Category Archive

India Calling
By ANAND GIRIDHARADAS
Published: November 23, 2008
Their parents came to America, but these days the motherland beckons.

We’re just trying to stay away from the window. This isn’t about fundamentals, it’s not about bad balance sheets, it’s about fear and confidence.

—James Paulsen, who helps oversee about $220 billion as chief investment strategist at Wells Capital Management

The problem is there is absolutely no silver lining visible. The financial crisis may now be at its tail end and we are now in a second phase where corporate distress is the key issue. A third phase may come early next year, when emerging markets will really struggle as the crisis widens and exports continue to shrink

—Arjuna Mahendran, head of Asian investment strategy Asia at HSBC Private Bank in Singapore

Each alternative can damage the interest of creditor nations. The more you buy, the more you will lose.

-On US Treasuries in the Beijing Review

The impact is gradually unfolding. At this stage, the most important impact is on the export side, which is slowing down. We are learning. We were not well prepared for this global shock. Until recently, we thought the US financial crisis was bottoming out, passing the worst stage. Actually, it is not. Now we’re very vigilant.

-From The National

Sustained economic growth cannot rely on real estate

-From The Sydney Morning Herald, November First

The current economic slowdown is only normal in its long-term development track.

-From an Editorial in China Business Daily, October 29th, on the slowdown in China

-Yu Yongding, a monetary policy analyst, who formerly advised China’s central bank

You make a billion dollars, but your rate can be a as low as 15 percent. Is that fair?

—Representative Elijah E. Cummings, a Democrat of Maryland

Krugman

With all due respect to the free-market, or moral-hazard types out there, it’s all wonderful in a textbook. But in a real world this would be disastrous.

—Gary Hindes, Managing Director, Deltec Asset Management

Mortgage Modifications

With such broad adoption, this new protocol will be a standard for the industry to quickly move homeowners into long- term sustainable mortgages

—Neel Kashkari, assistant secretary, US Treasury

• Citigroup — 130k proposed, per qualification in their program
• JPMorgan Chase + Wachovia (Golden West) — 400k modifications proposed
• BofA + Countrywide — 400k modifications proposed
• HSBC — 61k mortgages modified YTD
• US Government (Sheila Bair) — 300k expected to qualify for the program
  • Evidence of hardship
  • Owner-occupied
  • 90 day trial period

Very few countries are going to match this stimulus — it’s huge. It’s a very strong step and puts them in a commanding position in setting an example to other economies.

Nicholas Lardy, senior fellow at the Peterson Institute for International Economics in Washington.

The stimulus here was 1 percent of GDP, and there, it’s 16 percent of GDP. It is a big deal and therefore is a note of optimism especially for the global economy. And we’re all hopeful that it will help U.S. stocks as well, especially raw materials.

—Bruce McCain, chief investment strategist at Key Private Bank in Cleveland, which manages $30 billion

We’re going to see a lot of corporate grief. We’ll see companies laying off a lot of people and the market reflecting a lack of confidence in a lot of companies’ values.

—Harvey Pitt, former chairman of the Securities and Exchange Commission

There’s going to be a lot less hedge funds in the industry—anywhere from 30% to 50%—and I tend to err on the 50% side

—Peter Carey, senior investment officer for alternatives at the $153 billion New York State Common Retirement Fund