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VituVingiSana
#111 Posted : Tuesday, December 08, 2009 7:58:54 AM
Rank: Chief

Joined: 1/3/2007
Posts: 18,371
Location: Nairobi
Isn't tea a far larger market/export for Kenya vs coffee?
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
karanjakinuthia
#112 Posted : Tuesday, December 08, 2009 4:35:05 PM
Rank: Member

Joined: 11/13/2006
Posts: 551
Location: Nairobi
@ VituVingiSana

Yes, tea is a larger export earner than coffee. Kenya has been a dominant player in the tea sector. For a few years, tea producers were guilty of oversupply the global market resulting in diminished profits. On the other hand, the Kenyan coffee sector has been mired in dwindling profitability and declining production.

Fortuna, the Roman goddess which we derive the term "fortune", has been kind to the commodity sector with coffee lagging the performance of wheat and corn. The low in the sector has been marked by long suffering farmers cutting their coffee trees for horticulture etc.

Please review the long term chart below:

http://www.mrci.com/pdf/kc.pdf
VituVingiSana
#113 Posted : Wednesday, December 09, 2009 4:28:41 AM
Rank: Chief

Joined: 1/3/2007
Posts: 18,371
Location: Nairobi
So a better bet would be for Co-op to hitch along for the ride with tea Farmers. Of course, the coffee deal is also good!
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
karanjakinuthia
#114 Posted : Wednesday, December 09, 2009 9:45:40 AM
Rank: Member

Joined: 11/13/2006
Posts: 551
Location: Nairobi
A Greek Tragedy is unfolding. Debt ridden developed nations are finding increasingly difficult to raise funds in the international debt markets. Portugal, Ireland, Greece and Spain (PIGS) as well as the Eastern European bloc have elisited downward revisions on their debt status and raised concerns on their budgets going forward.

Increasing destabilisation of nation states will all the more lure investors into gold as a hedge.

"The ongoing global financial and economic crisis has, in our opinion, exacerbated an underlying loss of competitiveness in the Greek economy," said the credit-rating agency. The country was placed on negative watch just days ago.

The moves comes days after a €2.5bn (£2.2bn) debt sale by Greece that was entirely issued at short-term rates, much of it in three-month notes. Such an action is highly unusual for wealthy countries tapping the sovereign bond markets. It suggests that Athens fears that investors may be unwilling to purchase long-term bonds in the current climate....."

Read more:

http://www.telegraph.co....ades-sovereign-debt.html
karanjakinuthia
#115 Posted : Wednesday, December 09, 2009 10:04:42 AM
Rank: Member

Joined: 11/13/2006
Posts: 551
Location: Nairobi
The take home lesson from ex-Fed Chief Paul Volcker is "If you fail, fail. I'm not going to help you. Your stock is gone, creditors are at risk, but no one else is affected.". No wonder he's been sidelined post crisis as he would have left the over-the-counter derivatives laden investment and commercial banks fail. Wall Street's bedfellow Washington would have found that too unpalatable.

"The former US Federal Reserve chairman told an audience that included some of the world's most senior financiers that their industry's "single most important" contribution in the last 25 years has been automatic telling machines, which he said had at least proved "useful".

Echoing FSA chairman Lord Turner's comments that banks are "socially useless", Mr Volcker told delegates who had been discussing how to rebuild the financial system to "wake up". He said credit default swaps and collateralised debt obligations had taken the economy "right to the brink of disaster" and added that the economy had grown at "greater rates of speed" during the 1960s without such products...."

Read more:

http://www.telegraph.co....erivatives-industry.html
karanjakinuthia
#116 Posted : Wednesday, December 09, 2009 4:17:35 PM
Rank: Member

Joined: 11/13/2006
Posts: 551
Location: Nairobi
Where art thou green shoots? Stunted they may seem with President Obama calling for an extension of the stimulus package into next year.

"Dec. 8 (Bloomberg) -- Moody’s Investors Service said the top debt ratings on the U.S. and the U.K. may “test the Aaa boundaries” because public finances are worsening in the wake of the global financial crisis.

