Sunday, November 13, 2011

Just a few thoughts...

* There's some interesting talk re: the Chinese Yuan.  It appears that as growth has begun to slow in China there is money flowing out of the Yuan and toward the dollar.  For all of the table pounding in Washington, imagine the reaction if China allowed its currency to float versus the $ and it FELL in value rather than rose.  Something to ponder.

* Stat of the week - It currently takes Groupon $1.43 to make $1.00.  BRILLIANT!!  Why isn't that company worth $100 Trillion?!?!

* Eric Sprott, who has a reputation as a bit of Nervous Nellie, made some news over the weekend predicting governments will "break their promises to their citizens".  This obviously is a reference to future pension obligations but I think that's a bit alarmist.

* Oil and gas prices are at their highest prices EVER in October and November.  Will $3.65 gas finally curb the holiday shopping in the US?

* California said revenues in October came in about $810 million below projections.  If that trend continues it's going to mean steeper cuts in state and local governments.  These comments mirrored what we are hearing in NY about missing our budget goals.  This will be something to watch.

Cheers!

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