Crude Oil = $98; Gold = $845

The Fed recklessly abandons their price stability mandate, and this is what it has wrought: Dollar at record lows, oil and gold near all time highs.

It is the first rule of economics, yet so many idiots pundits cannot seem to to remember it: THERE IS NO FREE LUNCH.

In physics, the corollary is that "every action has an equal and opposite reaction." Why this is too complex for their little frontal lobes is beyond me. It is simple. It is basic. It is easily understood by even supply siders.

Think about all of the brainiacs who have been begging for rate cuts — and from historically moderate rates — over the past 2 years. Be sure to thank them for the reckless disregard for your wallet.

Hey, how’s your core inflation doin’ these days?

>

Crude (December contract):9860_crude

 

Gold (December contract):Gold_844

>

UPDATE: November 7, 2007 9:21am

Maybe there’s some hope for the dollar: 

Within the Fed, Resistance to Further Rate Cuts    http://www.nytimes.com/2007/11/07/business/07fed.html 

>

Sources:
Oil Rises Above $98 to a Record on Forecasts U.S. Supplies Fell
Grant Smith and Nesa Subrahmaniyan
Bloomberg, Nov. 7 2007c
http://www.bloomberg.com/apps/news?pid=20601087&sid=aOhoSjcKJhcY&

Dollar Slumps to Record on China’s Plans to Diversify Reserves
Agnes Lovasz and Stanley White
Bloomberg, Nov. 7 2007
http://www.bloomberg.com/apps/news?pid=20601087&sid=aMPLuto8wxK4&

Category: Commodities, Currency, Energy, Federal Reserve, Inflation, Markets

Eagles Disintermediate Major Labels, ITMS

Eagles_055819

The Eagles — the multi-platinum selling alt country/rock band circa 1970s — are trying an interesting sales strategy for their first studio album in 28 years.

For the new disc, it appears that there is:

- no recording label participation;
- downloads at their site only;
- physical 2-CD Set purchased only at Wal-Mart, or ordered at their site ((Eaglesband.com).

2_their_greatest_hits

The band cranked out over 700,000 discs in the first week — not too shabby for a double disc.

For you young ‘uns, the album Eagles: Their Greatest Hits 1971–1975 is the all time best-selling album in the U.S. (according to the RIAA); Their album Hotel California is #18 on the all time top selling list).

What’s really interesting is the downloading — the double disc is available for in two formats: MP3 256k for $10.88, and in FLAC lossless for $11.88, directly from the band’s website. 

I am not sure, but it appears that both the labels and Apple’s iTunes have been cut out of the picture.

(I’ll update this as I learn more)

>

Update: November 7, 2007 5:52am

The Eagles made a
direct exclusive deal with Wal-Mart for physical album — no label involved.

The band
sold the album to Wal-Mart on a one-way basis (meaning, no returns). 

1_hotel_californiaMy anonymous industry source adds:

"If memory
serves, I believe they bought 3.6M units at $8 or $9.  The Band pays
manufacturing costs and publishing (most of which goes to themselves as writers)
and keeps the rest. Pretty nice haul. I haven’t confirmed with the
manager, but I believe the downloads are being done by the band through their
site only."

Again, no iTunes, no labels . . .

>

Sources:

Eagles
Wikipedia
http://en.wikipedia.org/wiki/Eagles

Top 100 Albums   
RIAA 
http://www.riaa.com/goldandplatinumdata.php?table=tblTop100

Revised Chart Policy Lands Eagles At No. 1
Mitchell Peters
Billboard, November 06, 2007, 8:30 PM ET
http://www.billboard.com/bbcom/news/article_display.jsp?vnu_content_id=1003668840

Previously:

JT bypasses the Labels   
http://bigpicture.typepad.com/comments/2004/12/james_taylor_by.html

Read More

Category: Digital Media, Music

Headline of the Day: Electricity Deregulation

Category: Energy, Taxes and Policy

Crude Oil hits $97

Category: Commodities, Economy, Energy, Markets

Quote of the Day: The Xera

Category: Currency, Federal Reserve, Inflation, Psychology

S&P500 ex-Risk ?

Category: Corporate Management, Data Analysis, Derivatives, Earnings, Mathematics, Valuation

Inventions of the Year

Category: Technology

Humpty Dumpty Dollar

Category: Currency, Derivatives

Headline of the Day II: $1 Trillion!

Category: Commodities, Contrary Indicators, Energy, Valuation

Headline of the Day

Category: Contrary Indicators, Currency, Psychology