December 3, 2013
By Jason Shubnell for Benzinga
"The city no longer has the resources to provide it residents with basic services," U.S. Bankruptcy Judge Steven Rhodes said on Tuesday morning. The judge spoke at length about his ruling, noting how both sides on this case offered arguments that were "moving, passionate and thoughtful."
When Fed Chairman-nominee Janet Yellen said in her testimony earlier this month that stocks were not in a bubble, citing PE ratios, many found it a fresh motive to buy. 8 months after the S&P500 broke a new record to take on its 2007 highs, the index is up an additional 16% from those highs. Year-to date, the S&P500 is up 27%, which if maintained, would be the strongest year since 1997, when it logged 31%.
December 2, 2013
Last month’s award of the Nobel Price in economics set off a great deal of chortling because one of the three recipients, Eugene Fama, received the award for saying that markets are efficient at capital allocation and another, Robert Schiller, received the award for saying they are not. Typical is this response by John Kay:
The Royal Swedish Academy of Sciences continues to astonish the public when awarding the Nobel Memorial Prize in Economics. In 2011 it celebrated the success of recent research in promoting macroeconomic stability. This year it pays tribute to the capacity of economists to predict the long-run movement of asset prices.
(Version in 中文)
It’s the season for shopping. We have Cyber Monday in the United States and Singles Day in China (November 11 or 11/11). So, while we are pondering shopping, try to guess which consumer market is growing the fastest. The answer is…China!
China had the largest consumption increase in the world. This was true in 2011, true in 2012, and likely to be true again this year (see chart). Consumption in China is also generally thought to be weak. Indeed, the government and the IMF are calling for more consumer-based growth. How could consumption, in effect, be both weak and strong at the same time?