Crude Oil At US$85/Barrel

Crude Oil has created a new high for itself by crossing US$85/Barrel mark. With winters approaching fast in the northern hemi-sphere along with strong global economic growth coupled with ever increasing dependance on this scarce commodity, is fuelling it's demand, and hence steep prices for this commodity. Agri commodities also are ruling high due to adverse weather patterns in fertile geographic locations, causing severe demand-supply mismatch.
Future for all these commodities looks bright, but for consumers it's a nightmare!

Global Warming And Asset Bubbles

Economic growth over the past century has severly taken a huge toll on world's eco-system and there is no sign of abating this mindless growth which solely considers industrialisation and commercialisation as the only measure of wealth and prosperity. With almost no realisation and remedial measures in place, and with almost zero political will to implement key environment protection methods, eco-system disaster can only degrade to such an extent that almost it's inevitable to see a sharp fall in asset prices which today are totally avoiding any fall out of a huge environment disaster like wiping out of a huge productive population from an entire continent, with crops across the globe not enough to feed all humans, with living conditions detoriating to such an extent that diseases will take a huge toll on working population and many more things which are today un-imaginable. Huge wealth will be destroyed in such disaster and aftermath will be very prolonged.
Therefore plicy makers should listen to experts in ecosystem so that corrective methods can be employed so that future is protected, without which there is no meaning of wealth. But super rich can argue that they can migrate to moon and mars in case earth goes into a turmoil!

Crude Is Boiling

Crude oil prices have surpassed important technical level of U.S.$77.50 per barrel mark today and is a cause for concern as it will along with rising food prices can give further boost to inflation, which has become central point for many central bankers across the world. Growth has not been dominating central banks monetary policy of late as excess liquidity is amply supplying credit to fuel growth, but rather asset inflation, especially food and fuel prices are grabbing their monetary stance.
U.S. markets are feeling pain after subprime mortgage mess and continue to suffer investor apathy. Asian markets are showing great resilience and are very close to their all time heighs.

Markets Fall Again

Markets have now again started showing signs of weakness with Dow Jones falling 280 points in yesterdays trading session with renewed fears of sub-prime mortgage defaults and bankruptcy among large hedge funds and financial institutions, also aiding the fall is low consumer confidence among U.S.consumers.
Asian stocks are also trading lower on the back of weak signals from U.S. markets. U.S.Fed now has to take several rate cuts this year so as to restore market and consumer confidence.
It seems worst hasn't come out from U.S.sub-prime mortage mess. And till then stocks will be hugely volatile. This credit crack can have potentially a drag on world economic growth which so far has been very good.
Uncertainty will prevail till then in the financial markets.
Buying in sharp falls in sectors and stocks with the strongest of business fundamentals will pay eventually. Yen is gaining strength against the dollar and is trading at 114 against it, it seems the yen carry trade un-winding is still underway and thus causing volatility in the financial system.

Japanese Central Bank Keeps Rates Unchanged

Today japanese central bank kept the interest rate unchanged at 0.5%. That's good news from yen carry trade perspective. Yen is trading at 116.27 against the U.S.Dollar and thus fear of dollar falling further against the yen is well contained at the moment. Equities are consolidating across the world after sharp sell off, commodities like copper, alumunium, lead, nickel, zinc, crude oil are also cooling. This is good news from inflation perspective but also raises the concerns about slowing economic growth in the developed world.