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Category: Actualidad

Marriage and Heritage (2)

It appeared a few days ago the news Curious, though not surprising, that the octogenarian George Soros had been indicted by a 28-year-old Brazilian soap opera actress, Adriana Ferreyr. It seems that the billionaire, who recently retired as a fund manager, allegedly promised the actress to buy her a $2m Manhattan flat. He did in fact buy it, but with such misfortune for Adriana that their relationship broke down immediately afterwards. Her lawyers are now claiming 50M to compensate for the displeasure, moral damage, harassment and I don't know how many other things.

The misunderstood Mr. Market

Nearly two years ago we wrote an article entitled «Economy and Politics«The video showed various videos of trade union leaders and economists. Obviously their speeches were and are not only opposites, but they actually spoke different languages. They are in fact different animals. Their divergences become even more evident and lethal when the situation of the global economy and finance deteriorates, i.e. when their rapport and harmony is most needed. But they do not. The greater the systemic risk, economic deterioration and global complexity, the more governments need to act expeditiously, the more inoperative their policy decisions become. And markets need deeds and not words in these delicate times, firm and courageous action. However, politicians can only offer, as we are currently seeing, empty words, good intentions and populist decisions that keep them in power, inoperative but power nonetheless.
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The debt ceiling rap in the US.

Following the brilliant Hayek vs Keynes videos on first y second version, here comes the rap of the summer with lines like this: «I can afford all sorts of cars, I’ve got all sorts of set-ups; the ladies ask me how I get them, and I tell them: STIMULUS«. You can watch the video below, and the lyrics are transcribed further down. Hope you enjoy it: (more…)

A world without credit rating agencies (2)

«What would happen if credit rating agencies ceased to exist? It is a question that few of us ask ourselves today, but one that leads to some fascinating reflections.»That’s how it began" the article which we published over a year and a half ago. Unfortunately, this debate is now dominating the media headlines for very sad reasons, as the role of the credit rating agencies is being called into question solely because they have downgraded Portugal’s rating. In other words, because their ratings are a thorn in the side of those of us who are still members of the Eurozone. We invite you to re-read that short article from 16 December 2009 – it feels like it was only yesterday – and afterwards we’ll offer some thoughts on the matter. (more…)

John Mauldin's predictions for the second half of 2011

It is clear that, in the current climate, predicting what will happen in the second half of the year is risky, to say the least. But despite this, it remains our duty as wealth advisers – and, ultimately, as a family office. Reading or listening to the macroeconomic views of people such as John Mauldin o Ray Dalio, undoubtedly shed light on this sea of financial darkness. His experience and the fact that he has already fought in almost every bullring also lend weight to his interpretation of the past, present and future of the world of finance and investment. (more…)

There are still lessons… Negative Pledge.

«Why have issues such as the Hellenic Republic’s €150,000,000 Floating Rate Notes due 2012 performed so well recently, whilst the rest of the debt has been plummeting?»This is the striking and apt question that opens the excellent article published in the Blog: Right to the Bottom by Juan Ramón Caridad and Jacobo Zarco in FundsPeople. And the authors’ immediate response is the difference between local regulations and English regulations. (more…)

