Friday, February 25, 2011

Citigroup economist: US will become 3rd largest economy

Expecting by 2050, to see China as biggest, and India as second. My question: Would it matter to poor Indian and Chinese civilians? Would they become consumers like westerners? Governed by rules of free markets and entrepreneurship?

US Will Be the World's Third Largest Economy: Citi
The world is going to become richer and richer as developing economies play catch up over the coming years, according to Willem Buiter, chief economist at Citigroup.

"We expect strong growth in the world economy until 2050, with average real GDP growth rates of 4.6 percent per annum until 2030 and 3.8 percent per annum between 2030 and 2050," Buiter wrote in a market research.

"As a result, world GDP should rise in real PPP-adjusted terms from $72 trillion in 2010 to $380 trillion dollars in 2050," he wrote.

As the world watches oil prices rise sharply amid unrest in the Middle East, Buiter's analysis of the world's long-term prospects offer some hope that better times are ahead but if he is right power will shift from the West to the East very quickly.

"China should overtake the US to become the largest economy in the world by 2020, then be overtaken by India by 2050," he predicted.


Catching up on development technologies: Video tutorials for UML in Visual Studio 2010

This is what I'm watching right now:

UML with VS2010 on Channel 9

More info on MSDN: How to: Create UML Modeling Projects and Diagrams

Visual Studio 2010 offers higher level modeling tools which integrate with Team Foundation to provide strict rules for how a project's layers and structures are built. This is in addition to reverse engineered sequence diagrams and the class diagrams which already existed in the vs2008.

Also on my catch up list: Tour De Flex, catching up on Adobe's infrastructure which is very similar to how WPF works.

One more, SCRUM in VS 2010: here, Wikipedia's description of SCRUM, here.


Thursday, February 24, 2011

A note about investing in stocks

If you are truly serious about investing in stocks, I would sincerely recommend reading not one, but several books on the subject. And while you read those, take all advice with proper skepticism especially if overly optimistic. Be serious about your money, it is no one else’s responsibility but your own to your choices.


Saturday, February 19, 2011

Some good old solid investment advice: Investment Income on WSJ

A highly recommended reading.

Six Ways to Boost Your Investment Income (WSJ)
1. CD ladders

2. Prepaying expenses


4. Blue-chip stocks

5. Selective bonds

6. Master limited partnerships

Watch out with #6... hold it only in a retirement account and not in an individual account unless you want to spend that income paying your tax accountant. Also, stay clear of foreign ones which promise a certain income, but the foreign governments collect their own taxes.


Announcing Free-Stocks-Ticker 1.6 with real time quotes

Follow the link and get the latest version:

Download Free-Stocks-Ticker

Now with real time quotes


Recommended site: Wikinvest

Simple reasons why:

* Collect all of your brokerage real-time snapshot through one screen
* Blackberry and iPhone (not iPad specific, but works) apps
* Gives you performance analytics.

Click and enjoy: (I get no commission, just wanted to share).


Fear of crash dominates despite continued bull market

Are we approaching a catastrophic moment?

Fear of 'Catastrophic' Crash Rising Despite Bull Market
In an unprecedented move, the number of investors fearing a catastrophic stock market crash is rising even with the stock market at 2 ½ year highs.

The unusual dislocation comes from two distinct reasons: a lack of trust in the U.S. financial markets following the so-called Flash Crash last May and the collapse of Lehman Brothers in 2007.

My amateur observation, at the very least - these two reasons are unsubstantiated and are based on emotion and pain from recent events. As time passes by and nothing "catastrophic" happens to the general markets - could we actually face an unprecedented boom as private funds are put back into the game? Could a political change bring about this boom?


Friday, February 11, 2011

Feds Outline Path to End Fannie, Freddie Mac

Only a tad too late. Ready to put the lid on the money hole?

Treasury Report Outlines Path for Winding Down Fannie, Freddie
The Obama administration is laying out three broad options for overhauling the mortgage lending system, but will let Congress make the final decision.

The Treasury Department says in a report released Friday that the government should withdraw its support for the mortgage market slowly, over five years or more. The report describes a path for winding down the troubled mortgage giants Fannie Mae and Freddie Mac.

The three options are: end the government's role in guaranteeing most mortgages; support the mortgage market only in times of stress; or provide a government guarantee for mortgage investments created by private companies.

Under any scenario, the private sector will assume a greater role in housing finance as the government scales back its involvement. The government currently owns or guarantees more than 90 percent of U.S. mortgages.

The bailouts of Fannie and Freddie have cost taxpayers nearly $150 billion.

The report comes after years of debate about how to end the government's role in housing. The options have been discussed for years as well.

By handing the decision to Congress, the administration sidesteps one of the most complex and politically explosive questions facing the financial system. Any of the three options will almost certain force mortgage rates to rise.