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citizenleung

citizenleung
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  • Moody's downgrades Greece four notches to junk status. The eurozone rescue package eliminates risk of near-term liquidity-driven default, analyst Sarah Carlson writes, but "macroeconomic and implementation risks associated with the program are substantial." Euro now +1.4% against the dollar, to $1.2254.  [View news story]
    I downgrade Moody's to junk status.
    Jun 14 01:28 PM | 7 Likes Like |Link to Comment
  • In response to the BP (BP) oil disaster, Norway says it will not allow new deepwater drilling in the North Sea. Britain may be forced to follow suit, since many of its ventures are in the same region.  [View news story]
    There's no fear mongering going on. I'm merely explaining what I believe Norway is likely thinking. Petroleum is very important to Norway, so it would not have declared a moratorium on a whim. To Norway, some oil and some fish is better than a little more oil and potentially no fish.
    Jun 10 12:17 PM | 1 Like Like |Link to Comment
  • A new report says BP (BP) may have decided that "a line has to be drawn" in covering costs related to the Gulf oil spill. The company can pay for the cleanup and more, but it's not going to provide restitution to the entire $2.2T Gulf economy, as was mentioned at a Senate hearing today.  [View news story]
    When the Administration lets BP take the lead (after all, the government is not equipped to fix the gash), it is accused of being aloof. When the Administration becomes more assertive, it is accused of being Chavez-like. Interesting.
    Jun 9 11:10 PM | 4 Likes Like |Link to Comment
  • A new report says BP (BP) may have decided that "a line has to be drawn" in covering costs related to the Gulf oil spill. The company can pay for the cleanup and more, but it's not going to provide restitution to the entire $2.2T Gulf economy, as was mentioned at a Senate hearing today.  [View news story]
    It was diplomatic payback for how Israel embarrassed Biden. Israel knew that something was coming, and it is lucky that its punishment was a mere dinner snub.
    Jun 9 11:05 PM | 1 Like Like |Link to Comment
  • In response to the BP (BP) oil disaster, Norway says it will not allow new deepwater drilling in the North Sea. Britain may be forced to follow suit, since many of its ventures are in the same region.  [View news story]
    Fishing is important to Norway, much more so than to the United States or the UK (or most developed countries). One of the main reasons Norway has yet to joint the EU is because joining would open its waters to other nations' fishing boats. A BP-like disaster in the North Sea would be devastating to one of Norway's signature industries.
    Jun 9 10:48 AM | 3 Likes Like |Link to Comment
  • A fascinating article by AEI's Peter J. Wallison challenges the very concept of systemic risk - the narrative around which U.S. and global regulatory reform is taking shape, but which "has no basis in fact."  [View news story]
    AIG was the definition of systemic risk. Reinsurance companies would not have been able to handle AIG's vast losses. Without reinsurance companies, insurance companies would not write any new policies because they would be unable to offload some of the risk. I don't want to think what would have happened if the insurance industry collapsed.
    May 30 10:47 PM | Likes Like |Link to Comment
  • Ron Paul Wants to Resurrect the Homebuyer Tax Credit [View article]
    Good luck with that one. Our agricultural policy is hijacked by the primacy of the Iowa party caucuses, before which presidential candidates in both parties must perform unspeakable acts on King Corn.
    May 27 10:59 PM | Likes Like |Link to Comment
  • Ron Paul Wants to Resurrect the Homebuyer Tax Credit [View article]
    Ron Paul should be visiting a cardiologist given the amount of pork he brings home to his district. Teabaggers looking for a hero should look past this earmark king.
    May 27 12:03 PM | 2 Likes Like |Link to Comment
  • Who do you trust: Bernanke or the markets? Bernanke's rosy economic view conflicts with reality, Michael Pento says, and stocks and commodities are casting their votes. The Fed's failure to listen to the markets is the key reason for its "miserable record" of economic projections. "For the betterment of the nation, the next appointment to serve at the Fed should be someone from a trading pit and not from Princeton."  [View news story]
    The market is a collection of many traders making many decisions. Traders are pretty smart as a group, but a single trader alone has the intelligence of a monkey. A pit trader would raise and lower interest rates every other day. Pento's frustrations are overwhelming his common sense.
    May 24 11:04 PM | 1 Like Like |Link to Comment
  • Felix Salmon notes that Goldman (GS) shares are trading just a shade above book value and with a single-digit P/E, amazing for a firm that remains exceptionally profitable. But even if Goldman escapes criminal charges, it can't get its reputation back any time soon - it has "lost its golden aura, and with it the prospect of garnering a lot of fee income going forward."  [View news story]
    If Michael Lewis is to be believed, there's not much talent in the industry.
    May 19 11:58 PM | Likes Like |Link to Comment
  • Felix Salmon notes that Goldman (GS) shares are trading just a shade above book value and with a single-digit P/E, amazing for a firm that remains exceptionally profitable. But even if Goldman escapes criminal charges, it can't get its reputation back any time soon - it has "lost its golden aura, and with it the prospect of garnering a lot of fee income going forward."  [View news story]
    Goldman's reputation has suffered, but so has that of every other big bank. Morgan Stanley's getting caught up in similar investigations. JPMorgan is being investigated for silver price manipulation. Citigroup and Bank of American had to be saved by the government. Etc., etc., etc.
    May 19 11:57 PM | Likes Like |Link to Comment
  • China Economy: Short-Term Volatility, Long-Term Stability [View article]
    China's lucky in a way. The West's long history with capitalism, replete with successes and failures, provides valuable lessons for China's government as they establish their economic plans. Without a Congress or Parliament tugging their plans in every which direction, the government can quickly and efficiently deploy its resources wherever, whenever, and however it sees fit. Furthermore, China's foreign policy is amoral and focused almost solely on furthering its economic growth. It trades as happily with the United States as it does with North Korea. Why have principles when you need to pay for them?

