Monday, November 18, 2013

Why there is not economic growth?

Why there is not economic growth?

Because corporations are building more around synergy and complementary lines of business than growth
 

Sunday, November 17, 2013

What is the meaning of an "uh-oh" moment?

What is the meaning of an "uh-oh" moment?

It is a moment of restlessness, uneasiness, anxiety ,unrest or worry.

Why is impossible to narrow the gap between the America's haves and have-nots ?

Why is impossible to narrow the gap between the America's haves and have-nots ?

Because more than ever children now sleep in the shelter system.
Because more than ever children now live with their grandparents.
Because more than ever children now live in cars.
Because more than ever children now live in camping tents.

Friday, November 15, 2013

How Fast Can One Lose Money?

How Fast Can One Lose Money?

Hedge fund manager William Ackman has lost a $500 million on an almost  $1 billion investment in J.C. Penney Co., and more than  $300 million  on a billion-dollar-plus short position in Herbalife Ltd.






He has cost his investors (and himself) almost $800 million this year.

Thursday, November 14, 2013

Stagnation, joblessness and political discontent.

America  could get mired in a "lost decade" of stagnation, joblessness and political discontent.

 Federal Reserve Vice Chairwoman Janet Yellen signaled Thursday that no big changes would come to the central bank under her leadership if she becomes its next chief.

Wednesday, November 13, 2013

What is the more strenuous exercise?

 What is the more strenuous exercise?

There is no more strenuous exercise than rowing.

Why does the exit from the crisis will take longer than expected ?

Why does the exit from the crisis will take longer than expected ?

Negative interest rates - when you get charged for depositing money at the bank.

Negative interest rates are a sign of the financial system not working normally.

Banks are holding about $700 billion in excess reserves at the FED.

The consequence of a negative interest rate regime pursued by central banks is to shift the pain of deflation from banks to depositors, from debtors to creditors.

 INTEREST rates are very low around the developed world; near-zero in nominal terms and negative in real terms.

Negative real interest rates are the product of aggressive monetary policy by a central bank and have a profound impact on the movement of capital within an economy

The problem with negative interest rates, however, is quickly apparent: nobody would lend on those terms.

The shrinking universe of safe-haven assets is forcing investors to pay negative rates to park cash in guaranteed custody accounts.