World Economy and Markets

May 13, 2010

Have US and Europe already Lost the Green Industry Leadership to China

China is recognized as the manufacturing hub of the world due to its low cost of labor and capital coupled with the  pro industry policies of […]
May 12, 2010

Gold goes up as Europe and US Continue to Print Paper Currency

Gold has gone up to touch all time highs. Despite the European Bazooka and the melt up in markets,gold has not come down from the highs […]
May 11, 2010

Despite the European Bazooka,Falling Chinese Stocks May Point to a Market Top

Europe’s $970 Billion Bazooka yesterday certainly led to a “defeat” of the “speculators” yesterday as major European markets climbed by 5% while smaller ones climbed by […]
May 11, 2010

Samsung bets Big on Green Energy propelled by Competition and Growth Imperative

Samsung has started taking baby steps into the green business while signaling big intentions about growth and investment.The Company sees most of the future growth to […]
May 10, 2010

EU blows away the "speculators" and the "market" with $970 Billion Bazooka;CAC up 8%,Euro up 2.2%,Asia up 2-3%

The European leaders plan to blow away the Euro sceptics has been an outstanding “success” . The $971 billion plan by the EU,ECB and assorted central […]
May 10, 2010

BP Oil Spill Gives another Excuse for the US to delay the climate Bill

The US has been a laggard on the climate change mitigation compared to the progressive stances taken by Europe and Japan.Despite strong hopes raised by the […]
May 10, 2010

Europe brings a $670 Billion Artillery to battle the "speculators"; We shall defend the Euro whatever it takes – New Battle Cry

As promised the European leaders chalked out a massive 500 Billion Euros Fund to battle against the “speculators” . This fund will provide emergency lending and […]
May 9, 2010

Greek Contagion – Hong Kong's IPO market shudders to a halt

As I was writing in my earlier posts , one of the biggest causalities of The Greek crisis has  been the  world IPO market.Not only have […]
May 9, 2010

SEC moves to create new rules while they can't figure out what caused the 1000 point Dow Crash

SEC as is the case with most regulatory agencies, is trying to create more rules to prevent the 1000 point crash that happened on Thursday.From the […]
May 9, 2010

Spanish Leaders Blame "Speculators" and "Britain" for the Greek Contagion

As I have been writing in my earlier posts , EU leaders are continuing to put the blames of the EU debt crisis on “speculators” and […]
May 8, 2010

Repercussion of China's Internet Espionage of Indian Sites – Huawei and ZTE banned from India

China has recently been in the news over Internet Espionage on defense and sensitive installations in India and USA. This has led to the high profile […]
May 8, 2010

German Court Refuses to Block Aid to Greece ;Top Economists Complaint Rejected

Good news for the Bailout Cheerleading Gang as the top German Court refused to block the emergency aid to Greece which had been approved by the […]
May 8, 2010

Greek Contagion – Portugal Plays Good by accelerating Deficit Reduction

The last 2 weeks market gyrations have had their effect on the PIIGS. The rising interest rate on their bonds and the consequent effect on their […]
May 8, 2010

Greek Contagion – Sarkozy and Merkel indulge in favorite pastime of blaming the "Speculators" ; EU to set up Stabilization Fund

Last week the markets were hammered due to the spreading of the Greek contagion with Euro falling , sovereign debt CDS of the PIIGS increasing daily […]
May 7, 2010

Tough Environment for Green IPOs due to Market Volatility

Green IPO’s which were being planned with the recovery in the world economy and renewed interest by investors have shuddered to a halt.The European debt problems […]
May 7, 2010

Greek Contagion – CAC down 5% in mattter of minutes, VIX up nearly 100% in 2 days

Greece was given an aid package by EU-IMF to contain any contagion effects but looks like it has failed miserably.No one knows how this one will […]
May 7, 2010

Czech Solar Feed in Tariff (FIT) Story of 2010 follows the Spanish Crash of 2009 closely

We all know what happened in Spain in 2008.Due to extremely generous feed in tariffs for solar , installers went on a spree installing 2.5 GW […]
May 7, 2010

Greek Crisis Casualty – IPOs all over the World get pushed to the Backburner

One of the biggest causalities of The Greek crisis has  been the  world IPO market.Number of companies all over the world are deferring their IPOs seeing […]
May 7, 2010

Has India decoupled from the World Markets ?

India has very low exposure to the current European debt crisis. The reasons for that are: India’s export to GDP ratio is much lower than that […]
May 7, 2010

Why is VIX still up more than 50%,Yen up 5% against Dollar While US markets have recovered after falling 8%

The rush to safe haven assets today was frightening to say the least.As I write this VIX went up by more than 50% while Yen is […]
May 7, 2010

US Markets Drop more than 8% , Dow down more than 900 points ;Where is the PPT

Markets are dropping like a rock. Went down more than 4% in less than a minute.Seemed like that the whole financial system was unravelling. The European […]
May 6, 2010

China's market continues to sink – Harbinger of larger problems?

Recent newsflow from China suggest that the country’s real estate market is poised for a sharp slowdown and the heavily controlled financial sector is sitting on […]
May 6, 2010

We only eat meat in our dreams and possibly on holidays – Income Disparity in Egypt

The growth in income disparity around the world is striking.The internationalization of capital and trade has led to increasing amounts of income for the top percentiles […]
May 4, 2010

Do Falling Chinese and Southern European Markets portend the end of March 2009 rally?

For the last few days the Shanghai and Southern European markets of Spain,Greece and Portugal have been falling despite higher US stock indices.This is a bit […]
May 4, 2010

IMF-EU Brokered Greek Bailout Plan might Unravel sooner than you think

Greece agreed on a plan with EU-IMF which requires sharp spending cuts and tax increases on Sunday to get their hands of more than 100 billion […]
May 2, 2010

Where will Portugal and Spain go? Germany Economy Minister says Greek bailout cannot be allowed again

German Economy Minister and Free Democrat Party Leader ( FDP is one of the junior partners in the ruling coalition and stands for its pro-business liberal […]
May 2, 2010

Weekend Bailout – Greece Agrees on EU-IMF bailout with "great sacrifices"

As has been the fashion since the financial crisis began with Bear Sterns, bailouts are worked out during the weekends ,the Greece one also was no […]
May 1, 2010

Labor Cost Arbitrage – Applied Materials moves to Asia

One of my pet theories is that they we see a lot of distortions and oppurtunities for arbitrage is because labor is not globalized while capital […]
April 30, 2010

Markets think we have got past European debt worries, but have we?

Markets were back up to previous levels after a bailout package for Greece got an assent from the Germans and the IMF.But the condition of southern […]
April 30, 2010

Lack of Global Agreement on Climate Change will lead to Trade Friction

Copenhagen was a disaster and there has been no agreement on how to proceed with policies on a global basis to deal with the ever growing […]