News and Views

Baltic Dry Index Falls Sharply

2009-08-16T00:30:00.000-07:00

The News:

Baltic Dry Index slumps 35% from year's high

The Baltic Dry Index (BDI), a measure of shipping costs for dry bulk commodities, slumped around 35% on August 14 from this year's high of 4291 on June 3. This is the sharpest fall registered by the index since June 3. The BDI went below 3000 to close at 2685 on Friday, after being through a troublesome week.

According to experts, one reason leading to such drop in BDI is the slowdown of Chinese demand for shipments of coal and iron ore. Moreover, as delivery of new ships has started to happen, it is impacting the freight rates.

"Slowdown in Chinese demand is a concern. Moreover, the delivery of new ships has started, due to which freight rates are going down impacting the BDI. The new ships are leading to a gap between demand and supply, as the demand situation is yet to gain pace," commented S Kulkarni, secretary, Indian National Ship owners' Association.

China's coal and iron ore imports in the first half helped the index to advance as much as five fold this year, reversing some of the record 92% collapse in October 2008. So far this year, China has imported nearly 355 million tonnes of iron ore, compared with 440 million tonnes for the whole of 2008. Hence, the worry for the shipping industry is that Chinese buying will slow further as its mills struggle to work through that enormous inventory.

My Views:

While Central Banks around the world have been pushing hard to create another bubble with their loose monetary policies but its The Chinese who have become successful! They are competing directly with the US on who is bigger fool and seem to have won the bet for now...

Brtish MPs in Trouble

2009-05-15T21:42:00.000-07:00

The News:

British PM Brown apologises for politicians' perks

Britain's Prime Minister Gordon Brown apologised on Monday for politicians' expenses to try to staunch a damaging parliamentary scandal but a newspaper published new revelations about lawmakers' extravagant claims.

The disclosures in the Daily Telegraph newspaper were the latest in a string of embarrassing headlines about expense claims by ruling Labour legislators -- including Brown and his cabinet colleagues -- and opposition figures.

The reports have prompted widespread public anger and calls for an election, not legally required until mid-2010, to be held immediately.

"I want to apologise on behalf of politicians ... of all parties for what has happened," Brown said in a speech.

The Daily Telegraph said on its website late on Monday that opposition Conservative politicians had received tens of thousands of pounds to maintain manor houses and stately homes.

One claimed 2,000 pounds ($3,000) for clearing the moat around his manor house. Another claimed for cleaning his swimming pool but told the Telegraph he would repay the money. A third claimed 380 pounds for horse manure for his garden.

The reports of how legislators have used allowances on top of an annual salary of almost 65,000 pounds -- more than double the national average -- are particularly damaging at a time when Britain is suffering its worst recession since World War Two.

My Views:

This is not a surprise at all. Politicians do not run for office to serve people, they have ambitions which do include monetary gains and in this case there was nothing "illegal" as per the laws. If people think politicians are there to "serve" them then they are in delusion.

Coming to people, they are angry on the lavish expenses by elected politicians. This anger is not what it looks like - "aware public response". Most of the people should expect it anyway. The real reason behind this outcry is ongoing Depression which makes people "cry foul". In times like these, emotion of envy is bigger than anything else and so the entire drama.

A New Trend? Or Trend Reversal?

2009-05-10T09:54:00.000-07:00

The News:

Worldwide recession may reverse the direction of modern societies

Washington, May 10 (ANI): A psychologist has developed a new theory of social change which suggests that the current worldwide financial crisis may reverse, at least temporarily, the direction of modern societies.

The theory was developed by UCLA (University of California Los Angeles) distinguished professor of psychology Patricia Greenfield.

"In the United States and in other parts of the world, we are now moving in the other direction," Greenfield said. "I see signs of people becoming more community-minded as people are getting poorer," she added.

For example, former executives who are out of work are doing much more volunteering for nonprofit organizations, moving toward a focus on the common good.

My View:

I agree with the theory and good psycho analysis by Patricia Greenfield of societies turning styles. This is what happens when there are drastic changes as we are facing today and not in times of mild recessions. This also suggests that today's crisis is not a mere recession but a Depression, which requires fundamental changes before any real recovery.

US: Something cooking for FED?

