Debunking the Demographics Irrelevance Proposition

In a seminal paper [1] from 1958, Franco Modigliani and Merton H Miller showed why investors should not care about whether firms were financed with debt or equity...

Pushing the Reset Button On Japan

The past week has showed the dark side of media coverage and analysis of current events and a test on just how much information you stuff down the public's throat.

Gold and the Punchbowl

I have used the metaphor of Japan as a bumblebee before and while I believe that the story on Japanese savings may just be a little more complicated than many believe...

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Japan to be world's 3rd largest economy is good news

“China poised to pass Japan as world’s No. 2 economy,” reports CNN.com. Q2 GDP figures from Japan and China show the latter exceeding the former, $1.34 trillion vs. $1.29 trillion. In 2009, it was Japan ahead for the full year, at $5.07 trillion compared to China at $4.91 trillion, according to the IMF. Given the two lost decades now in Japan, this was only a matter of time.

Japanophobia

Like watching an old friend who fell from the high life as a special bracket investment banker to a stumbling drunk, I can't help but pity Japan's beleaguered stock investors. Since peaking in 1989 at 39,800, they have been mired in a 20 year bear market, the longest in history, and there is no sign of the index climbing substantially off the current 10,000 level anytime soon. I have watched with dismay as GDP growth shriveled from a white hot 10% in the sixties, to 7%, 5%, 3%, and now 1%, and share prices reflect this.

The Future of the Euro

FX punters and other of their ilk are beginning to look to the Euro as a source of global liquidity to play the carry wheel in high yield economies.

Getting The Flow Of Global Liquidity

Liquidity senders, liquidity receivers and the liquidity cycle.

The Grey Area Of Dissavings

Rapidly aging societies are not, in the main, characterized by dissaving but rather by the fight against it, says Claus Vistesen.

The Buzz On The Japanese Economy

Popular myth and, allegedly, the laws of aerodynamics have it that the bumblebee should not be able to take flight.

Yet still, our good bumblebee refuses to be weighed down by such details and continues to take flight, oblivious to the controversy.

This allegory applies, with some imagination, to Japan's economy too.

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