The Gold Standard | Eyes closed on executive pay

US Economic data starting with the Chicago National Activity Index, Dallas and Richmond Manufacturing Indices, New Home Sales and Durable Goods orders for June have printed on the disappointing side. Regardless of how this debt ceiling imbroglio ends, the US economic outlook for the second half is going to be nowhere near what consensus forecasts anticipate confidently.

John Kay’s column on Game theory lessons for Greece and for the members of the ‘Tea Party’ is a masterpiece.

Regardless of how this is done, much damage has already been done to the US prestige and its pledge to honour its commitments. The question is not if but when US assets would start to reflect this ‘damage’.

This article on executive pay in the UK (or, for that matter, in the US) is an eye-opener, yet again. But, eyes remain shut.

With this backdrop in the US, I was tickled to read this news in Bloomberg:

Traders betting on gains in China’s biggest companies are pushing options prices to the most bullish level in almost two years on speculation higher interest rates won’t curb the world’s second-largest economy.

The premium investors pay for puts to sell the iShares FTSE China 25 Index versus calls to buy has tumbled to 15 percent from 31 percent on June 22, according to data on three-month options compiled by Bloomberg, and fell as low as 13 percent this week. That compares with the average of 20 percent since the start of 2005 for the U.S.-traded fund tracking Chinese companies listed in Hong Kong. [More here]

Investors should be actually taking note of news such as this, this and this.


DISCLAIMER: This is an archived post from the Indian National Interest blogroll. Views expressed are those of the blogger's and do not represent The Takshashila Institution’s view.