2009-04-18T22:52:00.000-07:00

The News:

Obama aide Volcker: Economy recovery a "long slog"

Sat, Apr 18 08:57 PM

Paul Volcker, senior economic adviser to President Barack Obama, said on Saturday that the U.S. economic recovery will be a "long slog" but that the rate of decline "is going to slow."

Volcker said a review the Federal Reserve's role, something traditionally regarded as taboo, now seems inevitable given the fallout from the long-running financial crisis.

"For better or worse, we are at a point where the Federal Reserve Act is going to be reviewed," said Volcker.

The wide range of proposals, from giving the Fed much more supervisory authority to stripping it of part of its current authorities, "are just an indication of how wide open that question is going to be."

My View:

This is something that had to happen given the circumstances. Whatever the mainstream media says, the actual root cause of this entire problem is loose policies of Fed (the recent one was Greenspan's irresponsible "too low too long" interest rate policies).

There can be many interpretations of Volcker's statement and its actually more confusing than the uncertainty of economy. I have two assumptions:

They are contemplating INCREASING the powers of Fed to the level where the Fed have extreme power. I think this will be the last thing required and if its true then the so called freedom in US of A will become a history chapter. It will be like a kingdom ruined by a monster giving it the state powers with honor and praying that the monster having more powers will save the kingdom!
They may be thinking of stripping the Fed's powers in the effort to make it less powerful. This may sound like a good idea but what if the motive behind this is to create a more powerful and bigger govt?

So, in my opinion, either way this is going to be tough - tough for "the Free Citizens".

US: Irony of living in the richest country

2009-03-26T21:14:00.000-07:00

The News:

FEATURE - Hidden homeless emerge as U.S. economy worsens

Fri, Mar 27 09:03 AM

Emergency shelters brimming with homeless people in California's capital are quietly turning away more than 200 women and children a night in a sign of the deteriorating U.S. economy.

The displaced individuals on waiting lists at St. John's Shelter and other facilities often turn instead to relatives or friends for temporary living quarters, perhaps moving into a spare room, garage or trailer. The less fortunate might sleep in their cars or a vacant storage unit.

They are the hidden homeless. And their ranks appear to be growing as rising joblessness and mortgage foreclosures take their toll in Sacramento and other U.S. cities, experts say.

U.S. President Barack Obama recognized the trend in his televised news conference this week, saying, "the homeless problem was bad even when the economy was good," and he vowed to bring greater government resources to bear to deal with it.

"It is not acceptable for children and families to be without a roof over their heads in a country as wealthy as ours," he said.

A "tent city" of up to 200 homeless in Sacramento was thrust into the media spotlight last month as a symbol of the battered U.S. economy. California authorities said this week they would shut down the illegal settlement and find other shelter for its residents, most of them chronically homeless.

My Views:

This is what happens when manipulated fiat money lifts prices of assets way beyond their actual value. What Greenspan did in the earlier part of this decade resulted in such stories. His reckless act of lowering interest rates to near zero for too long created this and now imagine what Bernake's acts can do.

The poors will remain poor forever if fiat money is to be trusted and those who earned money with hard work will be robbed by this artificial money.

Russia announces rearmament plan

2009-03-17T07:58:00.000-07:00

The News: (Source: http://news.bbc.co.uk/2/hi/europe/7947824.stm)

Russian President Dmitry Medvedev has said Moscow will begin a comprehensive military rearmament from 2011.

Mr Medvedev said the primary task would be to "increase the combat readiness of [Russia's] forces, first of all our strategic nuclear forces".

Explaining the move, he cited concerns over Nato expansion near Russia's borders and regional conflicts.

My Views:

This announcement by Medvedev is not surprising given how Russia has re-emerged as a force since Putin took charge. Russians want their influence intact and the plans by NATO to expand into Russian influence territory has not gone well into their throats. Recent Georgia event was an open announcement by Russia that they will not tolerate NATO moving inwards towards nations under its influence.

The Americans definitely are not happy with it but they are helpless at best. They can not directly counter Russia for several reasons ranging from strategical to economic hurdles. American forces are engaged in Iraq and Afghanistan and are short on resources to meaningfully counter Russia. To add to the problem is non-cooperation by European members of NATO given their dependence on Russian energy supplies as well as their geographic location which would make those countries suffer more consequences as they don't enjoy being on the right side of the Atlantic ocean as does US of A.

