Make no doubt about it – thats precisely what Alan Greenspan said about the "puzzling decline" in long-term rates. While a decrease in yield on the 30 year has historically been a signal of upcoming economic weakness., the Fed Chair stated that "they aren’t as reliable a signal of such weakness as in the past." But is it ever different this time?
• Wal-Marts in China actually sell porn! Betcha didn’t know that!
But before you attack their "vaunted morality," its actually, just good business. The retail behemoth adapts to the mores of the local environment. Prudish where customers are prudish, and freewheeling where the local clientele demands adult entertainment.
“Let’s be clear about this: the United Auto Workers is not going to let General Motors cut ANY union benefits without a long and vicious fight. GM Vice President Rick Wagoner knows it. UAW Vice President Richard Shoemaker knows it.”
• Speaking of which: Some people consider hedge funds Alternative Investments; Not me. My spare cash is tied up in heavy metals, preferably from the 1940s thru 50s. (Warning: Giant time sinkhole).
• Is the U.K. foreshadowing U.S. Economy? Great Britain has seens a retail slow down and a real estate boom — is that what’s in our future? Its an interesting thesis.
• NYU Prof of Economics Nouriel Roubini’s has a fascinating Meta site on all things economic related: the RGE Monitor.
• Comparing the U.S. 10 Year Yield (Post-Crash) vs Japan’s post crash bond. Just your everyday run of the mill liquidity trap.
• Here’s a fascinating look into the Future of Media, offering a very interesting perspective on what might be happen in the future. (Note: its a Flash presentation).
• Household Debt in the US rising: I’ve said this before: Betting against the US consumer has been a losing wager — at least so far. And yet when we look at the parabolic rise of houshold debt (via the St. Louis Fed) or rising liabilities vs assets (via BLS) it may be a cause for concern sometime in the future.
• Mark Hulbert put together a list of stocks that might be impacted by changes in the Russell 2000.
• Ever hear of the Trashcan Sinatras? They’re actually pretty good!
• Yes, even Freakonomics has a blog.
That’s it from the North Shore of Long Island, where the rain has stopped, the sun is coming out, and I am hitting the waves!
Nice piece by BMO Nesbitt on why investors fail: “Individuals have historically underperformed the markets, earning just 2.6% vs. the S&P 500 gain of 12.2% between 1984 and the end of 2002*. Research in the U.S. has shown that this dramatic underperformance comes as a direct result of client behaviour, or more specifically, the attempt…Read More