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Todays economic news.

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Re: Todays economic news. [#permalink] New post 24 Jan 2008, 14:53
I don't think we're talking about the same Hyde Park, togafoot. The one in Chicago is a lot less tony than the original in London. :)
togafoot wrote:
Hyde park is Great. One of the royal parks, Bayswater, Kensington, Lancaster gate ( Home of the F.A.) surround it. The Albert Hall, great operatic theatre is on the edge of it, and its next to Kensington gardens, another royal park.
It`s one of the most sought after areas to live in, so extremely expensive.

And folks, don't forget Calyon pulled the same "rogue trader" stunt a few months ago to cover about 400mm of losses in structured products! Maybe SocGen and Calyon hired the same spin doctors!

http://www.dealbreaker.com/2007/10/post_537.php

Last edited by solaris1 on 24 Jan 2008, 15:01, edited 2 times in total.
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Re: Todays economic news. [#permalink] New post 24 Jan 2008, 14:54
British sarcasm :wink:

solaris1 wrote:
I don't think we're talking about the same Hyde Park, togafoot. The one in Chicago is a lot less tony than the original in London. :)


Did you know Central Park (NYC) is a copy of my home town park... Birkenhead park.
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Re: Todays economic news. [#permalink] New post 24 Jan 2008, 14:57
The one in Milton Keynes? :-D

togafoot wrote:
British sarcasm :wink:

solaris1 wrote:
I don't think we're talking about the same Hyde Park, togafoot. The one in Chicago is a lot less tony than the original in London. :)


Did you know Central Park (NYC) is a copy of my home town park... Birkenhead park.
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Re: Todays economic news. [#permalink] New post 24 Jan 2008, 22:36
riverripper wrote:
I sure hope that guy wasn't a Kellogg grad...

No, he wasn't.

http://www.linkedin.com/ppl/webprofile? ... o_viewmore
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Re: Todays economic news. [#permalink] New post 25 Jan 2008, 07:52
I recommend reading this:

HOW REAL WAS THE PROSPERITY?
http://www.businessweek.com/magazine/co ... ries_ssi_5
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Re: Todays economic news. [#permalink] New post 25 Jan 2008, 13:05
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Anyone follow Peter Schiff?


http://www.europac.net/#


Another One Bites the Dust


Over the past half-century, the United States has seen its global dominance in dozens of industries slip away. One plum that we have maintained is our gargantuan financial services industry, whose contribution to total GDP more than tripled between 1947 and 2005. However, the current global financial crisis, manufactured on Wall Street and exported to the entire world, may result in the U.S. losing its financial crown as well.

Once upon a time America owned the automobile industry. But after several decades of excessive taxation, onerous government regulation, union extortion, and a crushing lack of foresight and innovation, we no longer dominate an industry that we practically invented. Just as Detroit no longer claims center stage in the world automobile marketplace, soon New York will lose its position at the center of global capital markets.

In the first place, the center of finance tends to go where the money is. Right now all the money is coming from Asia and the Middle East. When the United States was the world’s greatest creditor nation and its largest supplier of capital it made prefect sense for that capital to be allocated here. But why should the Chinese send their savings to New York only to have it re-invested back in China? Wouldn’t it make more sense for the Chinese to allocate their capital locally rather then out-sourcing the job to us?

In the second place, when the strength of the dollar was widely regarded it made sense for global savers to allocate substantial percentages of their savings to U.S. dollar denominated investments. This preference gave Wall Street a competitive advantage in attracting capital. However, now that confidence in the dollar has evaporated, perhaps permanently, this advantage has been lost. Further, investment in the U.S. was encouraged by America’s respect for private property, low taxes, and minimal government regulation. However, this advantage has been lost as other nations have strengthened their private property laws, deregulated, and lowered taxes, while we have done the opposite. As a result, thus far this century, the returns on U.S.-based investments have far underperformed those achieved in every other major market.

Most importantly, Wall Street’s reputation, once its greatest asset, is also in jeopardy. Just as Detroit lost its reputation for high quality cars, bankrupted dotcoms and worthless subprime debt are creating similar problems for Wall Street. You can’t expect to keep your customers if you continually sell them shoddy merchandise. Wall Street has spread hundred of billions of dollars in losses around the world and in so doing shattered its reputation with some of its best customers.

However, in the last few years Wall Street has not only screwed customers but their own shareholders as well. At one time all of our major investment banks, such as Goldman Sachs, Lehman Brothers, Morgan Stanley, Bear Stearns, Smith Barney, Shearson, E.F. Hutton, Kidder Peabody and Solomon Brothers, were private partnerships. However, during the 1990’s they all went public (of course many merged first so they no longer exist as independent firms). Goldman Sachs was the last to go public in 1999. The transition allowed Wall Street partners to cash out, transferring future risks to new shareholders. In so doing they were able to capitalize on bubble valuations, yet through lavish bonus compensation packages, still keep the lion’s share of the profits for themselves. In other words they got to have their cake and eat it too.

