Washington Post (August 10)
“Matters are not as clear as is often suggested regarding short-term-driven ‘quarterly capitalism.’” The “most enthusiastic champions of long-termism” are often the “managements of companies that are dissipating the most value, such as General Motors before it needed to be bailed out.” Long-termism can also lead to short-term excesses, such as “market participants who willingly place huge valuations on many Silicon Valley companies that lack any profits and have little revenue.”
Tags: GM, Long-termism, Profits, Quarterly capitalism, Revenue, Short term, Silicon Valley, Valuations
New York Times (August 9)
“It’s important that regulators develop security rules for cars, which are becoming computers on wheels.” In the U.S., the National Highway Traffic Safety Administration should “start writing basic security standards that require automakers to test the software and make sure a car’s wireless system cannot be used to control the engine and brakes. The agency’s regulations on airbags, seatbelts and crash testing have helped save countless lives. New rules for software that operate cars could prove just as important.”
Tags: Airbags, Automakers, Cars, NHTSA, Regulators, Seatbelts, Security, Software, U.S., Wireless
The Economist (August 8)
“Germany is back in its old dilemma: too weak for hegemony, too large for balance. No other country can think of imposing solutions, but Europe will not allow Germany to do so either. That may mean that the EU’s biggest challenges—from immigration to preventing a British exit and fixing the euro—will continue to go unmet.”
Tags: Balance, Brexit, Challenges, Dilemma, euro, Europe, Germany, Hegemony, Immigration, Solutions
Wall Street Journal (August 7)
In China, the Government is estimated to have spent more than 10% of GDP ($1.3 trillion) “since the market panic started in late June,” producing only questionable results. “The failed bailout reinforces the expectation that Beijing will attempt to manage the financial markets in the future. This moral hazard means the volatility will continue, along with the costs of future bailouts. The first lesson of investing, buyer beware, has yet to be learned in China.”
Tags: Bailouts, Beijing, China, Financial markets, GDP, Government, Moral hazard, Panic, Volatility
Bloomberg (August 6)
“Efficient and incorruptible as the government has been, though, it would benefit from a bit more dissent.” As Singapore turns 50, the biggest danger is groupthink. “After 50 years of ceaseless striving, Singapore can afford to relax just a little. If it wants to keep amazing the world, and to extend its miracle into a new era, it may have to do just that.”
Tags: Ceaseless striving, Dissent, Efficient, Government, Groupthink, Incorruptible, Relax, Singapore
Los Angeles Times (August 5)
“You can see 50 of sumo’s elite Saturday in Long Beach. Among the highlights: Byamba going for his ninth consecutive Open title, probably including a match against Kelly Gneiting, a gritty 440-pound American whom Byamba body-slammed two years ago in ‘the bounce heard ‘round the world.’ That’s sumo for you. Quirky, yet seismic. And not just Japanese anymore.”
Institutional Investor (August 4)
“Conventional wisdom isn’t always the wisest.” Conventional wisdom holds that rising interest rates are bad for REITs. This time around, however, REITs “offer value in the face of an interest rate hike. Real estate investment trusts and master limited partnerships are yield plays that should fare well if rates rise gradually.”
Tags: Conventional wisdom, Gradual, Interest rates, MLPs, Real estate, REITs
Chicago Tribune (August 3)
“Shrinking ice caps, rising seas, more flooding, more intense heat waves—these phenomena are happening now. The question is whether we can band together as a planet in time to reverse the effects.” The Environmental Protection Agency (EPA) just announced limits for greenhouse gas emissions from power generating stations. The EPA’s plan is a step in the right direction. “The more seriously the U.S. acts, the more likely other polluting nations like China and India will do the same in Paris.”
New York Times (August 2)
Millenials are “the most educated generation in history,” but this same generation is “on track to becoming less prosperous, at least financially, than its predecessors.” Millenials “are faced with a slow economy, high unemployment, stagnant wages and student loans that constrict their ability both to maintain a reasonable lifestyle and to save for the future.” On top of that, previous generations are burying them under government debt and insufficiently funded obligations.
Tags: Debt, Economy, Generation, Government, Lifestyle, Millenials, Prosperous, Student loans, Unemployment, Wages
Bloomberg (July 30)
Positive governance may finally be transforming corporate Japan. “Waves of activist investors—both Japanese and non-Japanese—tried to unlock the country’s riches. They failed. But now they’re spurred on by Prime Minister Shinzo Abe, who’s taking aim at the cozy way Japan does business as part of his make-or-break Abenomics plan to reinvigorate the stagnant economy. Attitudes are changing at last.”
Tags: Abe, Abenomics, Activist investors, Business, Economy, Governance, Japan
