Interesting tidbits of information – everyday I learn but also pick up obscure information elements. Tomorrow we have a day on World Financial Crisis which includes the most important topic of US deficit and trade imbalance. It is interesting that the world seems to be stuck in a vicious cycle of credit, consumption, production and renewing the credit. China, India and the G-20 countries recently met to come up with a proposal on resolving the current crisis. Yes the US should reduce consumption, China should increase internal consumption blah blah blah! – Bottomline, there is no easy solution and the consensus needs to be on the degree of pain everyone suffers.
Needless to say, it has been fascinating to learn about India, China, Brazil, Singapore and the various elements of the fiscal policy, trade strategy, GDP and debt situation of all these countries.
Today we also studied about Fair Value accounting – scary stuff I must say – as an average consumer and investor, it is extremely difficult to understand the true situation of a financial services firm because the law allows for a great degree of ambiguity in how they report their statements and what they show on their balance sheets. When I say great degree – I mean $300M to $3B or what the heck $30B!
For the picture of the day, I don’t have any new pics but have a nice picture of McArthur Hall which is where the AMP program is run. The building in the middle is McArthur Hall when viewed from across the river.