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....................................... Abnormal Characters, end of day, Tuesday, October 28
.......... The same old same old from the FOMC:
"The Committee perceives that the upside and downside risks to the attainment of sustainable growth for the next few quarters
are roughly equal. In contrast, the probability, though minor, of an unwelcome fall in inflation exceeds that of a rise in
inflation from its already low level. The Committee judges that, on balance, the risk of inflation becoming undesirably low
remains the predominant concern for the foreseeable future. In these circumstances, the Committee believes that policy
accommodation can be maintained for a considerable period."
.......... Yang Jian explains how Chinese companies use accounting diversity to their advantage.
"From a CFO's point of view, the fuzziness is a burden -- or a distinct benefit. Take some careful timing plus an even more
careful selection of accounting options, add a pinch of deft juggling, and you can significantly improve the performance of
a local-market offering."
.......... Just listened to an interview with composer and pianist Adrienne Torf on KCSM... hadn't heard of her before... check out her website. The little that I heard her play made me think of Philip Glass, whose music I alternately love and hate, so.... .......... The Chairman explains two long trades in today's Trading for Dummies lesson, one unsuccessful, one semi-successful. Learn how to manage risk and you'll be 9/10ths of the way there. .......... Lance Connelly writes sensibly about currency translation gains and losses:
"... it's curious how companies explain away losses because of forex, but play down the gains. It does work both ways.
I'm not trying to completely discount foreign exchange effects as immaterial. To be sure, companies make/lose money on
currency futures, swaps, etc., but for most non-financial firms these are moves to hedge risks and minimize losses from
normal day-to-day business, not to drive profits."
"To me, claiming that foreign currency translation honestly boosts net income is like me claiming a raise that exactly matches inflation honestly boosts my take home pay. Sure my salary has increased and that's great news to tell my wife over dinner. But I wonder if she'll agree when she realizes that big raise won't buy her any additional dresses at Ann Taylor." .......... Stephen Roach wrote a good piece yesterday (albeit filled with the Recurring Roachisms™) called Asia at the Crossroads:
"China and India are now leading the way in an important consolidation of Asia's role as the world's supplier -- originally
just in terms of goods but now increasingly in terms of once 'non-tradable' services. This is marginalizing the high-cost
efforts of Old Asia -- not just Japan but also the newly-industrialized Asian economies of Korea, Singapore, Taiwan, and
Hong Kong. Courtesy of the global labor arbitrage, China and India are also marginalizing high-cost supply models in the
United States and Europe. It's a challenge the likes of which the modern-day global economy has never before seen.
The choices are stark: Either we fight it through politically-motivated protectionism, or we turn it into our advantage
as a catalyst for change."
.......... Chet Currier notes in his recent column
"The 'real' return on the average money-market fund ... has fallen below zero in 2002 and 2003 for the first time since 1993. In Vanguard Prime's case, it's the first time since 1983
... $2.1 trillion still reposes in money funds, about half of it from individual investors and the other half from institutions."
.......... Caroline Baum pokes a considerable amount of fun at FedSpeak. .......... Chopsticks May Cause Arthritis (especially if you don't know how to use them). .......... A nice little article on the rise and fall of Reuters:
"In their book Breaking News: How the Wheels came off at Reuters, journalists Brian Mooney and Barry Simpson characterise
Reuters' recent history as a snowballing catastrophe caused by a cocktail of arrogance, underestimation of rivals and
failure to adjust to the internet information age."
 -- via PaidContent -- Previous Entry >>> Random Thoughts -- October 27 |
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Chairman MaoXian |
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