Tibet’s government and the Chinese government have been dealing with political issues ever since the beginning of the independence of the Republic of China. Tibet, a province of China, tried to claim its independence a few times. It all comes down to religion. Tibet, where many of the monks live, doesn’t get along with the rest of the mainland.
The Olympics are coming in about 4 months. All the Chinese government wants is peace and quite and positive publicity. Unfortunately, the Chinese government has been sending troops to Lhasa, Tibet to crack down on the protesters. The secret forces were also sent to SiChuan, YunNan and GanSu provinces to arrest the protestors there. Some rioters have been wounded and shot by the police according to the Chinese news agencies. The Chinese government has forced out all the foreign journalists in Tibet around the middle of March of 2008.
The U.S. government has asked China to use restraint against the protestors. Secretary of State Condoleezza Rice urged the Chinese party to talk to the spiritual leader Dalai Lama. The Chinese President agreed to talk to Dalai Lama under the condition that he not support Tibet’s independence. The phone call is still being scheduled.
This is a challenging subject for the Chinese government to handle, especially at this moment when the entire world is watching. Hopefully, there will be a welcoming environment before the Olympics start.
http://voanews.com/english/2008-03-20-voa79.cfm
http://voanews.com/english/2008-03-20-voa67.cfm
Sunday, March 23, 2008
Morgan Stanley reported $1.53 billion in profit
Morgan Stanley, one of the biggest investment banks has its first quarter profit of $1.53 billion after dividend. It was better than Wall Street projected. Morgan Stanley did much better than other investment banks for the past three months.
Many investment banks have suffered because of the credit crisis. Last Sunday, Bear Stern Cos agreed to sell to JPMorgan Chase at a bargain price. Morgan Stanley has better managed its liquidity problems. Morgan Stanley hasn’t bought any stock back this fiscal year. Its share price raises $3.57 after Tuesday’s rally. Its security business including investment banking and trading had revenue of $6.2 billion.
Overall, Morgan Stanley is doing better than expected. However, there are a few signs that show its vulnerability. First of all, $1.53 billion profit was much lower compared to profit this quarter last year. Last year, it had a profit of $2.66 billion. Secondly, Morgan Stanley had reported a write-down of $2.3 billion-including $1.2 billion from mortgage-backed securities and $1.1 billion from loans.
Experts say that we will still have some more challenging times ahead. How long, we don’t know yet. The market will be volatile for the near future. However, for now, investors can take a short break since major investment banks have shown its capability of managing its funds during a depressed market condition. Consumers’ confidence toward the economy is still low. The future is going to be very interesting for all of us.
http://www.myfoxatlanta.com/myfox/pages/Business/Detail?contentId=6075397&version=1&locale=EN-US&layoutCode=TSTY&pageId=4.1.1
http://biz.yahoo.com/ap/080319/earns_morgan_stanley.html
Many investment banks have suffered because of the credit crisis. Last Sunday, Bear Stern Cos agreed to sell to JPMorgan Chase at a bargain price. Morgan Stanley has better managed its liquidity problems. Morgan Stanley hasn’t bought any stock back this fiscal year. Its share price raises $3.57 after Tuesday’s rally. Its security business including investment banking and trading had revenue of $6.2 billion.
Overall, Morgan Stanley is doing better than expected. However, there are a few signs that show its vulnerability. First of all, $1.53 billion profit was much lower compared to profit this quarter last year. Last year, it had a profit of $2.66 billion. Secondly, Morgan Stanley had reported a write-down of $2.3 billion-including $1.2 billion from mortgage-backed securities and $1.1 billion from loans.
