ZTE

Total Rating:
0 / 0

2 Comments

    • Mon Mar 24th 12:46 PM | Rating: 0 0
      Commented on:
      The Fed: On the Cusp of Moral Hazard
      A billion here, a USD 100 billion there, another USD 30 billion to act as a guarantor of any mishaps in the Bear Stearns portfolio, and then the release of USD 200 billion in excess capital by a change in the capital reserve requirements for Fannie Mae and Freddie Mac. And another USD 25 billion for another US government agence that can now guarantee about USD 300 billion in mortgages.
      By the time you add what the UK and European Central Banks have done, the total amount of printing and guaranteeing will be over USD 1 trillion.
      Printing money – or creating money – is the ultimate power of the central banks. And of politicians. Promises are made, and to pay these bills, currency notes are printed. Problems arise in the financial system and, to rescue the foolish, currency notes are printed. This is worrying.
      View article »
    • Tue Feb 26th 14:06 PM | Rating: 0 0
      Commented on:
      When Will China Overtake the U.S. Economically?
      On China it would appear to be the case that you belong to one of two camps, the believers or the sceptics. Interestingly, a lot of the believers are Johnny-come-latelys. They were sceptics in 2003 but have now become hooked on teh fast growth drug.
      I think that the policies that led to the US Boom are the same ones that have resulted in the largest US housing bust in 70 years, that are forcing widespread recapitalisation oft teh western financial system and that have produced the biggest malinvestment boom China ever has known. Yes, Easy-Al is the composer of the current Chinese boom too. But he had plenty of help from the maestros in Beijing that have refused to see (and still do) the consequences of distortionary monetary and exchange rate polices. Like Confetti-Al, they will find out that the only difference between boom hero and bust villain is that most misunderstood economic concepts, time.
      Look at the Hong Kong Red-Chips-Mania of 1997 and you'll have clue where the Chinese A-share markets are heading to.
      View article »
Loading...
Symbols:
Authors:
Quick Links:
Contribute an Article Become a Seeking Alpha Contributor

Transcripts

More Transcripts»