“The Great American Novel,” or so I’m told. That quote is as applicable now as it was then. With the Wild East (China/HK/Sing/Taiwan) leading the way, the world might be shaking off the rust of this recession. The Hang Seng is hitting new 6 month highs and sustained volume is now commonplace in Hong Kong, or so we’re led to believe.

Frankly there are a ton of indicators that this rally won’t be sustained. The recent profits, especially in China have come about because of significant government efforts. The banks have increased lending according to government orders. Many of the loans stand very little chance of being paid back. Non-performing loans are almost guaranteed to wreak havoc to banks’ balance sheets over the next 18-36 months. That being said, China is making its move to become the premier economic power in Asia, if not the world.

The recent monetary policies and criticisms of the U.S. can only mean just that. Combined with the recent reintroduction of the Mainland and Taiwanese economies, Asian economies stand to gain significant ground against their western counterparts over 2009 and the first half of 2010.

I only worry that we won’t remember where this whole thing started.

On another note, I’m starting to feel like I’m at home here in Shanghai. Its become apparent to me that the key to acclimating oneself to a new place is to make the place one’s own. I’ve found my restaurants, Chinese and Western. I’ve found my job. I’ve found my grocery stores. I’ve bought my BBQ (and thrown a good old BBQ last Saturday night). I’ve started to decorate my room and apartment (what’s a good price to pay for framing?). Friends are obviously important, but having a place to go HOME to, makes all the difference in the world.

Ratatat: May 21
Manchester U: July 27

Also follow Chinavest on Twitter!

I’ve dived right into my new job, can it still be a job if you’re not getting paid though? I wonder… If you want to see any of my work, they can all be read here. The Shanghaiist (Shanghai’s Most Read English-Language Blog!) has been a good experience for me so far, helped me improve my writing skills, and given me a couple of really cool opportunities.

As of two weeks ago (or seventeen days ago) I have been to two Shanghai Shenhua soccer matches, one John Legend concert, interviewed two DJs, been to a DJ Dexter show, been to a DJ-Showcase, been to a non-profit alternative art exhibition, and have still had the time to write two articles a day. The Shanghaiist quite simply has forced me to be on top of my shiite. Furthermore I’ve gotten to realize how much cool stuff goes on in a city this size on the average day. There’s a reason people like the BIG CITY LIFE.

On to the links of the day:
If you ever get bored and feel like improving that brain power a little bit: TED is the word.

I’ll make this one disclaimer though, most of the presenters on TED are a bit full of themselves, so don’t drink too much of the Kool-Aid.

Really?

Interesting take on Customer Experience Surveys, how hard is it to provide pleasant, accurate, and helpful customer service?

Also, I’m looking for good leads in Shanghai, restaurants, bars, interviews, stories. If you hook it up, maybe I put you in the article. Make you famous.

Anything featuring Mike Tyson is quality in my book.

A Great Take on Lucy’s Classic Booth. Gotta Love It.

I’ve spent the day perusing a variety of finance, economic, and business related websites, as well as continuing to read

The Bubble that Broke the World

. It has become clear to me that even now some 8-12 months since the beginning of the financial crisis, nobody has a true grasp on the issues at hand. Finance is only representative of a fraction of the problem in the United States, it is the proverbial tip of the ice berg. As is evidenced in this letter from an AIG financial products employee, the company operated much like a ship without a captain. While deals were made, they were made in line with the protocol these men and women were accustomed to. The same can be said for the failing auto companies in Detroit. These companies operated in the atmosphere provided them by the U.S. government. Had the U.S. government installed legitimate programs to try and ween ourselves off of fossil fuels or at least fallen in line with the Kyoto Protocols, perhaps the Big-3 would have made a concerted effort to focus on gas/mileage and hybrid vehicles earlier.

Clearly the issues in Detroit surpass simple questions of competitiveness (the United Auto Workers’ Union comes to mind), but even the UAW’s increased power comes back to the government’s ineptitude. Representatives and Senators operate on an election-to-election basis, making promises that they will in all honesty have a hard time keeping. That being said, they must pander to the little man, to the “Forgotten Man” mentioned in the last “Words to Live By.”

