October 27, 2006
Beijing Olympics Become Beacon for Good Banking
China succeeded in launching the biggest IPO in history when it took its Industrial & Commercial Bank of China (ICBC) public this week. The deal raised over $21 billion from investors eager to get in on the opportunity. The motivation behind their eagerness? It's not just credit ratings and economic growth. This time it may be cyclists, canoeists and a big flaming torch.
Posted by Michelle Smith at 07:20 AM | Comments (0)
March 21, 2006
Race Against the Dollar
With news about the Medicare, Social Security and fiscal deficit problems becoming increasingly depressing, many powerhouse investors are guiding their strategies against the US dollar. This means investing in assets that are not US-dependent, like foreign stocks, commodities and internationally-traded tangible goods.
Perhaps we would be wise to follow in their footsteps before it's too late?
Posted by Michelle Smith at 09:11 PM | Comments (0)
January 04, 2006
The Grassroots are Greener on the Other Side of the Boardroom Wall
When it comes to China-related issues, grassroots companies are turning away from campus lawns and charging into corporate boardrooms.
Posted by Michelle Smith at 07:27 PM | Comments (0)
December 09, 2005
Greenspan's Answer to the Big Puzzle
A big puzzle debated among economists today is why the United States' gluttonous trade imbalance with foreigners (technically referred to as the current account deficit) has not yet squashed the value of the dollar.
Lucky for them, hero and idol Alan Greenspan has come to save the day. (Yet again.)
Posted by Michelle Smith at 07:49 AM | Comments (0)
October 08, 2005
Turkey and the Club
European presses are roaring about Turkey hitting another milestone this week in EU (European Union) negotiations. Do this week’s events mean that the EU is finally opening the doors to its first Muslim member?
Posted by Michelle Smith at 04:52 PM | Comments (0)
September 25, 2005
The Dragon Flinches
The Organization for Economic Co-operation and Development released a survey last week projecting that China would be the world’s largest exporter and the fourth largest economy by 2010. Richard Herd, senior economist of the OECD supported the statement, saying that China’s phenomenal growth has been driven by the fact that they “have not flinched from reform”.
Recognizing the results as extremely impressive, this author can still think of a few overlooked flinches at reform that are worth reminding ourselves about.
Posted by Michelle Smith at 08:17 AM | Comments (0)
June 28, 2005
Putin's Misguided Cheer
For a guy who used to work in one of the world’s deadliest spy organizations, Russian President Vladmir Putin seems to give a lot of slack to his new staff. How else could they be permitted to feed him such a distorted picture of economic reality?
Posted by Michelle Smith at 10:34 AM | Comments (1)
June 12, 2005
The Indian Economy Express
All aboard! The Indian Economy is leaving the station. Away from archaic wastelands of textiles and agricultural goods, this sparkling new train is revving up to speed into a new world of prosperity where technology is king, standards of living are skyrocketing and rewarding employment is bountiful.
Posted by Michelle Smith at 11:23 PM | Comments (0)
June 01, 2005
Another Failed Model
The poor economists. All that work sacrificing time for decent haircuts to shovel seas of data into massive spreadsheet models, and their theories still turn out to be wrong.
Yesterday’s Wall Street Journal article about the trade deficit was notice of yet another failure. The U.S. dollar has been on a decline for over 3 years now, which, according to the most basic tenets of macroeconomics, should mean that our appalling trade deficit should start improving. Thanks to steadfast American consumption, however, the deficit is still on track to exceed last year’s record of $617 billion.
$617 billion. That’s more than the entire GDP of Australia.
This news really irks the econ folks, because, according to their logic, if $6 used to buy us 2 pints of Irish Guinness and now it only buys us 1, we should be smart enough penny-pinchers to switch to good old American Budweiser. So why is the deficit still worsening?
Posted by Michelle Smith at 08:21 AM | Comments (1)