Howdy, Stranger!

It looks like you're new here. If you want to get involved, click one of these buttons!

In this Discussion

Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.

    Support MFO

  • Donate through PayPal

France downgrade a harbinger ?

edited January 2012 in Off-Topic
http://www.marketwatch.com/story/france-signals-slow-death-of-sovereign-debt-market-2012-01-18?link=MW_story_popular

Excerpts:
".....money will flow into (the) NEW safe assets.

What will those be? A mixture of emerging market debt, gold, corporate bonds and blue-chip equities. The switch from the developed world to the emerging markets is already well underway. Whilst developed world ratings are being cut, in other markets they are going in the other direction. Since 2002, Italy has lost five rating notches, and Spain four. Russia is up three and Turkey is up four. It isn’t hard to work out which is the better bet.......France reminded us that the sovereign debt market is now in long-term decline. The most important move for investors will be to make sure they get on the right side of that trade — and that means getting out of all developed world government debt, and into the new safe assets."

Where did THIS guy find his crystal ball? ..... Enjoy.

Comments

  • while this is a bit maximalistic, the process is underway.... re today's indonesia upgrade fits more broadly into EM “upgrade” cycle, highlighting the fundamental strength of these countries from an investment perspective...
  • He's singing my song, actually. I've been singing it since I looked to lay my groundwork in order to even just begin to THINK about starting to invest, back in '03. How long did it take for Rome to finally crumble and disintegrate? Long, slow, a step at a time, from within. The ultra-wealthy and the politicians (univocal?) are doing all they can to maintain a semblance of what we once were and stood for; but the society is being hollowed-out, becoming vapid. Culture, infrastructure, services...
  • edited January 2012
    ...and, among the most important, R&D. Excerpts from a recent WSJ article:

    George Buckley, chief executive of 3M, a St. Paul, Minn.-based conglomerate whose R&D spending is among the highest in the corporate world, told investors last year his company was expanding labs overseas "in preparation for a world where the West is no longer the dominant manufacturing power." He added: "Given the moribund interest in science in the U.S., this is strategically very important."

    Since 2004, about 85% of the growth in R&D workers employed by U.S.-based multinational companies has been abroad, according to the National Science Board, a policy-making arm of the National Science Foundation, a U.S. agency. U.S. companies generally aren't closing labs at home but rather focusing their expansion abroad. The overseas portion of their R&D employment grew to about 27% in 2009 from 16% in 2004, the report said.

    As a result of such trends, the U.S. lead in science and technology is "rapidly shrinking," according to the report.


    And there goes the future of the USA. Do you think that congress in cooperation with the executive branch might address itself to this sort of problem, rather than the stupid s... that they seem to be most interested in? Sure thing...

    (Well, of COURSE we wouldn't want to be "picking winners" or "throwing money at a problem". Much better to create conditions which inevitably will make the entire US a big time loser...)

    Meanwhile we depend upon the Russians to get us to the space station. (Don't worry, private enterprise will eventually rectify this slightly embarrassing situation.)

    Totally pathetic.
  • edited January 2012
    Additionally, I take the liberty of directly quoting some observations from Investor, in another thread:

    There has been disturbing anti-science trend in recent years in this country. This is really unfortunately. US has come to this point with a decided lead on scientific research and education.

    Unfortunately, this is declining and the gap with China and others are shrinking. We have become a knowledge worker based society but if we cannot maintain this lead, we will suffer big declines in our competitiveness and will be more dependent on the outside countries and condition dictated by them. Science and scientists will always flourish somewhere where it is welcome and appreciated. One day, we will realize this and I hope it will not be late.

    (Disclosure: I am an engineer)


    Question: Would anyone care to speculate on a major source of the "anti-science trend"? Is there by chance any particular political perspective which has been quite influential during this very same time frame?
  • Max- given the turn that this thread has taken, you might consider reclassifying it as "Off Topic".

    Regards and Respect- OJ
  • OJ, I'll see if I can figure out how to reclassify the thread. Interesting, nonetheless.
  • Really easy, Max- just hit the "Edit" button on your original post, up on top of this page, and you will immediately see a little selection box thingy where you can choose the posting category. Duck soop!
Sign In or Register to comment.