Predictions: Jim Jubak at MSN Money describes 10 global trends
Link: 10 trends for long-term gains - MSN Money.
10 long-term trends that will drive the global economy over the next decade and more.
Go where the growth is, and that means the developing economies of China, India and Brazil. Global blue chips are emerging from the world's developing economies to challenge Coca-Cola, IBM and Wal-Mart on the global stage. The world is getting wealthier and older at the same time. So who's going to manage all that retirement money? After 20 years of low inflation, the world is headed for a decade of constantly rising prices. The world is runing out of cheap oil. Developing economies are demanding more iron, more copper, more nickel, more coal -- and that has set off a boom for mining companies and the companies that equip them. We're looking at a decade of higher food prices driven by competition with biofuels and the fact that people in the developing world will eat more pigs, chickens and other sources of protein as their incomes rise. Environmental problems have become so pressing that it's time to save the world and make a buck. The technology sector doesn't look anything like it used to, but fortunately the same rules still apply to what I call "hidden tech" stocks. It used to be that stocks and bonds from the United States got a premium in the financial markets just for showing up. Investors were willing to pay more because the U.S. markets were so stable. They're still among the world's best in that category, but now they've got company from Canada, Australia and, of all places, Brazil.
Dear Jim,
I know it may be hard to believe but I have solved the housing and banking crisis with a unique approach.
1) the fdic should set up a huge fund for all foreclosures. The fund should invest in treasurys or bonds (depending upon which gives the highest return), much like the troubled banks are doing with the tarp fund. This return should be paid to the banks who have successfully renegotiated the mortgae terms with the investors. The result will be that the banks who take the initiative, can clean up their toxic assetts and become profitable once again. Also, the housing market will revive because the values will end their decent(assuming enough of the foreclosures become current to offset those which will tank). Along with the 7500 tax credit for homes purchashed, this move should revitalize the economy (and let the stubborn financial institutions go down the drain--survival of the fittest)!
As a final kicker, after all is well, the funds which were only a loan, can be returned to uncle Sam safe and sound having had no risk of loss.
Posted by: glen | February 14, 2009 at 02:26 AM