Part I focuses on structural issues in the United States. Part II discusses Europe and Asia. In the final installment, we discuss our investing approach given the “double-wide” possibilities for global growth and markets over the next decade.
Link to must read presentation, click here.
Finally, some politicians are realizing the truth (and dare to say it). Greece is broke, and should default. Throwing good money after bad money is always a bad idea. German anger on the rise soon? From Spiegel;
Monday’s German parliamentary vote on the second bailout package for Greece has been overshadowed by a rift within Chancellor Angela Merkel’s center-right coalition about the wisdom of granting fresh aid, with Interior Minister Hans-Peter Friedrichsaying Greece should be encouraged to leave the euro.
In an interview with SPIEGEL published on Monday, Friedrich said: “Greece’s chances to regenerate itself and become competitive are surely greater outside the monetary union than if it remains in the euro area.” He added that he did not support a forced exit. “I’m not talking about throwing Greece out, but rather about creating incentives for an exit that they can’t pass up.” It was the first time a member of the German government called on Greece to leave the currency.
This positive sentiment is more a feeling, than a fact actually. Looking back at 30 day charts, we saw how flat the markets are. Some markets like the Spanish IBEX is actually down. The perceived bull is greater than the actual bull. Wonder what happens if everything corrects 5% quickly? Charts below.
The World is still obsessed with the Greek Drama, the Troika, IMF, who said what in Greece etc. Meanwhile, Spain’s economy is continuing the decline. Latest in Spain, is the Spanish light version of haircuts. If the over indebted regions and municipals owe you money, just ask for less, and they will pay you. What’s next, 50% haircuts in Spain as well? Espana, everything under the sun, haircuts as well. From El Pais;
The Popular Party government on Friday approved a scheme for settling the huge backlog of unpaid bills the country’s regions and municipalities owe to suppliers. Companies and individuals willing to accept a discount on what they are owed will be given priority in the pecking order.
The below is simply great.
In practice, those accepting a haircut of the amount due would be paid even before those who have been pending payment for much longer.
Vedanta, the FTSE 100 metals, mining and oil group, has announced the merger of various subsidiaries as the next step of its founder’s ambitious plan to build India’s first global natural resources business, http://ftalphaville.ft.com/thecut/2012/02/27/897431/vedanta-to-merge-resources-divisions/
Axa is gearing up to lend €2bn to European property companies during 2012 as one of Europe’s largest insurers bids to cash in on the regulatory pressure curtailing bank financing across the continent, http://ftalphaville.ft.com/thecut/2012/02/27/897551/axa-plans-e2bn-property-lending-drive/
Finance ministers from the world’s largest economies ratcheted up the pressure on Germany to increase the size of the eurozone’s €500bn rescue fund, saying the move would be key to a decision by non-European countries to raise more resources for the IMF, http://ftalphaville.ft.com/thecut/2012/02/27/897281/g20-turns-up-pressure-on-germany/
The Obama administration is coming under growing pressure to cool petrol prices by releasing emergency stocks of oil, says the FT. However, critics say this would be the wrong response to the wrong problem at the wrong time. Oil prices climbed to a nine-month high of $125 a barrel on Friday,http://ftalphaville.ft.com/thecut/2012/02/27/897471/obama-pressed-to-open-emergency-oil-stocks/
Austerity, Troika, protests, poverty, corruption are all words describing various developments in Greece over the past year. Give Greece a chance, is the latest out of Greece, a campaign, urging people to realize Greece is implementing what is needed, and the World should give them another chance. This goes well with Aristotle’ definition of Tragicomedy. What’s next, Bob Geldoff doing the lead song?
“A new set of measures was recently voted in by the Greek Parliament. With a focus on structural reform, we have a chance to create a new Greece. A modern, productive and creative Greece with a sustainable future in Europe,” the advertisement reads.
The businessmen then go on to plead with Europeans to show patience and solidarity.
“Our European partners have stood by us. But we need continued support and the breathing space to get out of this vicious cycle. And we deserve to know that there is a fair chance of success,” they argue.
“We are Europeans who aspire to a constructive role within Europe. We will deliver on our commitment. We have already made sacrifices. We are ready to do more. We are betting our future on this.”