Thursday, December 11, 2008
With it market cap of only $3M, the fed is literally now owning 1/3 of the company! The stock has been down from $12 a share at IPO to $2 a share now.
Saturday, November 22, 2008
Thursday, November 13, 2008
- Election rallies ended with 800 points drops the next two days
- China to spend almost $600B in stimulus to their own infrastructure
- Paulson changed his mind to use TARP money to help consumer credit. Spend baby spend!
- Use trade deficit felt to $56.5B, China trading surplus hit another record.
- Unemployment number shoot over the roof. Continued claims are now at 3.897 million, the highest level since 1983.
- Retailers get clobbered this xmas, regardless of what the gov might do
- A consistent drop of appetite for US treasuries, rate has to increase up to 8% (now at 3.7%)
- Pension fund is smacked with a $5B lost in US treasuries holding.
- The next bubbles! the BOND bubble - corporate, tax-exempt state, city and gov bonds
- Food crisis!
- Frozen international trades.
- Hyper inflation
Wednesday, November 5, 2008
Analysts at the US investment bank Morgan Stanley are recommending that clients start to buy shares again after more than a year of falling markets. In an investment strategy report, analysts at the bank said that all four indicators they use to gauge the equity market outlook have started to indicate a turn in the downward trend.
"We have now come full circle: our market timing indicators are giving us a full house buy signal," said the statement. "Each of the four indicators – valuation, capitulation, risk, fundamentals – tells us to buy."
"These models tend to work some 80 to 90 per cent of the time," they said. "And in the 10 to 20 per cent that they don't work, the move the other way can be spectacular."
Unfortunately the model tends to NOT work this time.
Saturday, October 25, 2008
The front-page commentary in the overseas edition of the People's Daily said that Asian and European countries should banish the U.S. dollar from their direct trade relations for a start, relying only on their own currencies.
A meeting between Asian and European leaders, starting on Friday in Beijing, presented the perfect opportunity to begin building a new international financial order, the newspaper said.
FYI: U.S. private consumption peak at the rate of 9.1 trillions dollars a year with a population of 300 millions. The rest of 1.3 billions Chinese and 1.2 billions Indian combining about 2.5 billion Chindian only consume about $1.8 trillions dollar. The abrupt vacuum of U.S. consumer slow down is not easy to be replaced anytime soon. The world leaders need to get over the denial stage and admit that we are in at least a deep recession if not a looming depression.
US might be facing with limited choice in paying off its $10 trillion dollars debt = 620 miles of $100 dollar bills stacking side by side.
- Facing default of the USD
- Selling off Alaska
Left: A cobbler waiting on the street of Afghanistan. Making a humble living day by day. The psychological emotion he has to go through each day waiting for customers. Hoping that he would make enough to earn a meal for his family.
Below: a Chinese farmer harvesting his hard earn vegetables. Hard labor with little pays. Their earnest wishes are just to have a nice meal and some saving. Our over spent and over consumed society. Living outside of our means as becoming the norm and the way of life. It is sickening to see how materialistic the society has becoming the past decade. Now as we are entering a hard economic time, people would have to learn it the hard way and experience a period of much reduced standard of living.
So, from time to time, take a few min, be grateful. Live within your means. Do not chase after material as a source of happiness. Find it from the inside.
Thursday, September 25, 2008
Friday, September 19, 2008
Wednesday, September 17, 2008
Sunday, September 14, 2008
As defined by the International Labour Organization, "unemployed workers" are those who are currently not working but are willing and able to work for pay, currently available to work, and have actively searched for work.
So what does that definition imply? If a bunch of people decide to give up the search then guess what! The number of "unemployed workers" decreases hence the "unemployment rate" drops. How wonderful! Now we can cure all unemployment by giving all those who are seeking for a job a nice share of welfare so they would stop seeking. Eureka
The bottom line is that many formulas like these are very misleading and do not reflect the actual condition of the economy. Critical decisions are made by government officials and top executives basing on these misleading numbers. Resulting only to cascade and magnify the incorrect information.
Sunday, September 7, 2008
Theory: Wuxing and Chinese nutrition
Wood, Fire, Earth, Metal and Water: their savors and nutritional functions
The principle of Chinese diet and nutrition engross heavily on the theory of Wuxing or the Five Phases. According to Chinese medicine, the universe is composed of Wuxing: wood, fire, earth, metal and water. This infers that the human body is composed of those Wuxing as well. A deficit of one the phases correspond to malfunction of one or more of the 12 internal organs. The harmony of all phases will keep the person healthy. All five phases are interconnected with generative cycle and destructive cycle.
Understanding the relationship between Wuxing and food is pertinent in order to know how to choose a healthy diet, prevent and treat illness. Wood is associated with sour, citrus and acidic taste. Sour is astringent and gathering . Sour directly affects the liver with the over production of saliva and injure to the muscles. An excess amount of sour in the body will cause all wood phase’s elements to over react and cause injuries to the associated organs and body tissue. According to the destructive cycle shown in the diagram above, excess of sour could cause weakening of the earth phase with is association with the Spleen. Also by this cycle, sourness could be counteracted or controlled by the addition of metal-pungent foods .
Fire is associated with bitterness. Bitter is drying but yet strengthening . Bitterness directly affects the heart, blood vessels and circulation. It helps us with growth and strengthening of our body. This will help tonify the heart, blood vessel and metabolism. Many heart related problems, such as obesity and high blood pressure, could be prevented if we increase our intact of bitter food. However, consuming too much alcohol, coffee or tobacco will introduce excess bitterness to the body. Too much of it could lead to Spleen energy dryness, congestion of stomach energy and a withering of the skin . It could also invade the metal phases and dry out the lung, which would not be favorable because the lung hates dryness. Excessive bitterness could be counteracted by addition of salty food.
