Say you’re an up-and-coming superpower wannabe with dreams of dominating your neighbors and intimidating everyone else. Your ambition is understandable; rising nations always join the “great game”, both for their own enrichment and in defense against other big players.
On October 3, riot police converged on Tehran's Grand Bazaar. With water cannons and batons, they dispersed a large crowd of demonstrators who were calling President Mahmoud Ahmadinejad a traitor for his mismanagement of Iran's economy.
This is one of those discussions where I’m going to let the pictures do most of the talking… well, maybe. To the issue at hand, over the years I’ve consistently checked in on hopefully what we can term the views of corporate insiders.
California provides a valuable lesson for the rest of the country, because we are not immune to the problems there. Their special circumstances simply forced these issues to manifest themselves there first. But we will see these problems crop up in other areas, and I believe eventually across the United States. As a country we need to note what is happening in California and plan accordingly.
I recently “debated” twice with senior Chinese officials on the future prospects for China. In both cases they made the argument that Chinese growth rates were going to rise in the next few years and that the current deep pessimism is unwarranted. I argued, of course, that growth would slow even more.
“I used to think if there was reincarnation, I wanted to come back as the President or the Pope or a .400 baseball hitter. But now I want to come back as the bond market. You can intimidate everyone.” James Carville, Clinton campaign strategist, 1993
Wholesale-market prices to buy gold fell 0.5% to $1770 per ounce in Asian and London trade Monday, holding more than $25 below Friday's new 11-month high as world stock markets also fell together with commodity prices.
The establishment report of +114,000 jobs was pretty much about what most expected. The four-month average is a mere 120,000 a month (a very weak set of establishment numbers for this point in a recovery).
One of the secrets to successful fishing is to fish in a lake with fish in it. Fishing in a lake void of fish is not likely to be a worthwhile venture, though it still beats a day of work. That simple reality is something much of the investment community has never really understood.
One of the key points I’ve been emphasizing on the radio show (besides Europe) is the non-confirmation of the Dow Jones Industrial Average by the Dow Jones Transportation Index. I also mentioned last week that this was one of the factors in the process of forming a market top. While this is a warning sign, it is not a signal to become bearish on stocks.