Experts say that we will still have some more challenging times ahead. How long, we don’t know yet. The market will be volatile for the near future. However, for now, investors can take a short break since major investment banks have shown its capability of managing its funds during a depressed market condition. Consumers’ confidence toward the economy is still low. The future is going to be very interesting for all of us.
http://www.myfoxatlanta.com/myfox/pages/Business/Detail?contentId=6075397&version=1&locale=EN-US&layoutCode=TSTY&pageId=4.1.1
http://biz.yahoo.com/ap/080319/earns_morgan_stanley.html
Comment on Joseph Fong’s “Moral Hazard”
I read Joseph Fong’s “Moral Hazard” today. I agree with him totally. People tend to take advantage of their insurance coverage. Say for example, two friends run into each other, on purpose, in order to make a claim against the auto insurance coverage. This is a typical example of moral hazard. Insurance companies have all kind of regulations and restrictions to avoid moral hazard.
When I read about the chemicals found in the city’s drinking water, I was very scared and disappointed to hear it, especially when the prescription byproduct was discovered in our drinking water. I immediately stopped drinking water from the public water system and brought my own filtered water wherever I go. I don’t think the city intentionally leaves the chemicals in the drinking water. The reason why I don’t think so is because the city is not going to benefit from a bad job. States that have problems with their drinking water are simply doing a terrible and careless job.
I think the government should get involved in testing the city’s water. Just like the meat in the grocery store is tested before it is served to the public. The Government should randomly select the city’s water to test its purity. A penalty should also be set up if the purity doesn’t meet a specific standard. More media exposure will also create more public attention and awareness of the issue.
When I read about the chemicals found in the city’s drinking water, I was very scared and disappointed to hear it, especially when the prescription byproduct was discovered in our drinking water. I immediately stopped drinking water from the public water system and brought my own filtered water wherever I go. I don’t think the city intentionally leaves the chemicals in the drinking water. The reason why I don’t think so is because the city is not going to benefit from a bad job. States that have problems with their drinking water are simply doing a terrible and careless job.
I think the government should get involved in testing the city’s water. Just like the meat in the grocery store is tested before it is served to the public. The Government should randomly select the city’s water to test its purity. A penalty should also be set up if the purity doesn’t meet a specific standard. More media exposure will also create more public attention and awareness of the issue.
Sunday, March 16, 2008
Comments on Brian Duncan’s “Oil Company Risks”
I think Brian did a great job explaining the risks that oil companies are facing, such as reduction in skilled labor and tight debt markets. This has resulted in leveraged project difficulties as well as scarcity of materials like steel and concrete. However, this article made me wonder about possible solutions that can help us improve our current situation.
The U.S. is the largest oil consumer worldwide. 68% of oil was purchased by consumers and industries. We have been extremely dependent on oil for hundreds of years. Now, oil prices are over $108 per barrel. We are desperate for alternatives.
First of all, oil companies have 10 years of reserves under ground. They are not facing scarcity issues, so investing more money for alternatives doesn’t make financial sense. To them, no alternative makes them profit.
The Hybrid car is not the solution. Most people can’t substitute their car for a hybrid car because of the cars $30,000 or more price tag makes it unaffordable.
Ethanol is not the solution either. It takes more energy to produce ethanol than it can actually yield. It takes acres of corn to produce just a little ethanol. Here is the equation:
11 Acres = 1 year’s oil supply for 1 vehicle
If we want to produce enough ethanol for every vehicle on the road, we will have to cover 97% of farming land with corn. That is not possible at all.
We might be able to reserve tar sand like Canada does. It takes strip mines to get at the goo, called bitumen, which must then be heated with steam and hot water, and then processed with caustic chemicals. It can be harmful to our environment in the long run.
I believe the way to get rid of the oil dependency is to change our life style. We must use more coal, and take public transportation. We need to stop using oil like we have in the past. Use natural solar energy, such as sunlight, wind, and water as alternatives. It takes everyone to make it happen. From saving empty plastic bottles to using a car pool, we all need to start to conserve. It might be a little too late. However, we are left with no other choices.
http://www.energybulletin.net/1253.html
http://www.cbsnews.com/stories/2006/01/20/60minutes/main1225184.shtml
The U.S. is the largest oil consumer worldwide. 68% of oil was purchased by consumers and industries. We have been extremely dependent on oil for hundreds of years. Now, oil prices are over $108 per barrel. We are desperate for alternatives.
