Another Sign of China’s Collapse

Often times I hope I am wrong. The FT reported that forest land that is to be preserved has been used as collateral in bank loans to build infrastructure by local governments. So if the loans go bad, they will have to sell the land to pay off the debt. Since they are unlikely to […]

Another Iceberg in the Foggy Distance

The Capitan of the Titanic was asleep in his cabin when they hit the iceberg. In today’s dangerous waters, it’s tough to get any sleep at all because of icebergs like this: High Yield Debt Refunding Requirements A recent Moody’s report says, “U.S. speculative-grade issuers face more than $800 billion in refunding requirements over the […]

The Impact of Kicking the Fiscal Can Down the Road

The EU’s top economy official, Olli Rehn, said today that he wanted the Greek government to supply answers by Friday on how it used currency swaps and how that affected debt and deficit figures. European Union finance ministers also gave Greece a deadline of March 16 to show that it can make big spending cuts […]

Could China Collapse?

China announced that they are trying to slow the pace of lending. That move, along with several others recently, is sending fear about a China collapse throughout the markets. It’s pretty clear that China has been lending too much money as this chart shows: The growth needs to be slowed, not only for the typical […]

Eye of the Housing Hurricane

After the first wall of the hurricane passes, there’s a lull. You’re in the eye of the hurricane. It may feel like it’s over, but it’s not. It just feels better because the wind stopped blowing for a minute. But when the second wall comes through, it could be just as bad as the first. […]

Greek Tragedy Coming to a Theatre Near You

Global markets are focused on the situation in Greece and the need for Germany to step up and bail out the troubled nation. Protesters will likely take to the streets if something doesn’t get resolved this week as they need to borrow money by next week or go into default. It’s likely that either Germany […]

Bill Gates is still learning. R U?

Bill Gates writes a blog. Who knew? It’s called the Gates Notes and he covers what he’s thinking, learning and doing. While it might be interesting to some to find out what he is doing to help with Malaria in Africa, education in America, or system development to deal with the next pandemic – I […]

Would you lend money to Portugal?

Portugal’s ability to borrow money stopped yesterday. They tried to sell bonds to raise money to pay its bills. There weren’t enough buyers and they canceled the sale. (I wonder if they actually cut up the national credit card in front of the heads of state or if they just take it away and give […]

Dubai Boom Goes Bust

Last week we heard that Dubai World—the investment and holding portion of the emirate of Dubai—is on the edge of defaulting on billions worth of debt. Because Dubai doesn’t have much oil or gas of its own, its plan was to turn it’s small land mass into a tourist and business destination: the Las Vegas […]

Bernanke: Markets Tied to U.S. Currency

Today, the financial markets hinged on every word by Federal Reserve Chairman Ben Bernanke as he made a speech at the Economic Club of New York. Markets were waiting for some indication of a change in Fed policy or a comment on the dollar. They weren’t disappointed. While he didn’t imply any change in Fed […]

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