How it all started - Page 7

Uncle GroOve · #**121** 23.10.2008, 11:50

	Quote:	Shorrick Mk2
	In all fairness it has more to do with the scarcity of the USD as US institutions are buying dollars to make up for the decrease in assets while the liabilities remained constant or increased. Any sizable LatAm wealth would already have been in dollars for a long time.

I just found the "correlation" between the latest EURUSD fall and the o'night argentinian news (yesterday) a tad too "correlated" to be just casual.

OTOH with the markets being in this state of flux, it IS difficult to read the nuances, if there are any left

Paul

Phos · #**122** 26.10.2008, 22:46

	Quote:	hoppy
	The one thing that helps a stagnant economy is technological change that is why I feel that investment in alternative energy is key to recovery. So I will wait for 2010/11 then invest in the best alternative energy companies.

I think the real key to recovery is productivity. Technology is certain to play a big role in this. If we are to get out of these woods, we will need to take a clear look at the situation, and honestly prescribed a way forward for the next 20-40 years. Unfortunately, it seems our policies are only designed for 4 year election cycles.

If our leaders were to take an honest approach to solving these problems, I think they would look for ways to develop real worth and values in the country. They need to try to earn up to the debts, while paying some of it down. I believe the way out is to make investments in long term values in infrastructure, technology and education.

Education is a key part of increasing value. If I were Obama, I would look for ways to facilitate and encourage students to achieve higher level university degrees. Any ideas on how to invest in education?

Interesting statistic I read recently. At Google, the ratio of employee to revenue is about $1 million per employee year. A few other high achieving companies come to about $500K per employee year. The vast majority fall below this. What we need are more companies that can generate this kind of value so that the GDP could start working out the deficit.

#**123** 26.10.2008, 23:47

	Quote:	Phos
	I think the real key to recovery is productivity. Technology is certain to play a big role in this. If we are to get out of these woods, we will need to take a clear look at the situation, and honestly prescribed a way forward for the next 20-40 years. Unfortunately, it seems our policies are only designed for 4 year election cycles. If our leaders were to take an honest approach to solving these problems, I think they would look for ways to develop real worth and values in the country. They need to try to earn up to the debts, while paying some of it down. I believe the way out is to make investments in long term values in infrastructure, technology and education. Education is a key part of increasing value. If I were Obama, I would look for ways to facilitate and encourage students to achieve higher level university degrees. Any ideas on how to invest in education? Interesting statistic I read recently. At Google, the ratio of employee to revenue is about $1 million per employee year. A few other high achieving companies come to about $500K per employee year. The vast majority fall below this. What we need are more companies that can generate this kind of value so that the GDP could start working out the deficit.

I agree,

My neice worked for Obama and now Google. Bernard H levy has written a book entitled 'left in dark times' which is getting a lot of airplay here, he was on CNN Fareed Zakaria today. His ideas are interesting, Instead of being pessimistic, fearing the future economic depression, he sees this as an enornous opportunity, because a great philosophical change in Politics and economics will take place. (At least that was on Fareed Zakaria) The problem is that Obama will have to cut back on his reforms due to the present economic problems. I am not sure of all his views but here he is at Google- if anyone has the interest: http://www.mefeedia.com/entry/author...-levy/11732437

Shorrick Mk2 · #**124** 27.10.2008, 00:32

	Quote:	Phos
	Interesting statistic I read recently. At Google, the ratio of employee to revenue is about $1 million per employee year. A few other high achieving companies come to about $500K per employee year. The vast majority fall below this. What we need are more companies that can generate this kind of value so that the GDP could start working out the deficit.

I think what we need are more Economy 101 lessons.

#**125** 27.10.2008, 02:45

A quick quiz for market buffs:
http://classes.yale.edu/fractals/

irinastaxen · #**126** 27.10.2008, 07:08

	Quote:	Shorrick Mk2
	I think what we need are more Economy 101 lessons.

Do you mean reminding people the difference between saving and investing?

Phos · #**127** 27.10.2008, 08:53

	Quote:	Shorrick Mk2
	I think what we need are more Economy 101 lessons.

Education is good, but weren't we lead down this path by those who knew just enough econ to get us all in trouble?

	Quote:	irinastaxen
	Do you mean reminding people the difference between saving and investing?

Wouldn't too much saving at this point cause a negative growth problem?

