.97 per cent - slightly higher than the previous peak of mortgage delinquencies in this segment reached during the peak of the financial crisis in the December quarter of 2008.

The associate director in Fitch's structured finance team James Zanesi says higher mortgage repayments appear to be hitting the self-employed sector much harder than employees.

"The three consecutive cash rate hikes ending in May 2010 modestly affected Australian prime mortgage performance in the third quarter of 2010. Households have demonstrated some stability in spite of the higher mortgage payments," he said.

The very worst performance in the September quarter continued to be amongst the closest equivalent Australia has to subprime loans - 'low-doc, non-conforming' borrowers.

The arrears rate amongst this group was 18.94 per cent, although it makes up a relatively tiny proportion of Australian mortgages.
Progression of Rot

Australia is starting to get hit hard but the important word in this sentence is starting. Rot starts at the edges and the outside periphery (subprime and low-doc), then spreads to the core.

The party is now over as I mentioned in Partied Out: A Recap of Australia's Now Imploding Housing Bubble; Property Bull Offers Jeremy Grantham $100m Housing bet, Party is Not Over

US Graphs, Statistics

Here is a nice set of US stats and graphs from the LPS Mortgage Monitor: October 2010 “Dashboard” that depicts where Australia will eventually head.

Total Delinquencies



Delinquencies remain about 2.7 times historical average, foreclosure inventories are 7.4 times and rising.




October Month-End Data: Conclusions

  • Foreclosure inventories continue to grow, the rise in delinquencies remains subdued as a result.
  • Accelerated foreclosure activity has led to a rapid decline in agency delinquencies. Foreclosure inventories have risen dramatically as a result.
  • Most western states have experienced a decline in the total 30 day and foreclosure inventory over the last six months.
  • The issue of current loans going delinquent remains, however more and more sixty day defaults are repeats.
  • Modification dominated seriously delinquent cures have declined over the last several months but still remain elevated.
  • More six and 12 month delinquent loans are moving to foreclosure, but the extremely delinquent category continues to grow.
  • Foreclosure sales dropped sharply, down 35 percent nationwide. Impact was across all investor categories.
  • Origination activity continues to accelerate with the government percentage declining. High quality lending is yielding the best vintage performance in years.

The housing rot in OZ has just started and it's a long way to the core. But it will get there. Australia can look forward to similar stats in years to come.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
Click Here To Scroll Thru My Recent Post List







Jennifer Love Hewitt appears topless in the promotional material for her new television show, The Client List.


If this is the way of getting the attention of male viewers, I’d say that it might just work. What do you think?


The show is about a former beauty queen named Samantha Horton who takes a job at a massage parlor when her family faces foreclosure on their home. She has to help with the bills when her husband suffers an injury that keeps him from working.


She soon learns that her clients might just be looking for a happy ending….



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Ben Sherwood - ABC <b>News</b> | Attack Video | Mediaite

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Wednesday 8 December 2010

Affiliate Making Money


You remember how ObamaCare was all about making health care more affordable and protecting the most vulnerable, right?


And, surely you remember how much money and resources (i.e., members’ dues) the purple behemoth known as the Service Employees International Union (SEIU) put into the fight for ObamaCare—even going so far as (allegedly) beating Kenneth Gladney at a St. Louis town hall meeting.


Heck, it was SEIU’s then president Andy Stern who pushed for the tactic known as “demon pass” that gave us final passage of ObamaCare, formally known as the Affordable Care Act.


Well, somehow we missed this last week:


One of the largest union-administered health-insurance funds in New York is dropping coverage for the children of more than 30,000 low-wage home attendants, union officials said. The union blamed financial problems it said were caused by the state’s health department and new national health-insurance requirements.


The fund is administered by 1199SEIU United Healthcare Workers East, an affiliate of the Service Employees International Union. Union officials said the state compelled the fund to start buying coverage from a third party, which increased premiums by 60%. State health officials denied forcing the union fund to make the switch, saying the fund had been struggling financially even before the switch to third-party coverage.


The fund informed its members late last month that their dependents will no longer be covered as of Jan. 1, 2011. Currently about 6,000 children are covered by the benefit fund, some until age 23.


The union fund faced a “dramatic shortfall” between what employers contributed to the fund and the premiums charged by its insurance provider, Fidelis Care, according to Mitra Behroozi, executive director of benefit and pension funds for 1199SEIU. The union fund pools contributions from several home-care agencies and then buys insurance from Fidelis.


Of course, when it comes to the SEIU, it must be someone else’s fault.


The union said in a statement that the state required the fund to participate in a new program — the Family Health Plus Buy-In Program — beginning in 2008. The union said it expected that by joining the program, many of its members would qualify for state assistance for health-insurance coverage. “Instead they raised insurance rate increases without any increase in funding, and then cut Medicaid funding to the same workers nine times in the last three years,” the union said in a statement.


And, more importantly, the union expects someone else to pay for their mistakes lobbying efforts.


We hope the state of New York will do the right thing and provide the funding necessary for this most vulnerable population of direct caregivers,” the union said in a statement.


Karma. It has such a nice ring to it. Yet, it seems just too kind of a word to describe the SEIU’s dilemma.


It’s sort of like the SEIU made a big batch of Kool Aid, and now the members’ kids are the only ones drinking it.


[There's only so many waivers one can get from reality.]


[h/t Big Dog]


__________________


“I bring reason to your ears, and, in language as plain as ABC, hold up truth to your eyes.”  Thomas Paine, December 23, 1776


X-posted.


For more news & views on today’s unions, go to LaborUnionReport.com








A milestone reached by mobile music discovery service Shazam: the company says it has come good on its promise and reached 100,000 users, picking up 25 million in the last six months alone.



The figures do not break out how many of those are active users, as opposed to those who have dipped into the service once and never again.

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But there is evidence that it is making a good return on those who do manage to stay for longer: the original, core service of Shazam lets users enter a snippet of music into an app, or via a mobile website - the service is available via Android, BlackBerry, BREW, iPhone, iPad, J2ME, Symbian and Windows - which Shazam then uses to find the full track. In January Shazam said it was referring 260,000 users to affiliate sites like iTunes on a daily basis as a result of those searches.



Although Shazam has been around for a decade already, it is only in the last few years, with the takeoff in mobile data and smartphone usage, that the service has really come into its own.



This year, Shazam has been moving well beyond its music roots, using the “audio fingerprint” as a way of unlocking other kinds of content. Shazam has partnered with brands in marketing campaigns, and with television shows from the likes of NBC (NYSE: GE) and HBO, to let users “Shazam” clips from ad campaigns and programs to be led to further content: along the lines of an aural version of QR codes.



It has also been trying to further exploit its market footprint by also selling advertising real estate around its own apps: earlier this month it launched expanding ad services, selling the entirety of its inventory to Universal Music until the middle of January, 2011.



While Shazam announced it was profitable back in October 2009, it is still mulling what might be the next step. The company previously told paidContent that it would consider an IPO, more recently Will Mills, head of music and content for Shazam said the company wasn’t focussing on who would buy the company.






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bench craft company scam

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