Le jour de gloire est arrivé! ($10 gas in Paris)

At least for some of my less adroit friends.
From ZeroHedge:

The $10-Per-Gallon Gas Has Arrived, In Paris

 In early December, Christophe de Margerie, CEO of Total, the Exxon à la Française, shocked the French when he said that there was "no doubt" that a liter of gasoline would reach €2 and that the only question was when. He cited the calamities in the news at the time to justify the skyrocketing prices of oil and gasoline—source of Total’s mega profits. He was talking his book, obviously, which isn't illegal, not even in France.

And now, €2-per-liter gasoline has arrived! More precisely, it has arrived at a gas station in the Rue Saint-Antoine in Paris, not far from the Bastille, in the 4th arrondissement. I used to walk by it every day an eternity ago when I lived in “le Marais” as the arrondissement is called. It’s a tiny gas station with rip-off prices by a parking garage entrance. And now it had the audacity to be the first in France to charge €2.02 per liter. $10 a gallon....MORE

"Rise of the Machines: New Technology May Spell the End for NYC’s Bottom-Rung Lawyers"

From New York Magazine's Daily Intel:

It's probably not exactly what Shakespeare had in mind, but new technology is threatening to put New York's growing subclass of mercenary drudge work lawyers out to pasture.

The Southern District of New York recently became the nation's first federal court to explicitly approve the use of predictive coding, a computer-assisted document review that turns much of the legal grunt work currently done by underemployed attorneys over to the machines. Last month, U.S. Magistrate Judge Andrew J. Peck endorsed a plan by the parties in Da Silva Moore v. Publicis Groupe — a sex discrimination case filed against the global communications agency by five former employees — to use predictive coding to review more than 3 million electronic documents in order to determine whether they should be produced in discovery, the process through which parties exchange relevant information before trial.

The task of combing through mountains of emails, spreadsheets, memos and other records in the discovery process currently falls on a legion of "contract attorneys" who jump from one project to another, employed by companies like Epiq Systems. Many are recent grads who are unable to find full-time employment, or lawyers laid off during the recent recession.

Scan. Point. Click. Repeat. That’s the job. Contract attorneys are paid by the hour to sit in front of a computer and review a mind-numbing sequence of uploaded documents. There are cramped, sunless rooms in law firms throughout the city, with rows of computers piled one on top of the other, and constant uncertainty as to how long each particular stretch of employment will last....MORE

HT: peHUB

Tips for CEO's: How to Gun Those Stock Options

From Dilbert.com:

Psst...do a buy-back. Take the R&D savings and do a buyback.

Climateer Line of the Day: What's that? Someone Left Goldman? Edition

To Goldman:

 

"You don’t have clients anymore; 

all you have are counterparties."

-Epicurean Dealmaker

HT: Abnormal Returns

I don't really give a rat's ass about Mr. Smith, his former employer or commentary on same.

I hope Smith uses his last bonus and starts an NGO and that I find a trade to take GS deep.

"Health Insurance Premiums Will Surpass Median Household Income in 2033: Study"

It's not the premiums it's the underlying cost.
The politicians got the conversation onto premiums during the debate on Obamacare and never addressed the underlying costs. I could go on about third-party payors and cost shifting and...
Another day perhaps. Here's U.S. News and World Report:

If current trends continue, health insurance premiums will surpass the median U.S. household income in 2033, a new study says.

Using data from the Medical Expenditure Panel Survey and the U.S. Census Bureau, researchers calculated the premiums paid by Americans from 2000 to 2009 and compared them to incomes. They found that insurance premiums rose 8 percent from 2000 to 2009, while household incomes rose only about 2 percent.
If those same rates continue during the next two decades, the average cost of a family health-insurance premium will hit half of median household income by 2021 and surpass it by 2033, the study found.
The median household income was $49,800 in 2009.

The study is published in the March/April issue of the Annals of Family Medicine.

The calculations in the study include all premium costs -- including the portion paid by the employer and the employee. What the projections don't include are out-of-pocket costs, such as co-pays for treatments and drugs....MORE

UPDATED--Reuters Exclusive: "U.S., Britain to agree emergency oil stocks release"

Update: never mind.
Original post:
The world is run by idiots.
The administration brain-trust didn't let the price get high enough for this move to work. As Central banks know, you must time your interventions for maximum impact. Catch an inflection point and you can get market forces (read: margin clerks) to do the work for you. The buyers have more greenbacks than the government has oil (thanks Ben, Mario), so you have to catch them in an overextended position before you cut 'em off at the knees.
WTI futures down a buck at $104.43.

From Reuters:

Britain has decided to cooperate with the United States in a bilateral agreement to release strategic oil stocks, two British sources said, in an effort to prevent high fuel prices derailing economic growth in an election year.

A formal request from the United States to the UK to join forces in a release of oil from government-controlled reserves is expected "shortly" following a meeting on Wednesday in Washington between President Barack Obama and Prime Minister David Cameron, who discussed the issue, one source said.
Britain would respond positively, the two sources said.

