The Off-Balance Sheet Financing in China Recently we discussed the enormous debt of government controlled Investment Corporations in China, and we warned that this debt, combined with other government debt in China, was approaching 87% of GNP. This is an astounding figure, unmatched in recent history. Comparisons to other nations’ growth in recent years reveal… Continue reading China’s Debt – The Next Big Shock. The USA remains the economic engine of the World
Category: Trends, Momentum & Market Cycles
The US Debt Crisis v European Debt. An optimistic view
The Uncertainty in the US v Europe We hear daily about the crisis faced in the world markets as a result of the 27 European nations failing to reach an accord in how to debt with overwhelming debt levels in many member states. So much so that the failure of the Super Committee in the… Continue reading The US Debt Crisis v European Debt. An optimistic view
The Future of the Stock Market
Fear Of Where the Stock Market is Headed Today, there is much fear. Many pundits over the last 3 years have prophesied the DOW falling to a fraction of its current level. We hear figures quoted for the DJIA of as low as 5,600 from its current levels of 11,000+. There are proponents of Wave… Continue reading The Future of the Stock Market
The Eurozone Debt, Public Funding, and Making Democracy More Democratic
Current Headlines on Eurozone Debt We now hear a constant refrain about how the Eurozone is about to disintegrate and the the Euro will disappear, with each European country reverting back to its own currency. The Origin of the Problem The strains in Europe arise from the initial difficulties of cobbling together many very diverse… Continue reading The Eurozone Debt, Public Funding, and Making Democracy More Democratic
How The World is Changing its Views on Debt
In our last blog, we discussed a taxi driver in Detroit with a broken meter running on fumes. We used this example to illutrate a changing world. The Super Committee That is Intended to Bridge the Gap Between Democrats and Republicans There is a committee made up of equal numbers of elected Republicans and Democrats… Continue reading How The World is Changing its Views on Debt
Michael Lewis – “Boomerang” – An Amazing Look at Greek Debt
Michael Lewis’ latest book – Boomerang Thanks to David Pescod’s “Late Edition”, we reprint some information from Michael Lewis’ latest book – Boomerang. As readers might recall, we have previously discussed Michael Lewis who has a knack for looking at the economic mess the world is in, and explaining the issues in understandable terms. His… Continue reading Michael Lewis – “Boomerang” – An Amazing Look at Greek Debt
The Greece Roller Coaster – Don’t be Misled – Understand How Markets Work
The Roller Coaster Road If you ask anyone how the stock market is, they will comment on the fact that depending on the news from Greece, the stock markets zoom up, and zoom down, with equal ease and equal frequency. The syndrome is so obvious, that even the taxi drivers comment on it. In one… Continue reading The Greece Roller Coaster – Don’t be Misled – Understand How Markets Work
China’s Surprising Level of Debt
In our last two blogs, we described the truly amazing amount of capital infrastructure construction going on in China, and we described how this amazing feat is being financed – by Special Investment Corporations – whose debts are really the debts of individual local governments, but those debts don’t get recorded anywhere. So what we… Continue reading China’s Surprising Level of Debt
China’s Hidden Debt – The Chinese Version of Off-Balance Sheet Financing
In our last blog, we described the modern miracle of Chinese creation of tremendous modern infrastructure. Now we look at how the financing of this modern miracle is occurring. The creation of all of these bridges, buildings, and infrastructure has to be financed, and somehow this debt must be repaid in the future. Western countries,… Continue reading China’s Hidden Debt – The Chinese Version of Off-Balance Sheet Financing
Beware The Herd Mentality – The Only Sure Thing is a Lack of Surety – The Death Cross
It seems we are in a period of great uncertainty. Everywhere it seems there are signs of negativity. It seems the housing market is falling, European debt is getting out of control, debt continues to mount in the USA, and so on. The Death Cross A Death Cross is a technical indicator that is followed… Continue reading Beware The Herd Mentality – The Only Sure Thing is a Lack of Surety – The Death Cross