Merry Christmas all Junior, Deputy, Aspiring and Official Economists!
Busy as we all are during Christmas season, but I've happened upon a lot of charts whilst reading my favorite periodical, The Economist. Would like to discuss them at length but I've only time to address them briefly.
Besides which I will be presenting to all of you your Christmas gift here in a couple days!
Anyway, here we go;
First off the bat I found this chart amazing. The non-stop optimistic blathering I hear from the real estate industry about how this "housing bubble" is just a minor blip and things are going to be just hunky dory. They immediately cite construction, mortgages, sales, etc. and how they've recovered or at least stabalized.
That's nice and all, but I'm a little more concerned about the housing "burst" spilling over into the rest of the economy. And it doesn't seem residential construction has woken up to reality yet. Right now we're flirting with high 1.X% RGDP growth. Will be curious to see what happened when they start laying people off in construction.
Second, we all know Frank. Well looks like those Aussies are following their American capitalist counterparts in the pursuit of managing hedge funds. The more I study Australia, the more eerie I find out how alike it is to the US economically. The day may come the Australians become the raiders of capital.
A third chart I found interesting in that it shows how corporate China is financing its expansion and growth. It shouldn't be a surprise the majority of financing comes from banks, no doubt the majority of which are state owned. But notice the increase in the stock market and corporate bond market. I predict 5 years from now when The Economist runs this chart again, Chinese companies will get at least HALF their money from private sources, if not more. Get ready to speak Mandarin.
And then a place I wouldn't mind investing in, once I finish investing in all the other places I'd like; the former Soviet Bloc. Particularly the Baltics.
Isn't it interesting how countries that were under communism, remember it so starkly, that they are now the most ardent supporters of capitalism? Doesn't it make you spoiled brat "fair weather" socialists ask questions?