The situation is complex but what I see here is more rhetorics by both camps than any real danger of re-emergence of cold war. I know this news may become hot topic for few days in global media but most of these things are worthless to even consider. The only threat is if the economic conditions weaken so bad that govts need to enter into conflicts (inspired by WWII).

Buffet becoms Victim of his Misadventures

2009-02-28T20:43:00.000-08:00

The News:

Berkshire net sinks; Buffett says economy in shambles

Sat, Feb 28 10:52 PM

Berkshire Hathaway Inc, Warren Buffett's insurance and investment company, barely broke even in the fourth quarter because of losses on derivatives contracts tied to the stock market.

Profit fell 96 percent, the fifth straight quarterly decline, and Berkshire's net worth tumbled $10.9 billion in the year's final three months. Net worth per share fell 9.6 percent in 2008, only the second decline since Buffett began running Berkshire in 1965. It fell 6.2 percent in 2001.

My View:

The Oracle of Omaha once famously said "Derivatives are financial weapons of mass destruction". A person who is ideal of so many people around the world (not only US) did not practice what he preached! Derivatives if could be personified would have answered like this - "see, you called us financial weapons of mass destruction, now you will be the sure victim, AND we will target your reputation more that your wealth".

My respected Buffet has been faltering for quite some time and I once wrote my reaction in my indexviews blog about why Buffett could be advising wrong things. You can find that here.

Yet another Scam

2009-02-28T02:27:00.000-08:00

The News:

U.S. charges Stanford with massive Ponzi scheme

U.S. securities regulators on Friday accused Texas billionaire Allen Stanford, his college roommate and three of their companies of carrying out a "massive Ponzi scheme" over at least a decade and misappropriating at least $1.6 billion of investors' money.

My View:
As I've once already expressed my explanation on why these SCAMS are getting exposed one after the other, its simple - its a result of bad economic times. The fact is in times of perpetual fake prosperity there were these brilliant brains working overtime to figure out new and newer ideas with which they could cheat people. Now when time is not that good (remember, the real bad time is still to come) these scams are getting exposed one by one.

The biggest ponzi scheme will be exposed not now. It will be a surprise to masses but not for sane people (I don't mean masses are insane, they are credulous though). This scam is under progress and its being done on war scale !!! Yes dear readers, this scam is govt sponsored crisis postponement plan.

Obama To Do The Desperate

2008-11-20T21:24:00.000-08:00

The News:

Obama set to implement 'radical' economic policies: Report

Thu, Nov 20 02:34 PM

President-elect Barack Obama is promising to intervene in the economy in ways that United States hasn't tried since the 1970s, favouring some industries and products while hobbling others, a media report said on Thursday.

Under his financial policies, the Wall Street Journal reported, banks seeking government assistance would be forced to lend and to halt foreclosures. Automobile companies would be pushed to change their product lines to more advanced, fuel-efficient vehicles.

Billions of federal dollars would promote solar, wind and biomass energy, while dirty coal power could be priced out of business.

Obama advisers were quoted by the paper as saying that difficult times necessitate extraordinary measures. "We are in the midst of a massive reorganisation right now in autos but also other areas as well - finance, information technology. All of this flows into...the new green energy economy we are living in, albeit in an embryonic stage," David Bonior, an economic adviser to Obama and proponent of a more interventionist industrial policy in the 1980s, told the paper.

Asked if this was the industrial policy of the incoming Obama administration, he replied: "The answer is yes."

Critics and advocates alike, said the Journal, see the re-emergence of government economic steering that was in vogue when Japan, South Korea and Germany embraced it three decades ago, then discredited after its key practitioners slipped into deep economic funks. With the upheavals in world capital markets, pure free-market policies are facing more criticism, it noted.

My View:
I have two views on this news -

I am true believer in free market economy and in my opinion govt should always keep away from the economic affairs. If markets are truly left on their own, they will always find equilibrium but govt interventions are always detrimental to the long term health of markets. Thus, this motive of Obama, although in good intent, might be dangerous in the long run economically.
I am a GREEN LOVER. I strongly dislike the rampant use of fossil fuels as primary source of energy and so this act of Obama might be a good news for eco-friendly humans all around the world. To promote green energy and discourage non-eco-friendly technology and products can be a first step toward better life for our endangered future generations. I would personally congratulate Obama and wish he has the political will and courage to fight enemies of earth. However, he needs to tread with caution as intervening in economy has always proven to be bad for the long term sustainability.

