macroeconomics professor – from the internet that makes sense
I asked an old Macroeconomics professor of mine to comment on the current state of the economy, and clear things up for me, since most articles I have read have either a strong liberal or conservative spin to them. This is his beautifully crafted reply. Warning, economic terms incoming… you can google things that you [...]
Seth Klarman – Baller – We haven’t learned from 2008
In these annual-letter excerpts, from VII, investing legend Seth Klarman explains why he believes no long-term lesson have been learned from 2008, defends short-selling, and describes the two key elements to investment success. … Two problems are upon us at once: short-term stimulus that is unaffordable over the long run and runaway entitlements that must be [...]
Cullen Roche = Baller Status $$
I would argue that looking at a govt’s balance sheet is misleading. You need to judge a govt’s effectiveness by the prosperity of its citizenry. Govt doesn’t exist for its own benefit. It is not a profit generating entity. So it shouldn’t be run like one. The ratings agencies need to be more precise [...]
Warren Buffett is defrauded and doesn’t know it! $$
Buffett’s – BYD = chinese fraud http://www.grist.org/list/2011-07-22-warren-buffets-crazy-like-a-fox-plan-to-revive-americas-auto-ind
Bubble Trouble – My favorite prescient person – Andy Xie
By ANDY XIE The current generation of decision makers was raised in a string of bubble economies. This environment has greatly influenced their sense of balance between a bubble economy and growth. Every time a bubble bursts, they can save the economy by creating another bubble, so they have no fear of bubble economies fueled [...]
china debt
http://mpettis.com/2011/07/incentives-and-debt/ want to start this newsletter with a story that may be fairly illustrative of one of the problems within the Chinese economy that I worry about. There was anarticle in last Sunday’s edition of the South China Morning Post about a real estate project in Guangdong. (WC Fields’ was supposed to have [...]
Bye bye commodities commodity long-only who buy to hold are going to experience a > 50% drawdown (from current levels) on their industrial metals, crude oil and agricultural positions sometimes in the next 12-18 months.” The catalyst: China.
Industrial commodity bulls may be advised to steer clear of the latest quarterly commodities update by Global Tactical Asset Allocation’s Damien Cleusix whose conclusion is that “Most commodities remain deeply overvalued.” Specifically, “As with other assets it does not really matter in the short-term (as long as the trend is positive) but it is paramount [...]
sustainability of global bailouts
sure. everyone in my opinion is pretty much undercapitalized (everyone meaning public sector) and banks… the bailout today is absolutely a sign of the times. everyone who can do basic math can prove that greece is insolvent and knows that they just dont care but.. bailouts are sustainable as long as the people providing them [...]
The Greek Scam goes for another year!
The Big Fat Greek Gravy Train: A special investigation into the EU-funded culture of greed, tax evasion and scandalous waste By ANDREW MALONE Last updated at 9:09 AM on 25th June 2011 Comments (243) Add to My Stories Share Even on a stiflingly hot summer’s day, the Athens underground is a pleasure. It [...]
China conducts emergency liquidity experiments as crisis erupts
China Conducts Emergency Reverse Repos To Calm Money Market Liquidity, Fails, As 2 Week SHIBOR Hits 8.6% Submitted by Tyler Durden on 06/20/2011 23:24 -0400 People’s Bank Of China Reverse Repo Yesterday, when we pointed out the surge in the overnight SHIBOR, many were quick to dismiss this dramatic contraction in liquidity, because it happened to be [...]