Archive for the ‘trade’ Category

How the iPhone Increases the Trade Deficit

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Attention iPhone users who think their beloved device is only for video chatting,AAngry Birds, and the occasional phone call: it’s also capable of influencing U.S.-China trade relations.

That’s the conclusionAdrawn by two researchers at the Tokyo-based Asian Development Bank Institute, who estimate that Apple’s iPhone 3G added $1.9 billion to America’s trade deficit with China last year.

Why? Apple, which is based in the U.S., designs and owns the iPhone and largely manufactures its parts in a host of Asian and European countries. But traditional trade flow accounting recognizes the iPhone as a Chinese export because China assembles the parts and ships the finished product. China, in other words, receives full credit for an iPhone’s $179 wholesale price even though the assembly and shipping it provides represent a small fraction of the product’s total manufacturing cost.

.:theatlanticwire.com->

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Posted: December 18th, 2010
at 4:20pm by Koookiecrumbles


Categories: apple,cell phones,trade

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China No Longer Top Holder of US Treasuries

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If China is no longer the U.S. government’s largest creditor who is?

(Against the backdrop of QE2, this probably isn’t terribly surprising.ATyler Durden at ZeroHedge has crunched the numbers fromAtoday’s release of TIC dataA(Treasury International Capital)aand some interesting facts have emerged.You guessed it: The Fed.

First, the U.S. Federal Reserve holds a total of $996 Billion of U.S. Debt aversus the $907 billion in U.S. debt held by Mainland China.

.:cnbc.com->

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Posted: December 16th, 2010
at 12:01pm by Koookiecrumbles


Categories: trade

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Insider Trading and Expert Networks

Not a day goes by that we don't read about the SEC's deepening investigation into insider trading and its heightened scrutiny of expert networks. To some this is little more than a witch-hunt fueled by a chastened-yet-highly-motivated regulator; to others this is a boon to rooting out information asymmetry that has created an increasingly uneven playing field among investors. As always, the truth lies somewhere in between, but I believe to truly understand the issues one needs to look at the underlying principles: efficiency and fairness.

Many market theorists have argued that "insider trading" (e.g., acting on information that is not publicly available) enhances market efficiency, smooths price volatility and reduces the likelihood of price shocks arising from unexpected events. Where insider trading was once thought to be the province of people skulking around, listening to whispers from company executives, placing trades and delivering bags of money representing a share of the winnings, there is now an entire industry that has emerged to institutionalize the collection of hard-to-obtain information: expert networks. Note that I distinguish betweenAhard-to-obtain information and material non-public information, thought the SEC is currently doing a deep-dive into whether such hard-to-obtain information has, in fact, crossed into the realm of material non-public information. So the "If it looks like a duck…" test has gotten much more complicated. Ivan Boesky and Dennis Levine - nowAthat was insider trading and looked like it without much analysis required. However, are phone calls to professionals with domain expertise insider trading or simply gathering additional research towards validating or invalidating an investment thesis? Well…

From a theoretical perspective, I think it is hard to argue that insider trading doesn't enhance the smooth functioning of the markets. More high-quality information is out in the marketplace being incorporated into stock prices. News of material events would leak out and be factored into trading activity prior to its release, limiting the potential shock that would arise were the information to be released into the market all at once. Therefore, stock prices would better reflect all the relevant information that is available, more closely representing the true intrinsic value of public companies. What is a boon for market efficiency, however, does not necessarily promote fairness. But that then begs the question -Awhat exactly is fair?

.:informationarbitrage.com->

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Posted: December 2nd, 2010
at 7:33am by Koookiecrumbles


Categories: trade

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Battle of Britain : Dollar ReDe$ign 2010 Competition Winners

1st, 2nd and 3rd place.

.:richardsmith.posterous.com->

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Posted: November 24th, 2010
at 7:56am by Koookiecrumbles


Categories: design,competitions,trade

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Who Rules America : Wealth, Income, and Power

First, though, some definitions. Generally speaking,Awealth is the value of everything a person or family owns, minus any debts. However, for purposes of studying the wealth distribution, economists define wealth in terms ofAmarketable assets, such as real estate, stocks, and bonds, leaving aside consumer durables like cars and household items because they are not as readily converted into cash and are more valuable to their owners for use purposes than they are for resale (see Wolff, 2004, p. 4, for a full discussion of these issues). Once the value of all marketable assets is determined, then all debts, such as home mortgages and credit card debts, are subtracted, which yields a person’s net worth. In addition, economists use the concept ofAfinancial wealth — also referred to in this document as "non-home wealth" — which is defined as net worth minus net equity in owner-occupied housing. As Wolff (2004, p. 5) explains, "Financial wealth is a more ‘liquid’ concept than marketable wealth, since one’s home is difficult to convert into cash in the short term. It thus reflects the resources that may be immediately available for consumption or various forms of investments."