Goldtop · #**128** 27.10.2008, 09:17

	Quote:	Phos
	I think the real key to recovery is productivity. Technology is certain to play a big role in this. If we are to get out of these woods, we will need to take a clear look at the situation, and honestly prescribed a way forward for the next 20-40 years. Unfortunately, it seems our policies are only designed for 4 year election cycles. If our leaders were to take an honest approach to solving these problems, I think they would look for ways to develop real worth and values in the country. They need to try to earn up to the debts, while paying some of it down. I believe the way out is to make investments in long term values in infrastructure, technology and education. Education is a key part of increasing value. If I were Obama, I would look for ways to facilitate and encourage students to achieve higher level university degrees. Any ideas on how to invest in education? Interesting statistic I read recently. At Google, the ratio of employee to revenue is about $1 million per employee year. A few other high achieving companies come to about $500K per employee year. The vast majority fall below this. What we need are more companies that can generate this kind of value so that the GDP could start working out the deficit.

All excellent ideas. Only hitch is that investment in education, etc. only bring benefits 10 or more years later. Meanwhile, we are drowning and grasping at straws. Not the ideal situation for long-range planning.

Google is not an appropriate benchmark. Plenty of very smart and highly trained people there. The vast majority of us are less skilled. Also a lot of Western manufacturing must compete with low-wage Asian competitors. US and European manufacturers are under tremendous pressure and cannot raise wages.

Shorrick Mk2 · #**129** 27.10.2008, 09:30

	Quote:	Phos
	Education is good, but weren't we lead down this path by those who knew just enough econ to get us all in trouble?

Nope, we were lead down this path by people having forgotten their economy 101 thinking that all companies can generate $1 million per employee year regardless of liabilities' structure.

Phos · #**130** 27.10.2008, 12:20

So for the short-term, we would likely to see more public infrastructure projects. But I wonder if competing in manufacturing is absolutely essential. As I recall, the American agenda was to intentionally spread manufacturing to the rest of the world while we moved to knowledge creation. I'm not sure this model has been debunked. The problem looks like values were hyped way beyond reality.

We'll need a productivity leap, which we have historically delivered. I'm sure it will be through innovations in technology. It may require a little bit of pain to get those creative juices flowing again. Perhaps we just have to find catharsis in a situation where we must innovate or die.

I doubt we need to get all companies operating at the Google level of efficiency, though the model provides a interesting concept for other business models to strive toward.

Texaner · #**131** 27.10.2008, 13:32

	Quote:	Shorrick Mk2
	Nope, we were lead down this path by people having forgotten their economy 101 thinking that all companies can generate $1 million per employee year regardless of liabilities' structure.

...not to mention presuming their "education" to be a permit to ignore history with impunity.

Goldtop · #**132** 27.10.2008, 21:18

	Quote:	Phos
	So for the short-term, we would likely to see more public infrastructure projects. But I wonder if competing in manufacturing is absolutely essential. As I recall, the American agenda was to intentionally spread manufacturing to the rest of the world while we moved to knowledge creation. I'm not sure this model has been debunked. The problem looks like values were hyped way beyond reality. We'll need a productivity leap, which we have historically delivered. I'm sure it will be through innovations in technology. It may require a little bit of pain to get those creative juices flowing again. Perhaps we just have to find catharsis in a situation where we must innovate or die. I doubt we need to get all companies operating at the Google level of efficiency, though the model provides a interesting concept for other business models to strive toward.

Large countries cannot live on "knowledge creation" alone. Jobs are needed for a large number of less qualified people, too.

dino · #**133** 13.11.2008, 13:36

	Quote:	dino
	there is clearly no intention of using any sort of 'selection'. Bush and Paulson will bail out their buddies and show the middle finger (now also called 'the Lehman finger') to everyone else... that should be crystal clear from their insistence on "no congressional, judicial or any kind of review" remember the last time Bush told you that we had to act immediately, that there was no time to argue over details, that lack of action would lead to catastrophe, and to just trust him because he had the evidence??? Yes, we were led into Iraq to save the world from WMDs... it's the same Bush pushing us into action now. using the same logic... fool me once, shame on you. fool me twice ....

Just as we feared...

Paulson burned through over $ 2 trillion (that's 2 followed by TWELVE zeroes) and refuses to tell the Congress who he gave it to

Now we all 'plan' for our retirement, but this is a bit extreme, don't you think?
Even for the United States ??