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stevenNJUKI

stevenNJUKI
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  • Oh, THAT Italy [View article]
    In a way I sympathize with your argument. It is logical but what is happening in the markets is the complete opposite.

    Japan has been in deflation for 20 years plus! In July of '98 the yen was at 144.93. It has nearly doubled in value since. And even if we are to assume BOJ didn't print any money like you've stated, Japan's debt level as a percentage of GDP is the highest in the world. Now if this was news then perhaps you would have a point in claiming a crisis is imminent.

    Also the crisis in Europe has less to do with debt and more to do with sovereignty. (look at the gilt yields).

    It seems in the end a country's ability to repay the currency it borrowed is what counts...
    Nov 10 10:21 PM | Likes Like |Link to Comment
  • Oh, THAT Italy [View article]
    "A better prescription would be fiscal austerity without money printing."

    I have a question. How would you explain Japan... its been what 20 plus years and we are still waiting in that inflation! Oh and by the way BOJ recently had a huge influx (I think not more than a couple of weeks back) and this led to the USDJPY hitting 78. But guess what it is now back down to 77. Who would have predicted this rate in the early 90s especially given Japan's debt levels.

    I think ryanclarke nails it when he says most folks believe 'money printing' is something new that was introduced '08.

    In the end confidence is everything. Do not fight the Fed.
    Nov 10 04:40 AM | Likes Like |Link to Comment
  • Bad Week For Stocks (So Far) [View article]
    And on a slight plus side for inflation...

    "If direct approaches to debt reduction are ruled out by political obstacles, there is still the option of trying to achieve some modest deleveraging through moderate inflation of, say, 4 to 6 per cent for several years."

    - Kenneth Rogoff, former IMF chief.

    See more here
    http://on.ft.com/vlYkdF
    Nov 2 10:28 PM | Likes Like |Link to Comment
  • Bad Week For Stocks (So Far) [View article]
    For more on UK inflation, see here

    http://bit.ly/rDizh8

    Gilt yields are at record lows e.g. 10y is at 2.28% in other words UK can borrow cheaply.

    And as for the debt write offs or 'haircuts', as this article has pointed out, those are more political ploys than substantive agreements...
    Nov 2 10:09 PM | Likes Like |Link to Comment
  • Bad Week For Stocks (So Far) [View article]
    In a sense you're right,

    in the US the gloves are off and the cost cutting and lay offs can perhaps be reflected in the current high unemployment numbers.

    But I think culturally speaking, Europe is not as brash as the US. But more to the point the top priority right now for most governments is not containing debt levels but rather stimulating growth. This can easily be done by 'sovereign' states like the UK that have their own currency, while the PIIGS's unfortunately need to control their debt servicing costs. And I hope we now all agree that these bail outs are very short term solutions.

    In order to avoid a situation where each of the PIIGS tries to revert to issuing its own currency, the ECB can in effect implement a form of Quantitative Easing where it purchases the bonds of these 5 countries (assuming Greece will still be there) at very reasonable terms for each state. If this happens, the member states will in a sense be taking collective responsibility for the debts of the struggling countries.
    Nov 2 03:17 PM | 2 Likes Like |Link to Comment
  • Bad Week For Stocks (So Far) [View article]
    Another great article,

    Good work. My take on this is George Papandreou is keen on leaving the EMU and obviously not the EU. So he is hoping to secure a no vote from the public. I hope he/ they have realized Greece cannot meet her debt obligations in Euros while at the same time attaining some badly needed economic growth.

    The banks will have to take payments in Drachmas and in the short run the yields will go through the roof, but given time this will normalize to levels of other sovereign countries that are also heavily indebted.

    The best solution would have been if the EU moved ahead to form a fiscal union or an arrangement in which all EU states take responsibility for the debts of individual member states and 'euro bonds' are issued collectively to help with expenditures of member states.
    Nov 2 12:49 PM | 1 Like Like |Link to Comment
  • What I Would Do As CEO Of Apple [View article]
    typo sorry...

    should read

    "... that is why IT IS UNFORTUNATE Steve Jobs' contributions with, especially with the IPAD, are still under appreciated."
    Sep 23 04:41 PM | Likes Like |Link to Comment
  • What I Would Do As CEO Of Apple [View article]
    There is a world of difference between getting informed from reading as opposed to watching TV... and perhaps that is why Steve Jobs' contributions with, especially with the IPAD, are still under appreciated.
    Sep 23 07:53 AM | Likes Like |Link to Comment
  • Shades Of 2008 All Over Again (Though This Time In Europe) [View article]
    I would understand Buffet's gesture as having more to do with re allocating some capital by using the government to those in the low income brackets.

    If the government is serious about tackling the high unemployment, they can use such tax revenues to at least stimulate the economy without worrying too much about profitability (like businesses) or mirages like the high debt levels...
    Sep 18 07:31 AM | Likes Like |Link to Comment
  • Shades Of 2008 All Over Again (Though This Time In Europe) [View article]
    "The moral code behind debt and humanity has officially become a joke as the wealthy bankers of the world continually spit in the faces of the rest of us…."

    With such comments perhaps you would like to reconsider your 'criticisms' of Warren Buffet's dealings with Goldman Sachs and BOFA... after all he has called for raising taxes on the rich
    Sep 16 07:53 AM | 1 Like Like |Link to Comment
  • The Fed Weighs 3 Policy Options [View article]
    The fed can only do so much and I think this far they have more than played their part. What is left is for the government to actively increase expenditure and certainly scale back on the layoffs that we've been seeing. One way to go about this would be through upgrading infrastructure.
    Sep 9 08:53 AM | Likes Like |Link to Comment
  • Why Groupon Is The Next Google [View article]
    "Groupon could turn profitable today if they wanted to but they would be sacrificing growth."

    I think this is the gold nugget in this article. Even if merchant's make a loss with their first venture with Groupon, if their products are of high value, they will come out of it with a reputation meaning next time not only will they be able to charge top dollars to customers, but they could negotiate better terms with Groupon.
    Sep 1 07:15 AM | Likes Like |Link to Comment
  • A Look Inside The Fed's Limited Toolkit [View article]
    Listen golfitobob, Leftfield, anyone can criticise. Unemployment is 9% and aggregate consumer is plumetting. This article is about finding solutions on a way forward. If you do not have any, you are not only doing a disservice to this article, but also the title of this website.

    I still think alternative 3 but with the fed bank rollin government expenditure leading to fiscal multipliers is the US's best alternative. Best case in point from history is WWII expenses and 'debt' that was never paid off but whose value was eroded by inflation over the years... at no cost to government
    Aug 23 11:14 AM | Likes Like |Link to Comment
  • This Is a Balance Sheet Recession - And It's Likely to Persist [View article]
    Most Nordic countries are more taxed and probably regulated than the US. I think their economies are in better shape.

    Perhaps you need to look up the work of Joseph Stiglitz to better assimilate the implications of free markets?
    Aug 17 04:18 AM | Likes Like |Link to Comment
  • This Is a Balance Sheet Recession - And It's Likely to Persist [View article]
    Unemployment.
    Aug 17 04:13 AM | Likes Like |Link to Comment
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