China is on "a treadmill to hell," whose property market is a bubble that may burst by as early as this year, Jim Chanos says. China needs to keep up the pace of property investment because up to 60% of its GDP relies on construction, he says. “They can’t afford to get off this heroin of property development. It is the only thing keeping the economic growth numbers growing." [View news story]
And here I have been under the impression that the Chinese economy was an export economy boosted by artificially low value for the yuan.
If I had the wrong impression, then how did China accumulate those huge foreign reserves?
I suspect that Chanos is right. Just he ignores/underestimates the role exports play in China's economy.
What ails Greece also ails the U.S., Pimco's Mohamed el-Erian tells CNBC, because the process will be complicated and unlikely to be resolved quickly. He foresees a 60% chance of "muted growth and dead dynamics" ahead. [View news story]
A potential roadblock to EU plans to assist Greece: German lawmakers are cool to the idea, and the German public appears to be against it. It was one thing to bail out East Germany, but Greece is another matter. Angela Merkel has some selling to do. [View news story]
What is the size of Greece's deficit compared to the GDP of Germany? It seems to me this kind of unto the death discussions of the tiniest problems is the grist of Goldman's mills and the full employment for economic pundits.
What are the implications of AIG (AIG) chief Robert Benmosche's pledge to repay the government every last penny (that's $182.5B) and turn profitable? Well, in Q2 AIG turned a profit of $1.82B. So if it can keep that going for another 25 years, and turns every penny over to Uncle Sam ... Anyone holding their breath?[View news story]
The extrapolation does not make sense.As anyone knows, you can raise cash in many ways:
Asset sales, Stock sales and internally generated earnings.
As a taxpaying owner of AIG, I wish him great success. I bet he will pull it off.
Let the regulators go after overpaid bank executives, Barry Ritholtz says, but not Andrew Hall - one of Citigroup's (C) most profitable traders ever. Earning lots of money isn't inherently bad - except when it's paid for non-performance. [View news story]
From publicly available information, it is not clear what his arrangement was. If it was "Heads, I win; tails, I don't lose" then it is inherently unfair and warrants close scrutiny.
Pay for performance is great if it is a two way street.
Daniel Indiviglio isn't sure Calpers (see), or anyone else looking to pin their investment losses on the ratings agencies, has much of a case. "Of course, I'm not sure that the rating agencies have $1B to pay out anyway, even if they lose." [View news story]
Rating agencies do have a fiduciary responsibility to do due diligence. They are aided and abetted in this task by being granted monopoly rights to provide ratings.
They may have already bonussed away most of their funds but I am sure they are required to carry liability insurance.
WSJ sticks up for UBS: "Apart from the diplomatic ramifications, the government's request for so broad a swath of information could well run afoul of the Fourth Amendment's protections against unreasonable search. The Obama Administration should use the court reprieve to rethink the whole case." [View news story]
Did the WSJ object when the Bushies were wiretapping honest law abiding US citizens without warrants???
Testifying before the House Committee on Financial Services, Geithner defends the White House's plan to clamp down on regulation of OTC derivatives, including infamous credit-default swaps. Opponents are worried the proposal may drive traders away from standardized products. Here's the webcast. Update: Geithner's prepared remarks. [View news story]
Another example of opposing regulations blindly. These are instruments that brought the US economy and the world economy to its knees. Why would a honest trader be opposed to trading on an exchange? Personally, I welcome the lower counter party risk as well as the liquidity.
Weather is just an excuse..a poor one at that. Most likely, June sales will be deferred into July. And if there were a shortfall in sales it will happen with or without bad weather.
Disagree.. Larry has great business sense. He gets a huge salary to spout all his garbage. If you believe a word he has to say, then you are the one without business sense
On May 12 05:54 PM buyforeclosures wrote:
> Larry Kudlow is the most annoying SOB I have ever listened to... > > > All that fricking Market and red white and blue cheerleading... > and continuous pumping markets with his frkn mustard seeds and green > shoot crap... and KING dollar...( yeah Larry where is the king now? > Getting slammed in the rear in the woodshed thats where! ) > > I am an American and proud of it...but I also know when to take blame > and admit it. In Larrys mind the U.S can do no wrong, although we > now know that we have screwed up big time in many respects ( Iraq, > subprime nightmare...) the guy is an imbecile period...has NO business > being on TV and giving any commentary on business cuz he has no business > sense whatsoever...like a child he is.
Larry Kudlow struggles to characterize the new blend of capitalism that has the government asserting regulatory control over key sectors of the economy. State capitalism? Crony capitalism? One thing's for sure: it ain't a free market. [View news story]
Larry Kudlow is nothing more than a right wing shill. Why are his thoughts on an economics/business site?
The SEC is reviewing whether BoA (BAC) broke the law by not telling shareholders about Merrill's planned bonus payments. If the SEC finds BoA at fault, the bank would be subject to civil penalties. BoA says it had no obligation to share the info. [View news story]
Somebody explain this to me. The shareholders get cheated by a bad deal made by management. The SEC investigates. Then it slaps civil penalties. The company, i.e. the shareholders then pay the fine!!??
