Wednesday, April 27, 2011
Saturday, April 23, 2011
Goldman Sachs
The Goldman Sachs Group Inc. is an investment banking (manage your money by investing them in stocks, bonds or other assets) and securities firm. They are currently engaging in Investment Banking (Financial Advisory and Underwriting), Trading and Principal Investments (trading in rate and credit products and some stuffs like that), and Asset Management and Securities Services.
The history to Goldman Sachs is quite exciting. Being the premier investment firm in America thorough late 19th till now, it has played a crucial role in the world's financial system. Since it was too big, unavoidably, it suffered from the financial crisis a lot in 2008 and 2009.
Revenue: "Goldman Sachs saw its net earnings in the first three months of 2011 drop 21% from a year ago, to $2.74bn (£1.7bn)."
Stock: it certainly dropped a lot since the financial crisis. But, I suspect the stock because it could be artificial.
"Despite the 2007 subprime mortgage crisis, Goldman was able to profit from the collapse in subprime mortgage bonds in the summer of 2007 by short-selling subprime mortgage-backed securities."
And "on September 23, 2008, Berkshire Hathaway agreed to purchase $5 billion in Goldman's preferred stock, and also received warrants to buy another $5 billion in Goldman's common stock, exercisable for a five-year term. Goldman also received $10 billion preferred stock investment from the U.S. Treasury in October 2008, as part of the Troubled Asset Relief Program (TARP)."
It certainly has special relationship with government. "During 2008 Goldman Sachs received criticism for an apparent revolving door relationship, in which its employees and consultants have moved in and out of high level U.S. Government positions, creating the potential for conflicts of interest."
To be continued...
The history to Goldman Sachs is quite exciting. Being the premier investment firm in America thorough late 19th till now, it has played a crucial role in the world's financial system. Since it was too big, unavoidably, it suffered from the financial crisis a lot in 2008 and 2009.
Revenue: "Goldman Sachs saw its net earnings in the first three months of 2011 drop 21% from a year ago, to $2.74bn (£1.7bn)."
Stock: it certainly dropped a lot since the financial crisis. But, I suspect the stock because it could be artificial.
"Despite the 2007 subprime mortgage crisis, Goldman was able to profit from the collapse in subprime mortgage bonds in the summer of 2007 by short-selling subprime mortgage-backed securities."
And "on September 23, 2008, Berkshire Hathaway agreed to purchase $5 billion in Goldman's preferred stock, and also received warrants to buy another $5 billion in Goldman's common stock, exercisable for a five-year term. Goldman also received $10 billion preferred stock investment from the U.S. Treasury in October 2008, as part of the Troubled Asset Relief Program (TARP)."
It certainly has special relationship with government. "During 2008 Goldman Sachs received criticism for an apparent revolving door relationship, in which its employees and consultants have moved in and out of high level U.S. Government positions, creating the potential for conflicts of interest."
To be continued...
Thursday, April 21, 2011
American trade deficit
Trade deficit is an economic term of an trade with import exceeding export. America's trade deficit has been a key factor of the U.S. GDP. Since GDP consists of Consumption, Investment, Government Spending, Net trade, the deficit of trade reduces the U.S. GDP and bothers government a lot.
Outsourcing could be an answer to the trade deficit. Some many big corporation went out of America to avoid high labor fee, which contribute to the loss of potential export.
Huge amount of demand of overseas cheap products is also important to the trade deficit. American eat a lot. The biggest beef consuming country. The biggest vehicle consuming country. ...
Since less industries had been set up within America, manufacturers faced a high unemployment rate, driving down the whole country's unemployment rate.
Obama doesn't like deficit. That's a loss of GDP and unemployment rate, which would make his reelection less hopeful. So he is taking actions.
China doesn't like Obama, however, simply because export to America takes up a big portion of China's GDP. So they are taking actions too such as devaluing RMB, encouraging export and etc..
Despite of above, America is still the most productive and efficient country in the world, with the most innovative and creative stuff coming out every second.
Outsourcing could be an answer to the trade deficit. Some many big corporation went out of America to avoid high labor fee, which contribute to the loss of potential export.
Huge amount of demand of overseas cheap products is also important to the trade deficit. American eat a lot. The biggest beef consuming country. The biggest vehicle consuming country. ...
