Greetings

Fri, 2009/10/02 - 1:53pm | Your editor

The latest IMF data should not lead people to throw shoes at its head, M. Dominique Strauss-Kahn, as a Turk did yesterday. The Fund says the developing world is powering the recovery and boosting its share of world output.

Logically, that means the IMF board should have more representation from the sources of world expansion. Emerging and developing countries are now expected to increase their output by 1.7% collectively this year, and by 5.1% next year. The biggest emerging Asia countries, India and China, are the leaders here. The latest figures are that China will grow 8.5% this year and 9%. next. India will grow 5.4% this year and 6.4% next year.

Meanwhile the advanced world will eke out a mere 1.3% growth rate in 2010 after shrinking 3.4% this year. Read more »

Diamonds are a girl's best friend

Thu, 2009/10/01 - 3:34pm | Your editor

A kiss on the hand may be quite Continental

A kiss may be grand but it won't pay the rental

So diamonds are a girl's best friend.

Such bad timing of the Cullinan miners, to discover a 507 karat egg-sized diamond in this market. Who are they going to sell it to?

The last old-style Maharani, Princess Devi, died recently. Maharajas are investing in making their palaces into 5-star hotels. Prince Charles wouldn't dare. Elizabeth Taylor is getting too old to shop for jewelry. Belinda Gates is not into bling. Nor is Mme. Buffett. Prince Jefri of Brunai had to give back the $15 bn he spent on cars and jets and art, and will not risk his brother's ire and another exile for a mere diamond, however spectacular.

The richest man in the world is Carlos Slim Helu, the Mexican magnate, according to Forbes. But I cannot imagine he will want to be more of a target for the country's kidnap culture than he already is. Middle Easterners cannot buy a diamond as big as the Ritz for one wife when they have three others. Read more »

Closed End Funds

Wed, 2009/09/30 - 1:29pm | Your editor

 

Normally at this time of year I start to worry about the tax consequences of new-buys of closed end funds. Your earnings distribution can trigger a short term gain. Now with so much tax-loss carryforwards from 2008 (the anno horribilis!) the odds are that there are enough losses in your fund to sop up the gains.

So you should only buy such funds at other times of the year, and sell them in the latter part of the year. But not this year. Read more »

Imperialism

Tue, 2009/09/29 - 3:18pm | Your editor

Queens reader MG added more insight into the debate over the origins of British intellectuals' support for a Jewish State in the 19th century. He thinks it is related to what young Britons were taught in school about philosophy and theology. Whether the classical texts were part of the canon determined British idenfication with their authors.

“It was perfectly normal for Lord Byron to fight for Greek Independence. Or for the British to finance Garibaldi's campaign to unify Italy.” And, he adds, “for British lords and writers to support a Jewish State in Palestine.”

If your ancient civilization had only marginal intellectual influence on British thinking – the Bhagavad Gita or the Book of the Dead or the Epic of Gilgamesh or the Koran – the British Empire would not support your right to a state of your own. Your country would be painted red on British maps, and Victoria was your empress. Read more »

Yom Kippur Notes

Fri, 2009/09/25 - 4:07pm | Your editor

    There will be no issue Monday, Yom Kippur. The Day of Atonement) is the holiest day of the Jewish calendar. when God seals our fate for the coming year. On Rosh Hashanah (New Year) it is written; on Yom Kippur it is sealed.
    On Yom Kippur 1973, Israelis noticed military vehicles driving in the streets and reserve soldiers were called from synagogues to duty. At 2 PM sirens sounded all over Israel. It was under attack!
    The Yom Kippur war came as a surprise, a joint attack against Israel by Egypt which crossed the cease-fire lines in the Sinai Peninsula, and by Syria which attacked along the Golan Heights. The thin Israeli defense lines were annihilated by massive Arab forces. Read more »

Apologies for being late

Thu, 2009/09/24 - 5:37pm | Your editor

     The Fed remains dovish on rates despite the optimism being expressed now by the FOMC about the economy's recovery. The benchmark US interest rate at 0-0.25% was confirmed yesterday.

     Because of faster recovery and higher inflation risks, other countries may join Israel in raising interest rates. In fact, Israel may itself go for a clean 1% vs the current level of 0.75% set Aug. 24. However, because of the running Jewish holidays, and the fact that the Israeli CB likes to do its rate changes on a Sunday, I do not expect anything to happen until Oct. 18. Read more »

Jobs and Blackberries and Boppy Pillows

Wed, 2009/09/23 - 7:02pm | Your editor

     Boppy pillows for breastfeeding mothers and Blackberries to keep in touch with the world have little in common.

     Yet the vendors of both products need more Americans to work for them. Maybe we need a WPA or CCC, two New Deal programs the Obama lot are not even thinking of copying, which put people to work in the 1930s, to create new jobs 80 years later.

     This is a suggestion of a friend, IF, an 80-something-year-old life-time Liberal Democrat; she even lives on Manhattan's West Side. I live in the Silk Stocking district by the East River, mainly Liberal Republican. But IF has a point. Read more »

Green Shoots and Flying Cranes

Tue, 2009/09/22 - 4:28pm | Your editor

     New additions were announced following the quarterly review of the exchange-traded NASDAQ OMX European Government Relief Index (EUGR.Q) which became effective today. It added Heidelberger Druckmaschinen (printing presses) an Banco Popolare, an Italian bank. Here is the list.

 Aegon NV                        Heidelberger Druckmaschinen AG
 Allied Irish Banks PLC          Hypo Real Estate Holding
 Banco Popolare                  ING Groep NV-CVA
 Bank of Ireland                 KBC Groep NV
 BNP Paribas                     Lloyds TSB Group PLC Read more »

Central Bank Contradictions

Mon, 2009/09/21 - 3:26pm | Your editor

Reader Tom McC objected to Frida Ghitis's Jewish New Year article on Israel's currency. He wrote: “High prices for 'stuff' is a sign of a low value for the currency. A highly valued currency would bring low prices for things.”

Frida claimed she just meant that her fistful of US dollars and credit cards was not going very far in the Holy Land. But I think both of them are missing the contradictory forces at work when the Israeli Central Bank decided to raise rates.

With the open global Israeli economy one of the few looking good these days, the CB has to keep buying dollars to prevent the shekel from appreciating. The higher shekel results from the CB's earlier move pushing interest rates to fight inflation. Read more »

L'shana Tova

Fri, 2009/09/18 - 9:54pm | Your editor

     L'shana tova. Frida Ghitis writes from Israel:

     While Israel’s economy is not growing at a break-neck pace, anyone who thinks the world is int near-depression should take a stroll down Tel Aviv’s trendy Dizengoff Road, or visit any of the always-busy markets here. In an hour the entire country will grow quiet with everyone heading home to celebrate Rosh Hashana, the Jewish New Year. The hush at sundown will break the bustle that shows Israel’s emergence from recession. But there’s catch. Read more »