If the United States economy were a hospital, its patients would run the risk of addiction to the fiscal equivalent of Demerol, the high-powered painkiller. Whether the nation can maintain the current course of treatment without severe side effects, let alone withdrawal symptoms, is a quandary facing investors who are presented with a mixed set of economic and market symptoms.
Over the past year, the government has served as white knight to the auto industry, tried to stimulate the housing industry with tax credits, and pumped untold additional billions into the financial system. Congressional legislation meanwhile has been chock-full of spending programs in an attempt to amplify the wave of hand-outs. When combined with the Federal Reserve’s asset-purchase program, the total stimulus package has amounted to almost 20% of GDP. The figure is staggering by developed-world standards. …continue reading
Calcutta Madrassah: Portfolio Management in a Post-Crisis World
by Douglas Clark Johnson
16 October 2009
The Calcutta Madrassah is a proud building, sensibly designed. It opened in 1824 off Haji Mahammad Mohsin Square, some 50 years after the founding of the original Islamic college. On approach through the compact urban turmoil surrounding it, the building looks like some sort of Alexandrine temple complex. Overpowering Doric columns flanking the main entrance direct you inward, where two floors of classrooms surround a courtyard. At the far end of this attempt at a grassy space, there is a lone water hand-pump. Despite its somewhat topsy-turvy condition, the Calcutta Madrassah is a haven of peace in the tightly-knit urban landscape.
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