As a result of this transfer of risks, the business models of America’s leading financial institutions shifted, with profits coming from riskier sources such as proprietary trading and structured finance. To line their own pockets, Wall Street willingly exposed its shareholders to risks that it would never have assumed with its own capital. This moral hazard set the stage for the enormous losses shareholders are now suffering, and are a direct consequence of the phony profits booked in prior years. However, while shareholders are left holding the bag, Wall Street’s former partners now turned employees have already walked away with huge IPO and stock option windfalls, as well as lavish bonuses paid on phantom profits.

The coming crash will plainly expose these conflicts of interest, and the reaction will be severe. In the end, finance and banking, like manufacturing, will be yet another industry lost to foreign competition. The new financial capitals will likely be in Asia, the Middle East, and Europe. New York will certainly still have a role to play, but much like Detroit, it will be but a shadow of its former self.
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Re: Todays economic news. [#permalink] New post 25 Jan 2008, 13:16
Economic crisis or not, there is one thing that is clear as day to me at the moment. Banks are doing a mix of very specific hiring, or cutting in big numbers.

This is not the perfect time to be going on a summer. And this is the first time I have expressed concern about the picture. It is getting very ugly.
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Re: Todays economic news. [#permalink] New post 25 Jan 2008, 16:05
Goldman May Fire 1,500 Workers in Annual Review

http://www.bloomberg.com/apps/news?pid= ... er=finance

Banks May Need $143 Billion for Insurer Downgrades

http://www.bloomberg.com/apps/news?pid= ... refer=home
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Re: Todays economic news. [#permalink] New post 25 Jan 2008, 16:25
trader1 wrote:
Anyone follow Peter Schiff?


Excellent article. thanks trader1. +5.

I am a huge fan - this guy was dead on about the housing problems and the recession. I have been reading up on Jim Rogers and Ron Paul as well. It is difficult to trust any advice given out on Wall Street, but Peter Schiff comes very very close. Listening to Cramer 'feels' good because he speaks to the illiterates amongst us, but I am not sure if I can trust him that much.

trader1, I have been following your posts with great interest. If you think our community would benefit from having a dedicated forum for anything investing, I would be happy to set one up for you and others.
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Re: Todays economic news. [#permalink] New post 25 Jan 2008, 16:53
Praetorian wrote:
trader1 wrote:
Anyone follow Peter Schiff?


Excellent article. thanks trader1. +5.

I am a huge fan - this guy was dead on about the housing problems and the recession. I have been reading up on Jim Rogers and Ron Paul as well. It is difficult to trust any advice given out on Wall Street, but Peter Schiff comes very very close. Listening to Cramer 'feels' good because he speaks to the illiterates amongst us, but I am not sure if I can trust him that much.

trader1, I have been following your posts with great interest. If you think our community would benefit from having a dedicated forum for anything investing, I would be happy to set one up for you and others.


Actually, a forum on investing/trading/markets (whatever seems most appropriate) would be a good idea to allow folks to exchange different ideas and/or learn more about investing in markets.

Schiff has been on point. Been following him since 2005. Rogers is legend. As for RP, I love the guy. Most honest and sincere candidate out there.

If you like Schiff, you might like Jim Sinclair, one of my mentors. You can find him at http://www.jsmineset.com. He's a bit more, how can I say, eccentric than most financial commentators. However, his credentials and track record are not too shabby. Former Wharton b-school student, but dropped out.

Oh, and as for Cramer.... http://www.youtube.com/watch?v=SGkrNJ19DSU
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Re: Todays economic news. [#permalink] New post 25 Jan 2008, 17:11
trader1,

OK, I just created a sub-forum creatively titled Financial Markets in the B-School Life section. Feel free to participate. I will move some posts there. thanks for your contributions.

Good recommendations. I will update my reading list.
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Re: Todays economic news. [#permalink] New post 25 Jan 2008, 20:46
Quote:
Peter Schiff Named Economic Advisor to the Ron Paul 2008 Presidential Campaign

FOR IMMEDIATE RELEASE Contact: Jesse Benton

January 25, 2008 (703) 248-9115

ARLINGTON, VIRGINIA – Newly appointed Ron Paul economic advisor, Peter Schiff, issued the following statement about Dr. Paul’s proposed comprehensive economic revitalization plan:

“We need a plan that stimulates savings and production not more of the reckless borrowing and consumption that got us into this mess in the first place. Ron Paul’s plan is the only one that amounts to a step in the right direction. If you want meaningful change - for the better that is - Ron Paul is the only candidate capable of delivering it. The others merely promise to continue the failed policies that are at the root of our current economic problems.”

Peter Schiff is president of Euro Pacific Capital Inc, and a frequent guest on CNBC, Fox News, and Bloomberg Television. He is often quoted in major financial publications and is the author of the book Crash Proof.

In the past Peter Schiff said the following of Dr. Paul: “Ron Paul is the real deal, a true statesmen and citizen politician in the traditions envisioned by the framers of our Republic.”

Mr. Schiff is available for interviews regarding Congressman Paul’s economic policies.

Congressman Paul’s comprehensive economic revitalization plan can be found online at: http://www.RonPaul2008.com/Prosperity
Re: Todays economic news.   [#permalink] 25 Jan 2008, 20:46

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