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Chinese property boom is propping up President Xi Jinping’s hopes for the economy

“Dire prophecies of a Chinese housing bubble have been a staple of economic punditry for at least a decade” writes Wang Zhao for cnbc.com. In 2010, billionaire short-seller James Chanos called China’s property market “Dubai times 1,000″.Despite their differences, both sides in the debate mostly agree that an outright crash of the housing market is unlikely.”At this point everyone realises they don’t really intend to crack down on the housing market.”. For China’s domestic economy, the world’s largest at purchasing-power parity, property investment directly contributed 10 per cent to GDP…

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Gary Shilling: Here’s what America would look like if I were king

“Financial analyst Gary Shilling feels the US spends too much time on consumption and too little time on investing in our future” writes Sara Silverstein for businessinsider.com. Saving, hard work, investing.In other words you think that the future is not worth as much as, a lot of people think the future is worth nothing so spend it all today. Source: businessinsider.com Share This:

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A Stock Analyst Downgraded Chipotle for Paying Workers Too Much. That Tells You Everything Wrong With the Economy.

“But the labor market is a market in which people have to compete for resources” writes Daniel Gross for slate.com. In the most recent quarter Chipotle’s labor costs were 26.2 percent of revenues.Of course a labor-intensive outlet like Chipotle would have a hard time clamping down on labor costs.Alas, too many people believe that the dynamics of the labor market are frozen where they were in 2009.And when wages rise, especially for those on the lower end of the labor market like restaurant and retail workers, more money gets plowed…

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Markets News Stocks 

Cramer: How I lucked out in the crash of 1987

“CNBC’s Jim Cramer had a unique experience during the historic market crash of 1987 that occurred 30 years ago Thursday” writes Elizabeth Gurdus for cnbc.com. The day after the crash, investors, traders and fund managers alike could not determine the lay of the land, Cramer said.But in the week before the crash, one of the worst weeks for the market Cramer had seen in his lifetime, he got a call from Karen Cramer, a trader at a large institutional firm.She told Cramer, who had just started his hedge fund in…

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Europe’s fastest-growing economy could be headed for trouble

“Nike’s chief of design doodles all day The inclinations of this retiree at the AFI Cotroceni mall help explain why Romania is the fastest-growing economy in Europe” writes Peter S for cnbc.com. For now, any comparison to Greece, the most extreme example of an economy wrecked by unrestrained government largess, stretches credulity. Source: cnbc.com Share This:

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Experts are usually right, but it’s okay to be skeptical on big policy questions

“This conflation of individual expertise with political and social wisdom erases the distinction between the intimate orders of personal life and the extended order of the market society” writes Jerrod Laber for washingtonexaminer.com. But when experts claim to have an answer for big social problems, or a dire warning that if we don’t heed their public policy preferences there will be economic ruin (or some other scary scenario), it’s okay to be skeptical. Source: washingtonexaminer.com Share This:

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U.S. leading economic indicators fall for first time in a year — and hurricanes are to blame

“The numbers: The index of leading U.S. economic indicators fell 0.2% in September, marking the first drop in 12 months” writes Jeffry Bartash for marketwatch.com. The LEI is a weighted gauge of 10 indicators designed to signal business-cycle peaks and valleys.Big picture: The sturdy U.S. economy mostly absorbed the damage from a pair of major hurricanes in September.The Dow Jones Industrial Average DJIA, -0.33%  fell Thursday, a day after the index closed above 23,000 for the first time.What happened: The decline stemmed partly from the “temporary impact of the recent…

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CEO: Updated NAFTA better than no trade treaty

“On Tuesday trade ministers from the United States, Canada and Mexico wrapped up a contentious round of talks on the North American Free Trade Agreement dominated by aggressive U.S. demands” writes Aol Staff for aol.com. “Not having a free trade agreement would not be something we feel anyone would benefit from,” Abney added.If a renegotiated treaty stimulates the economy, creates jobs and levels the playing field for the United States “then the North American market as a whole will be much stronger than without a free trade agreement,” he said.”If…

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Three ways to make money out of China, according to one investor

“Asian stocks closed largely flat Wednesday as investors awaited more news from the Chinese Communist Party’s National Congress” writes Justina Crabtree for cnbc.com. Key data on the Chinese economy including third quarter gross domestic product and September industrial production numbers are out Thursday.There are three methods for those wanting to “make money out of (China’s) economic success story,” one investor told CNBC. “Either you go and buy an ETF,” suggested Beat Wittmann, partner and chairman at Porta Advisors, which is “basically an index representing the capital market in China.”. He…

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