Wednesday, 27 January 2010

World News

World News: Seems as though the IPO of UC Rusal did not go as planned. This development shouldn’t be surprising since most IPO collapse in their first year of trading. Also, the possibility of IPOing at the crest of a big wave down in the market is terrible timing. I am still observing the market activity over the past few days, and there are key signs that this decline might be something more. I am hearing chatter that the market declines in the US are linked to the defeat of Martha Coakley by Republican candidate Scott P. Brown. The experts say this is significant because Democrats maintained that position for 46 years. (Quite a long time) Now, the Democrats are scrambling to make sure the keep their remaining seats in the upcoming elections. How will they do this? By going after the bad guys. Who are the bad guys? The Banks. The Banks would could do no wrong (and even if they did, the taxpayer would bail them out) are now getting turned on by President Obama and the Democrats. This seems to be one of the prevailing theories of the market decline. I have got a simple enough answer. The markets are going down because people are selling and there is no one left to buy. Period. The markets worldwide had been overbought for the last 5 months. If anyone took the time to notice, when all the world government started announcing they were coming out of their recessions the market barely rose. Some markets are no better than they were 4-5 months ago. So all the good news comes out but the markets do nothing. Toyota is getting their reputation bashed because of a 2.3 million car recall. I believe they had a 4.3 million car recall just before that. I guess they have a lot of production issues currently. I wouldn’t really worry too much about that. They are the #1 car maker in the world, and sometimes you have setbacks. Ma Zhaoxu, Foreign Ministry spokesman, warned the Obama administration that giving guns, missiles, and helicopters to Taiwan will damage their economic and political ties. I would think so. I have been noticing a lot of squabbling between the US and China of late. That’s what happens when a new superpower emerges. I heard a good quote from a play that I recently attended. Something about the United States flourishing on individualistic capitalism but the new century will be China’s, and that will be predicated on state (or collective) capitalism. You should maybe check out the play for yourself. The play is called the Power of Yes being shown at the National Theatre. So if you are in London sometime soon, check it out. It’s a kind of step by step explanation of the financial crisis.

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