But let’s start with sovereign wealth fund of China, the China Investment Corporation (CIC). CIC was set up in 2007 with US$200 billion of China’s nearly $2 trillion foreign exchange reserves. It’s been shopping ever since, with mixed results. Last year, for example, CIC stood pat and only invested US$4.8 billion outside China.
September 3rd, 2009 | Dan Denning | 2 comments | ContinuedAll Posts Tagged With: "bubble"
The Destruction of the Dollar by the Federal Reserve
Then, on the “quiet 23rd of December in 1913″, J.P. Morgan and buddies got Congressional quislings to pass legislation authorizing the creation of the Federal Reserve, and to which I add that the jerk Woodrow Wilson then signed it…
September 1st, 2009 | Mogambo Guru | 1 comment | Continued
World Economy Has Never Been in a Fix Like This
What we suspect is that the upward trends of the last half a century have now reversed. We’re in a period when the excesses and mistakes of the boom/bubble period must be corrected.
September 1st, 2009 | Bill Bonner | 7 comments | Continued
Have the Chinese Stopped Industrial Stockpiling of Raw Materials?
Speaking of losing and just what’s at stake as September begins, why don’t we start with where the entire global recovery – and Australia’s resilience – are supposed to reside: Chinese strength. The Shanghai Composite fells 6.7% overnight and is now down over 25% from its highs. Uh oh.
September 1st, 2009 | Dan Denning | 0 comments | Continued
It Would Take About 19 Years to Erase Debt From Bubble Period
Now, along comes the Comstock crowd with roughly the same guess – two decades. They figure that the savings rate will go up to 10% and that the effect of taking that money out of the consumer economy will be to put the United States into a long, soft slump…
August 12th, 2009 | Bill Bonner | 0 comments | Continued
Household Debt Represents Spending Taken From the Future
But you can’t take an infinite amount from future earnings. You reach a point when the future can’t handle it. As more and more future earnings are absorbed by past consumption, pretty soon there’s not enough left to live on. At some point, so much of earnings are devoted to paying the interest…
August 11th, 2009 | Bill Bonner | 3 comments | Continued
A National Mortgage Bubble
This brings us to a quick point about the Aussie property market. A frequent complaint in the e-mail box is that house prices are a local and not national phenomenon. If that’s right, then it doesn’t make any sense to talk about a national property bubble…because there can’t be one, can there!?
August 11th, 2009 | Dan Denning | 2 comments | Continued
A Financial World Not Yet Recovered From the Bubble Madness of 2002-2007
Here at The Daily Reckoning, we look…we squint…we wipe the fog off our glasses and try to tear the scales off our eyes. What do we see? We see a financial world gone mad.
August 7th, 2009 | Bill Bonner | 0 comments | Continued
Australian Property Market is “Recovering”
As we said at the ‘Australia in the Red’ debt summit, “recovering from what?” For something to recover you generally need to show symptoms of sickness. So far all the Australian property market has shown is a couple of spots.
But these ‘spots’ are potentially hiding something much, much worse.
August 7th, 2009 | Kris Sayce | 34 comments | Continued
Investors in China Have Learned Nothing From the Crash of ’07-’08
With no barriers to entry, profit margins are always squeezed by competition. And growth is limited too – other builders are always starting up. If the investor paid 40 times earnings, he can only get 2.5% on his money…
July 31st, 2009 | Bill Bonner | 0 comments | Continued
Australia Presents Investors With Great Portfolio of Energy Choices
The uranium spot price is coming off a low after a big correction. But as we’ve covered in Diggers and Drillers, the demand for nuclear fuel from global utilities is on the rise. Australia – with over 30% of the world’s proven uranium reserves – is in the pole position (side by side with Kazakhstan, arguably) to provide the world with what it needs.
July 21st, 2009 | Dan Denning | 1 comment | Continued
In 1930…as in 2009…the Average Fellow Thought the Crisis had Passed
“I see the publishers association has chosen a ’20s theme,” began the emcee. “What is wrong with you people? Don’t you know what came after the ’20s? The ’30s!”
It doesn’t seem like the ’30s…yet. Ask the man on the street and he will tell you what he’s heard on TV: the worst of the crisis is over.
An Exploded Bubble Can’t Be Reflated
Because, once a bubble has exploded, it can’t be reflated. The feds can put out new money and credit – but it goes somewhere else…
June 16th, 2009 | Bill Bonner | 0 comments | Continued
Subprime Meltdown Has About Run its Course
“But not to worry,” borrowers were told. “Betting on ever-rising home prices is the safest wager in the whole wide world. If you have problems with cash flow when the ARM resets, your house will be worth a lot more, so you can simply sell it and walk away with a nice chunk of change in your pocket.”
June 4th, 2009 | Doug Hornig | 8 comments | Continued
Government Could Succeed in Reflating the Bubble
The dotcom bubble had exploded. Stocks were going down. The economy was in recession. But the recession turned out to be very, very mild. Most people seemed unaware that there was a recession at all. Spending never went backwards…not an inch.
May 27th, 2009 | Bill Bonner | 0 comments | Continued
