Friday, March 4, 2016

On today's financial news

* 5% virtually is full employment for practical consideration It should affect housing positively. However, the median wage is still far below the 2007 level. Costco's $13 is quite high to me compared to the average salary of a new college graduate (about $30K a year from my rough estimate).

* China's Congress is just a free party for 3,000 officials. It is similar to Bush's cabinet (i.e. no one thinks and talks except one). The big difference is the policy and presidency selection is continued.

In the U.S., when another party takes over, everything changes. Many would clear their desks routinely. Do not cry for them as they will get jobs from companies whom they gave favor to. Corruption has many shades of green - some are more obvious than others.

* Sometimes it will be better for the company to go private or stay in private. A public company is expected to make big profit and big sales every year. Sometimes the leverage requires too much risk to the company.

Solar City may be an exception. I do not see the future of the company if the government stops the subsidies and tax credit. I cannot figure out how they can make money against the oil and shale energy at least in the short run.

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