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Finance news links December 1, 2007

Posted by Sharath Rao in economics, statistics.
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What does a remote seaport town of Norway with a population of about 18000 have to do with homes in California ?

More than one might think.

…the stark reality of the situation is starting to set in. Narvik’s chief administrator, Trond L. Hermansen, figures he may recoup half of the town’s $9.4 million investment in the defunct Citigroup product — a package of securities linked to municipal bonds in the United States. Those securities declined in value after the market for bonds dried up.

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Entire of cost of the mortgage crisis and the accompanying construction/housing bust is not borne by the two sides involved in the deals.

One difference between subprime loans and subprime labor is that unlike the loans, the financial institutions, home buyers and home builders who together helped create the demand for illegal immigrant labor don’t find themselves now burdened by that legacy. These guys are out of work but no-one other than themselves and the general public pays the price. The profits from their labor were privatized but the costs of their unemployment will be shared by the broader public in the form of urban blight, higher crime and welfare.

Linked from this nice new economics/policy blog I found – Odd numbers.

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Baffling figures for the Indian stock market.

The Sensex seems to be setting new highs every day and mutual funds are not far behind. For instance, while the Sensex gave a 48% return over the past one year, 76 funds out of the universe of 195 diversified funds managed to beat this number quite comfortably.

Thats nearly 40% of the funds beat the index (and therefore the index funds) comfortably ! I could not find a ready figure for the US funds but I will be surprised if the number is so high. Or should this be expected from the dynamics of emerging, less mature markets ?

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Comments»

1. Vineeta - December 1, 2007

Hey! I like the new format. It is far better than your previous ones.

2. Sharath Rao - December 1, 2007

Wow…with such diverse preference among readers, I might have to get down to conducting a poll about blog formats/skins 🙂 …Thanks for making my job that much harder 🙂 ..Silver lining though being that this blog has a diverse readership 🙂

3. Joy - December 1, 2007

Nice new look.

But a dot of colour could make a world of a difference 🙂

4. Sharath Rao - December 1, 2007

I actually got a paid wp account so it allows me to modify the style sheets to render this differently ( free version does not ) …my head is spinning now 😦 that i have tried so many options each time modifying and previewing ….i will give it a shot another time 😀

5. .:Finance News Online:. » Blog Archive » Finance news links - December 31, 2007

[…] unknown wrote an interesting post today.Have a look for your self, Here’s an excerpt, read the full story at the blogWhat does a remote seaport town of Norway with a population of about 18000 have to do with homes in California ? More than one might think. …the stark reality of the situation is starting to set in. Narvik’s chief administrator, … […]


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