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China and a few other central banks have grumbled about the dollar but they don’t have many other alternatives so they keep buying.
—Michael Atkin, head of sovereign research at Putnam Investments in Boston, $12b in fixed-income assets
The end of the world appears to have been postponed.
The trouble is, we really have no road maps. The only model is the Great Depression itself. [That] was ended by a very large spending program known as World War II and we don’t really want to repeat that.
—Paul Krugman in Helsinki
And that is my case, too. The world is positioned for disappointment. But, in economic and financial matters, the world rarely gets what it expects. Pigou had humanity’s number. The “error of pessimism” is born the size of a full-grown man—the size of the average adult economist, for example.
—James Grant in the WSJ, the editor of Grant’s Interest Rate Observer
We need to find ways to bring down that trading friction cost, we need to make sure we’re not being taken advantage of. Hopefully our counterparties, our dealers, will make less money from us and our clients are going to make more return…There’s no question, you have seen huge profitability in some of these institutions. The widest bid-ask spreads are in fixed income — the more opaque the market, the more money the market makers are making.
—Larry Fink on crossing trades internally and cutting brokers out of the loop
China has decided that clean-tech is going to be the next great global industry and is now creating a massive domestic market for solar and wind, which will give it a great export platform.
In October, Applied will be opening the world’s largest solar research center — in Xian, China. Gotta go where the customers are. So, if you like importing oil from Saudi Arabia, you’re going to love importing solar panels from China.
You cannot measure influence, but you can feel influence. And I think he has it.
—Raghuram Rajan, University of Chicago, on Martin Wolf in the New Republic
The U.S. had all the answers once upon a time. But China’s not the apprentice anymore.
—Senior Obama administration official
Americans make mistakes when they think that politics don’t exist in China, that these guys don’t have to pay attention to what the Chinese people are saying. Their room to maneuver is constrained by public opinion.
—Treasury official
Anything that’s safe is incredibly inexpensive. That’s where a lot of the value is now.
—Kevin Rendino, who oversees $10 billion at BlackRock in Plainsboro
the hand is the cutting edge of the mind
–Jacob Bronowski, Ascent of Man
