Klein's Commentary

Go beyond the headlines

Reading (and Misreading) China’s Economy

A wave of articles and data have come out in the last few weeks on the current and future state of China’s economy. Like the Beijing air, there’s nothing clear about what’s going on in the world’s second largest economy, let alone where China may end up by year’s end. Sometimes it’s all blue skies,…

Continue Reading

The Week That Was (and Wasn’t)

Walking Backwards into the Future – In a 5-4 Supreme Court ruling upholding President Obama’s healthcare bill the U.S. finally joined the rest of the developed world of 60 years ago with universal coverage. China joined the space world of 50 years ago with a successful orbital docking mission, including a safe return to earth of…

Continue Reading

Financial Deception, Not Just for Wall Street Anymore

Were the financial mess in Europe not enough to make people wonder about the health of the global economy another banking scandal erupted, this time in the UK. Collusion on bank-to-bank lending rates first discovered at Barclay’s are now suspected across a number of other banks. Not only do these rates directly impact financial performance,…

Continue Reading

Blinded by the Euro Light

Hopes for a breakthrough on several fronts in the global economy came to naught this week. EU leaders met, and discussed, and discussed some more. Solutions to the spread of financial distress affecting France, Italy, Greece, Spain, and Cyprus appeared at hand. Markets rallied after the European Stabilization Fund was announced which would buy sovereign…

Continue Reading

China’s Foreign Banking Troubles

In James McGregor’s 2005 book “One Billion Customers” eager investors were warned about the pitfalls of doing business in China. Many U.S. firms, mostly large and concentrated in the hotel, machinery, commodities, and higher-end consumer goods segments have overcome these challenges and done spectacularly well. Financial firms on the other hand have hit a policy…

Continue Reading

Are ETFs the New CDOs?

As if the wizards of finance hadn’t done enough already. Remember when collateralized debt offerings (CDOs) entered common usage? Mortgages were sliced up, repackaged, and re-sold into “synthetic” products barely resembling the underlying property on which they were supposedly based. Sounds a lot like how bologna is made. When the housing market went bust CDOs…

Continue Reading