Rodrigo Rato's unfunny joke

Bankia’s brand-new chairman, Rodrigo Rato, spoke at the 18th Financial Sector Conference, where he made a joke that was not only unfortunate but also completely unfunny. The economic comparison of Europeans is odious, and on the one hand we lambast those who refer to the EU’s periphery in terms of the PIGS, whilst with the other, the chairmen of Spanish banks publicly recall the old joke: «…a German, an Englishman, a Frenchman and a Spaniard are on a plane…» You can see the joke recalled by Rodrigo Rato in the following link.
Well then, what Mr Rato sees as an enviable situation – one that would make the British, Italians or French gladly parachute into Spain to enjoy our favourable financial conditions in terms of assets and liabilities – it is clear to everyone that this is nothing more than a distortion resulting from the precarious state of the Spanish financial system. Pure desperation to keep bankrupt balance sheets afloat. Yet according to the chairman of the new bank (formed by merging former savings banks and their toxic assets), the favourable terms offered by our banks are the envy of the rest of Central Europe. Who are they trying to fool? Well, yes, I know, they’re fooling savers who entrust their money to them in all sorts of banking products in exchange for tempting interest rates. But who else? The fact is, their business is kept afloat by the public trust which, paradoxically and surprisingly, they still enjoy. That is why any opportunity, quip or media appearance is a chance to repeat the sole mantra that keeps them afloat: the Spanish financial system is not bankrupt, property prices will not fall any further, and a whole string of well-worn lies.
Following Rato’s absurd line of reasoning, European ‘parachutists’ should prefer to jump in Portugal or Greece (or who knows, perhaps in any hyper-inflated banana republic as well) rather than in Spain. But the reality – the sad and harsh reality – is that it is the Spanish (or the rest of the PIGS) who should be jumping out of a plane from which their economy is simply It prevents him from flying. Mind you, so far the parachutes for all of them have been supplied by the Germans, the French, the Italians… What a world, Facundo!

 

P.S. Here’s another one that we tweeted A couple of days ago, to give you something to smile about before the weekend – this time from a proper comedian, Buenafuente: The curtain rises and you see a Greek, an Irishman and a Portuguese man…
…they pull down the curtain 🙂

Reality always beats fiction

With barely 10 years having passed since two aeroplanes full of passengers brought down New York’s tallest skyscrapers, reality is once again overtaking fiction. It is true that what is happening in Japan has, at first glance, a lesser global impact than the threat of international terrorism posed by the 9/11 attacks, but the sequence of events that have unfolded since the earth shook last Friday goes beyond anything our imagination could have foreseen.

A confluence of circumstances is causing the world’s third-largest power to collapse and be brought to its knees by the catastrophe. Not only did the earth shake with a magnitude of 9 on the Richter scale (and is still experiencing aftershocks that would devastate any other country), but the epicentre was underwater, just a few kilometres off the Japanese coast. Right in front of several nuclear power stations, which have lost their ability to cool the radioactive beast within them. Misfortunes are piling up in a sinister way, as the earthquake has caused the violent eruption from a nearby volcano. The tsunami has been far worse than the one caused by the Sumatra earthquake, and has swept away entire towns, reaching up to 20 kilometres inland. The dead and missing (most of whom are also presumed dead) now number in the tens of thousands, and the sea is constantly washing up bodies on the beaches – if one can even call the current coastline that. But the most harrowing thing of all is that the worst is yet to come.
Unless a miracle contains the radiation from the affected reactors, the contamination will kill millions and millions of people in the coming years. This is because the death toll from the Chernobyl disaster was relatively low, given the sparse population in that area. But we are now talking about an imminent risk of uncontrolled radiation in one of the countries with the highest population density per square kilometre on the planet.
The Japanese stock market has plummeted, and Asian and European markets have been dragged down with it. However, this unfortunate disaster is local rather than global. And in economic terms, the impact on other markets should be limited, despite the initial panic and contagion.
Without the admirable discipline, spirituality, modernity and efficiency of Japanese society, chaos would already have taken hold of the country, greatly exacerbating the consequences of the disaster. We would like to express our solidarity with a country that we love particularly dearly for many reasons.
I’d like to recommend a few Twitter accounts to follow for up-to-the-minute news and updates on the disaster: @Kirai (run by our friend Héctor García); @Takeshi_Tngch; @V7VOA; @YonhapNews. We’re also providing a permanent link on our blog the NHK World channel’s live stream (in English) so you can follow what’s happening in Japan as it happens.

The preservation of heritage and the real economy

http://www.gurusblog.com/archives/fondo-pensiones-japon/01/03/2011/
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