"We regularly consult with the British on energy issues and any discussion that we had was in that context. We will continue to monitor the situation and consult with them and others," an Obama administration official said.
Rising world oil prices, up to $125 a barrel for Brent crude, have pushed gasoline prices up sharply this year and threaten to choke economic recovery ahead of Obama's bid for re-election in November....MORE

"It's Dark Days for Coal and Power Sectors" (KOL; BTU; ACI)

From the WSJ's Ahead of the Tape column:

To the uninitiated, "dark spreads" sound unpleasant—like ugly splotches found on mens' shirts on a muggy day. And right now, they aren't even fun for executives in the coal and power industries, especially as unseasonal warmth makes them sweat.

In those industries, the bigger the dark spread, the better since these are a measure of the wholesale margin power plants earn by burning coal. These spreads have shrunk or turned negative amid a glut of natural gas and waning electricity demand.

Thursday's weekly reports on power generation and rail transport from the Edison Electric Institute and American Association of Railroads, respectively, will likely add to the gloom. Year-to-date, U.S. electricity generation and the volume of coal transported by rail were off by 5.4% and 7%, respectively, compared with a year ago.

After a brief golden period, coal-fired power has faced a perfect storm since 2008. Looming environmental rules, sharply lower gas prices and a collapse in electricity prices have made dozens of mostly older coal plants uneconomical or not worth upgrading. Coal's share of power generation is at its lowest since 1979. Another 14% of coal-fired capacity might be switched off in favor of natural-gas turbines this year, according to Barclays Capital.....MORE

Previously:
March 11 
Natural Gas and its Threat to the U.S. Coal Industry (BTU; ACI; ANR; PCX)
Jan 27 
The Economist:"the end of America’s coal era" and "Asian Coal Demand Buoys Peabody; Arch, Kinder Morgan Team On Exports" (BTU; ACI)

The Natural Gas Limbo: How Low Can it Go?

"Remember When Natural Gas Was 1.15 in the Early 90′s…"

Why yes, yes I do.
I had a friend who became obsessed with how cheap Natty had become and started accumulating exploration targets. He sat and sat on them, sometimes selling off a bit to cover expenses.
He did alright but because of the long holding period his annualized returns weren't eye-popping.
Timing isn't everything but it can make a difference when the number crunchers are figuring your 2/20.

We've been babbling about sub- $2.00 gas for a few months now, with a May-June time frame.
The U.S. has already seen open-choke production, the next EIA report will show a downturn.
The problem is storage which will be at capacity within 60 days or so. When that happens we may see gas in the cash market changing hands for $1.80 or a bit lower. Meanwhile the exploration companies are faced with the awful choice of completing wells that they've thrown cash money into and immediately shutting them in or dumping the gas onto the summer market for whatever it will fetch. Stay tuned.
Last I saw the front-month futures were at $2.245.

Here's Dragonfly Capital with an even lower target:

Remember When Natural Gas Was 1.15 in the Early 90′s…

Back on January 26th I speculated in this space about whether the bottom was in for Natural Gas or not (link below). The answer since the has been a resounding NO! as is sits back at the previous low near 2.24 trying to make a Double Bottom as shown on the daily chart below. But other than the prospect for a Double Bottom the daily chart points to even lower prices in the future. The consolidation is also a bear flag which would give a target of 1.70 if it were to breakdown lower. The Relative Strength Index (RSI) remains bearish and the Moving Average Convergence Divergence is



negative, although improving. The weekly chart does not give any reason to rush out to buy it either....MORE

Infographic: Where The Average American Spends Their Money

Are you a Consumer Unit?
From Visual Economics:

(click to enlarge)

HT: The Atlantic's Money Report special feature.

The iPad of 1935

From Smithsonian Magazine's Paleofuture blog:

The book reader of the future (April, 1935 issue of Everyday Science and Mechanics)

There’s no denying that devices like the iPad, Kindle and Nook have dramatically changed the way that many people consume media. Last year, online retailer Amazon announced that electronic book sales had surpassed print book sales for the first time in history.

The future of the book has quite a few failed predictions in its wake. From Thomas Edison’s belief that books of the future would be printed on leaves of nickel, to a 1959 prediction that the text of a book would be projected on the ceiling of your home, no one knew for sure what was in store for the printed word.

The April, 1935 issue of Everyday Science and Mechanics included this nifty invention which was to be the next logical step in the world of publishing. Basically a microfilm reader mounted on a large pole, the media device was supposed to let you sit back in your favorite chair while reading your latest tome of choice.

It has proved possible to photograph books, and throw them on a screen for examination, as illustrated long ago in this magazine. At the left is a device for applying this for home use and instruction; it is practically automatic.

