Olympicss$$$ Fever!
August 10, 2008
Wow, after watching the olympic ceremony yesterday, I have to admit that it was spectacular. An awe-inspiring show that was truly worth its millions. Anyways, would this and any Olympics affect global finance in any way? Of course, China spent a total of about $43 billion in preparations including city projects, and it is expecting billions and billions in television contracts and advertisement deals. China is also forecasting their economy to be stabalizing around 10.6% growth during the third quarter, up 0.5% from the previous one. However, after doing some reading and watching some videos, I actually found out that their economy is aiming to be growing in high single digits, after balancing economic factors such as inflation and internal demand. Although spending is booming globally during this time, traders will probably be too busy watching the games to be moving the markets *chuckle.
Well, now, lets move back to domestic issues. Fannie Mae posted a 2.3 billion dollar loss today, three times larger than expected. Again, another downward spiral will go on in the mortgage industry. Rates are destined to increase, credit will as as tight as ever, refinancing homes will probably be impossible, and forclosures will increase. Well, it seems that no government home financing plan will go underway until Bush comes back from the games, but this mess will probably be left to Obama or McCain to sort out, along with health care, foreign policy, and trade agreements such as NAFTA. The closing games and its aftermath will have massive significance and symbolic meaning for future policies in finance and politics.
Lastly, some positive news, oil is down to $115 a barrel, due to deflating commodities, assumed lower demand for oil, and a rising U.S. dollar. So, to close off, I hope Beijing has a happy and safe Olympic Games for the next two weeks, until the 24th, while the whole world watches and anticipates the end of China’s humiliating 100 years, and a brand new beginning towards the future.
Signing out
-ZEZ
P.S. If you have some extra time on your hands, here is this week’s video on global finance, it is a bit long, but none-the-less insightful.
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