July 9, 2012 – Quote of the Day

“We are still in the gravitational pull of the Great Recession. I would have to put the likelihood of a double dip recession now up to 50%,” said my old UC Berkeley economics professor, Robert

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What Will the World Look Like in 100 Years?

George Friedman, geopolitical forecaster and founder of the Austin, Texas based private intelligence firm, Strategic Forecasting (Stratfor) (click here for the link at https://www.stratfor.com/ ), delivers a fascinating list of future political, military, and economic scenarios in his new book, The Next 100 years: A Forecast for the 21st Century. Friedman claims the current Islamic […]

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More Hard Truths About Residential Real Estate

The latest data releases this week about the state of the residential real estate market confirm my belief that the threat of a double dip in the economy is triggering another down leg in home prices (click here for Residential Home Prices in Terms of Gold). The latest Case-Shilelr data show that housing is once […]

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The Problem With GM

Like a heroin addict who just can’t wean himself off of the good stuff, General Motors is going back into subprime lending to finance new auto sales. Although the much diminished company is still largely government owned, and has made great strides at reforming its errant ways, they still do not understand their fundamental problem. […]

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July 9, 2012 – Quote of the Day

“Earnings models that have worked over the last 10, 20, or 30 years don’t hold water anymore,” said Paul Schatz, president of Heritage Capital.

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Feel Like Investing in a State Sponsor of Terrorism?

Feel Like Investing in a State Sponsor of Terrorism? How about a country whose leaders have stolen $400 billion in the last decade and have seen 300 foreign workers kidnapped? Another country lost four wars in the last 40 years. Still interested? How about a country that suffers one of the world’s highest AIDs rates, […]

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Watch International Savings Rates for Market Cues

Often while searching for a piece of data through Google, I stumble across something else, which is far more interesting. That is how I found the table below of international savings rates. Why should you care? Because countries with high savings rates tend to have strong economies and great stock markets, since there is plenty […]

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Guess Who’s Bailing Out the 2012 Olympics?

Where is the 2012 London Olympics turning to meet gargantuan cost overruns? None other than BP, which is going the extra mile to burnish its tarnished image. With the British economy mired in a vicious financial crisis, many are wondering if hosting the games was such a great idea. The original plan was to convert […]

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Where The Economist “Big Mac” Index Finds Currency Value

My former employer, The Economist, once the ever tolerant editor of my flabby, disjointed, and juvenile prose (Thanks Peter and Marjorie), has released its “Big Mac” index of international currency valuations (click here for the story). Although initially launched as a joke three decades ago, I have followed it religiously and found it an amazingly […]

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July 6, 2012 – Quote of the Day

“When the fools are dancing, the greater fools are watching,” according to an old Japanese proverb.

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Goodbye BRIC, Hello N-11

Jim O’Neill, the clever Goldman Sachs analyst who came up with the term “BRIC” a decade ago, has cooked up a new, catchy investment theme. Get ready for the “N-11”, shorthand for the “New 11”, a gaggle of early stage emerging markets who will become the inheritors of the BRIC’s high growth rates. The basic […]

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The Future in Consumer Spending

As part of my never ending campaign to get you to move more money into emerging markets, please take a look at the chart below from Goldman Sachs. It shows that the global middle class will rise from 1.8 billion today to 4 billion by 2040, with the overwhelming portion of the increase occurring in […]

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The History of Technology

I have just finished leisurely reading Tom Standage’s book The Victorian Internet: The Remarkable Story of the Telegraph and the Nineteenth Century On-Line Pioneers. Standage discusses the creation and development of the telegraph system and how it revolutionized communication in the nineteenth century. The book claims that Modern Internet users are in many ways the […]

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The New Cold War

My friend, Ian Bremmer of the Eurasia Group, a global risk analyst who I regularly follow, will soon publish another book entitled The End of the Free Markets: Who Wins the War Between States and Corporations. I find this highly depressing, as it takes me as long to read one of Ian’s books as it […]

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July 5, 2012 – Quote of the Day

Sometimes we stare so long at a door that is closing that we see too late the one that is open,” said Alexander Graham Bell, inventor of the telephone.

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