Email of the day (1)
Comment of the Day

May 16 2011

Commentary by David Fuller

Email of the day (1)

On the film about banks - 'Inside Job', and Fujishima:
"I hope you are well and had a relaxing weekend. I went to the Odeon Panton St to see 'Inside Job' which is a documentary interviewing some of the players involved in the run-up to the 2008 crisis. It was recommended by Jeremy Grantham in his latest quarterly letter and as he says, it has plenty of squirming in it but to my mind, no real contrition or even recognition of the importance & scale of what they have done. I see no catharsis & so I expect no change of heart from the bankers or the establishment. Anyway, you still have a chance to see it next weekend before it goes.

"Secondly, I saw this rather unsettling video item yesterday which made me wonder whether the situation at Fukushima still has the potential suddenly to erupt into the headlines and whether the uranium miners (where I am nursing losses, having invested too late, through timidity) might not have yet seen their lows.

"I always enjoy listening to your audios and I get from them much more than economic information. Your personality shines through them and gives me the feeling of listening to a friend I haven't met yet. I appreciate your calm, politeness, warmth and good sense and in some ways you are a role model to me in a way I might have hoped from my own father. I try to pass on something of this to my own children. We must all try to learn; we must all try to grow. Thank you for your contribution."

David Fuller's view Thank you for the film recommendation, Fukushima video link and your lovely comments.

Eoin and I both feel an affinity for the Collective of subscribers, not least due to the positive feedback we receive. This inspires us in the effort to do the best we can on your behalf.

I would like to see 'Inside Job' at some point and may pick it up from Amazon.

Fukushima is a disaster, being a costly lesson in obsolescence and mismanagement, including obfuscation. Fortunately, no one has died from the plant's radiation to date but the economic consequences for Japan are obviously severe and long lasting.

I think uranium miners have mostly discounted Fukushima, although they could easily move somewhat lower because the timing of the next upturn is uncertain. I expect a lengthy convalescence for the sector but some long-term investors are already nibbling on weakness as other drift away. I have no intention of selling at today's levels and may eventually increase my positions in uranium miners. In terms of timing, a lot depends on what the price of uranium does. I have seen worse looking charts.

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