These aren’t the droids you are looking for. Saudi Arabia’s “jedi mind tricks” as described by FT Alphaville (and more recently here) involve telling the market where they want the oil price to be. The aim is that if the market knows where Saudi Arabia wants the price to be, they might conclude that Saudi […]
The FT is horribly confused. The point of QE3 is to loosen monetary policy to encourage consumption and investment to boost demand to get away from the zero lower band. Increased inflationary expectations are EXACTLY WHAT BERNANKE IS AFTER, not market fears of inflation.
The debate around access to healthcare and medical schemes in South Africa suddenly sounds pretty similar to the healthcare debate that is part of the US presidential election.
Ok it’s not all bad news. Spanish bond yields, which you know I’ve been following, are actually way down from their Everestian highs from a couple of weeks ago. There is clearly more confidence in the bail-out and political plans out there than in my head. But everything else is pretty much bad news, even […]
In South Africa we have a major income inequality problem. It’s historical (accumulated wealth, accumulated skills) and current (disastrous public education) and isn’t going away any time soon. The free market argument here is to forget about income inequality per se and focus on economy friendly, business friendly policies that will grow the entire economy […]
The astoundingly useful guys at FT Alphaville pointed me towards this Gerard Minack analysis of emerging market returns yesterday. The message is that high growth economies don’t necessarily translate to high equity returns. The argument can be summarised as this: Earnings growth is correlated with economic growth Valuation changes contribute significantly to equity returns and […]
Paulson and Soros still think Gold is a buy, adding to their stakes as the price declines. It’s also not very brave of me to blog about this now as gold has declined when for much of the financial crisis it was increasing in price. I’ve been watching other things. The idea that the gold […]
The real cost of the crisis in Italy? Fewer supercars on the road.