Phiota

More Terrible Trade Numbers from China

“We just need to boost consumption, whether it’s through domestically made goods or foreign-made goods. We will treat them equally without discrimination. Why in the current climate should we resort to protectionism?”

As an expat living in china for several years the above statement is not true since most if not all foreign made goods are taxed heavily and much more expensive then when purchase in the US and many other countries. As a example it costs about 2 times as much to purchase a Benz/BMW/Porsche in China then in the United States.

John

What role do America's lazy pupils and grossly underachieving school system play in shaping the economy? "They still find it hard to believe that all those Chinese students, beavering away at their books, will steal their children's jobs." (The Economist)

As an Expat in China I still find the average American in general is still more capable then the Average Chinese. The average American coming out of high school/college is more developed because of the culture in school/home forces for better or worse the person to grow up sooner. In China the students are told that the only important thing is doing well in school tests and the parents/system "baby" the children up to the last year of school so when they. come out of school they are less prepared to deal with the unstructured/self thinking challenges of the real world. That said the currency ratio between the USD and Yuan is 1:6.8 and in general the wages in the US/China for workers is about the same 1:6.8 ratio. So a chinese person can be much less productive and take longer to develop then an American and still be cost effective.

Three Dumb Things Foreign Companies Do in China

"but the truly affluent still go to Europe and Hong Kong to shop for high-end jewelry."

The main reason for this is because China has a high luxury tax on Jewelry. So as an expat in China I've heard many say why not take a "free" trip to HK/Overseas since the price of the expensive Jewelry difference vs shopping in China would cover the airfare/traveling cost.

In a move that's likely to amplify trade tensions and increase the likelihood of protectionism, Beijing unveils a Buy Chinese initiative that will force government agencies to buy local goods and services exclusively. Some are attributing the late-morning / early-afternoon weakness to this story.

This policy will probably be officially reversed in the next few days but in reality it will not be since the message has already been sent and received down the command structure. The local officials will know that it is to their own benefit (politically) to purchase China made goods.

Expat in China

Russia's Near Term Is Far from Rosy; Long Term Is Another Story

One long term problem for Russia especially is declining population and with that declining domestic growth.

Pre-packaged Bankruptcy Is GM's Only Option - Barron's

The Big Three all have the same Union contract that's why all three are all in such big trouble at the exact same time.

John

Why Gold Will Decline More than the Markets

Great Analysis.

What Increased U.S. Savings Means for China

I think China's "Buy China" directive will come back to haunt it. They should have just passed the word (to purchase Chinese made products) down the political grapevine instead of making it official.

Voting (and Spending) Our Way to Catastrophe

In a Democratic Government (which is still the best type overall) what is the solution then that will get the general public to support eating the Broccoli?

Sports Illustrated Swimsuit Indicator

In that case bring back:

Germany 26.7

German Swimsuit Models, only drink Pepsi's on Third Sundays of Feb, Wash your Sunday clothing on Wednesdays, Pray that Brazil wins the world cup, China wins Gymnastics in 2009....any others?

China Real Estate Investing Stands to Benefit from Stimulus Package

As an expat living in China what worries me (from purchasing real estate directly or purchasing a real estate fund) is the ratio between residential rental rates and purchase cost in China. It is much higher ratio then what is in the US or rest of the world.

John

Cisco Beats Estimates, Gears Up for 'Technology War'

According to Yahoo Finance

Cisco Systems, Inc. (NMS: CSCO)

After Hours: 15.14 Down 0.70 (4.42%)7:45PM ET

Bonds are More Attractive Than Stocks for Now

Muni Bonds looks good if you think the federal government will bail them out otherwise not so good.

John

Oil: A Slippery Slope Ahead?

Great Analysis.

John

Three Stocks Selling Below Cash With Little Debt

The thing with TRAD is that most of that cash I think belongs to it's customers (its holding it for them) since it is an online stock brokerage. If I am wrong let me know.