First of all, oil companies have 10 years of reserves under ground. They are not facing scarcity issues, so investing more money for alternatives doesn’t make financial sense. To them, no alternative makes them profit.
The Hybrid car is not the solution. Most people can’t substitute their car for a hybrid car because of the cars $30,000 or more price tag makes it unaffordable.
Ethanol is not the solution either. It takes more energy to produce ethanol than it can actually yield. It takes acres of corn to produce just a little ethanol. Here is the equation:
11 Acres = 1 year’s oil supply for 1 vehicle
If we want to produce enough ethanol for every vehicle on the road, we will have to cover 97% of farming land with corn. That is not possible at all.
We might be able to reserve tar sand like Canada does. It takes strip mines to get at the goo, called bitumen, which must then be heated with steam and hot water, and then processed with caustic chemicals. It can be harmful to our environment in the long run.
I believe the way to get rid of the oil dependency is to change our life style. We must use more coal, and take public transportation. We need to stop using oil like we have in the past. Use natural solar energy, such as sunlight, wind, and water as alternatives. It takes everyone to make it happen. From saving empty plastic bottles to using a car pool, we all need to start to conserve. It might be a little too late. However, we are left with no other choices.
http://www.energybulletin.net/1253.html
http://www.cbsnews.com/stories/2006/01/20/60minutes/main1225184.shtml
EF2 tornado hit Atlanta
Last night, Atlanta was hit by an EF2 tornado. We haven’t seen a tornado like this for decades. The Georgia Dome, CNN, Equitable building, Philips Arena, and the Western hotel were all damaged. At this moment, downtown Atlanta is still in a big mess. Firefighters are cleaning up the streets and rescuer teams are working night and day to help victims recover from the storm.
The City of Atlanta officials estimated that the damage was roughly $200 millions. The Georgia Dome had damage of about $150 millions. There was more damage all over the Georgia counties that hasn’t been reported yet. This was a tragedy for many people who were hit by the storm. I was actually driving on I75 toward downtown Atlanta at 9:30p.m. To me, it was horrifying. I was not able to see outside the windshield. The hale was so heavy and it almost damaged my car. I turned on my emergency lights. I had to stop on the highway a couple of times just to avoid an accident. That was the worst storm I have ever experienced.
We talked about weather risk the other day in class. It is a component of financial risk and is unavoidable. A lot of the rebuild will be paid by insurance. However, there is still some basic risk, which is the cost that is not hedged, such as the time it will take to recover, the inconvenience that victims will have to go through, and the mental scars.
http://www.myfoxatlanta.com/myfox/pages/News/Local?pageId=3.2
http://news.yahoo.com/s/ap/20080315/ap_on_re_us/atlanta_storm
The City of Atlanta officials estimated that the damage was roughly $200 millions. The Georgia Dome had damage of about $150 millions. There was more damage all over the Georgia counties that hasn’t been reported yet. This was a tragedy for many people who were hit by the storm. I was actually driving on I75 toward downtown Atlanta at 9:30p.m. To me, it was horrifying. I was not able to see outside the windshield. The hale was so heavy and it almost damaged my car. I turned on my emergency lights. I had to stop on the highway a couple of times just to avoid an accident. That was the worst storm I have ever experienced.
We talked about weather risk the other day in class. It is a component of financial risk and is unavoidable. A lot of the rebuild will be paid by insurance. However, there is still some basic risk, which is the cost that is not hedged, such as the time it will take to recover, the inconvenience that victims will have to go through, and the mental scars.
http://www.myfoxatlanta.com/myfox/pages/News/Local?pageId=3.2
http://news.yahoo.com/s/ap/20080315/ap_on_re_us/atlanta_storm
Economy Upgrade
My biggest concern is becoming a reality. We are in a recession and the stock market keeps experiencing low points day after day. Some economists say that Wall Street is close to its bottom; others disagree. The stock market is still volatile. One aspect that drives the stock market to fall is the consistent withdraw of many investors.
Credit risk is also hurting the economy and perceptions. Banks and other lenders have tightened their standards for credit approval and consumers are feeling the credit crunch. The credit market will play itself out before it can turn back around.
