'Depression is coming'

(From the Washington Post via LB Now Ltd.)

THE global economy is still in for rougher times ahead as the underlying problems that caused the recession have been merely “papered over.” This was the assessment on Thursday of Louis Boulanger, CFA, founder and director of LB Now Ltd.

“The problems at the source of the crisis still exist. There’s been fiscal stimulus and there’s been a lot of monetary stimulus. The US Treasury added a lot of money in the system as well as the central bank [Federal Reserve]. (Click BusinessMirror for the rest.)

Warning: Mad Moneyman up ahead

(Never trusted this guy. Lagi syang ma-OA sa TV. Photo from orbitcast.com)

IF you still haven't watched Jon Stewart's recent interview of Mad Money host Jim Cramer, I suggest you do so. It is possibly the best piece of financial journalism thus far, on the financial meltdown in the U.S., and to think it was courtesy of a comedian. The full episode is available on The Daily Show web site.

Since the subprime credit mess took its toll on the U.S. economy, comedian Jon Stewart has been taking potshots at CNBC and other similar financial news organizations for their lapses in reporting the true state of major financial institutions. Jim Cramer, a former journalist, lawyer, and hedge fund manager, is a class A1 entertainer. He jumps around the set, makes funny faces and loud gestures, but basically only knows how to give bad financial advice to televiewers. On the other hand, he personally benefits by issuing stock analyses to 'Money Honey' Maria Bartiromo. Tsk, tsk.

An indictment of Cramer's shoddy activities in The Gawker. Let's see how long CNBC will keep this joker around.

UPDATE: Similarly, Ben Cohen of The Daily Banter rages against the Money Honey on HuffPost.

Emerging from financial illiteracy

Something Like Life
Oct. 10, 2008

A COUPLE of years ago, writing for a women’s magazine, I was able to interview young stage actress Cathy Azanza. While the interview was basically about her life as an actress and what beauty products she bought, we also spoke about personal-finance matters. (By the way, Cathy has just gotten married to film director/cinematographer Paolo Dy—with our good friend Mr. Caps as ninong—and we would like to offer our best wishes to the couple.)

Most people think that a career in theater doesn’t offer financial stability. There is just not a lot of jobs around to steadily earn from, considering we are a nation of—dare I say it?—cultural illiterates! You can only count on the fingers of one hand the number of theater companies which actually have a regular season’s worth of stage plays.

Between our work, domestic duties, cable TV switched on for most part of the day and the amount of surfing, chatting and playing we do on the Internet, how many of us still go to the theater? And even if we wanted to, tickets don’t exactly come cheap. (I used to buy Rep season tickets until I learned to, ahem, prioritize my spending. I guess that makes me a cultural illiterate as well, hehe.) So most of us would rather go to the cinema to watch the latest Hollywood blockbuster, or—worse—go to our suki DVD retailer to get our pirate fix.

According to Cathy, stage actors are paid rehearsal fees, usually at the end of each week. The release of “show fees,” on the other hand, depends on the actor’s contract with the theater company he is working with. “Some pay after every weekend run, some at the halfway mark of a run and then again at the end, and still others at the end of a run.” (Click here for the rest. Photo of Cathy Azanza from The Rep.)

Ah Ludwig, you were right

“There is no means of avoiding the final collapse of a boom brought about by credit expansion.”

- Ludwig von Mises
(1881 – 1973)
Austrian Economist, philosopher and a major influence on the modern libertarian movement

I guess that says it all about the U.S. economy, ey? Dontcha worry my fellow Pinoys, the remittances of our parientes abroad will save our economy yet.

Good morning pow.