U.S. Dollar Trading (USD) ended the week on the backfoot as the Euro rallied on Greece bailout talk from Germany and commodities put on a solid performance. Q4 GDP was revised higher to 5.9% from 5.7%. Of Concern though was the drop in January Existing Home Sales by -7.2% adding…
Multiplication of Money
February - 28 - 2010
John Mauldin submits:
Where Is All that Greek Gold?
Last week I mentioned the (what seemed to me and much of the world) odd incident of Greek politicians talking about the need for Germany to pay its debts to Greece. I got this response from a Greek reader. Comments afterword.
"Dear Mr. Mauldin,
Payrolls, quake, ISM may steer stocks (Reuters)
February - 28 - 2010
Payrolls could give the U.S. stock market some direction this week as investors comb through the key report on one of the economy’s weakest areas.
Euro Drives People to Extremes
February - 28 - 2010
IndexUniverse Europe submits:
By Matt Hougan
Like many of us, I’ve been reading deeply about the Greek crisis, brushing up on the finer points of the Lisbon Treaty and generally studying all things euro over the past few weeks.
Buy China Yuan ETFs at Your Own Risk
February - 28 - 2010
ETF Database submits:
As job loses continue to mount in the United States–first-time claims for unemployment insurance recently rose by 22,000 to a seasonally adjusted 496,000–many political officials and ordinary citizens are looking for creative ways to stem the seemingly never-ending loss of jobs. One of the hottest issues in recent weeks has been China’s currency policy, which many feel has been grossly manipulated to give the country a significant advantage in the global economy. Some argue that the yuan is undervalued by as much as 40%, an advantage that makes it virtually impossible for American manufacturers to compete with cheap Chinese exports.
As a remedy to this practice, the Obama administration has threatened (and implemented) several tariffs on a variety of Chinese imports. Moreover, Obama has made an effort to hold his ground against an increasingly important economic superpower, approving arms sales to Taiwan and meeting with the Dalai Lama, drawing Beijing’s ire and raising the possibility of a trade war with China. As Obama has ratcheted up the pressure over a variety of issues, Congress has now joined the yuan / dollar debate as well. Earlier this week, 15 Senators sent a letter to Commerce Secretary Gary Locke criticizing him for failing to look into allegations that China is manipulating its currency and thereby unfairly subsidizing its export industries. While all of this political posturing may look good for constituents, it has done little to influence the policies of the rising Asian superpower.
Growth vs. Return on Capital: The Chinese Dilemma
February - 28 - 2010
At times it is instructive to go back in time and read some of the seminal pieces which describe the mood of that day. Worst case, you get a reminding glimpse of the prevailing thoughts (and giggle at their naïveté), but if you are lucky, you uncover a long forgotten treasure that provides you with timeless insight.
I recently stumbled upon Krugman’s 1994 piece, “The Myth of Asia’s Miracle.” Brushing aside the discussions surrounding the honesty of the statistics of the Eastern block, a perceivable faster growth rate in these economies was a worry to the West in the 1950s/1960s. Similarly, the contemporary thinkers were fretting about the Asian growth in the 1990s (when Krugman was writing). Yet one should not forget that it is the nature of production: the more inputs you throw at it, the more you will get out. Yet the basic law of economics, diminishing returns, start setting in. This means that there is a limit to input driven growth. On the other hand, we know that natural and sustainable growth path of per capita income is driven by a rise productivity.
Interview With Accuray Founder, Dr. John Adler
February - 28 - 2010
Matthew Rafat submits:
Dr. John Adler recently left Accuray’s (ARAY) Board of Directors. Below is his departure letter and a personal interview:
Friends and colleagues,
Notes From Apple’s 2010 Shareholder Meeting
February - 28 - 2010
Matthew Rafat submits:
Apple, Inc. (AAPL) held its annual shareholder meeting in Cupertino, California on February 25, 2010. Apple offered shareholders only coffee, tea, and water. Steve Jobs attended the meeting in his trademark jeans (with holes in the right knee area) and black turtleneck. Although he looked noticeably thinner than two years ago, he appeared healthy. Al Gore also attended the meeting, and he looked like he was in great shape (unlike previous years, where he appeared to be a tad overweight–perhaps recent Democratic victories have improved his health).
Much of the meeting focused on environmental issues. One person argued that if the science is right, then nothing else matters, and Apple needed to be more environmentally-conscious. Another shareholder summed up the issue by saying, "Pollution is waste, waste is inefficiency–it’s as simple as that."