Inequality is the system

The visit of an old-time pal from Madurai with his mother to Singapore, my pre-occuption with the message of Dr. Arun Shourie’s ‘Does He know a Mother’s Heart? – I shall post my personal review of the book here (a long one) – and the Jan LokPal agitation have kept me away from commenting on global developments.

There has been no dearth of them:

(1) Just as the Philadelphia Federal Reserve Manufacturing Index was a ‘shocker’ for its steep decline, the German Economic Sentiment Index (it is a survey of economic forecasters) dropped like a stone. Interesting that a Google search on this news does not reveal its coverage by any major news agencies or news wires.

(2) We will come to Mr. Bernanke’s speech at Jackson Hope (Hole, that is) soon.

(3) Steve Jobs has resigned. Many would and have noted this with sadness. I am not a technology buff nor a tech. watcher. But, slowly and imperceptibly, most of the gadgets in my house have now become Apple products. We do not complain. My daughter – 12 years old – said that this would mean that Apple innovations would stop now. She did not mean it seriously, I guess. I doubt if she would be right, though.

(4) Warren Buffett’s investment in Bank of America. By and large, my respect for the veteran investor has been declining steadily since the global crisis occurred in 2008.  For great comments on his investment, one should simply doff one’s hat in the direction of Barry Ritholtz and ‘Tyler Durden’ (nom de plume) of ZeroHedge. See here, here and here.

(5) On the sudden departure of the President of S&P, the best comment was made by ZeroHedge. Read it here.

(6) Sometimes, the most revealing piece of information does not come from economic data or from any official or political declarations, announcements, etc. They come from ‘friendly’ basketball matches. This one is indeed a revelation and holds the best pointer to how China would behave when threatened by ‘failure’. You may need to be a subscriber to read the full article (I hope not). This is a great piece of news. (ht: Anirudha Dutta)

(7) A very good piece in Der Spiegel (in English) flagged by ‘Naked Capitalism’ on the meaning of riots in England. My good friend Dr. Vidyasagar liked this particular sentence as I did:

Wealth disparity is no accident of the capitalist system — it is the system. [Read the full article here]

(8) I ‘follow’ good friends Rajesh Sundaresan and Subba Iyer on Google reader. Thanks to Rajesh, these two posts at ‘www.ritholtz.com’ came to my attention. One post is on James Montier’s reading list. I particularly am fascinated by the book, ‘The psychology of intelligence analysis’. To a somewhat lesser extent, ‘Margin of Safety’ by Seth Klarman also piques my interest.

Thanks to this post, I also came across ‘Memos from our Chairman’ on the website of Oaktree Capital.

The post on ‘Incredible science discoveries’ also by Barry Ritholtz is fascinatingly positive. The link on the design of a new drug that could cure any viral infection by scientists at the MIT should gladden the hearts of billions. Wishing Godspeed to the final arrival of that drug.

(9) As this post of Barry Ritholtz suggests, its contents are indeed the ‘Heart of the matter’. It appears to be a question of WHEN and not IF there would be a social revolution or unrest or the latter leading to the former.

Now that this post has become long already, I shall post my comments on Mr. Bernanke’s piece separately.

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