“The deterioration has been pretty severe,” said Pierre Cailleteau, managing director of sovereign risk at Moody’s, in a Bloomberg Television interview in London. “We expect a pretty strong policy response in the next couple of years in order to keep the debt in the Aaa range. We expect them to bend but not to break....”

Read more:

http://www.bloomberg.com...087&sid=ag5Azr1XuakI
karanjakinuthia
#117 Posted : Wednesday, December 09, 2009 6:30:11 PM
Rank: Member

Joined: 11/13/2006
Posts: 551
Location: Nairobi
Tin hats all round. The ratings agencies are on a downgrading frenzy.

"Après l’Islande, le déluge

Not to be outdone by its rivals at Fitch, who on Tuesday downgraded the sovereign rating of the Hellenic Republic of Greece, Standard & Poor’s on Wednesday revised its outlook on the Kingdom of Spain to negative from stable.

From the statement:

* We are revising the outlook on the Kingdom of Spain to negative from stable, and affirming the ‘AA+’ long-term and ‘A-1+’ short-term sovereign credit ratings.

* Compared to our expectations when we lowered our rating on the sovereign in January 2009, we now believe that Spain will experience a more pronounced and persistent deterioration in its public finances and a more prolonged period of economic weakness versus its peers...."

Read more:

http://ftalphaville.ft.c...ins-outlook-to-negative/
karanjakinuthia
#118 Posted : Thursday, December 10, 2009 5:49:45 AM
Rank: Member

Joined: 11/13/2006
Posts: 551
Location: Nairobi
Now that gold has paused for breath after a thundering run, a review of its long term fundamentals are in order. Please review the article below for that very purpose:

"The problem with paper money is that governments can create unlimited amounts. This is what they have done throughout history and especially in the last 100 years and which has led to the total destruction of most currencies. Most people don’t even understand that their government makes their money worthless. Money printing gives them the illusion of being richer whilst all they have are pieces of paper with more zeros on them. But there is one currency that governments can’t print which is gold. Gold has been real money for almost 5,000 years and it is the only currency that has survived throughout history. Gold can’t be printed and no government controls it. Therefore gold will, over time, always reveal governments’ fraudulent actions in creating money out of thin air. And this is what we are experiencing currently. Gold is not going up. Instead gold is doing what it has always done, namely maintaining its value and purchasing power...."

Read more:

http://matterhornassetma...er-money-is-going-down/
karanjakinuthia
#119 Posted : Saturday, December 12, 2009 9:32:51 AM
Rank: Member

Joined: 11/13/2006
Posts: 551
Location: Nairobi
HEDGE FUND'S ROASTING ON AN OPEN MARKET FIRE
(The Christmas Song)
WilliamBanzai7

Hedgefunds roasting on an open market fire
Investors sure to get the hose
Alpha carols being sung to the wealthy choir of the dumb
And regulators dressed up like Eskimos

Everybody knows the hedge hog turkeys and
Madoff's ponzi scheme help to make the seasons blight
SEC examiners with their eyes all aglow
Will find it hard to sleep tonight

They know that billions of losses are on the way
The markets are loaded with cash cows for slaughter
Its the Wall Street way
And ev'ry wealthy grandmother's
Child is gonna spy to see if
Quants and X Wall Street traders really know how to fly

And so, I'm offering this
Simple phrase to investors from
One to ninety-two
Altho' it's been said many times
Many ways
Merry Redemptions to you
karanjakinuthia
#120 Posted : Sunday, December 13, 2009 6:55:30 AM
Rank: Member

Joined: 11/13/2006
Posts: 551
Location: Nairobi
Uh oh! This can't be good.

"ALBANY, N.Y. — Gov. David Paterson said Wednesday that New York has run out of cash and he's directing budget officials to reduce state aid payments to schools, local governments and nonprofit service providers until things improve.

Speaking at the Museum of American Finance in Manhattan, Paterson said he'll probably get sued, but he won't let the state run out of money on his watch.

"I am directing the Division of the Budget to limit payments so that we will have the cash to pay our debts at the end of December," Paterson said. "I will continue to withhold payments until this economy is leveled off."

"Now New York has run out of cash," he said. "You can't spend money that you don't have...."

Read more:

http://www.huffingtonpos...rk-has-run_n_386403.html
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