It is pretty strange but everyone around me has been talking about globalization and telling me 2012 is going to be a BAD year. The house price is slowly dropping in China, living cost is going up and the min. wage in Shanghai has just raised 15%. Same as most people, I wish that I could forcast the future and know how to fix the problem.
Inside Job is such a great film to help people understand what is happening and it teaches us that Nothing Comes Without Consequences. When China joins WTO in 2001, Chinese people have little to none idea regarding what is going to happen and how much of it will effect with our day to day life. If the real estate price in Ireland raised 100% is considered as abnormal, Chinese real estate price probably is MAD. The interesting thing is that the price is regulated and hugely depending on the Chinese Gov. policy. Everyone knows there is a bubble but policy maker turned a blind eye on it and think it is okay to ignore. In the end it is the mid-class and workers to pay and endure.
In China, certainly things here are still manageable and people’s over all mood is still quite good and positive. But in Europe, looking at what is happening with Greece is worrying. UK decided to run away from the mess and Merkel as the Chancellor of Germany is telling people to cut costs and stop borrowing and lending money. But there is no creative solutions to really solve the problem, what we have so far is just a very bad cycle – cut costs -> lay off workers -> people stop spending money -> no business -> lay off more workers. This feels like the End of the World.
The Type A Personality
Lagarde’s nomination as the first female head of the IMF is a good sign since there are just too many type A guys in the money world and they become out of control. Watching the ENRON story of the smartest guy in the room feels like reading a science fiction story, very intriguing and hard to believe that this really happened.
Let’s ask ourself why the financial engineer who is building dreams is getting paid so much more than the real engineer who is building bridges. If the bridge broken, the real engineers will be jailed, but if the dreams turn into nightmares, who is responsible?
2012/03/06 at 04:03
Check out Peter Diamandis’ new book, Abundance – The Future is better than you think!
Nice blog! Keep it up. How is your soy sauce biz going?
2012/03/09 at 01:39
Gonna try to get this book! The soy sauce biz is popular ;-))))