Bretton Woods Vol-2 - FAILED

2008-11-15T22:07:00.000-08:00

The News:

Termed by many pundits as Bretton Woods II, the Nov 15 Meeting of global "leaders" to combat financial crisis failed to arrive at concrete solution. WSJ or Wall Street Journal reports with this interesting headline:

"G20 Summit Presents United Front, but Offers Mostly Promise"
WASHINGTON -- Global leaders showed a united front against the financial crisis at an emergency summit here Saturday, but offered mostly promises of future cooperation to nudge the world out of its economic funk.

Heads of the Group of 20 industrial and developing nations vowed bold action in a host of areas -- from enhanced oversight of financial markets to reform of the IMF and World Bank -- and urged governments to implement "appropriate" fiscal and monetary policies to shore up sagging economic growth.

But the group, which met for less than six hours in the National Building Museum, left most of the tough decisions to future meetings. The next one will be held before April 30, pressuring President-elect Barack Obama to confront a tangle of high-stakes economic and regulatory issues immediately after taking office.

The Bush administration lauded the summit, which was arranged in less than a month as world leaders scrambled to keep the economic downturn from snowballing.

"I don't think we could have predicted then how productive and how successful this meeting would have been," President George W. Bush told reporters following the summit. "There is more work to be done, and there will be further meetings." Japanese Prime Minister Taro Aso said the cooperation among world nations is important in limiting the depth of the financial crisis. "It does no good to simply panic in a crisis, and that is proven by the Great Depression of 1929," Aso said. "Today things are entirely different...we have a framework for cooperation."

My View:

Well, well, well. Politicians achieved what they are ususally good at : PROMISES for future. The so called leaders atually were not supposed to find a solution but look at the way Bush describes it !!! hilarious !!!

If these so called leaders have the slightest of sense, then they should look for the root cause of this mess - the FIAT MONEY. Its not that we can't get over the evils of this crisis, we can. The only thing we need to do is have leaders like Dr. Ron Paul and start listening to his thoughts.

Fired Worker Kills People

2008-11-14T21:30:00.000-08:00

The News:

Sat, Nov 15 09:48 AM

SAN FRANCISCO (Reuters) - A man laid off recently from his job in Silicon Valley shot and killed three people, believed to be former co-workers, at an office park on Friday, police in the ailing U.S. technology hub said.

The 47-year-old suspect, identified by police as Jing Wu, was still at large after gunning down two men and a woman shortly before 4 p.m. local time (0000 GMT), Santa Clara, California, police told local media.

Police did not identify the firm, which had employed the suspect, local radio and television reported.

An online business directory listed a man with the suspect's name working at Siport, a semiconductor company at the address of the killings. Siport was not immediately available for comment.

As the U.S. economy has weakened, technology companies have joined the rush to cut costs and lay off workers.

Sun Microsystems, one stalwart of the industry, said on Friday it would cut up to 6,000 jobs, 18 percent of its workforce.

My Views:

This is how things turn when the excesses that were done in previous years are blown out. The criminal is not that poor guy, who lost his job, the criminals are those who occupy office at the highest level (read Greenspan) and make decisions that lead to such incidents. Had Greenspan not created this bubble, we'd have a very different set of news stories today.

Taslima "Forced" to Leave India

2008-11-14T08:40:00.000-08:00

The News:

Fri, Nov 14 03:46 PM

Exiled Bangladeshi author Taslima Nasreen has again been "forced" to leave India after her brief stay India, prompting the controversial writer to question the country's alleged secular credentials.

The writer, who returned to India on August 8, said she had to leave on October 15 following the government's dictum. "Yes, I was forced to leave India once again... The government gave me resident permit for 6 months with a secret condition that I must leave the country in a few days," she said in an e-mail interview.

The ex-physician-turned-feminist author, who is under attack from Muslim fundamentalists for her book 'Lajja', said she is now somewhere in Europe, delivering lectures.

