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Friday 23 January 2015

Yaala! FPM on Davos 2015 and ‘Weaponisation’

Fossil Fuel Investment Sponsors Can Frack-Off!

("You're 'Avin A Laugh Alright!" a.k.a YAALA! - In this FPM digest written in a concise nature than our regular exhaustive deliberating posts, we aim to share some of our fund- and investments-related observations and activities. We anecdotally question and challenge established wisdom.)

In the below Bloomberg interview video we present a disingenuous investor in alternative shale gas who is clearly marketing to "greater-fool" buyers / investors: he doesn’t want to be left holding the baby! Evidence of our claim is that he used analogy of “throwing away the baby with the bathwater” to describe sell off in shale-related securities with its obvious built-in-flaws.
 Oil Price Fall Is a Trader-Driven Decline: Sam Zell (Source: Bloomberg)

However, “feeling-before-knowing” about Mr Zell’s creed of person, we understand he is not the only one blowing the bubble in shale-gas related investments. From our Reputation Risk Activism based on our surveys we intend to expose others we believe are shamelessly making money from  moulding environmental human misery. The lead liquidity-funding sponsors in the shale gas bubble-blowing cabal, who tend to act in hierarchical heard-mentality, are usually the bigger fish in the pond. Enter David Rubinstein of the Carlyle Group. From the video excerpt Carlyle apparently have long-term investors succoured into various fund vehicles.
 Distressed Energy Debt `Attractive': Carlyle's Rubenstein  (Source: Bloomberg)

FPM have been actively recommending divestment of fossil-fuel energy companies, and SWITCHING into renewable-fuels focused companies. Since our recognition and realisation of the URGENCY of ecological threats about climate change, this is becoming less of a long-term strategy and more an exigent one. These financial billionaire sponsors do not worry about such environmental risks, as they would economically buy valuable safe havens on planet earth or elsewhere, which is not affected by the eco-Armageddon scenario. The other indispensable short-term factors adding to the volatility in this bubble-blown shale gas asset are political, regulatory and social movements, a.k.a geo-political concerns. We expect to share our quantitative analysis of SELL, SWITCH recommendations in energy companies.

E.U. Estrangement Before The Divorce (a.k.a Volatility)

FPM have been mooting the impractical nature of sewing-up into one collage the disparate countries of the initial European Union format, and worse still, the subsequent expanded mosaic mess oc now! Taking as example an aspect of over-reach in bureaucracy and flawed fundamental premises of the structural implementation of EU rules, it is inevitable that imbalances cannot continue indefinitely. Even with tinkering around the fringes of key principles to keep the unification ideology afloat while increasingly financially stressed. We expect to see more Government defaults, and not just ‘club-med’ countries in the EU zone but major ones. 

It may be esoteric knowledge that one of the so called tenets of EU treaty is that the “freedom of movement of people within member nations” was devised when the wealth parallels of members was similar. Nowadays it is impracticable that emigration from Poland or Romania to more prosperous countries can be controlled. Thereby labour mobility and its infinite supply distorts economic imbalances in member countries, such as creating deflationary cycle, i.e. excess supply of workers keeping wages subdued. Such business-friendly corporation effect doesn’t mitigate social environmental side-effects, such as on the country of destination of migrants where the quality of life is squeezed for its citizens. FPM’s staunch belief in eventual EU breakup is as committed as when George Soros famously broke the Bank of England. 

Below Blackstone Group’s new vice chairman John Studzinski diplomatically yet unequivocally articulates the estrangement phase of the shot-gun wedded partners of the EU trading bloc as increasing “volatility”. Events are evidentially unravelling the EU; the verdict does not come at once but the proceedings should build into it.