Since less industries had been set up within America, manufacturers faced a high unemployment rate, driving down the whole country's unemployment rate.
Obama doesn't like deficit. That's a loss of GDP and unemployment rate, which would make his reelection less hopeful. So he is taking actions.
China doesn't like Obama, however, simply because export to America takes up a big portion of China's GDP. So they are taking actions too such as devaluing RMB, encouraging export and etc..
Despite of above, America is still the most productive and efficient country in the world, with the most innovative and creative stuff coming out every second.
Monday, April 18, 2011
Cheap Stuff
When I was shopping, I would prefer the cheaper one after comparing the Volume. I wouldn't see the quality. Because I knew that quality had been exaggerated by too much commercials. I wouldn't give a s*t to it.
What I am saying is all about living in an economical live. At least for most people in this world, it is the golden theory. "Preferences changed when you are able to feed your children and give them education." Who isn't selfish in this world? And it is nothing wrong about that. Thinking too much about saving the people from sweatshop might not help at all cause your are individual. Cherish your life in America and give a few help for developing countries (suggest Kiva.com as an microcredit organization). That's what I would do.
I prefer organic foods cause I got enough financial support from my family. People want health here. But don't you know producing organic foods also wastes a lot of energy, and somehow lowers some people's living standard as we view them? Everything is flux.
Let the market society solve the problem by itself. Everything is gonna be alright. ^_^
I prefer organic foods cause I got enough financial support from my family. People want health here. But don't you know producing organic foods also wastes a lot of energy, and somehow lowers some people's living standard as we view them? Everything is flux.
Let the market society solve the problem by itself. Everything is gonna be alright. ^_^
Sunday, April 17, 2011
Feeling Not Quite Good
Feeling down now. Ain't as energetic as winter quarter. Maybe spring quarter is the best time to sleep at home, hanging around my kitcken to cook some chicken soup.
I think I probably gonna be fine if I stay at my house without getting out for two weeks since I bought so much in my kitcken. When tired, sleep on bed. When hungry, cook in kitchen. When full, shit in toilet. When stink, shower in bathroom. When bored, chat in Facebook. Don't even have to open the window thanks to the AD.
I coundn't imagine how convenient the life is in America when I was still in China. Who could live in the house for over 4 days without going out? No more food, no more fresh air, no more water, no more conmunication.
That's another living standard in China. People work harder, but get less. People cook more, but pollutes less. People kiss less, but cheat less. People, are just simple people.
Rarely people would think the "sweatshop" is sweatshop. It is just a place where we get money, and then buy grocerries home for the family! Who cares about the working condition? We got passion working here just because we know our family must have been waiting for us coming home for dinner. We need our children to be educated. We need our lives to be better off. We are not educated. And that's the cost! We have no problem with that. What do you care about! Just get what you want and get the hell out of here. Once our children grow up with education, then it will be another story writen by us.
So, let the sweatshops come. We take it.
(From some parts of my point of view)
I coundn't imagine how convenient the life is in America when I was still in China. Who could live in the house for over 4 days without going out? No more food, no more fresh air, no more water, no more conmunication.
That's another living standard in China. People work harder, but get less. People cook more, but pollutes less. People kiss less, but cheat less. People, are just simple people.
Rarely people would think the "sweatshop" is sweatshop. It is just a place where we get money, and then buy grocerries home for the family! Who cares about the working condition? We got passion working here just because we know our family must have been waiting for us coming home for dinner. We need our children to be educated. We need our lives to be better off. We are not educated. And that's the cost! We have no problem with that. What do you care about! Just get what you want and get the hell out of here. Once our children grow up with education, then it will be another story writen by us.
So, let the sweatshops come. We take it.
(From some parts of my point of view)
Saturday, April 9, 2011
Worksheet Part 2
China's labor is just too damn cheap. From an economic point of view, since the supply (1.3 billion) greatly exceeds demand, the wage for labor must be very inexpensive in order to maintain a balance. Although the situation in China is changing, it would be still a good idea to move your labor-favored factory to China.
My belongings, Iphone, Kappa T-shirts, and Lee jeans are all made in China, which don't impress me any more, having lived there for a long time. They all have a bigger corporate overseas which offers high-techs and advanced managements. One hand, they are helping China to create jobs; on the other hand, they are absorbing resources from China without any notice, like an vampire.
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