The AIG (AIG) bonus drama will be a costly one for taxpayers, AIG's Financial Products head Gerry Pasciucco tells WSJ in an interview. 20 staffers quit over the controversy, which Pasciucco says killed morale and stunned employees. [View news story]
The same employees that did not have the honor to quit when it turned out that they destroyed the company and the country?
China is on "a treadmill to hell," whose property market is a bubble that may burst by as early as this year, Jim Chanos says. China needs to keep up the pace of property investment because up to 60% of its GDP relies on construction, he says. “They can’t afford to get off this heroin of property development. It is the only thing keeping the economic growth numbers growing." [View news story]
If I had the wrong impression, then how did China accumulate those huge foreign reserves?
I suspect that Chanos is right. Just he ignores/underestimates the role exports play in China's economy.
What ails Greece also ails the U.S., Pimco's Mohamed el-Erian tells CNBC, because the process will be complicated and unlikely to be resolved quickly. He foresees a 60% chance of "muted growth and dead dynamics" ahead. [View news story]
A potential roadblock to EU plans to assist Greece: German lawmakers are cool to the idea, and the German public appears to be against it. It was one thing to bail out East Germany, but Greece is another matter. Angela Merkel has some selling to do. [View news story]
What are the implications of AIG (AIG) chief Robert Benmosche's pledge to repay the government every last penny (that's $182.5B) and turn profitable? Well, in Q2 AIG turned a profit of $1.82B. So if it can keep that going for another 25 years, and turns every penny over to Uncle Sam ... Anyone holding their breath? [View news story]
Asset sales, Stock sales and internally generated earnings.
As a taxpaying owner of AIG, I wish him great success. I bet he will pull it off.
Let the regulators go after overpaid bank executives, Barry Ritholtz says, but not Andrew Hall - one of Citigroup's (C) most profitable traders ever. Earning lots of money isn't inherently bad - except when it's paid for non-performance. [View news story]
Pay for performance is great if it is a two way street.
Daniel Indiviglio isn't sure Calpers (see), or anyone else looking to pin their investment losses on the ratings agencies, has much of a case. "Of course, I'm not sure that the rating agencies have $1B to pay out anyway, even if they lose." [View news story]
They may have already bonussed away most of their funds but I am sure they are required to carry liability insurance.
WSJ sticks up for UBS: "Apart from the diplomatic ramifications, the government's request for so broad a swath of information could well run afoul of the Fourth Amendment's protections against unreasonable search. The Obama Administration should use the court reprieve to rethink the whole case." [View news story]
Testifying before the House Committee on Financial Services, Geithner defends the White House's plan to clamp down on regulation of OTC derivatives, including infamous credit-default swaps. Opponents are worried the proposal may drive traders away from standardized products. Here's the webcast. Update: Geithner's prepared remarks. [View news story]
Retail sales, already suffering from a dismal economy and bulging unemployment, now have to deal with one of the coldest and wettest Junes on record. [View news story]
Thursday Outlook: Commodities, Global Markets [View article]
Follow your post regularly. One of the best analysis I have seen.
Can you please explain the Summation index? You seem to think it has critical long term significance. I want to be sure I understand it...Thanks
The Effectiveness of Tim Geithner. [View news story]
He can then threaten to fire everyone if they don't follow his orders!
Look Who's Buying Natural Gas Now [View article]
On May 12 05:54 PM buyforeclosures wrote:
> Larry Kudlow is the most annoying SOB I have ever listened to...
>
>
> All that fricking Market and red white and blue cheerleading...
> and continuous pumping markets with his frkn mustard seeds and green
> shoot crap... and KING dollar...( yeah Larry where is the king now?
> Getting slammed in the rear in the woodshed thats where! )
>
> I am an American and proud of it...but I also know when to take blame
> and admit it. In Larrys mind the U.S can do no wrong, although we
> now know that we have screwed up big time in many respects ( Iraq,
> subprime nightmare...) the guy is an imbecile period...has NO business
> being on TV and giving any commentary on business cuz he has no business
> sense whatsoever...like a child he is.
Larry Kudlow struggles to characterize the new blend of capitalism that has the government asserting regulatory control over key sectors of the economy. State capitalism? Crony capitalism? One thing's for sure: it ain't a free market. [View news story]
The SEC is reviewing whether BoA (BAC) broke the law by not telling shareholders about Merrill's planned bonus payments. If the SEC finds BoA at fault, the bank would be subject to civil penalties. BoA says it had no obligation to share the info. [View news story]
The AIG (AIG) bonus drama will be a costly one for taxpayers, AIG's Financial Products head Gerry Pasciucco tells WSJ in an interview. 20 staffers quit over the controversy, which Pasciucco says killed morale and stunned employees. [View news story]