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Dian L. Chu, M.B.A., C.P.M. and Chartered Economist, is a market analyst and financial writer regularly contributing to several leading investment websites. Ms. Chu's work is also syndicated to media outlets worldwide. She blogs at Economic Forecasts & Opinions.
Tuesday, April 6, 2010 Sex Selection and Trade Surplus in China (1 comments)
The economic consequences of Chinese high savings rate are global as the excess savings directly impacts China's balance of trade and current account surplus. Many economists have asked the question - Why do the Chinese save so much? a recent paper offers a different from conventional explanation - social policy.
Friday, March 19, 2010 Feldstein and Goldman Sachs: Making A Case for the Euro
The euro could be in an over-sold situation, says Goldman Sachs and Dr. Feldstein. However, a potential correction can not disguise the elephant in the champagne room - the political and structural weakness in the single currency union.
Wednesday, March 17, 2010 Behind the Sentiment Disparity: Main Street vs. Wall Street (1 comments)
In contrast to the cheery mood of the markets, the latest readings from consumers and small business owners indicate economic sentiment isn't improving. This divergence has got Wall Street scratching its collective head. In short, the disparity may be deciphered in one word --"liquidity" which Wall Street has plenty of, while main street remains strapped.
Sunday, March 14, 2010 Crude Oil Breaks The Dollar Rule For The Summer High Noon (1 comments)
New York crude has been trading in the $69-$83 range since late September. The close above $81, capping a 14.5% increase from a year-to-date low last month, sparked speculation that oil could be targeting $85 in the near term. Now, some traders and analysts say currency movements may play an important role in pushing prices beyond those limits...or will they?
Saturday, March 13, 2010 Sovereign Risk and the Price of Oil
Among the many determinants of country risk bonds, the price of oil is a key factor. Nine of the 10 economic recessions in the United States since the end of World War II were preceded by a dramatic increase in the price of oil.
Saturday, March 13, 2010 Plausible: Sovereign Default On A Global Scale (2 comments)
In a CNBC interview on Feb. 10, Marc Faber of Gloom, Boom & Doom Report went out on a limb by stating that he is not buying any sovereign debt or bonds, because ALL governments will eventually default, including the United States. From all indications, Faber's prediction, while considered extreme by some, is probably not all that far off.
Friday, March 12, 2010 Lies, Damn Lies, Foreigners Did Not Cause America's Financial Crisis
Many causes of the Great Recession of 2007 to 2010 have been proposed and recently, MIT economist Ricardo Caballero asserted that "foreign investment demand made the U.S. unsafe." This article examines and rebuts Caballero's suggestion.
Thursday, March 11, 2010 Chanos Could Lose Big On China Bubble Bets
Famous short seller Jim Chanos characterized China as "Dubai times 1,000, or worse." However, Mr. Chanos' view of China appears to have some premature conclusions based solely upon flawed analogies with the US real estate market without taking into consideration the different cultural and market factors.
Wednesday, March 10, 2010 Chinese Yuan v The U.S. Dollar: In The Case of Global Reserve Currency
The dollar's status as the world's preferred reserve currency has come into question amid a ballooning budget deficit that keeps the U.S. dependent on foreign financing. It is now a matter of "when" rather than "if" the Chinese yuan will replace the U.S. dollar as the global reserve currency.
