Category: Investment

The pain in Spain takes pensions down the drain

29 May, 2013 (09:13) | Eurozone, Global news, Investment, pensions, Spain |

“Repeat after me, my dear: the pain in Spain takes pensions down the drain”   By:David A. Smith   The capital needed to provide retirement income is supposed to be invested in the safest of securities, so that when the elderly come to need the money, it will be there – and if the pension […]

China’s whistling tea-kettle

9 November, 2012 (09:00) | Bubbles, capital control, China, Economics, Global news, Investment, Real estate, Speculation |

By:David A. Smith   A whistling kettle not only keeps the pot from exploding, it tells you the water’s boiling; it’s both a release valve and a signal.  And in China’s economy, as shown in this Wall Street Journal (October 15, 2012) article, the economic tea kettle is whistling loudly:   Capital pressure’s on the […]

Capital’s bolt hole

22 December, 2011 (12:00) | Capital markets, Condominiums, Global news, Homeownership, Housing, Investment, Speculation |

By:David A. Smith   If you’re a member of the globe’s mobile economic elite with capital to park, where do you put it?     Safe enough, but a bit too isolated?   These days you’ve got a lot on your mind: currency fluctuations (and possible currency fractures), unstable economies, a global slowdown reaching epic […]

Needs must: Part 2, tell me thy reason why

30 November, 2011 (12:13) | Bankruptcy, Inflation, Investment, Markets, Municipal Finance, Rhode Island, Sovereign bankruptcy, Speculation, US News | 1 comment

[Continued from yesterday's Part 1.]   By:David A. Smith   Countess: Tell me thy reason why thou wilt marry. Clown: My poor body, madam, requires it: I am driven on by the flesh; and he must needs go that the devil drives. – All’s Well That Ends Well, 1601   Yesterday we saw, via a […]

Needs must: Part 1, when the devil drives

29 November, 2011 (11:50) | Bankruptcy, Inflation, Investment, Markets, Municipal Finance, Rhode Island, Sovereign bankruptcy, Speculation, US News |

By:David A. Smith   Needs must when the devil drives. – Old English proverb   When an enterprise is unsustainable, it goes bankrupt, and in that process settles its obligations for pennies on the dollar, because it has no choice.  That is as true for a nationor a city as it for a business, and […]