I guess what I’m generally trying to say is that the major issue lies with the U.S. government. The inconsistencies in their approach to dealing with the economic crisis has been nothing short of despicable. The shift from Bush to Obama should have been made with some sort of emergency economic council to ensure a steady transfer in policy making.

The fact that the IMF is even considering involvement in the U.S. is reason enough for the government to reevaluate its role and realize that any remaining political capital the Obama administration has cannot be wasted in name-calling and witch-hunts (or bonus-hunts) and needs to be focused on re-opening credit markets in a manner other than providing liquidity. The government needs to focus on
restoring confidence and that will take a restructuring of financial debt as well as a break up of the leadership of the financial oligarchy.

Keep your head up.

http://blogs.middlebury.edu/rononmiddlebury/2009/03/31/missing-liebowitz-day/

“Who, then, is he who provides it all? Go and find him, and you have once more before you The Forgotten Man… The Forgotten Mas is delving away in patient industry, supporting his family, paying his taxes, casting his vote, supporting the school, reading his newspaper, and cheering for the politician of his admiration, but he is the only one for whom there is no provision in the great scramble and the big divide.” William Graham Sumner

I am of the opinion that he does not need others’ provisions. If he is living that clean and simple life, he should inevitably be able to provide his own happiness and guarantee the well being of those that he cares for.

All of these stories and situations have one thing in common, they were all too good to be true (funny how that motto seems applicable to pretty much everything). Now I’m finding out that some mathmetician who probably would’ve been better served in an industry other than Finance (another problem all together) apparently created the formula that proved correlation between two vehicles? We’re supposed to believe this? The great powers that be on Wall Street said…”hmm that makes sense, this formula accurately displays the correlation between any and all vehicles in spite of any exterior influences.” WHAT!??!?

Listen, I know the way that the market works, booms and busts, people get caught up in the hype and they follow the cash like lemmings follow the leader, but in no way does that mean the market can be simplified down into defined mathematical formulas. The market relies on the intangible influence of the human effect, that is something that cannot be forgotten.

Couple of links for y’all

My first Shanghaiist Article
Mark Cuban’s Take on Twitter. Is the next bubble the Twitter bubble? God I hope not.
Maurice Clarett’s Blog from the Inside. Clearly a sad tale, but its comforting to know that despite his past missteps the guy seems like he’s finally got his head on straight.

Anyways, enjoy!

MD

Couple more pictures for y’all. Gordie Howe aKa Mr. Hockey. Mark Messier the

quintessential power forward, although that towel is a little short… and finally the “Next One,” Sidney Crosby. Howe is the no nonsense hockey player, yea sure he might be posing a little bit but at the very least you can tell that man is a tough son of a bitch. Mess is the picture of pure happiness, granted who wouldn’t be happy next to Gary Coleman, but you can tell that its not manufactured joy on his face (unless the joy is manufactured outta a few too many beers). Sid the Kid finally has that pouty model look going, you can tell he is produced by a team of agents and publicists. He whines and bitches too often (see: his reaction to Ovechkin’s goal celebrations; “Like it or lump it, that’s

what he does,” Crosby said. “Some people like it, some people don’t. Personally, I don’t like it.”) All I’m saying is there is a reason that its called a game, act like you enjoy it Sid.

Or this of Terry Sawchuk:

Pretty gorgeous huh?

On another note, KFC is planning on replacing potholes in Illinois with pavement covered with their own logos. The US government could use the help in highway maintenance and KFC could use the exposure in the States. Personally I think that KFC should be kowtowing at the feet of whatever commissioner there is here in China begging to try the same advertisments in one of the cities over here. Chinese love that krispy original flavored goodness and they definitely love driving like maniacs, so at the very least all those accident victims would have something to look at while they wait for the Men in Blue.

http://www.suntimes.com/news/transportation/1497720,kfc-potholes-road-repair-032609.article

One Love.

“If you walk up to some random person on the street, grab them by the shoulder, and say `Did you just see what I saw?!`….you`ll find that no one wants to talk to you.” -Bill Murray