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Tag Archives: delusion
China’s debt
That China has pumped up it’s economic growth with a huge mountain of new debt is not in doubt. In 2008, the quick debt fueled economic stimulus was proportionately way bigger than any other economy in the world. But the … Continue reading
Good debt, bad debt and unreal debt
Governments, corporations and people borrow to pay for something they need now, but don’t have enough cash/savings to pay for now. If that something is a hard economic asset (say, a power station, or a house), part of the future … Continue reading
Posted in debt, financial markets, risk
Tagged bank behaviour, delusion, derivatives, investment banking, Wall Street
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Phantom recovery
Highlights from yesterday’s US Government press release on jobs: unemployment down in one month from 7% to 6.7%; 74,000 new jobs created in December. Sounds OK doesn’t it? The economy must be recovering … (Wall Street rose a bit on … Continue reading
Posted in employment, tough times
Tagged BLS, delusion, economic growth, employment, Federal Reserve, jobs, unemployment, US economy, Wall Street
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The market v the economy in two graphs
The exuberance in the western world’s stock markets is palpable. The lead is coming from Wall Street where the end of year celebration was lubricated by a 30% gain. Thanks to the Federal Reserve printing $1 trillion out of thin … Continue reading
Posted in financial markets
Tagged delusion, economic growth, Federal Reserve, market value, Wall Street
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Hockey’s challenge
107 days have already gone for the new Australian Government. It will be another 140+ before we see it’s first full budget. Nearly a quarter of their elected term will be gone! 18 months after that, they will be right … Continue reading
Posted in politics and leadership, tough times
Tagged Australian economy, delusion, Howard, Joe Hockey, Tony Abbott
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Bubbles anywhere?
Just about every relevant source I read is now writing about bubbles. Are we, or aren’t we, inflating bubbles? The Economist is typical: “TALK of bubbles is in the air again. The Dow Jones Industrial Average has hit an all-time … Continue reading
Posted in financial markets
Tagged bubbles, delusion, Federal Reserve, market value, US economy, Wall Street
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Australian entitlement is in for a great shock
David Llewellyn-Smith is on a roll. The ABC picked up his great article from Macro Business and put on The Drum at the weekend, summarised thus: “Australia’s business environment is unsustainable, and propping up dying companies like Qantas rather than … Continue reading
Australia’s mining boom … opportunity missed
That Australia has seen an epic boom in mining over the last 10 years is undisputed. Notwithstanding the uncertainties hanging around in the world economy, big export earnings from mining look set to continue. What have we got to show … Continue reading
Posted in debt, politics and leadership, why do people do what they do
Tagged delusion, group think, mining boom, Norway, priorities, resources, Singapore
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Are the adults in charge yet?
Tony Abbott promised that the adults would take charge again in Canberra. But it’s hard to find anyone who thinks that’s happened. Yesterday the ABC published a piece from the usually even handed commentator David Llewellyn-Smith that sums things up … Continue reading
Posted in politics and leadership, tough times
Tagged delusion, house prices, priorities, Tony Abbott
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Great! Seasoned commentators get it!
Fantastic!! The Pope and the Productivity Commission have stirred two of Australia’s respected and seasoned political/economic commentators. I read much of what Alan Kohler and Paul Sheehan produce. Not always, but more often than not, I find their writings right … Continue reading
Posted in debt, inequality, tough times
Tagged age of entitlement, Alan Kohler, baby boomers, debt, delusion, Paul Sheehan, Pope Francis, priorities
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something 2 ponder 