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Blog Entries tagged 'money'

Dr. Realist interview, from Newsweek

Excerpt from a nice, concise interview in Newsweek on the economy with the man who predicted the current state of affairs, Nouriel Roubinin:

What is going to fuel the next growth cycle?
That is a difficult question. The periods of high growth in the United States in the last 25 years have been characterized by an asset and credit bubble. Whatever the future growth is going to be, this time around it needs to be sustainable and not bubble-prone because we are running out of bubbles to create. We had the real-estate [bubble], tech bubble, housing bubble, hedge-fund bubble, private-equity bubble, commodities bubble, even the art bubble—and they are all bursting.

What makes you different from the other economists?
We think usually that crowds—on average—can be wiser than individuals. In this case, most people got it wrong because whenever we are in an irrational, exuberant bubble, people fail to think correctly.

Do you believe this is a bear-market rally or do you think it is the market anticipating an economic recovery?
As we reach newer lows, we may be closer to a level of the market that is fundamentally right. A year ago we were not as close to a true bottom. Today we are closer to it. As we become closer to the bottom of the economy, the stock market looks ahead and sees the light at the end of the tunnel and rallies. In spite of these caveats, I would argue that even the latest market rally is a bear-market rally.

Do you worry about China getting tired of holding our bonds?
In the short run, China has no option but to accumulate more reserves and dollar reserves. Why? Because if they stop doing that, their currency would appreciate sharply while their exports are plunging. So in the short run, they are going to keep on accumulating. But I have seen a huge number of new initiatives in the last month that suggest [the Chinese] are pushing for the yuan to become an international currency and a reserve currency. They are doing bilateral deals with countries like Argentina and half a dozen others in yuan, not in dollars.

They are moving away from the dollar?
Yes, slowly they will. First they have to establish their own currency as an international currency. That will take years, but already in a month they have done more than in the last 10 years.

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April 25th, 2009

It was so Summer 2008.

Hi beautiful people! Sorry to post this so late!

I know there's a lot to talk about. The miraculous Michael Phelps, inspiring Lolo Jones, and breathtakingly beautiful Huang Shansan and her fellow trampolinists, to start.

Then there is Georgia and Russia.

And, of course, the economy.

I went to the mall a few days ago to buy a bathing suit for Tenzin. It was so cheap! I looked at the tag. Made in China. Then I went to the farmer's market and bought ten ears of corn. It was so expensive! The farmer said, "Locally grown, costs more."

Today I went to make sure Tenzin was sleeping and not chasing geckos at naptime.

I opened his door and found a delirious, somersaulting, almost-four-year-old boy hard at work paper-clipping all of my credit, debit, gift, frequent flier, health insurance, and drivers license cards to assorted stuffed animals, blankets, and pieces of furniture.

It was a post-modern installation piece: a room full of debt, a house of cards. He had found my wallet and was tearing a hole in it. It was expressly American, it was my Visa to enlightenment. It was, "Money can't buy you love" and it was "Child paper-clipping your credit cards to rocking horse? Priceless." It was rich. It was tragic.

It was so August 2008. When an ear of corn cost two dollars.

I stood thinking about Georgia, the trampolinists, and the sixty-five dollars it was going to take to fill up my gas tank tomorrow. I thought about all the people with no gas tank to fill up. No corn to buy.

I thought about the interview Obama gave upon return from Hawaii.

When asked what to do about all the unspeakable horrors going on in our world, Barack said the most important thing we can do is talk about them, and acknowledge, in a forthright way, they exist. We can't pretend nothing is wrong. We need to be able to look, to allow, to let down our defenses so that we can see. So that we can feel, and move from there.

Which is what I think we all need to do right about now. Not so much that we totally lose it, but just enough so we don't totally lose it.

Things are not okay in the world, and they haven't been for a very, very long time. It's not pretty, but it's the truth. And we can't change what we won't look at, and we won't look at what we think we can't change, which means we have to either look or set our hair on fire.

And if we did that, who would take care of the children?

Power to the people.

Each and every one of us.

Love,

Rebecca

August 26th, 2008

10 Money Questions, for Queercents

10 Money Questions

March 25th, 2007

March 25th, 2007