You’ve probably heard about China’s colossal $600-billion stimulus package intended to jump-start its economy. But chances are you didn’t hear about the new $40-billion initiative by China’s wireless carriers to modernize the national network…
President-elect Barack Obama plans to renew America’s information superhighway. This means huge investments in the country’s broadband network. David Newman says there will be big profits for this tech ETF (IGN).
China’s once-rampant inflation has cooled to its slowest pace is 22 months, opening the door for aggressive interest rate cuts that could potentially kick-start its economy back into high gear.
AT&T Disconnecting 12,000 Jobs; Credit Suisse Announces 5,300; Capital One Puts Chevy Chase in Its Wallet; Argentina Announces $3.9 Billion Stimulus, Jobless Benefits at 26-year High; Dupont Cuts 2,500 Employees; Williams-Sonoma Beats Estimates; Oil Falls 5%
China’s $200 billion sovereign wealth fund, China Investment Corp. (CIC), doesn’t plan to open its wallet to foreign financial firms and banks any time soon.
The incoming Obama administration is expected to launch a stimulus package that could reach up to $1 trillion. Martin Hutchinson says this is a popular – yet high-risk – strategy. In so far as the plan increases the budget deficit and national debt, while crowding out private-sector investment, the long-term damage to the economy could outweigh the stimulus benefits.
Not every automaker CEO is down on his knees with cap in hand. Some of them are too proud to beg… and Taipan Daily won’t have to beg either with the right options strategy.
Not every auto manufacturer wants charity, you know.
While Detroit’s CEOs were up on Capitol Hill whining and begging like street junkies for a mere $25 billion to tide them over until spring, salesmen from Bentley, Lamborghini and Maserati were working the floor of the Los Angeles Auto Show like madmen in an attempt to stem their stateside sales losses.
Now don’t let their $500 suits and smooth manners fool you. These guys are hurting too. Lambo’s down 15% (pretty much a match to the whole biz’ 2008 decline). And…
Investors should prepare for a “green friendly” government says David Fessler. One of Obama’s first steps will be to make American homes and offices more energy efficient. And that means big gains for three companies directly involved in producing energy saving devices…
Deflation is every central banker’s worst nightmare, says Justice Litle. That’s why the Fed is pumping huge sums of money into the financial system. But if none of that money moves around the economy, it won’t make much difference. And so more dollars will be printed. Justice says this strategy means either a return to inflation or an all-out collapse of the dollar-based monetary system. Either way, gold will skyrocket.
After record declines in October’s producer and consumer price indexes, deflation is today’s buzzword. But Bill Bonner says the explosion of assets on the Fed’s balance sheet will create serious monetary inflation problems further down the line.
