Archive - Aug 2009 - Blog entry

China projects to the world a similar image as Japan did in the 1980s. Yet we know how that (Japanese) story played out: a bust of a major banking/real estate bubble, a contracting economy for almost two decades, accompanied by deflation, ballooning debt, etc.

I break the first two rules of ZeroHedge and reveal Tyler Durden's hidden agenda.

ZH under assault again. This fight is getting interesting. My thoughts.

The Dollar Index continues to trend lower, and it is at real risk of seeing accelerating losses.

Wall Street and FRE come up with another bright idea. A nothing for nothing swap. The folks at FHFA should be congratulated.

For the next dozen years or so, the U.S. stock market will be a wild roller-coaster ride—setting all-time highs and multi-year lows in the process. While the twists and turns of this ride are still to be written by history, the long-term, sideways “range-bound” trajectory has already been set by the eighteen-year bull market that ended in 2000.

Much has been said about Goldman Sachs by articles like the one Mr. Matt Taibbi wrote and published by Rolling Stone on July 2, 2009 - “Inside the Great American Bubble Machine”. But most have not heard about Goldman Sachs involvement in the initial public offering (IPO) of Baidu (BIDU) and the subsequent BIDU share price movements back in 2005 and 2006.

Here is my latest article explaining why the Chinese economy should not make us feel inadequate and explaining the consequences of what is taking place in China on the U.S. stocks.

Inflation or deflation, the Chinese will lose most of the value of their USD-denominated holdings, and the USD will lose the confidence of the rest of the world. What then?

A scenario, probably far-fetched, that points to a stronger Russia over the next half century.

Given my usual warning, I don't want to discuss politics in my writings for two reasons: it bores me to death and I'll upset 55% of my readers. But an investor cannot ignore politics especially today. What happens in Washington doesn't stay in Washington.

Geithner points out record Wall Street payouts and profits. Ergo, economic recovery imminent.

Financial commentators are obsessively debating whether the recent rise in the Chinese stock market means there’s a bubble — and if so, when it’s going to burst. My take? Who cares! What happens to the broader Chinese economy is what we should really be watching. It will have a far-reaching impact on the rest of the world — much more far-reaching than a decline in stocks.

The rest of the Swiss Banking industry is closing/disclosing US account names. And they are acting fast. Where's that money going?

Fed chases the market with today's POMO buy. Another good day for the dealers. How long will this Treasury paper stay on the Fed balance sheet? Forever.

Graphs of rolling correlations between a pick of a few instruments.