    That's not to say that China's ride won't be bumpy. Pollution is abominable, almost unimaginable. Demographics, with a rapidly aging population and a relative dearth of females, are unfavorable. Corruption is rampant. Intellectual property is a foreign concept. Sometimes it seems as if China is trying to grow just fast enough to outpace its mounting challenges. China is taking steps to tackle these and other problems, but even a authoritarian regime cannot snap its fingers and solve them. Also, regardless of its smarts or its knowledge of history, the Chinese government has precious little experience in dealing with the issues it (and the world) faces. As bad as the problems are in the West, I do not envy China's problems.
    May 18 11:43 PM | 1 Like Like |Link to Comment
  • Is Apple Overvalued? [View article]
    AAPL might be overvalued, but based on recent history, it is currently undervalued. AAPL also has enough cash on hand to buy everyone of the companies you list save BHP. These are facts.

    I own some of the mining companies you mentioned because I think they are great. Some of them are terrible investments even if gold hits $5,000, and I wouldn't touch them with a ten-foot pole. So given the choice, I'd rather buy AAPL than the basket of stocks you name.

    The only thing here that is definitely overvalued is your article.
    May 18 02:47 PM | 3 Likes Like |Link to Comment
  • The Decline of Google [View article]
    There's Latin America, South Asia, Southeast Asia, and Africa. Is China going to outgrow these places in the next few decades? Maybe, maybe not.

    There are plenty of places a company can go for growth. Being in China is not absolutely necessary.
    May 17 02:24 PM | 7 Likes Like |Link to Comment
  • The Decline of Google [View article]
    So what if Google lost to Baidu in China? Let's see Baidu replicate its success in any place other than China. I give their chances somewhere between 0 and 0.000001%.

    Google's wise to get out of China. It's more a business decision than an ethical one. China woos foreign multinationals with the siren song of outlandish growth and low labor costs. Actually, China's out to steal as much IP as possible to build companies to compete with the foreign companies--first domestically and then abroad. That's the true cost of doing business in China, and more and more companies are adjusting their strategies or leaving.
    May 17 10:22 AM | 19 Likes Like |Link to Comment
COMMENTS STATS
235 Comments
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