My View:

I am really surprised why a person of the stature of Taslima Nasreen desired to live in India in the first place! The kind of job she does (calling a spade a spade) is not favourable in Indian life and moreover, the freedom in India is the "right of powerful people to disrupt that of others". Is she so unaware of even how people of one region (e.g. Maharashtra) hate and beat people of other regions (e.g. Bihar).

Is she unaware of how one can't travel at will (anyone can call a "chakkajam", stopping traffic), can't sleep at will (so much noise pollution day and night by so many things), can't get through bearocracy for smallest things (try getting a driver's licence without agents) etc etc.

She has the luxury of living in any free society like Western Europe or US and if she still wishes to live in India or bangladesh, then there must be something wrong with her.

US Unemployment on a New HIGH

2008-11-13T07:03:00.000-08:00

The News:

Jobless claims jump unexpectedly to 7-year high

Jobless claims jump to 7-year high, signaling rapid deterioration in the labor market

WASHINGTON (AP) -- The number of newly laid-off individuals seeking unemployment benefits has jumped to a level not seen since just after the Sept. 11, 2001, terrorist attacks.

The Labor Department on Thursday reported that jobless claims last week increased by 32,000 to a seasonally adjusted 516,000. That nearly matched the 517,000 claims reported seven years ago, and is the second-highest total since 1992.

The total also was much higher than analysts expected. Wall Street economists surveyed by Thomson Reuters expected claims to increase only slightly to 484,000. Initial claims from two weeks ago were revised upward Thursday by 3,000 to 484,000.

The increase puts jobless claims at levels similar to the recession of the early 1990s. The four-week average of claims, which smooths out fluctuations, increased to 491,000, the highest in more than 17 years.

My Views:

Unexpectedly? why? Everybody who is in his / her senses expected this and even worse when it is revised later. In times of increasing worries, things turn out uglier than most "analysts" think. Nothing surprising in it.

Paulson Cheats US Taxpayers

2008-11-12T10:15:00.000-08:00

The News:

Stocks lower as Paulson unveils change in bailout
Wall Street losses steepen as Paulson unveils plan to not buy distressed bank assets
NEW YORK (AP) -- An already disheartened Wall Street turned sharply lower Wednesday after Treasury Secretary Henry Paulson said the government won't buy banks' soured mortgage assets after all, disappointing investors who hoped to see the bad debt wiped off companies' books. The Dow Jones industrials fell more than 270 points, and all the major indexes dropped more than 3 percent as the market retreated for a third straight session.

Paulson said the government's $700 billion financial rescue package won't purchase troubled assets from banks as originally planned. He said that plan would have taken too much time, and that the Treasury instead will rely on buying stakes in banks and encouraging them to resume more normal lending.

While the market had been pleased by the government's decision weeks ago to buy banks' stock, investors still hoped to see the financial industry relieved of the burden of the mortgage assets whose decline in value helped set off the nation's financial crisis.

My View:

So what were you thinking? how can you trust politicians? This is the kind of breed (politicians) who can ruin you and you still say thanks!!! Perhaps "you" are responsible for not falling in my category - people who never believe politicians.

Now Paulson has "different" reasons to "use" those USD 700 Billion that he and his boss Bush 43 cheated along with others of their category.

However, in my view, even if they went on to purchase "distressed" assets, it would have been still a fool's job. But at least they should have kept their word.

Blooger and Poet Jailed !!! Shame on Myanmar

2008-11-10T22:29:00.000-08:00

The News:

Reporters Without Borders Monday called on bloggers worldwide to protest the jailing of a fellow blogger by the Myanmar military junta for criticising it.

In a statement in Montreal, Reporters Without Borders and the Burma Media Association in Canada said that a Myanmar court Monday jailed blogger Nay Phone Latt for 20 years and six months for criticizing military junta head Gen Than Shwe.

A poet, Saw Wai, was also sentenced to two years in prison for writing a poem critical of the junta head.

``The authorities have imposed an extraordinarily severe punishment on Nay Phone Latt just for using the Internet,'' the two organisations said in their statement.

``This shocking sentence is meant to terrify those who go online in an attempt to elude the dictatorship's ubiquitous control of news and information, and we call for his immediate release.

``Saw Wai, for his part, is being made to pay for his impertinence and courage as a committed poet.''

The two organisations called upon bloggers all over the world to protest against Nay Phone Latt's arrest by carrying his photo on their blogs and writing to Burmese embassies worldwide to seek his release.

