another moment of hubris?

I get wary whenever i hear "the largest in history", and words of its ilk. This latest public offering from the Chinese government seems to be in keeping with its sentiment of taking money off gullible investors / sovereign wealth funds. The below snippets do not portend a good omen. This may well be a case of 'caveat emptor'.

In 1998, the Beijing government spent 270 billion renminbi, then worth about $33 billion, to recapitalize the nation’s four big banks. It then bought up 346 billion renminbi ($50.9 billion) in worthless loans from the Agricultural Bank.

The bailout did not take. In 2006, auditors said they had found fraudulent deals at the Agricultural Bank totaling 60.3 billion renminbi ($7.5 billion). In 2008, with nonperforming loans composing almost a quarter of the bank’s assets, the government pumped $19 billion more into Agricultural Bank, then assumed another 800 billion renminbi ($120 billion) in bad loans.


However, here's a more balanced viewpoint.

Shifting the production

"Growers continue to find the weak links in the enforcement chain. In 1995 Peru and Bolivia were the world’s top cocaine producers. Much blood and money was spent driving the trade out of those countries and, inadvertently, into Colombia (see chart). In 1999 America sponsored a big anti-drug programme in Colombia. As a result, growers have moved back: in the past decade, the area used for coca rose by 55% in Peru and 42% in Bolivia. Until legalisation, the only thing you can do is make it someone else’s problem.”

And till then, the futile 'war on drugs' seems likely to continue, even in the face of overwhelming evidence to the contrary.

Menlo Park -> Edison -> "Gujjuland"?

For every westerner who asked me if there were a billion brilliant Indians waiting to invade their shores, I can't do better than point you to Joel Stein's humorous, if racist, diatribe about Indian immigration. 

For a while, we assumed all Indians were geniuses. Then, in the 1980s, the doctors and engineers brought over their merchant cousins, and we were no longer so sure about the genius thing. In the 1990s, the not-as-brilliant merchants brought their even-less-bright cousins, and we started to understand why India is so damn poor.


HT: Wafa Hakim Orman

Admirably practical

You've got to admire the realism inherent here. 

In a nation recovering from centuries of colonial and feudal oppression, fighting corruption is secondary. Unfortunately true, but at least RTI represents a step in the right direction.

i'd rather have the money please

http://www.economist.com/node/16439185?story_id=16439185&frsc=scn/fb/wl/ar/bhopal
I never did understand the misplaced anger on the former executives who've been sentenced to jail time. Them serving time won't help the victims; and a trade-off between jail time and higher compensation should be acceptable to most. Of course, this doesn't take away from the embarrassment that is the Indian judicial system that took 26 years to even get to this point. If the oil-spill was happening off the coast of Bombay, BP wouldn't be half as bothered.

The Economics of Gold-Digging

Old story, though still good for a laugh. especially love this line

"maybe economists just care so little about human relationships that it’s not worth the trouble to try to acquire a trophy wife"

famous last words? or just hubris?

"It turns out, by the way, that oil rigs today generally don't cause spills," the president said. "They are technologically very advanced." That's the Nobel Pfaff Prize winner for you. Eighteen days later, the Deepwater Horizon rig went off like a bomb. Will the Swedes at least ask for the medallion to be returned now? 


HT: Wafa Hakim Orman

320 deaths every day!

That number has just got to be unacceptable, period. and India seem's to achieve it with far fewer vehicles per capita than quite a few other nations. 


These are the two most telling statements in this article - "Evidence of road accidents seems to be everywhere in urban India." and "it is rare to meet someone in urban India who has not lost a family member, friend or colleague on the road." 


I've seen the signs myself quite a few times and know too many people who've died in road accidents. I used to ride a motorcycle for over 10 years on those very streets. Having witnessed traffic in other parts of the world, now I wouldn't dare get on a two-wheeler. 


Seems like things have just got worse. Depressing!

location is as important as ever

very true. tim harford with an excellent piece on the mystery of knowledge 'in the very air'

also, this kind of stuff is exactly why i'm leaving Dubai to move to London.

Of course, its all the fault of the bankers!

These sweet people who willingly signed refinancing deals when the times were good could never be blamed. There are so many things wrong about this story, I don't know where to begin. Its tales of such stupidity that really get my goat. When borrowers bend rules to get out of paying their fair due, its all good. No one likes Shylock, very understandable but please then don't stand around in wonder when the lending dries up.

Policing for Profit

Seems like George W Bush privatised the local police forces too ;)

Profit seeking policemen, defendants assumed guilty until proven innocent, use of overwhelming force, legal harassment, arresting bystanders, etc. Sounds like a caricature of a third world police force.

Also, the bit about 33% of all currency carrying traces of drugs is highly amusing.

Use the market for a solution, brilliant!

It will be difficult to find a better example of effecting change by using market participants efficiently. Always go after consumers rather than producers. Why? Simple fact of the matter is that if demand exists, someone somewhere will satisfy it. Shift demand / taste and you are closer to the cultural shift you aim for.

Six people attended!

Yes, that's right. 6 people paid $300 for the privilege of listening to this guy speak. I wonder, do the folks who can't wait to get on the next flight to the USA even know about these stories. This is a land where Sarah Palin roams free, evolution is questioned and guns are allowed into bars. Rock on!

Can I have a back dated bonus now please?

A few years ago, this deal found its way to my desk. I'd have the opportunity to be the lead manager. A brief study of the financials didn't make for happy reading and I politely said 'No, Thank you' and walked away. Considering this is a $40 million sized hole I played a part in averting, it would be terribly nice if everyone who mocked me then could stand up and applaud now. :)

The Kingdom

This has definitely been one of the best movies i've seen in a while. Well worth a watch, and highly recommended. No unnecessary drama, brilliant acting, tight editing and no philosophising on the underlying problem; this film just deals with the reality of life in the aftermath of a terror attack.

Home of the brave?

Sure sounds like it, seems like you'll need balls of steel just to get out of your house and wash your car. Amazing that of all the fascination there exists for moving to the States, I never hear about this culture of violence being a concern.

the good German?

frugality, work ethic, adherence to rules, etc.

The German philosophy on money / wealth sound positively South-Indian

Pride goeth before the fall

Is it possible that at some time in the near future, this is the moment they'll look back at and wonder why they spent 4 billion greenbacks?

If it's really going to cost twice as much as the Olympics, must say Beijing is winning this contest between the cities. It can't really be coincidental that really preposterous ideas look logical just before the party tapers off, Dubai anyone?

If Greece was a Corporation....

dodgy accounting, excessive leverage, union trouble, unclear access to lines of credit - sounds like one in need of a bailout.

Greece’s fiscal woes would be serious but probably manageable if the Greek economy’s prospects for the next few years looked even moderately favorable. But they don’t. Earlier this week, when it downgraded Greek debt, Standard & Poor’s suggested that the euro value of Greek G.D.P. may not return to its 2008 level until 2017, meaning that Greece has no hope of growing out of its troubles.

Geographic factors

If this is not an advert for not buying a house unless you plan to live there for the rest of your life, I don't know what is.

Ten percentage points separate the states with the highest and lowest unemployment rates. But the property crash is making it much harder for Americans to move to where the jobs are. A quarter of mortgage borrowers owe more than their houses are worth. Many people are stuck in places with poor employment prospects, unable to leave for cities where their skills may be in demand. Although the economy is starting to create new and often highly remunerative jobs, they are out of reach to those who cannot move.