Monday, November 24, 2014

Yet another empty Chinese city - New York version

Stumbled across another empty Chinese city, this one thanks to @TheCreditBubble and his blog post

He so kindly provided a video link showing the full scale of the project.  While some may claim there is progress and construction still going on, please compare the level of activity to the massive size of the project.

Here's a Google Maps screenshot of the place.  Just look at all those skyscrapers that need to be filled.

So what happens when all those skyscrapers go up, no one fills them, and the 'need' for more slows down? Iron ore prices fall back into the earth

ht @soberlook

Thursday, November 20, 2014

Weather and Energy - Hurricane free for another year

The continental US made it another year without a hurricane making landfall. (Winter snow storms are another matter!)

How many more years will the US extend this streak before we get slammed by another one? I have no idea, but it will eventually happen.

A lack of past volatility can lull people into a false sense of security and that's when one can lose quite a bit of money (and lives as well as property in this case)

Some are even opining (Washington Post, 2014 October 7) the recent lack of hurricanes creates a dangerous future situation, and there's some credence to that.

The catastrophic bond market is something I've examined over the years as an alternative asset class but haven't invested any capital in this area yet. We've been in a relatively benign environment and pricing for risk has dropped in this area (sound familiar?)  I'd rather wait for a some 'volatility' to re-enter the system before dipping my toe into this area. examines this a little more

We've been recently lucky with hurricanes. This will eventually end.