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George Liu  

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  • Lessons From The United Kingdom [View article]
    Hi Freddy,

    The sterling would not have experienced a precipitous plunge without Osborne's austerity measures. Now, if the U.K. were in the Eurozone, then that could perhaps be a different matter as it wouldn't have control of its own currency. But it does, and countries with control of their own currency have proven significantly resilient to currency depreciation. Take Japan for example. It has a 230% debt-to-GDP ratio and its yen, until a few months back, was one of the strongest currencies in the world. The only reason it has weakened somewhat as of late is because of an increased aggressiveness of monetary and fiscal stimulus by the BoJ and Abe's government.

    And furthermore, a precipitous plunge for the sterling wouldn't be bad. In fact, a plunge in its value would actually be good for the U.K., especially in this economy. For one, inflationary expectations will increase aggregate demand and get people to spend more (knowing that their pound will be worth less in the future). Moreover, a weaker sterling will give the UK's exports significant competitive advantage as they will be cheaper relative to the goods of other countries.
    Jan 27, 2013. 02:26 PM | 1 Like Like |Link to Comment
  • Lessons From The United Kingdom [View article]
    Hi Alltee,

    I am not advocating a policy of stimulus for the long-term. I am advocating the implementation of stimulus policies when a country is in a recession. When the country gets out of a recession and sees its economy expand, then there will be more revenues generated for the government to pay off its debt more effectively. When an economy is overheated, I can be as much a deficit hawk as anyone else. Unfortunately, right now, the U.K's economy is anything but overheated. Taking more government spending out of the equation will decrease AD even more, pulling the U.K. further into a recession (as has happened).
    Jan 27, 2013. 02:18 PM | 1 Like Like |Link to Comment
  • Lessons From The United Kingdom [View article]
    Hi James,

    Yes the deep declines from 2008-2009 for the UK looked bleak but that can be attributed to the financial crisis. However, as you can see, the United Kingdom was actually rebounding from the crisis until Osborne's austerity measures were implemented. And yes, Greece has corruption problems, but the United Kingdom does not. Interestingly enough however, both have seen their economies significantly set back by austerity measures.
    Jan 27, 2013. 02:14 PM | 1 Like Like |Link to Comment
  • Starbucks' Announcement [View instapost]
    Starbucks has announced it it will acquire Bay Bread for $100M and will integrate Bay Bread's La Boulange products into its stores. This appears to be a nod to the blowout success of Panera Bread.
    Jun 6, 2012. 09:37 PM | 1 Like Like |Link to Comment
  • The China Conundrum [View article]
    The Chinese government, as Mr. Gee has pointed out, does have a much wider array of tools to manage its economy; it is currently in the process of trying to "pop" the bubble as gradually as it can. However, it remains to be seen whether or not this process is ultimately successful.
    Feb 21, 2012. 09:53 PM | 1 Like Like |Link to Comment
  • Should You Invest In Linsanity? [View article]
    thinking ahead,

    Thank you for the correction!
    Feb 14, 2012. 06:29 PM | Likes Like |Link to Comment
  • China's economy may be headed for a "rough landing," says Singapore PM Lee Hsien Loong. "They've built a lot of infrastructure ... a lot of capacity in many industries, autos, some of the electronics industries," he points out, channeling his inner Jim Chanos.  [View news story]
    His interview with Fareed Zakaria during the WEF did include him saying this quote, but this quote is completely misconstrued since it is taken out of the broader context of his interview, which, as Venerability notes, actually says the opposite. Why doesn't this market current note that Mr. Loong also pointed out that the migration of millions to urban areas in China will be a continued source of positive growth?
    Feb 5, 2012. 02:08 PM | 3 Likes Like |Link to Comment
  • Private investors stick to a Facebook (FB) valuation of close to $100B, according to new trading data released from Sharespost. Facebook shares traded at $40 a pop - compared to a $34 share price from a previous auction completed on Jan. 24 before the firm filed its S-1 with the SEC. [View news story]
    Supporters of Facebook will point out that Facebook has completely revolutionized communication in the 21st century.

    Critics of Facebook will wonder if this revolution is overpriced and unsustainable.
    Feb 5, 2012. 03:27 AM | 3 Likes Like |Link to Comment
  • Ross: Weathering The Economic Gloom [View article]
    Hey Ricard,

    Thanks! Yea buying during that period could have easily resulted in at least a double-bagger. Props to those who bought it in the wake of the '08 recession, rode it down to $11, and continued to stay in.
    Jan 6, 2012. 08:22 PM | Likes Like |Link to Comment
  • Will Greece Revert To The Drachma? [View article]
    Hi johnbee,

    Nice observation. I believe this is because of two main reasons. One, many Greeks still strongly believe in the principle behind the Euro and the notion of European unity, which they believe will provide many benefits (e.g. bailouts as you have noted and financial backing) in the long run. Also, most of the Greeks believe that, as portrayed by contemporary Greek media and the Greek government, going back to the drachma will result in the unfolding of an economic calamity, an alternative that they hold would be much worse and create much more instability than embarking on the current path.
    Jan 3, 2012. 02:32 PM | Likes Like |Link to Comment
  • Why Investors Need To Know About Neodymium [View article]
    Hi David,

    Neodymium has always been in scarce supply and been tightly regulated by the Chinese government. However, neodymium prices have been tumbling regardless of the fact that it is a rare earth metal; from the August to December timespan, it has lost approximately 45% of its value. Your thoughts?
    Jan 3, 2012. 03:18 AM | 1 Like Like |Link to Comment
  • Will Greece Revert To The Drachma? [View article]
    Hey Ricard,

    I can definitely see where your train of thought comes from. By your definition of mercantilism, the idea that Greece needs to be internationally competitive certainly does imply pro-mercantilist policies. I tend to classify mercantilism on the basis of certain actions a country takes, e.g. trying to eliminate dependence on foreign suppliers, weakening foreign competitors' commercial interests, and exporting more than importing. The action of Greece reverting to the drachma, or any country changing their currency isn't mercantilism per se, but the mindset that the country needs to be "more competitive vis a vis its peers" is definitely mercantilist, at least by your definition. Thanks!
    Jan 2, 2012. 07:27 PM | 1 Like Like |Link to Comment
  • Will Greece Revert To The Drachma? [View article]
    Hey Ricard,

    Not necessarily pro-mercantilist; in fact pro-mercantilist mechanisms are more geared toward isolationism and self-sufficiency. I am by no means implying that Greece should turn to a policy of isolationism; instead, I simply pointed out that if it were to switch to the drachma, this would give it greater autonomous control over its currency systems. International competitiveness can come from a lot more alternatives than pro-mercantilist policies.
    Jan 2, 2012. 03:10 PM | 1 Like Like |Link to Comment
  • Will Greece Revert To The Drachma? [View article]
    Hey richard,

    Yea I just realized it was quite redundant. Thanks for pointing that out!
    Jan 2, 2012. 03:02 PM | Likes Like |Link to Comment
  • Eurozone Roundup: Despite Greek Doom, Some Positive Developments [View article]

    Thank you for pointing that out! It was actually revenues from paid services that dropped 21.6 percent.


    I am sorry if my wording in the article implied that Dryships was a Greek company; I meant to say that Dryships had a "considerable vested interest" in Greece, which it does.
    Dec 31, 2011. 08:00 PM | 1 Like Like |Link to Comment