Prime Minister Singh has committed his government to much needed reforms. India, home to the fifth largest retail market, opened its doors to foreign retailers and investors alike. Prime Minister Singh took a lot of risk as there is heavy opposition to oust his government after the move which may just have enough votes and power to remain in office. India has huge growth potential which is why it is included in BRICS, but without required reforms India will not be able to keep up development of its country in the same manner the other four...
The Bank of Japan could not stand to be left out of central bank idiocy and decided to join the demolition duo comprised of the ECB and U.S. Fed. The BoJ announced that it will waste an additional 10 Trillion Yen on its so called asset purchasing fund. It is quite amusing to see another central bank that is incapable when it comes to the identification of assets. The most basic definition of an asset is something that puts money into your pocket. This definition is simplified to pre-school difficulty. This means even a five year old would...
This week may very well record the highs for the year as far as major global benchmarks are concerned. Equity markets have enjoyed this artificially induced rally, especially after central banks from Frankfurt to New York to Tokyo have acted in such an idiotic manner which allowed dumb money investors to keep pushing the markets to multi-year highs. Does this sound familiar? Well, it should. I have one word for you, actually it is a number: 2008. During the summer of 2008 investors ignored all the bad news and were in a state of trance...
When it rains it pours. Japan has made one big crucial mistake in the late 90’s in direct response to its own financial crisis. Yes, they bailed out their system and thought they made an intelligent move. That was in 1999. Why anyone thought economic socialism would be the right response to idiotic fiscal policy combined with extensive mismanagement of portfolios remains an unresolved mystery. Nevertheless, it did happen and Japan has suffered ever since then. It has been over thirteen years since their policy misstep and Japan has...
The U.S. economy continues to disappoint on most major fronts. Third-quarter GDP rose 2.0% and GDP for the first nine months of this year has been 1.7%, below the growth rate of last year. The downward spiral will continue its path and most factors which will contribute to a slightly better reading than idiotic economists forecast will be attributed to more debt. Consumer spending rose 2.0%. Consumers are the backbone of the U.S. economy and accounts for roughly 70% of all economic activity. Consumers have been stretched since 2008 and...
