Tom the Money Man

The Role of Exponential Growth in a Finite World

Well written note Dirk. I've had this issue on my mind for years but have found it difficult to get anyone to listen to all aspects of it. Most of my mates quickly grasp the upside of Emerging Markets growth opportunities but not the risk issues of resource depletion (water, food, energy, etc.).

The Power of Unintended Consequences: SuperFreakonomics, by Steven D. Levitt and Stephen J. Dubner

I wrote on the subject of incentives and the subprime crisis two years ago. I see the impact of incentives every day and they are indeed very powerful.

I enjoyed Freakonomics so I will eventually have a quick read of Super Freakonomics. I hope it comes with the CD of Super Freak. RIP Rick James.

Interesting Times: From 40% Below the 200 Day Moving Average to 20% Above

Interesting chart, comment and replies. Also can't help feeling markets are 'frothy' but I took a punt and recently bought a Nov 09 call option on the ASX 200 index. I always seem to have a mental wrestling match - attempting to reconcile where I think it will go (correction coming) to where I think all the other market participants will actually take the market. With great trepidation, I bet on momentum continuing a little longer.....partly because I just can't see a whole lot of stimulus being removed for a while yet. I suppose I secretly like the continuing 'tickle' that stimulus appears to be giving to the markets. On fundamentals I feel pretty nervous but 'nothing ventured, nothing gained.' I probably should have studied pysch at university.

'Garbage to Consumption Ratio' Shows What's Wrong with Economics Today

Thanks for bringing this up. I've thought previously about waste as an indicator of consumption (not wealth). Packaging waste is an indicator of goods consumed. My view is that people who consume are not usually those with high net worth although they can be people with good cash flow. Part of the trick to wealth building is actually hanging on to some of your cash flow and growing the number of cash flow sources. Consuming is one means of destroying wealth (or handing it over to someone else). Cheers!

What's Keeping the Dollar Down?

Interesting view. If the facts are correct, one would have to agree that the overall financial position and current direction places the AAA rating at risk.

Similarly, like a business, there is emerging competition for reserves as indicated by the increase in holdings of the Euro.

Like a business with a crumbling monopoly, it takes some very clever action to hold on to some of what you had.

Buy Companies That Sell What People Need

I agree. I'd still do some fundamental analysis to confirm the stock is not over valued but most millionaires I know built wealth by creating companies that sell what people need and often have little choice in consuming irrespective of the economy or the price.