Archive - Oct 2, 2009 - Blog entry

Back in August, CPP Investment Board (CPPIB) announced that it has entered into a joint venture with Cyrela Commercial Properties S.A. Empreendimentos e Participações, GIC Real Estate, the real estate investment arm of the Government of Singapore Investment Corporation, to invest up to US$250 million for the development, acquisition and management of institutional-quality commercial properties in Brazil. That appears to have been a very wise decision.

The banks are no longer making home equity loans. Therefore people aren't building an addition or making big improvements. The impact on the small contractors has been big. The impact to the illegal workers has been bigger. One story.

Germany is the biggest test for Keynesian stimulation versus a hands off approach. The German election clinches their turn away from fiscal stimulus. Germany has done the least Keynesian spending gimmicks of any major economy and the new financial team headed by incoming Minister of Finance, Hermann Otto Solms will turn to free market friendly policies. You won't believe what they have to say about economics and their economy. I predict they will recover from the re/depression long before the U.S.

Zero Hedge has been accused of discussing "conspiracy theories".

Okay . . . but what does that mean?

A round-up of arguments for looking at gold as a reasonable investment, including: 1) China; 2) declining production; 3) inflation; 4) deflation; 5) global short-term interest rates; 6) uncertainty and distrust in government; and 7) flight to safety.