We also need to distinguish wealth fromAincome. Income is what people earn from work, but also from dividends, interest, and any rents or royalties that are paid to them on properties they own. In theory, those who own a great deal of wealth may or may not have high incomes, depending on the returns they receive from their wealth, but in reality those at the very top of the wealth distribution usually have the most income. (But it’s important to note that for the rich, most of that income does not come from "working": in 2008, only 19% of the income reported by the 13,480 individuals or families making over $10 million came from wages and salaries. See Norris, 2010, for more details.)

As you read through these numbers, please keep in mind that they are usually two or three years out of date because it takes time for one set of experts to collect the basic information and make sure it is accurate, and then still more time for another set of experts to analyze it and write their reports. It’s also the case that the infamous housing bubble of the first eight years of the 21st century inflated some of the wealth numbers.

So far there are only tentative projections — based on the price of housing and stock in July 2009 — on the effects of the Great Recession on the wealth distribution. They suggest that average Americans have been hit much harder than wealthy Americans. Edward Wolff, the economist we draw upon the most in this document, concludes that there has been an "astounding" 36.1% drop in the wealth (marketable assets) of the median household since the peak of the housing bubble in 2007. By contrast, the wealth of the top 1% of households dropped by far less: just 11.1%. So as of April 2010, it looks like the wealth distribution is even more unequal than it was in 2007.

.:sociology.ucsc.edu->

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Posted: November 14th, 2010
at 1:54pm by Koookiecrumbles


Categories: business,development,education,trade,americana

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A Bank that Lends you Goats

Ever heard of a bank that deals exclusively in goats? Women in remote Korawan, 70 km from Allahabad, have come up with a novel bank which exclusively deals with goats - accepting the animal as savings and lending it out as loans. "Prema and her friends hailing from Afrozi village have establish a bank which deals exclusively in goats," development block coordinator Subedar Singh told PTI. In tough terrains of Mirzapur district, most of the people are engaged in crushing stone to earn a living. "Wives of these people help them in crushing stones and breed two-three goats for additional income," Singh said. "Though the area is best suited for goat breeding, no effort was made to establish it as a full fledged business activity," he said. "We provide goats to women having interest in taking up breeding as a full-time activity as loan. When a goat gives birth to kids, generally two to three in numbers, one of them is deposited with the bank again," Prema explained.

.:ndtv.com->

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Posted: November 13th, 2010
at 2:43pm by Koookiecrumbles


Categories: development,trade

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Documentary- Overdose: The Next Financial Crisis

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Posted: November 7th, 2010
at 2:03pm by Koookiecrumbles


Categories: business,documentary,trade

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From Wallstreet to Waffles

Garrett Hoelscher spent three years watching his Wall Street co-workers lead sterile, passion-less lives before he realized,AI want to make waffles for a living.

: Continue reading the article :

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Posted: November 1st, 2010
at 7:53am by Koookiecrumbles


Categories: grub,trade,entrepreneurship

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Jesse Livermore Trading Rules (1940)

1. Nothing new ever occurs in the business of speculating in stock and commodities.
2. Money cannot be consistently made trading every day or every week during the year.
3. Don't trust your own opinion or back your judgment until the action of the market itself confirms your opinion.
4. Markets are never wrong - opinions often are.
5. The real money made in speculating has been in commitments showing a profit right from the start.
6. As long as a stock is acting right, and the market is right, do not be in a hurry to take profits.
7. One should never permit speculative ventures to run into investments.
8. The money lost by speculation alone is small compared with the gigantic sums lost by so-called investors who have let their investments ride.
9. Never buy a stock because it has a big decline from its previous high.
10. Never sell a stock because it seems high-priced.
11. I become a buyer as a stock makes a new high on its movement after having had a normal reaction.
12. Never average losses.
13. The human side of every person is the greatest enemy of the average speculator.
14. Wishful thinking must be banished.
15. Big movements take time to develop.
16. It is not good to be too curious about all the reason behind price movements.
17. It is much easier to watch a few than many.
18. If you cannot make money out of the leading active issues, you are not going to make money out of the market as a whole.
19. The leaders of today may not be the leaders of two years from now.
20. Do not become completely bearish or bullish on the whole market because one stock in some particular group has plainly reversed its course from the general trend.
21. Few people ever make money on tips. Beware of inside information. If there was easy money lying around, no one would be forcing it into your pocket

.:anirudhsethireport.com->

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Posted: October 22nd, 2010
at 10:31am by Koookiecrumbles


Categories: trade

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