Earlier this summer we noted Uber's staggering 2Q cash burn of $600 million which equates to roughly $7 million in net cash outflows every single day. The staggering, and consistently growing, cash burn figures resulted in several mutual funds announcing they would slash their valuations of the struggling rideshare company by up to 15%.
Authored by James Rickards via The Daily Reckoning,
To paraphrase one of the great gems of Wall Street wisdom, “Nothing infuriates a man more than the sight of other people making money.”
That’s a pretty good description of what happens during the late stage of a stock market bubble.
The bubble participants are making money (at least on a mark-to-market basis) every day.
For the past couple of weeks we've written frequently about the sudden political turmoil in Saudi Arabia that resulted in two Saudi princes being killed in a span of just 24 hours and dozens others being detained on charges of corruption while having their bank accounts frozen. Here are couple of our most recent background posts on the topic:
Authored by Daniel Nevins via FFWiley.com,
Forget about big hair, Ray-Bans, and Donkey Kong. Don’t even think about Live-Aid, Thriller, and E.T. Above all else, the 1980s were the gravy days of the money supply aggregates.
Authored by Simon Black via SovereignMan.com,
In early March 1938 in a dusty corner of the Arabian desert, Max Steineke finally had the breakthrough he was hoping for.
Steineke was the chief geologist for the California Arabian Standard Oil Company (CASOC), a venture owned by what we know today as Chevron.
And he hadn’t had a lot of success despite years of effort.
Steinke was convinced that massive oil reserves were beneath the sands. He just couldn’t find any.