From Fortune:
Poor Germany: Why the east will never catch up to the west
The anniversary offers a chance to look back on what German reunification has brought Europe’s most powerful economy and its people. One of the most salient facts about Germany today is how much hasn’t changed in terms of regional disparities in economic development. According to the German Federal Labor Office, unemployment in the former East German state sits at above 9%, while it hovers at 5.6% in the former West German territories, and the discrepancy would be worse were it not for government programs that bring jobs to the region.
If you look at statistics such as per capita income or worker productivity, they also point to the large disparity in economic development between east and west.................
As long as talented and motivated young people in Germany are allowed to freely leave the East for better opportunities in the West, regional differences in economic development will persist.
People flock to where there are opportunities & growth. That is the reason why New York & London are growing faster than any other cities in the world. Big get bigger is a big trend. No one wants to go to an empty restaurant! Nothing brings more success than the appearance of success. When a region or country is left behind only government can change that . To place a big college with many students in a poor region sometimes can change things a bit. Otherwise my advice is . When you are in a working age live in the center and when you are out of work/retired go and live in a poor region. To make money you need to be where people are already making money.
I thought many times to get a work in London or Geneva and have my family in Lisbon that would be the ideal set up! A lot of flying but it would be the best business....
I refuse to join any club that would have me as a member.
http://traderfeed.blogspot.pt/2014/11/how-to-become-peak-performance-trader.html
This is so true! During 4 years I just concentrate on improving a bit from one year to the other. Diet, weight, intervals, technique, cold showers, push up's, etc...During those 4 years my Cyclist performance really changed for the better.
Now i am on a sabbatical because I have a new baby. But when i am back to serious sport I will do the same.
Buy a book and take note of everyday progress. Compete with yourself
More about the same
http://thoughtmeme.blogspot.pt/2013/12/how-to-be-in-shape-easy.html
Persistently low interest rates and new rules for banks and money-market funds are complicating the task of managing the almost $2 trillion on corporate balance sheets, setting off a scramble to find new parking places for that cash.
By Vipal Monga, WSJ
My job is to help people make money with money.
When rates were high and we could get 5 or 6% for the cash part of a portfolio it was easy life. Now it's getting more difficult.
i see 2 possible ideas to do this:
1.Do as Charles Gave from gave Kal says! Exclude everything that is going to die and you get a portfolio by exclusion.
Exclude people that are going to lose from Robotics
Exclude people that have high energy costs & are high energy users
Exclude small vs big (big are winning).
Buy the center sell the periphery
Buy the big city sell the countryside
Exclude companies in countries that have a competitive disadvantage (High interest, high tax, low productivity, etc...
Exclude commodities vs (Brands are winning)
etc....
2.Make things happen! . There is no top line growth in the world so you have to create growth.
use your cash to Buy your competitor
Sell units/business that you are not nº1 or nº2
Buy companies that have a bloated cost base and cut costs like crazy (If the PE of the market is 20 if you cut 1 b of fixed costs the market cap will increase by 20x that amount!)
what is not going to work? Sit and watch your money grow without doing anything.
The real economy needs money printing, yes, but money spending more so, and that must come from the fiscal side – from the dreaded government side – where deficits are anathema and balanced budgets are increasingly in vogue. Until then, Grant’s deflation remains a growing possibility – not the kind that creates prosperity but the kind that’s the trouble for prosperity.
-William H. Gross
Lack of demand is the problem in the world. Excess capacity is a plague! The world need this
From FT, Sarah Gordon, Business Editor
The trend is not limited to the eurozone. In a speech at the World Economic Forum in Davos this year, David Cameron, UK prime minister, highlighted businesses ranging from Symingtons, the food producer, and EE, the mobile phone operator, as having reshored some of their operations to the UK. EE, which owns Orange and T-Mobile, announced plans this year to move call-centre activities back to the UK from overseas locations including the Philippines...................
“In some areas of manufacturing technological changes mean you don’t need so many people to produce things,” said Mr Hawksworth. “This means you create fewer more highly skilled jobs.”
http://www.ft.com/intl/cms/s/0/6aaaf0a4-610e-11e4-894b-00144feabdc0.html#axzz3I5W9kAfm
With automation you can locate the factory near the market you want to serve. There is no point producing in China to sell in Europe or USA. It's riskier & shipment is costly.
More on the same subject:
http://thoughtmeme.blogspot.pt/2014/01/no-convergence-at-all.html
