GE is Not too Big Anymore. To Fail, That is.; Diamonds Need a New Best Friend; Kellogg’s Wants to Make Cereal Great Again;

On your own…

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Image courtesy of kibsri/FreeDigitalPhotos.net

You can rest easy now as GE no longer poses a systemic threat to the financial stability of the United States. Phew. Three months ago, GE officially requested to unload its “Too Big to Fail” designation and voila! Shedding close to $200 billion in assets helped it achieve that lofty goal. Unfortunately, none of those dollars made their way to me. But I digress. With the Financial Stability Oversight Council voting unanimously to remove the label, officially called “Systemically Important Financial Institution” (or SIFI if you’re nasty), GE no longer requires lots of added, and presumably unwanted, scrutiny from the Federal Reserve. So now, nobody cares if it fails. Well, maybe just its employees and shareholders. And if it does (but why would it?), the government won’t have to throw at it a $182 billion taxpayer-funded bail-out like it did for AIG. Boom.

A girl’s best friend?

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Image courtesy of Boykung/FreeDigitalPhotos.net

It’s called the Lesedi la Rona and is the second biggest diamond mined. Ever. Clocking in at 1,109 carats, about the size of a tennis ball, so they say, this behemoth of a stone is only second to the Cullinan diamond that was discovered more than one hundred years ago. The 3,106 carat Cullinan, however, was cut cut into several polished stones and now shares a very posh home with the British Crown jewels. The same fate could not be said for this latest find. Last night Sotheby’s tried to auction the darn thing off, but the 3 billion years old diamond couldn’t even clear its $70 million reserve price. The rock was expected, according to some estimates, to fetch about $84 million with the bidding starting at $50 million. The bidding went up – “in strained pauses” – in increments of $1 million. But after fifteen minutes, the highest bid only came in at $61 million. Lucara, the Canadian company that owns the precious rock, saw its stock fall 18%  after the news that it failed to sell. Sadly, for the diamond industry anyway, prices for rough diamonds have fallen 18%, the most its fallen since the fiscal crisis of 2008.

Snap, crackle, pop…

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With cereal sales hitting the skids, falling by 1% this year, Kellogg’s has come up with a way it hopes will make cereal great again – cereal cafes. For about double the price of your average box of Apple Jack’s you can walk into Kellogg’s Cereal Cafe in Times Square (where else?) and order yourself a hearty bowl of Froot Loops accompanied by mini marshmallows and passion fruit jam. Yeah. You read that right. Or how about some Rice Krispies doused in green tea powder, fresh strawberries and ice cream. You didn’t see that one coming did you? Sounds swanky and that’s definitely the idea. Cereal sales have gone down 2.4% in the past four years, getting overshadowed by grab-n-go foods and being shunned by that pesky group we call Millennials. Cereal sales fell to about $10 billion in 2015, which might seem impressive except that way back in 2000, cereal sales came in close to $14 billion. According to research firm Mintel, 40% of Millennials could not be bothered with the clean-up required to eat a bowl of cereal and milk. However, 82% of that group still see cereal as a great snack sans the milk. Go figure. Next time you get the urge for a bowl of Special K mixed with Frosted Flakes, pistachios, lemon zest and thyme at 8:00 at night, then you’re in luck. The cafe, which opens July 4, will serve breakfast from 7:00 am until 11:00 pm.

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