Goldman Sachs still in the headlines for all the wrong reasons

19-May-2010 | Reggie | Stocks US Markets USA

Goldman Sachs managed to further its reputation as one of the biggest villains of the United States even after having one of the world’s richest men stick up for it.  Many thought Goldman couldn’t be more evil after allegations they made bets against their own clients and US homeowners, but they may have found another way to tick off the world.  As the most successful firm on Wall Street many seek out Goldman for advice on how to make money as a trader.  If you would have followed the 11 recommendations Goldman analysts made last quarter, you would have lost money on 9 of those.

This came as quite a surprise to many after the phenomenal success Goldman had for itself over the same period.  Goldman made money every single day of trading over the first quarter.  This is apparently an issue that has come up before.  Back in 2007 the United States Senate questioned Goldman about whether they were better at making money for themselves than their clients.  So far the only response regarding the subject has been an inter-office email from Peter Kraus, the head of the Investment Management division to CEO, Lloyd Blankfein which read that individual clients occasionally make comments like “ur good at making money for urself but not us.”

This blog has been prepared by the Retire First Team. The blog expresses the opinions of the writers and not necessarily those of Retire First Ltd. Statistic and factual data are from sources Retire First believes to be reliable but their accuracy can not be guaranteed. This blog is furnished on the basis and understanding that Retire First is under no liability whatsoever in respect thereof. It is for informational purposes only and is not be construed as an offer or solicitation for the sale or purchase of securities. Retire First Ltd. And its officers, directors, employees and their family may from time to time invest in the securities discussed in this blog. This blog is intended for individuals where Retire First Ltd is registered as a dealer in securities.

Retire First is a member of the Canadian Investors Protection Fund.

Commission, trailing commissions, management fees and expense all may be associated with mutual funds. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. A recommendation of any of the mentioned investments would only be made after a personal review of individual portfolio. Third Party research has been used in formulating the writer's opinions.

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A Solution to the Gulf Coast Disaster?

14-May-2010 | kate | Agriculture Green Investing US Markets

BP is having a hard time finding a solution to contain their out of control oil well and it appears they  are running out of room after proposing an open forum to the public to come up with ideas to contain the disaster. Today, an interesting video came out of Florida, after a man demonstrated the hay, could be used to soak up the oil and is a green solution to this environmental disaster.

So to start lets explain what is going on right now.

Currently, BP is using oil booms to prevent the flow of oil. Oil booms are made up of several components; flotation member, fabric, ballast and oil absorbents. An example of an oil absorbent would be hair, both pet and human, which can hold up to 6 times its weight in oil.

So taking on the idea oil absorbent, that was easier to obtain than human hair, Darryl Carpenter, a Florida road contractor, came up with the idea to use hay, which has been used in road construction for years to soak up extra tar. Jumping to action, Carpenter called one of his subcontractors and got him to pour some oil into water, and see if the hay would soak it up. A few minutes later, he received some news “it works. It got every bit of oil out of the water.”

Carpenter has successful demonstrated how the oil can be soaked up from water with a little bit of hay, and that it can easily be collected and burned for energy on shore. Carpenter has also pointed out that the local shrimping boats (that are out of work) can be used to collect the floating hay (which never sinks) and return it to shore.  As well, since the oil sticks to the hay, it does not affect the shore line when it washes up. The washed up hay, can easily be cleaned up by the beach combing machines.

He contact BP, and did a demo for the high level executives late this weeks, and is waiting to hear back whether or not BP will move ahead with the oil containment solution that not only works, is actually a green idea.  Meanwhile, Walton county officials are hooked, and have already lined their shores with hay and are sending out barges filled with hay. The county has even invested in a hay blower, which they have set up in the water just off the coast line.

It is interesting to note that in 1969, there was an off shore rig blow out several miles of the Santa Barbara Channel, and well several oil dispersants were used including oil booms, the most effective was bales of hay. Hay was effectively used to contain the oil, and was washed up on shore and collected by volunteers and heavy equipment to be disposed of.

This blog has been prepared by the Retire First Team. The blog expresses the opinions of the writers and not necessarily those of Retire First Ltd. Statistic and factual data are from sources Retire First believes to be reliable but their accuracy can not be guaranteed. This blog is furnished on the basis and understanding that Retire First is under no liability whatsoever in respect thereof. It is for informational purposes only and is not be construed as an offer or solicitation for the sale or purchase of securities. Retire First Ltd. And its officers, directors, employees and their family may from time to time invest in the securities discussed in this blog. This blog is intended for individuals where Retire First Ltd is registered as a dealer in securities.

Retire First is a member of the Canadian Investors Protection Fund.

Commission, trailing commissions, management fees and expense all may be associated with mutual funds. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. A recommendation of any of the mentioned investments would only be made after a personal review of individual portfolio. Third Party research has been used in formulating the writer's opinions.

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One Year After the Stimulus

17-Feb-2010 | kate | US Markets USA

Today marks the one year since the US stimulus plan known as the American Recovery and Reinvestment act which totaled $787 billion dollars.

In the first year, ARRA has provided individual tax cuts, fiscal relief to states and financial add to those most directly hurt by the recession, which has added roughly 2.3% to America’s real GDP growth and helped the country retain almost 1 million jobs that would have been lost without the act.

Today, President Obama was pleased with the results of the program “We acted because failure to do so would have led to catastrophe. Our Work is far from over, but we have rescued this economy from the worst of this crisis. And (he plans) to leave an economy that is stronger and more prosperous that it was before.” Critics bring up the reference to the National Debt where our children will be paying our interest because of programs live the Recovery Act. But supporting the President was his right hand man, Vice President Biden who added that they believe without a question that the Recovery Act is working very well.

So let’s see where all this money went:

So far 57% of the 787 billion has been put back into the economy. The 454 Billion breaks down as follows:

334 billion obligated in spending (of that the administration has outlaid 179 billion)

119 billion in tax relief

What’s Next?

Year One of the recovery act was about “arresting the free fall and getting quick relief out the door” while Year Two will be about “making investments to set the stage for a much more lasting and broad based expansion”

In Year Two the Obama administration will be setting out a mix of federal spending split evenly between payments and projects such as developing major projects under local transportation and awarding funding to local government.  The goal is to send the 60% of the remaining funding to distressed areas to help rebuild their economies.

Meanwhile, one year after the recovery the markets have bounced off of last year lows but are currently dealing with a new turn in the tides as we begin to anticipate a slow couple months in that start of our recovery. TSX was up 4.6 points while the American Markets also closed up slightly.

This blog has been prepared by the Retire First Team. The blog expresses the opinions of the writers and not necessarily those of Retire First Ltd. Statistic and factual data are from sources Retire First believes to be reliable but their accuracy can not be guaranteed. This blog is furnished on the basis and understanding that Retire First is under no liability whatsoever in respect thereof. It is for informational purposes only and is not be construed as an offer or solicitation for the sale or purchase of securities. Retire First Ltd. And its officers, directors, employees and their family may from time to time invest in the securities discussed in this blog. This blog is intended for individuals where Retire First Ltd is registered as a dealer in securities.

Retire First is a member of the Canadian Investors Protection Fund.

Commission, trailing commissions, management fees and expense all may be associated with mutual funds. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. A recommendation of any of the mentioned investments would only be made after a personal review of individual portfolio. Third Party research has been used in formulating the writer's opinions.

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