My View:

This is shocking, not only the oppression of blogger and poet but our (we blogers) attitude of keeping silent. It happened in Myanmar, it happened in China and it can happen with us too.

I urge all bloggers to protest it in the best possible way they can.

Write columns, articles on your blogs. Send emails to your friends and aquaintances urging them to join you... DO WHATEVER YOU CAN...

China Announces USD 586 Billion Stimulus Plan

2008-11-09T08:05:00.000-08:00

The News: China Announces a BIG Stimulus Plan
China announced a 4 trillion yuan ($586 billion) stimulus plan to spur expansion in the world's fourth-largest economy, helping sustain global growth as the U.S., Europe and Japan teeter on the brink of recession.

The funds, equivalent to almost a fifth of China's $3.3 trillion gross domestic product last year, will be used by the end of 2010, the Beijing-based State Council said today on its Web site. China will adopt a ``pro-active fiscal policy'' and pursue a ``moderately loose'' monetary policy, it said.

My View:
This news is a surprise to most but the nature of surprise is different. Some will see it as a big positive while others will see the facts behind it - how bad the situation on a global front has become. I fall in the latter category, although I was expecting.
In fact, this announcement should send jitters around markets (they may actually show exuberance) as it shows how big the problem is. China, which was so far being seen immune to global financial crisis, is actually in bigger danger. Some pundits were betting on BRIC (Brazil, Russia, India and China) to show considerable resilience with respect to what is happening around the world. The fact is given that China and India have to feed their almost one third of world population, should make the global financial crisis feel at home with considerable drag on their economies.

Luxury Car for the Immorals

2008-11-08T23:27:00.000-08:00

The News:

The German luxury car manufacturer, Audi, on Friday launched its award-winning super sports car Audi R8 car in New Delhi. The model is priced at 11.7 million rupees and is equipped with an engine displacement of 4,163cc.

The designer of the Audi said that aluminum body and special shape were noteworthy characteristics of the model. Presently, Audi sells Audi A4, Audi A6, Audi A8, Audi Q7 and Audi TT through twelve dealerships across the country.

My View:

In times of world economic crisis and falling jobs which will result in increased number of poors who have to fight hard to earn their daily meal, this kind of non-sense is an insult on the Indian people.

How on earth can one describe the very requirement of a 4 litre plus monster engine driven car !!! The ones who buy the "imported" car are real immoral people.

On a second thought, how will one "enjoy" the performance of this luxury car? The condition of Indian roads and traffic is not a secret. In order to get the excitement and pleasure out of the monster, one must risk mowing down few pedestrians.

"Immoral and Irresponsible" is my phrase for those who buy this car.

Indian Govt Will Spend Rs. 250 Bn on Infrastructure: Kamalnath

2008-11-08T22:25:00.000-08:00

The News:

The government will pump-prime the economy by investing Rs.250 billion (Rs.25,000 crore) in areas like infrastructure but without worsening the country's fiscal deficit situation, Commerce Minister Kamal Nath has said.

The minister also said that the government would continue to remain cautious in printing currency notes, so as not to add to the fiscal deficit while making the huge investment. Funds will be found by reallocating revenues.

'So it's going to happen within the confines of good financial management.'

My Views:

I have one word for the idea that Kamalnath shares - BRILLIANT. But, the point is, it should be exactly what he says - "within the confines of good financial management." India has a different economic structure than that of USA, which can be termed as "Cautiously Capitalistic". Infrastructure expenditure of a massive scale is urgently required for real development but we have seen in past that this has a significant impact on fiscal deficit. Whatever enthusaiastic people say, the fact is India is an "Underdeveloped" country if we just consider the majority of population, their education, employment and living standard. A big spending on infrastructure development will be the best stimulus for growth and development of masses.

However, the Commerce Minister's idea to "reallocate" funds is doubtful. Such a big amount can't be just reallocated just like that. Other sectors like education, health are also in big need of capital. The one sector which is unnecessarily occupying a larger than required share is defense. But reallocating money from there will be very difficult and almost impossible considering the political opposition govt risks and that too just before general elections in few months.

As I already said, the idea is brilliant but when we sit down to work out the details, it looks like it would be very difficult to implement without printing more currency (which the minister rejected). If the govt is determined to work it out, they very well, can. But the question is - do they have that kind of political will?

