Tuesday, August 18, 2009

Federal Reserve


The Fed has continually, and I believe mistakenly, focused on interest rates rather than reserves. The Fed just announced a July increase in bank reserves at the Fed. That should put upward pressure on stock prices and lift consumer spending. That is where I think the programs should be focused on increasing reserves. Lending helps the economy grow but not reckless lending.

Sunday, August 2, 2009

Sir Richard Branson


My first reaction was some oil rich guys are dreaming. But wait, this is the same group that invested $2.7 billion in Daimler and became the largest shareholder. Maybe they are dreaming like a fox. Look at their objectives--tourism capital of the world and center for scientific research and innovation. That is pretty heady. Then there is Sir Richard Branson who has built a very large fortune and owns Virgin Group. He looked at Formula 1 and decided that the Brawn group had become too costly. Probably not a bad move because you should only pay so much to play. This is not play. Dig more into Virgin Galactic, the group Aabar Investments spent $280 million for a 32% ownership, and you find Burt Rutan. He is the brilliant aeronautical engineer who built the winner in the 2004 race to build the first commercial ship for space travel. It was his company that built Virgins Galactic’s first space ship the current test mule White Knight Two and the next one Spaceship Two. Both have flown well. I think you've got a winner in commercial travel in space. Good luck and God’s speed.

Try this. A little different. I think the venture is a winner. They also have deep pockets.