Earth is associated with sweet. Sweet is harmonizing and retarding. Excessive sweetness could cause damage to the water phases. In our society, excessive consumption of sweetness is the biggest problem. One thing that makes sweetness so attractive is its ability to reduce pain by affecting the central nervous system . Excess sweet invade and cause damage to the water phase: including an unbalanced kidney, an overactive bladder, weakening bones, and teeth. Urinary problems and diabetes are directly related to excessive sweetness . Excessive also sweetness repels the fire phase. The damage to the fire phase could be similar as described in the previous paragraph, such as obesity, low metabolism and heart failure. Addition of sour foods could be used to counteract extra sweetness and strengthening the fire phase.
Metal is associated with hot, pungent, and aromatic. Metal is dispersing. "The pungent taste scatters, and is used to expel pathogenic factors. " Pungent is warming and treat cold as well. Metal tonifies water phases. If there is deficiency of water phases, the kidney is usually a deficiency of yang to heat up the body. Pungent warming food could treat yang deficiencies in water phases. Excessive pungent or spicy food could attack the wood and dry out the lung. Muscle knots, slack pulse and unhealthy fingernails could be a result of excessive metal pungent foods in the body. This can be counteracted by the addition of better foods .
Water is associated with salty. Salty tastes flow downward and soften hardness to treat swelling and constipation. In biomedical terms, saltiness create an osmotic gradient when salt passes through the large intestine and draws fluid back to help soften stools and constipation . Excessive salty diet invades the fire phase and injures the kidney. Sweet foods can be used to counteract this excess of salt.
Classification of food and their properties
Understanding the relationship of the Wuxing and taste is important in order to choose a balanced meal and treat any disharmony in the body. Here is some classification of food and their associated phases
Within each food type, there are different intrinsic properties of Wuxing. One interesting observation is that chocolate is under bitter taste. Some research has found out that eating a small amount of chocolate may help blood circulation and prevent heart disease. This is also true for consuming a small amount of coffee or tea. However, an excessive amount of these could render the reverse affect.
Besides the properties of Wuxing, foods also hold a Yin and Yang characteristic. According to Chinese Medicine, foods have an intrinsic temperature and they can be classified as hot, warm, neutral, cool or cold foods. The intrinsic temperature of food does not depend on whether food is hot because it is taken from the oven or cold because it is taken from the fridge but because food is understood to have an inherent "quality" in its nature .
Hot food has strong dry tastes. Eating too much hot food can cause damage associated with the fire phase. Hot food creates excess body heat which in turn causes the person to be restless, insomniac, have a hard stool and excess pimples. Body heat problem can lead to high blood pressure, emotion instability, and loose shen (spirit). Loose shen can be characterized as attention deficit disorder. The person has trouble sticking with a plan, or schedule and often becomes forgetful. Emotionally, the person could have sudden burst of emotion such as anger, grief or becoming bi-polar.
Cool foods have a harsh effect on the spleen and stomach. Cool food is usually associated with raw meat, fruit, vegetables and diary products. Raw food requires more effort to digest and broken down. Food that is cool in temperature also requires the body to heat it up which takes away body qi. Especially, diary products are raw, heavy and stagnant. Consuming an excess amount will cause blockage and digestion problems. Too much meat, cheese, butter, fats and sugar in the diet forms a substance called "phlegm". "Phlegm" tends to accumulate and obstruct various channels in the body .
Next I'll discuss the application of the wuxing diet.
Friday, September 5, 2008
Indeed it is time to wake up from the American Dream.
Thursday, September 4, 2008
In addition, the McCain clan further distanced themselves from the average American family given how many home they own and how filthy rich they are. Vanity Fair magazine pointed out Cindy McCain outfit on Monday during the RNC worth at least $300K with the 3 carets earrings that worth up to $280K. So they have to enlist Palin as VP for whom "American can more easily related to". As a mom with a pregnant teen, and a DUI husband. Is that what American can related to, is that who we are?
Wednesday, September 3, 2008
Wu Xing is a traditional Chinese philosophy which stated that natural phenomenon can be characterized into 5 elements: water, wood, fire, earth and metal. Also known as 5 phases, 5 movements, 5 steps.
The harmonious existent of these five elements are what gives the stability to any given system. The system could be any physical or abstract object. In the domain of medicine, the harmonious states between five elements determine the person health. From traditional Chinese medicine, sickness is the result of imbalance within the body of one or more of the elements. Bringing the body back to balance, relieve the excess of the domain elements and reinforce the depleted elements are the key to traditional Chinese medicine treatments.
It is the techniques and the arts of observing all natural phenomenons and behaviors in the frame of the five elements that helps us to characterize any system; from food, personality, geography, martial arts and flavors.... Given this new perspective, we can look at the world differently than the way most people are perceiving. Nature are cyclical, sustainable only in the boundary of harmonious states, artificial manipulation can bring the system out of balance which often results in dramatic restoration to the balanced state.
Wiki page that gives a good summarized concept of 5 elements
For the past few years, I have been paying more attentions in observing the existent of the five elements characteristics within the food that we ate, the personality of each person that I know and understanding the dynamic interaction between the elements to better explain the natural phenomonons. I'll elaborate on the next post.