Haim, I don't know where to begin on your commentary as you go from Mexican graft, Starr, to comparing the Japanese top eight years ago. As its Sunday I'll express some personal opinions.
On graft.. of course its here, though not as bad as most of the world. I think the common phrase here is ".. if you play ball," then you can join the insider club in whatever business you're in. I constantly get requests for work in this format. First there is the bid itself, then there's the hook which goes like this.. "If you give us a really cheap job this time, there's a ton of work we can give you later on." Its been my experience that these favor requesting people exist at all levels in business and politics and rarely come through with more work unless you've got the 'goods' on them... which of course just prolongs the game and extends it to others including your own suppliers and contacts. Best advice is to stay clear or get it in writing.
I'm not sure what you mean by Banana Republic finances.
My opinion of Starr is that he's a well intended but narrow minded man who's satisfied that life's answers and society's cures are found by confining behavior. By the way, how does one earn a million plus from private practice while also being paid by the government to run what I assume is a full time investigation? And yes, Clinton's nose gets longer each day.. but, I have a feeling this isn't the thread to discuss politics so lets let it end here.
Markets... Japan comparision. What makes real value? That's the basic question which plagues us all. Value and markets can be reduced to logical conclusions in a variety of directions each contrary to the other. Here's something else to consider. I think there's a global economic war going on right now and there always has been. Its the only way I can make sense of extreme inbalances.
When Japan rose to its peak it launched a buying binge on the world which wasn't well received. From Rockefeller Center to most of Hawaii's real estate to Europe and South America, Japan Inc. was a formidable financial powerhouse. Their markets reflected that same confidence with extreme valuations. The world, especially the US and Europe fought back both politically and economically. Higher valuations are allowed with the victors, that's the way the game is played. In order to complete your comparison of the pattern of Japan's crash to our markets I feel you must also conclude that the US grip on world economics is about to be usurped or resort to a more general opinion that all markets (of high powered countries and low), all run an economic cycle of boom and bust.
By the way, I really enjoy your "Analysis of end of Day Closing prices and recommendations," keep posting.
Jim |