Stock Markets in Trouble Again?

2008-11-05T20:11:00.000-08:00

News:
AP says:-
Stocks plunge anew as recession worries resurface
Wednesday November 5, 6:29 pm ET
By Sara Lepro and Tim Paradis, AP Business Writer

Wall Street falls sharply as investors, worrying about recess, ponder Obama impact on economy NEW YORK (AP) -- A case of postelection nerves sent Wall Street plunging Wednesday as investors, looking past Barack Obama's presidential victory, returned to their fears of a deep and protracted recession. Volatility swept over the market again, with the Dow Jones industrials falling nearly 500 points and all the major indexes tumbling more than 5 percent.

REUTERS Say:
HONG KONG, Nov 6 (Reuters) - Asian stocks fell sharply and the yen rose on Thursday as more evidence that the U.S. economy is shrinking made investors brace for a potentially deep and lasting global recession.

My View:
I told here yesterday analyzing the up move as that was a suckers' rally and a case of irrational exuberance. Yesterday all mainstream media was describing the up move in markets like a magic by Obama, which eventually lasted only few hours. The fact is global economic troubles are beyond the comprehension of mainstream media and way beyond that of "common investors".

Was Obama Chosen as a Conspiracy?

2008-11-05T09:01:00.000-08:00

News:
November 4, 2008 recorded in history as US has first black president.

My View:
Well, actually this is not my original view. In fact one friend of mine - Abhijit, suggested this thing. Doesn't it sound like a conspiracy? CONSPIRACY? what for?

Read the events like this:-

Republicans had their president rule for 8 years and the Bush 43 leaves office leaving behind total mess.
An African American is chosen by Democrats over an ex-First Lady, considering she was supposed to be their frontline candidate just few months back. The guy became popular suddenly and they presented him as "messiah".
Republicans chose their weakest candidate - McCain for president.
The weakest candidate chose Palin !!! for vice-president !!! How come?!!! Palin ? can you believe it?
Palin amused voters with her language skills and her expenses on dresses etc. (!!!)

Whatever you can think of it, but, I am convinced this all is a deliberate conspiracy. They want a black guy as president of the US of A once, at a time when economy is on the verge of collapse. Do they want to convey some message? may be.

Stock Markets Surge Worldwide on Obama Victory

2008-11-04T21:35:00.000-08:00

Stock Markets are posting good gains on Nov 5, extending previous gains in the hope that newly elected US president Barack Obama will turn things around.

While US Indexes were up 3 to 4 % in anticipation of this news (ostensibly, as reported by mainstream media), the Asian Markets ranging from Japan to India opened higher by 1.5% to 5.75%.

The mainstream media reports this as a "reaction" to the news and hope from investors that year-end-rally in markets will take place. However, I think this is yet another Suckers' Rally which is more an example of irrational exuberance. My views regarding these kind of rallies can be found in detail in "Changing Trends In Markets".

Obama Wins US Presidency

2008-11-04T21:14:00.000-08:00

Most Watched News on Nov 4 and 5 and...

Barack Obama was elected the 44th president of the United States of America, opening a new chapter in the country's history as the first African-American to hold the world's most important job.

The Illinois senator capped his 21-month quest with a sweeping electoral victory that also enhanced the Democrats' majority in Congress and marked the end of an era of Republican dominance in Washington.

My Views: For a change US will be ruled by "Democrats" for some time. People voted Obama so that he can "do" something to change US situation BUT I am sure he will not be (and for that matter anyone would be) able to solve the grave situation US is in.

The magic of Obama can't turn things around, things for which Democrats are equally responsible. It was the group of Democrats that had majority in senate and still they LET PASS BILLS AUTHORIZING INSANE CORRECTIONS IN SEC REGULATIONS (LIKE THE 1:30 FOR BIG 5 BANKS!!!).

Analyzing his past speeches, particularly during campaign, I realize only one thing - Obama doesn't know anything about economics at all, if he does, then at least he is not going to use that knowledge but do what politicians are good at - cheating taxpayers.

Welcome !!!

2008-11-04T01:44:00.000-08:00

Welcome to my new blog - a place where you will find important news and views, all at one place. I would suggest you to subscribe to blog feed so that you are always on an alert.