The Fed will have another interest rate cut next Tuesday. We don’t know how much the cut will be. Experts say it can be up to 1 full point. The lower interest will work as a cushion for our recession. The prime rate is 6% now. It will help borrowers with adjustable loans to reduce their monthly payment. Another Fed cut is less likely to pull us out of the depressed economy.
The U.S. dollar has also been dramatically depreciated over the past year. Based on today’s exchange rate, $1 = 7 Yuan and $1 = 0.6 Euro. That made the record low. We don’t know how long it will take for us to get out of the recession at this point. I hope we can pull our way out someday.
http://biz.yahoo.com/ap/080315/wall_main.html
http://biz.yahoo.com/ap/080315/fed_interest_rates.html
Credit risk is also hurting the economy and perceptions. Banks and other lenders have tightened their standards for credit approval and consumers are feeling the credit crunch. The credit market will play itself out before it can turn back around.
The Fed will have another interest rate cut next Tuesday. We don’t know how much the cut will be. Experts say it can be up to 1 full point. The lower interest will work as a cushion for our recession. The prime rate is 6% now. It will help borrowers with adjustable loans to reduce their monthly payment. Another Fed cut is less likely to pull us out of the depressed economy.
The U.S. dollar has also been dramatically depreciated over the past year. Based on today’s exchange rate, $1 = 7 Yuan and $1 = 0.6 Euro. That made the record low. We don’t know how long it will take for us to get out of the recession at this point. I hope we can pull our way out someday.
http://biz.yahoo.com/ap/080315/wall_main.html
http://biz.yahoo.com/ap/080315/fed_interest_rates.html
Sunday, March 2, 2008
Social Security at Risk
The stock market keeps falling, the market economy keeps shrinking, and social security is in much worse shape than we all expected. These are some of the reasons why there is uncertainty about the future.
Social security used to compose 39% of retirees’ income, now is expected to get much smaller. Social security was created to support retirees. According to the National Center for Health Statistics, the average lifespan was 63 back in the 1940’s, now it is over 77. This means that more of a burden is carried by the tax payers than in previous years. By the year 2030, when all the baby boomers are ready to retire, it is possible that the funds will not be available to a certain extent. It is very important for every tax payer to start a 401K plan or other type of personal savings.
The government has been extending the age of getting the full amount of social security benefits. Now, it is between ages 65 to 67. Bonuses and raises are provided for people who work past the normal retirement age. It is not a smart move to rely on social security after you are old and grey. Contribution to IRA accounts, mutual funds, CDs, and money markets will be on the individuals. Even now that the interest rate is low; you should still keep contributing to your savings account every month.
Social security hasn’t been a hot topic for all the presidential candidates. It is the most essential and basic retirement solution for most middle class Americans. I don’t know where the country will be without the social security system.
http://finance.yahoo.com/how-to-guide/retirement/29029
http://en.wikipedia.org/wiki/Social_Security_(United_States)
Social security used to compose 39% of retirees’ income, now is expected to get much smaller. Social security was created to support retirees. According to the National Center for Health Statistics, the average lifespan was 63 back in the 1940’s, now it is over 77. This means that more of a burden is carried by the tax payers than in previous years. By the year 2030, when all the baby boomers are ready to retire, it is possible that the funds will not be available to a certain extent. It is very important for every tax payer to start a 401K plan or other type of personal savings.
The government has been extending the age of getting the full amount of social security benefits. Now, it is between ages 65 to 67. Bonuses and raises are provided for people who work past the normal retirement age. It is not a smart move to rely on social security after you are old and grey. Contribution to IRA accounts, mutual funds, CDs, and money markets will be on the individuals. Even now that the interest rate is low; you should still keep contributing to your savings account every month.
Social security hasn’t been a hot topic for all the presidential candidates. It is the most essential and basic retirement solution for most middle class Americans. I don’t know where the country will be without the social security system.
http://finance.yahoo.com/how-to-guide/retirement/29029
http://en.wikipedia.org/wiki/Social_Security_(United_States)
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