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  • Alibaba: Where Things Stand Now [View article]
    It should be noted that anyone who buys this "stock" doesn't own a single piece of the actual Alibaba company. The Chinese Communist system does not allow foreign ownership of its companies via the stock market. Rather, they are buying shares of a front company in the Cayman Islands which is supposedly contractually obligated to share in Alibaba's profits. This "contract", of course, subject to the integrity the Communist Chinese financial and business system (LOL!) and its sense of fairness towards outsiders (LOL!), and could be changed at whim at any time by the ruling Communist authoritarians with no recourse for owners of said front company. I personally wouldn't touch it with a 10 foot pole.
    Dec 8, 2014. 05:24 AM | 10 Likes Like |Link to Comment
  • Sony cyber attack 'unparalleled' [View news story]
    Actually, the Sony breach was significantly worse than the ones at Target and Home Depot.

    Primarily because all of Sony's corporate computers were compromised, data was destroyed, and because of the volume of confidential proprietary data that was released (26 GB worth).
    Dec 7, 2014. 07:17 PM | 1 Like Like |Link to Comment
  • Moody's downgrades Japan's sovereign debt rating [View news story]
    There is still as significant amount of debt held by Japanese institutions such as GPIF (the world's largest pension fund). This downgrade is just another reason for them to continue to scale back purchases of JGBs, and a marker on the road to the BOJ becoming the eventual only buyer of JBGs. There's no way the yen can hold its value if this happens.
    Dec 1, 2014. 05:04 AM | 2 Likes Like |Link to Comment
  • China's Market Cap Surpasses Japan's [View article]
    Mr. Chandler, although the US may have issues, it is a mistake to assume that Chinese accounting standards and transparency are anywhere near the level of the US.

    Would you seriously argue to an investor that they can trust the financial data that comes out of China? Christopher Mahoney is right.
    Nov 30, 2014. 10:36 PM | Likes Like |Link to Comment
  • Week In FX Asia - JPY Weaker, But Is It Weak Enough? [View article]
    Because falling oil prices will make it hard to achieve inflation. The Japanese leadership, having drank the Krugman Kool-Aid, believe deflation is bad, so are trying to forcefully orchestrate inflation.

    Ironically, in doing so, they may end up with hyper-inflation, in the event that investors holding yen finally realize it's deadly to continue holding an asset that will only decrease in value in the future, and they begin selling in panic en masse..
    Nov 30, 2014. 10:33 PM | Likes Like |Link to Comment
  • Japan tries verbal intervention on yen [View news story]
    Japan's biggest worry is that they lose control of the rate at which the yen falls.

    This happens when the qualitative perception of holders of yen crosses the tipping point and they realize in the future their yen holdings will be worth much less than now, and attempt to begin selling en masse. This is already happening, but not on a large enough scale to cause panic. Will be interesting to see what happens...
    Nov 21, 2014. 09:03 PM | Likes Like |Link to Comment
  • Americans Bought Record Foreign Bonds And Stocks In September [View article]
    Moral of the story: The desire to make sound financial decisions and invest in stable instruments offsets the irrational disease of anti-Americanism.
    Nov 19, 2014. 10:25 AM | Likes Like |Link to Comment
  • China, Russia pledge to strengthen military alliance [View news story]
    Good luck. The Russians trust the Chinese so little they won't even sell them airplane engines, for fear the Chinese will turn around and sell them to Russia's existing customers (which they've done before).
    Nov 19, 2014. 07:15 AM | Likes Like |Link to Comment
  • Why Japan's Money Printing Madness Matters [View article]
    Agree with (almost) everything.

    The catch with all this is that investors need to be able to call the timing, or be willing to wait for a while, in order to give maximum value to their clients.

    Kyle Bass says he can't predict the timing.

    "When these crises happen, they take a lot longer in coming than people think, but when they finally happen, they unfold a lot faster than people think"

    The moment Japan loses control of its currency may come like a thief in the night. Popcorn ready...
    Nov 18, 2014. 06:00 PM | 2 Likes Like |Link to Comment
  • Is Japan In Recession? [View article]
    "In any case, Japanese stocks are still doing well, which suggests that Abenomics is still on track."

    The Zimbabwe stock market rallied to historic highs right before they hit hyper-inflation. A rallying stock market may be more an indication of mis-/re-allocated resources as opposed to solid economic fundamentals.

