Stubborn China and the impending currency war
An excellent column from Martin Wolf about fighting the currency wars with stubborn China. China has become the nation with largest current account surplus in the world. It amassed more than $2.5tn reserves which are growing at $300bn per year. The impact on other high … Continue reading
The New American Normal – NYTimes
Op-Ed Columnist – The New American Normal – A great column in NY Times about the uncertainty facing the US economy today. Clearly, there is no new direction emerging from the current economic trends. No one is sure where the … Continue reading
A good article in Forbes about how US, UK and Germany are approaching economic recovery. Germany and UK have put forth fiscal sustainability (read spending cuts) at the top. Other countries like Spain and Greece had to do it by … Continue reading
Turbocharged Germany is a relief to the faltering EU economies. At a time when the Europe debt crisis is threatening the economic recovery, Germany posted their strongest growth since unification – backed by strong demand from emerging economies for heavy … Continue reading
India is not alone in higher fiscal deficits
An interesting graphic from NYTimes shows the risind debt levels in Euro zone. India currently has a debt-to-GDP ratio 80%. Luckily, close to 85% of the debt is domestic and hence has less exposure to currency risk or recall risk. … Continue reading
Krugman, in his Op-Ed column in NYTimes, wanted the US government to impose 25% duties on Chinese imports. That opinion may sound as protectionism, but something drastic will happen soon with international trade. China is known to keep its Renminbi … Continue reading
It looks imminent that SEC will clamp down on the dark part of the of dark pools. As of 2009 there are more than 30 dark pools operating in US markets. Together they add up to 7.2% of trading volume. … Continue reading
Japan’s economy, stagnant for 16 years, is facing challenges quite different than those from US and Europe. There is no housing bubble or credit crunch in Japan. After a decade of stagnant and deflation ridden 90′s, Japan’s economy started improving … Continue reading
Switzerland’s Dilemma is perhaps unique in these markets. Traders in other markets are taking shelter in the safety of Swiss francs. Swiss currency appreciated rapidly in this year creating undesirable effects for the Swiss economy. Now the country wants to … Continue reading
The recession is here. Although we read and hear the news about recession every day it is painful to see it in pictures and what people are going through. What struck me is the pictures are drawn from all across … Continue reading