Every Breath You Take

Not many postings lately. Sorry about that, but I am getting married in five weeks and find that I have many, many details to attend to.

In the meantime, here is an amusing spoof of one of my all-time favorite songs. Glenn Hubbard, Dean of the Columbia Business School (CBS) and runner-up in the competition to be appointed Chairperson of the Federal Reserve Board, promises to stalk Ben Bernanke. Funny, and just a little bit creepy...

Thanks Jonathan.

Playing the Market, Kenyan Style

The Washington Post has an interesting piece on the current enthusiasm for the stock market in Kenya. Of particular interest is the discussion of how the development of the stock market required a reorientation in the way people think about investment. In the past, investment meant buying a cow or some land; now investment means buying a stock certificate. One has obvious value; the other has value that is somewhat less obvious to new participants.

The article fails to delve deeply into possible problems--how well regulated is the market? How much fraud? Seems like these are important questions that, in the context of a country with a known record of corruption, one might want to think about prior to purchasing stocks (at least in the secondary market).

Isn't it Ironic...

Is Mugabe practicing irony, or is this for real?

Zimbabwe Update

Inflation hits 7,638%

China's Growing Presence in Africa

The New York Times had an interesting article on China's growing economic involvement in sub-Saharan Africa. The piece is somewhat successful in portraying the differing perspectives on China's investment and exports--some see it as imperialism with a Chinese rather than western face; others see it as an important alternative to the west that will promote economic development.

“There is no doubt China has been good for Zambia,” said Felix Mutati, Zambia’s minister of finance. “Why should we have a bad attitude toward the Chinese when they are doing all the right things? They are bringing investment, world-class technology, jobs, value addition. What more can you ask for?”

“Who is winning? The Chinese are, for sure,” said Michael Sata, a Zambian opposition politician who campaigned in last year’s presidential election on an anti-China platform. “Their interest is exploiting us, just like everyone who came before,” he said. “They have simply come to take the place of the West as the new colonizers of Africa.”

Dubai Seeks to Monopolize Gambling

Last time they tried to take over our ports. This time they target our casinos. In addition, "Dubai World this month signed an agreement for control of the Barneys New York department store. A division of Dubai World spent $100 million this year to buy the QE2, the majestic ocean liner that has carried millions of people across the Atlantic during its 40-year history."

Oh, and by the way, this is a sovereign wealth fund.

Sovereign Wealth Funds

The Times has an interesting article on emerging Bush administration efforts to encourage global codes of conduct to govern the activities of so-called sovereign wealth funds. These funds, which are government controlled funds, are estimated to control about $2.5 trillion in assets. They purchase a range of fixed assets, including real estate and companies--thus transforming financial and somewhat liquid assets into fixed investments. As many of the funds come from holdings of U.S. treasury notes, these transactions also reduce foreign holdings of U.S. government debt.

Apparently, some administration officials worry that these government-controlled investment funds are insufficiently transparent given the size of the assets they control. Hence, they are pressuring the IMF and World Bank to develop codes of conduct to encourage greater transparency in the funds' investment decisions.