    Money is flowing out of Japanese government bonds so fast that it's propping up not only the Japanese stock market, but likely many overseas stock markets as well. When this little game they're playing ends, it won't be fun.
    Nov 17, 2014. 08:37 PM | 3 Likes Like |Link to Comment
  • Throwing In The Towel On Japan [View article]
    When you crunch the numbers: 1) The US is in nowhere near as bad shape as Japan, and 2) our trajectory is much better.

    Medicare is not as expansive as the universal healthcare that Japan has, and its costs are less. Social security is a ponzi scheme, but as I said in my post, the US has (and will have) fewer elderly, and more working people than Japan, so it will not be as much of a problem as with Japan's public pension system.

    Finally, to claim that the US system is equally as corrupt as Communist China is absurdity. I doubt anyone who has lived in China or studied contemporary Chinese politics and economics would agree (unless they're a Democrat, in which case it may be their Utopia).
    Nov 13, 2014. 07:36 PM | Likes Like |Link to Comment
  • Throwing In The Towel On Japan [View article]
    Mr. Ted Waller, and 10010581,

    Thankfully, we are absolutely NOT on the same path as Japan. The US is going to slowly decrease its money printing over the coming years, and even chairwoman Yellen has clearly stated that "things need to return back to normal". This is in stark contrast to Japan, who proportionally to GDP, is printing money at multiples of anything the US has ever done even at the height of our QE. This is uncharted territory, irresponsible and insane.

    Secondly, Japan has an average age of 45 years old, making it the oldest society the world has ever known. Within a few years, over 20% of the population will be 65 an over, and a lesser percentage, 75 and over. Since Japan is a socialist state, they have promised government pensions and medical expenses for all of the increasing number of elderly people, which will prove to be crippling. America's demographic curve is nowhere near as bad as Japan, not will it be in the future.

    Third, the US intelligently allows in highly skilled immigrants who help drive our economy. Whereas the Japanese population is highly xenophobic and refuses to allow in skilled labor (i.e. not Mexican illegals, but actual skilled labor) at numbers necessary to benefit their economy.

    Fourth, most major Japanese economic powerhouses are in decline, including Sony, Sharp, Panasonic, Hitachi, among others. Have you ever heard of a Japanese Google, Japanese Microsoft, Japanese Oracle, Japanese Facebook? They just don't exist. Japan hasn't had real innovation in a generation, nor will they in the future. As someone who has lived in Japan, their society raises their people to be too risk averse, close-minded, and negative towards new ideas, for new innovation to happen at a scale necessary to make an impact. Whereas America has always had, and has now, innovation, creativity, and risk taking that will let us create new industries and markets that don't currently exist today. Japan just doesn't.

    Finally, the US dollar is the world's reserve currency, with absolutely no currency to replace it anywhere in sight. Do you really think the smart investors of the world will trust their money inside of the corrupt Chinese Communist system? Heck, even Chinese people themselves are getting their money out of China as fast as possible (and buying up American homes so actual Americans can no longer afford them. But that's a separate problem...). The US dollar is king for the foreseeable future, and the chances of this changing are about the same as the chances of the earth ceasing its rotation tomorrow.

    All in all, the US, though not without our share or problems, is just not on the same trajectory as Japan, thankfully.
    Nov 13, 2014. 03:54 AM | 1 Like Like |Link to Comment
  • Throwing In The Towel On Japan [View article]
    Correction: Japan has gone mad. For all of our quirks, the US is nowhere near in the same ballpark as Japan or Europe, thankfully.
    Nov 11, 2014. 10:42 PM | 1 Like Like |Link to Comment
  • Abe likely to delay sales tax, Nikkei hits 7-year high [View news story]
    What is the possibility that Abe pulls snap elections AND raises taxes on schedule in October?
    Nov 11, 2014. 04:35 AM | Likes Like |Link to Comment
  • U.S., China to liberalize tech trade [View news story]
    How does this not constitute nothing but a one-sided transfer of US technology to China? China has no high technology of interest to the US whatsoever (or at all, for that matter).

    Have the recent midterm elections caused Obama to go from mere ineptitude to outrightly trying to harm the US?
    Nov 11, 2014. 04:31 AM | 3 Likes Like |Link to Comment