Additional text accompanying the illustration reads, “You can read a ‘book’ (which is a roll of miniature film), music, etc., at your ease.”...MORE

Shipping: Pandora's Box Research Hatin' on Golar LNG Ltd. (GLNG; GMLP)

GLNG closed yesterday today at $39.44 off 68 cents while GMLP closed at $35.85.
From the Box:

We believe Golar LNG Limited (NASDAQ: GLNG, referred hereunder as “GLNG” or the “Company”) and Golar LNG Partners LP’s (NASDAQ: GMLP, referred hereunder as “GMLP” or the “LP”) (together also referred to as the “Group”), are extremely overvalued and therefore we initiate coverage with “Sell” for both. The recent share price of more than $47 for GLNG and a unit price of more than $38 for GMLP are significantly higher than their fair market value of $22.5 per share and $8.25 per unit.
The following are the main reasons for our recommendation:

• The Group has demonstrated over the years that it has poor earning’s quality. GLNG’s historical dividends where based almost entirely on one-time items. The LP is engaged in a Ponzi like scheme in which it focuses investors’ attention to its cash distributions while approx. 50% of this distribution is actually a repayment of invested capital, as the depreciation of the vessels is a real cost to investors. The “real” yield to investors of the GP is only about 1.9% vs. a current yield of the 20 year United States Treasury of approximately 2.65%.

• The Group has a history of poor corporate governance, related party transactions and front
running by its insiders. In addition, the Group has found a new source for profits and cash for
expansion - its subsidiaries. GLNG has shifted vessels from one company to the other at inflated prices based on “independent” valuation advice provided by the underwriter of its subsidiary’s IPO.

• Valuation and comparable transaction in the market do not support the current share and unit
price. Current prices are driven by Sell-Side analysts’ “Buy” recommendations which are based on flawed models and short term market dynamics and which fail to take into account the long term economics of the LNG shipping business. Comparable vessels have been recently traded at prices less than half the value implied by the market price for GLNG’s and the LP’s vessels. The current shortage of vessels is expected to end by 2014 as in 2013 and 2014 more than 60 vessels (15% of the current market) will be delivered - meaning that current prices will drop to their historical equilibrium levels. ...MORE (35 page PDF)

I can usually make an Investment Policy Committee-level pitch in under 35 pages. I think the shortest was "It's a good one, it's going higher". That said, and in spite of the fact that this reads like an advocacy screed, I'll read anything that might have some value.
Here's Barron's on the report:

Shortsellers Down On Golar LNG and Its Limited Partner

An independent research outfit called Pandora’s Box Research recommended selling Golar LNG ( GLNG), a Bermuda-based shipping company engaged in the transport, re-gasification and liquefaction of natural gas, and a related entity, Golar LNG Partners (GMLP), which is a limited partnership that owns and leases floating storage, re-gasification and LNG carriers.

Pandora’s Box researchers, who are not named, have short positions in the stocks, according to its online report, in PDF format.  The call got a lot of chatter after Muddy Waters Research, well known for its own short calls on Chinese smallcaps, mentioned it on Twitter....MORE

Repost: It's Albert Einstein's Birthday!

We first used this on March 14, 2009:

Also known as Talk Like a Physicist Day.
A reader emails:

How do I talk like a Physicist, a primer

From: TalkLikeAPhysicist.com

Thanks doc!

Again, thanks.

Top Political Contributors 1989-2012

From OpenSecrets.org:

LEGEND:   Republican    Democrat    On the fence
	= Between 40% and 59% to both parties = Leans Dem/Repub (60%-69%) = Strongly Dem/Repub (70%-89%) = Solidly Dem/Repub (over 90%)

Rank	Organization	Total '89-'12	Dem %	Repub %	Tilt
1	ActBlue	$58,511,226	99%	0%
2	AT&T Inc	$48,196,209	44%	55%
3	American Fedn of State, County & Municipal Employees	$47,347,798	92%	1%
4	National Assn of Realtors	$41,687,376	47%	49%
5	Service Employees International Union	$38,083,375	75%	2%
6	National Education Assn	$37,937,219	80%	5%
7	Goldman Sachs	$37,343,517	58%	39%
8	American Assn for Justice	$35,673,179	88%	8%
9	Intl Brotherhood of Electrical Workers	$34,821,537	97%	2%
10	American Federation of Teachers	$32,833,966	89%	0%
11	Laborers Union	$32,409,200	88%	7%
12	Teamsters Union	$31,523,128	89%	6%
13	Carpenters & Joiners Union	$31,309,258	85%	10%
14	Communications Workers of America	$31,155,767	92%	0%
15	Citigroup Inc	$29,296,314	49%	49%
16	American Medical Assn	$28,001,911	40%	59%
17	United Food & Commercial Workers Union	$27,877,255	92%	0%
18	United Auto Workers	$27,771,752	98%	0%
19	National Auto Dealers Assn	$27,427,258	32%	67%
20	Machinists & Aerospace Workers Union	$27,179,227	98%	1%
21	United Parcel Service	$26,394,907	36%	63%
22	Altria Group	$25,738,382	27%	72%
23	American Bankers Assn	$25,386,990	39%	60%
24	National Beer Wholesalers Assn	$24,664,545	34%	65%
25	EMILY's List	$24,644,559	98%	0%

...MORE