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Global Stock Markets: We All Fall Down!

Yes, thanks. That was a lot of nice information consolidation, I imagine it took quite a lot of work to bind it into a coherent picture.

And that picture isn't pretty. Unrelentingly grim seems to be a more apt description. And yet, I don't think we're at a bottom yet. I get the impression the 'crowd' is just waiting for the turn up so they can jump back on the escalator. We haven't had a downturn this severe for a long time, but I've read that the bottom is always a time of capitulation. If that is true, definitely *not* at the bottom here.

Given the breadth of the bad news, it also seems that this is a global phenomenon, a working out of the imbalances in the system. How can there be a developed economy with zero interest rates for over a decade? How can the country driving industrial growth in the world have a severely undervalued currency and fund its customers with loans for over a decade? How can commodity prices shoot the moon with no effect on the world economy?

Can the players prop it up for a while longer? They are certainly trying. But sayings about straws and camel's backs come to mind. The one item too many being juggled. Interesting times.

Emerging Markets Infrastructure Is Booming

I haven't got a problem with most of your article, but this piece seems unlikely.

You say that by 2010 the emerging world will have more GDP than the developed world.

Rough numbers:

US 15 Trillion
EU 17 trillion
JA 7 trillion
AU, CA, NZ, etc 3 trillion

World economy 60 trillion

You are saying that in two years the developing world will produce 20 trillion dollars more of GDP. How?

China 3-4 trillion, hard to say because of communism
India 1-2 trillion

All others smaller.

Do you have a link or paper reference? What statistics are you referring to?

Asset Class Correlations

In the third chart, the vertical column of correlations for 10-yr is marked as slightly less correlation in the column, but largely less correlation in the row with the same numbers. The inverse is true of the yen, the column disagrees with the row, though for increased correlation.

The numbers are the same, so I guess this is just coloring error.