Tag Archive for Conventional Wisdom

Sandusky and How Things Work | Capitalstool.com

by Jorma The Sandusky thing represents a broader aspect of how things work. To wit those at the top of powerful institutions, governmental, corporate, military or any other are protected by the institution and all its members. In addition government legal powers are taught to steer clear of those powerful institutions. Sandusky was protected for…

Investing in Japan: Is There Light at the End of the Tunnel?

Most people have given up on investing in Japan.

With an aging population and far too much government debt, the conventional wisdom is that Japan will never again see the vigorous economic growth it once enjoyed.

The earthquake and tsunami of March 2011 only reinforced this view. However, that tragic episode did have another side.

It showed the resilience and discipline of Japanese society.

There was almost no looting, for example — and recent economic data suggest that the Japanese economy is not as dead as it seemed.

First quarter Japanese gross domestic product (GDP) came in at an annual growth rate of 4.1% –far higher than the United States, Canada, Australia, or anywhere in the Eurozone.

Given that Japan has been in perpetual near-recession for 21 years, with no surges of productivity like the U.S. enjoyed in the late 1990s, it’s really not a bad performance.

You can also see Japan’s true strength from its exchange rate, which is currently 79 yen to the dollar, up from around 120 five years ago. That makes visiting Tokyo very expensive.

However, it’s also sign of a highly competitive economy.

Investing in Japan: What You Need to Know

It’s notable that observers in the United States, a country which perpetually runs payment deficits of $500 billion-$600 billion annually, sneer at the economies of Japan and Germany, which are almost always in surplus.

Before 1995, I lived in another economy that was similar. Britain ran deficits much like the U.S. does.

So believe me when I tell you, deficits are not exactly a sign of superior economic health.

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JPMorgan Risk Oversight and Incestuous Corporate Boards Licking and Grooming Each Other

The three directors who oversee risk at JPMorgan Chase & Co. (JPM) include a museum head who sat on American International Group Inc.’s governance committee in 2008, the grandson of a billionaire and the chief executive officer of a company that makes flight controls and work boots. What the risk committee of the biggest U.S.…