Skip to main content

The Panama Papers

Talk about major breaking news!

Probably the most interesting part of the whole "shit storm" is the role of Nevada (yes yes the state -- next door to Las Vegas), which has become one of the primo cash hiding place in the world.  The Americans, playing their usual sanctimonious bullshit games, failed to ratify the bank disclosure rules they imposed on everybody (starting with the Swiss) and so that, today, one of the most attractive haven for hot money is the US.  Really that's so amusing  

The slow trickle of named names that will now come out and where all their trades are exposed; how they hide the money they stole; starting with "Putin" and going on down the list.  It reminds me of Mit Romeny's generous contribution to his church, nearly 15% of all his income went to the Mormon Church -- except he didn't really.  What Romney did, and this is perfectly legal, is set aside 15% of his gross revenues (before taxes) and put them in a trust -- that had as beneficiary his church, expect a little loophole allows him to reverse his gift.  Moreover, Romney payed himself a salary to manage his money that he may, or may not, give to his church.

Now the stuff coming out of Panama is financial porn; so far nearly 70 current or former heads of state's hidden wealth has been exposed and will have to be explained -- Putin was always smarter and used a friend as his go between -- he can always have his friend, arrested, tried, hung and the assets returned to the state!  

Good stuff; (a) the mighty and powerful have been shown to be cheaters (big surprise) (b) the Americans have been shown be be hypocrites (another surprise) and (c) its the gift that keeps on giving -- some of the people who were caught turn out to be the very "enforcers" of wealth disclosure (e.g. France's ex minister of IRS)...


Priceless



Comments

Popular posts from this blog

Trucker shortage? No a plan to allow driverless rigs

There are still articles on how America is running out of truckers -- and that its a huge problem, except its not a problem, if it was a problem salaries would rise to so that demand would clear. Trucking is one of those industry where the vast majority of participants are owner/operators and therefore free agents.

Salaries and cost are extremely well know, "industry" complains that there are not enough truckers, yet wages continue to fall... Therefore there are still too many truckers around, for if there was a shortage of supply prices would rise, and they don't.

What there is though is something different; there is a push to allow automatic rigs to "operate across the US", so to encourage the various authorities to allow self driving rigs you talk shortage and hope that politicians decided that "Well if people don't want to work, lets get robots to do the work" or words to that effect.

This has nothing to do with shortage of drivers, but every…

Every punter says oil prices are on the rise: Oil hits $48/bbl -- lowest since September 2016

What the hell?

How could this be, punters, advisors, investment bankers all agreed commodity prices  in general and oil prices in particular are on the rise...its a brave new era for producers and exporters -- finally the world is back and demand is going through the roof, except not so much!

What happened?  Well energy is complicated, the world operates in a balance -- 30 days of physical reserves is about all we've got (seriously) this is a just in time business.  So the long term trend always gets hit by short term variations.

Global production over the past 12 months has risen by somewhat less than 1.5% per annum.  As the world market changes production becomes less energy intensive (maybe), but the reality is that the world is growing more slowly -- America Q4 GDP growth was around 1.9% (annualized) Europe is going nowhere fast (the GDP growth in Germany is overshadowed by the lack of growth in France, Italy, Spain (lets say 27 Euro members generated a total GDP growth of 1.2…

Paying for research

This morning I was reading that CLSA -- since 2013 proudly owned by CITIC -- was shutting down its American equity research department -- 90 people will be affected!

Now the value of a lot of research is limited, that is not to say that all research is bad. In fact, I remember that GS's Asia Aerospace research was considered the bible for the sector.  Granted, there was little you could do with the research since the "buy" was for Chinese airlines...that were state owned.  Still it was a vey valuable tool in understanding the local dynamics.  It seems that the US has introduced new legislation that forces brokers to "sell" their research services!  Figures of $10,000 an hour have been mentioned...

Now, research can be sold many times; if GS has 5000/6000 clients they may sell the same research 300x or 400x (I exaggerate) but this is the key -- Those who buy the research are, I presume, prohibited from giving it away or selling it, at the same time the same rese…