Bloomberg:
- A “bubble” in crude oil, natural gas and other commodity prices cost the US more than $110 billion last year and helped drive the nation into economic crisis, according to a report by hedge fund president Michael Masters. “The effect was to take an already weak and frail economy and push it down the stairs,” Masters, head of Masters Capital Management, and Adam White, director of research for White Knight Research & Trading, say in a report at a hearing this morning of the House Agriculture Committee, which is reviewing derivatives legislation proposed by its chairman, Democratic Representative Collin Peterson of Minnesota. If there were rules in place to limit speculative positions in the commodity markets, “there never would have been a commodities bubble in 2008,” Masters and White conclude.
- SPDR Gold Trust, the largest exchange-traded fund backed by bullion, increased its outstanding shares by 39% since Lehman Brothers collapsed, more than double the gain in gold, as investors sought a quick way to safety. “History shows at times of pronounced financial and economic stress, investors disregard traditional pointers such as gold’s price relationship with currencies and physical bullion flows and focus on a safe place to park assets,” analysts including Melbourne-based Malcolm Southwood wrote. “This assertion is well supported by the latest surge in interest in gold ETFs.” Though gold remains one of the few notable beneficiaries of heightened anxiety in financial markets, its attraction may not last as the precious metal “has rarely sustained a rally during periods of deflation,” the report said. The Intl. Energy Agency’s forecast that oil could decline to just above $30 per barrel “could be viewed as an early warning for perpetual gold bulls,” the report said.
- Bank of American’s(BAC) Lewis said January performance was ‘encouraging.”
Wall Street Journal:
- Google’s(GOOG) Latitude, Useful Addition to Maps Applications. (video)
Politico:
The Detroit News:
CNNMoney.com:
Interfax: