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  • Soaring Hong Kong Industrial Land Prices Argue Why Hong Kong Property IS NOT A Bubble

    It’s well known that Hong Kong property doesn’t come cheap, and its office rents have just recently been named the most expensive in the world, for the second year running.

    Thus the easiest argument to make is that Hong Kong property prices are at dangerous levels, a bubble set to burst.

    You can just point to the fact that residential property prices jumped 30% last year and are fueled by Chinese investor demand coupled with artificially-low interest rates due to the Hong Kong dollar’s peg to the U.S. one. (Which effectively enslaves Hong Kong to America’s ultra-low interest rate policy)

    Yet we have to admit that a counter-argument caught our eye — industrial land prices are soaring. They jumped 38% in the second half of 2009 according to Colliers International. Yields have fallen as a result of rising prices, but they aren’t completely ridiculous. They are still in the 5% range:

    Chart

    Chart

    Industrial land is less prone to the speculative excess of office or residential property in Hong Kong. It’s not like businesses opt for spare trophy warehouses or buy opulent vacation factories on a whim. There will be speculation as always, but far less.

    Moreover, Colliers remains optimistic on industrial land thanks to underlying demand for industrial land from businesses looking to capture economic opportunities via Hong Kong.

    Colliers:

    Looking ahead, amid a gradual recovery of the global economy, Hong Kong’s external trade performance is expected to improve gradually, which in turn will provide some support for the industrial property market. Moreover, it is reported that two multinational logistics operators have pre-committed to about half of the floor space in Interlink – a 2.4 million-sq-ft logistics warehousing facility in Tsing Yi scheduled for completion in 2012. This highlights logistics operators’ confidence in Hong Kong’s external trade performance in the medium term. It is our prediction that the rentals of the factory and I-O sectors will increase 5% and 8%, respectively, over the next 12 months. In the warehousing sector, rentals are expected to increase 3%-5%, depending on the availability of such physical provisions as ramp access. Meanwhile, we expect the prices of industrial properties to increase 10% over the next 12 months.

    This doesn’t mean we’re about to buy a Hong Kong apartment. The property market certainly seems pretty frothy and at risk of major correction, especially if U.S. interest rates rise substantially. As we said above, this is a horribly difficult side of the argument to defend with conviction.

    Yet strong demand for Hong Kong industrial land at least suggests that a large portion of Hong Kong’s office and residential property prices is justified by actual economically-driven demand, rather than simply speculation. A 30% spike in residential property prices last year looks far less wild when juxtaposed with a 38% jump for industrial land in just six months.

    Join the conversation about this story »

  • Somali Refugees Recruited to Fight Islamic Resistance Forces

    Somali refugees recruited to fight Islamist militia

    By Sudarsan Raghavan
    washington post foreign service
    Tuesday, April 6, 2010; A07

    The U.S.-backed government of Somalia and its Kenyan allies have recruited hundreds of Somali refugees, including children, to fight in a war against al-Shabab, an Islamist militia linked to al-Qaeda, according to former recruits, their relatives and community leaders.

    Many of the recruits were taken from the sprawling Dadaab refugee camps in northeastern Kenya, which borders Somalia. Somali government recruiters and Kenyan soldiers came to the camps late last year, promising refugees as much as $600 a month to join a force advertised as supported by the United Nations or the United States, the former recruits and their families said.

    “They have stolen my son from me,” said Noor Muhamed, 70, a paraplegic refugee whose son Abdi was recruited.

    Across this region, children and young men are vanishing. All sides in Somalia’s conflict are recruiting refugees to fight in a remote battleground in the global war on terrorism from which they fled, community leaders say.

    It is unclear whether recruiting by the governments of Kenya and Somalia is ongoing. But their military officers continue to train refugees at a heavily guarded base near the northern Kenyan town of Isiolo as the Somali government prepares for a long-planned offensive against the Shabab.

    A second camp is in Manyani, a training station for the Kenya Wildlife Service in southern Kenya, according to former recruits, relatives, community leaders and U.N. investigators.

    “They told us we were going to Somalia soon,” said Hassan Farah, 23, who escaped from the Isiolo camp last month.

    Farah, who was injured in a 2008 bombing in the Somali capital of Mogadishu, first spent more than two months at Manyani. “I saw 12-year-old children at the camp,” said Farah, who has a jagged scar on his left arm. He escaped by bribing a water truck driver to sneak him out.

    The Kenyan government has acknowledged that it is helping train police officers for Somalia’s weak interim government but said that the recruits were flown in from Mogadishu. “No one is recruited from the refugee camps,” said Alfred Mutua, a Kenyan government spokesman.

    But a recent U.N. report on Somalia confirmed the recruitment of refugees, including underage youths, for military training. Kenya’s training program, the report said, is a violation of a U.N. arms embargo, which requires nations to get permission from the U.N. Security Council before assisting Somalia’s security efforts.

    Ahmedou Ould-Abdallah, the U.N. special representative to Somalia, said he has not personally seen evidence to act on. “If this recruiting is happening, we have to condemn it,” he said.

    Recruiting refugees is a violation of international law, and enlisting children under 15 constitutes war crimes, human rights groups say.

    “They told me I would become a soldier and fight the Shabab,” said Ahmed Barre, a bone-thin 15-year-old whose family fled Somalia’s anarchy in 1991, when the central government collapsed. He was born in Dadaab’s camps and has never been to Somalia. “I didn’t want to go. But I was jobless. I wanted to help my family.”

    A State Department spokesman, speaking on the condition of anonymity because of the sensitivity of the matter, said, “We strongly condemn recruitment in the refugee camps by any party.” Senior U.S. officials, he added, “have stressed” to top Kenyan and Somali government officials “the need to prevent any recruitment in refugee camps.”

    Human Rights Watch has also raised concerns about the force, which numbers roughly 2,500.

    Once the recruits signed up, their cellphones and identification cards were taken. They never saw the promised money. And they were denied access to their traumatized families, which, fearing deportation, seldom complained to the authorities, local officials and recruits said.

    “These people ran away for their dear lives to seek refuge in Kenya,” said Mohamed Gabow Kharbat, mayor of Garissa, the provincial capital. “To recruit them and send them back to the same situation they ran away from, this is terrible.”

    Kharbat said that “most of the youths have no parents, no family members to protest on their behalf. And even if they have parents, these are people who are scared of the government security organs. They can never have the confidence to complain.”

    The recruitment comes amid fears that Somalia’s Islamist militants could extend their reach into Kenya, Uganda and other neighboring countries. The Shabab has voiced support for al-Qaeda and has attracted jihadists from around the world. The United States and European nations are supporting the pro-Western Somalia transitional government with arms, cash, training and intelligence.

    Somali refugees have few opportunities in Kenya, which has imposed strict residency rules and limits on travel, making it difficult for them to find jobs. Many youths are uneducated.

    “The Shabab and all other groups have representation here,” said Abdul Khader, 35, a refugee youth leader. “They give a lot of false hopes to the refugees.”

    Hassan Mukhtar, 16, was recruited to fight for the Somali government with a promise of $300 a month and a $50 signing bonus.

    When he and other recruits did not get their signing bonus, they jumped out of the truck on the way to Manyani.

    A Shabab recruiter enticed Mukhtar Awliyahan, 16, by promising him $300 month. He was taken to Somalia and given the nom de guerre “Mukhtarullah” — the One Chosen by God. In January, tired of fighting, he escaped. Today he keeps a low profile in the camp. “They are still recruiting,” he said.

    Hezbi Islam, a rival militia, recruited Bare Ali Jama, 19. “I had nothing to substitute for this offer,” said Jama, who joined along with five other refugees. In February, Shabab fighters pushed them out of their stronghold; he fled back to Kenya. Still jobless, he wants to return to Somalia. “I will fight for anybody,” he said.

  • Another strong aftershock rattles Calexico, Mexicali

    Just as nerves were beginning to settle down, an earthquake initially measuring magnitude 4.9 hit the Calexico-Mexicali region at 9:12 p.m. Monday.

    The temblor came at the end of a day of aftershocks, beginning with a magnitude 3.0 at 12:02 a.m.

    In Calexico, merchants in the aging downtown spent the day sweeping up broken glass and restocking shelves. The Calexico Fire Department inspected numerous homes after residents reported smelling gas.

    About 80% of the businesses downtown have been red-tagged and cannot be reopened to the public until structural inspections are made.

    In Mexicali, where the million-plus residents were plunged into darkness Sunday in the wake of the magnitude 7.2 quake, officials were able to restore lights to large portions of the city throughout the day.

    Mexicali residents continue to stream into Calexico to stay with family members or rent temporary housing. The northbound lane at the Calexico port of entry remained closed to vehicles, although pedestrian traffic was allowed.

    The Calexico west entry point, however, was open to northbound vehicles. Long lines were reported in the evening.

    Further south, in the hard-hit farming villages in the Mexicali Valley, hundreds of residents spent the night sleeping outside for fear of entering their damaged and flooded homes. Many had waited in line to get water, food and blankets from the Baja government.

    In San Diego County, Caltrans workers were set to work through the night to inspect and repair portions of Interstate 8 in the El Cajon area.

     — Tony Perry in Calexico

  • Bubble Era Economic Model Worked Until Consumers Ran Out of Money

    Front page headline on Friday’s Wall Street Journal proclaimed a big up-tick worldwide in the manufacturing sector.

    According to the paper, everybody is making more and more stuff. This helps assure that the recovery “has legs.”

    Auto sales, too, came in stronger than expected in March. So it sounds like the recovery has wheels too.

    What we want to know: does it have a brain? Who’s buying this stuff and where are they getting the money?

    At least the economic model of the bubble era made sense. The producers produced. The consumers consumed. That worked great until the consumers ran out of money. Then, they had to borrow from the producers. And eventually, the whole thing blew up when it became clear that the spenders had borrowed and spent too much, while the producers had expanded and produced too much.

    So far, so good. But now, the world economy needs a new model, right?

    The consumers can’t really go back to borrowing, can they? Nope. Not without digging themselves deeper in the hole…or actually earning more money. So, the producers can’t exactly go back to producing either, can they? Nope. Not without customers.

    Well, who the heck are all these manufacturers making stuff for?

    Darned if we know. In theory, there are billions of ready consumers in Asia and Africa. Except they don’t have much money. And don’t have much credit. And don’t have shopping malls. And don’t have any way to get to the malls if they existed.

    In India, for example, half the population lives on less than $3 per day. You can do the math yourself…even if they spent every cent on “stuff,” it would mean total spending of $500 billion, more or less – which is less than the US trade deficit in 2007. Of course, they can’t spend their money on ‘stuff’ – they need it just to eat.

    On the other hand, India’s middle class is already as big as the middle class in America – and it’s growing fast. But how does it make its money? By producing, we assume. So as it gets wealthier, doesn’t it add to the world’s supply of stuff…as well as consuming it? And since Asia is more of a producer, in general, than a consumer…isn’t it adding to the world’s supply of stuff faster than it consumes stuff? And since labor costs are so low, doesn’t it add more cheap stuff?

    The point we are making is that it takes time for one group of consumers to get out of the way and for another group to take its place. Even if you believe that Asian consumers will replace buying from the US and the UK, you still have to admit that this ain’t gonna happen overnight.

    First, because Asian would-be consumers need to earn more money. Second, because they need to change their habits – from saving to consumption. Third, because the factories need to switch from making things US consumers want to making things that Asian consumers want. Fourth, because they also need to set up new channels of distribution and sales.

    In the meantime, who’s consuming more than he is producing? We don’t know. But someone must be doing so…otherwise all this extra manufacturing just adds to the world’s inventory of unsold merchandise.

    This is just a reminder about the way an economy actually works. The meddlers in China think they can stimulate production. The meddlers in America think they can stimulate consumption. Then they accuse each of “manipulation.”

    We’ve seen at least four or five different arguments about what the value of the yuan ‘should’ be. One hundred and thirty Congressmen think they know. Paul Krugman thinks he knows. Everyone seems to think he knows. But the truth is – none of them knows. Nobody can know. Only the market knows. And it isn’t talking. It can’t talk. Its lips have been sealed by government order.

    The yuan is supposed to be too low because it is linked to the dollar. There is no logical reason to say that the yuan is too low at all. You might just as well say the dollar is too high. But once you allow yourself the fantasy of silencing the markets and reorganizing the world’s commerce, the sky’s the limit.

    The next thing you know, you are taking over the auto industry…and health care…

    …and fixing prices for breast implants…

    Bill Bonner
    for The Daily Reckoning Australia

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  • Duke Beats Butler

    INDIANAPOLIS- A packed house at Lucas Oil Stadium, as the Butler Bulldogs battled the Duke Blue Devils for the NCAA basketball championship. Duke beat
    Butler 61-59.
    It was a nail biter all the way to the end, as the two teams stayed neck and neck throughout, neither one really seeming to dominate the other. The NCAA says around 72,000 fans and 1200 members of the media (not counting the hundreds of CBS production staff) were jammed into the arena, that’s normally used for a football stadium. It was a screaming sea of blue and white. Even if you aren’t a college basketball fan, its hard not to get caught up in the Cinderella story of “underdog” Butler surprising its’ critics and making it to the big game. Even Butler fans were amazed “This is like a dream come true. I never thought we’d make it here” said one B.U. senior. Despite the loss to Duke, many said they were still feeling proud to have gone this far.
    Butler is the first team in 12 yrs to have 2 academic all-Americans playing in the championship game.
    Maybe one reason Butler did so well this season; starting players rub the team mascot’s head for luck, before the start of every game. The mascot is a 6 year old English bulldog, named Butler Blue II. The Dog is a star in his own right, having been on several TV stations and newspaper photos during the season. But It looks like all the publicity seems have left little BB II a little tired and red eyed. (see pictures attached).

  • HP Slate To Have a Faster Processor, More Storage and Two Cameras

    With the whole world drooling for the recently launched Apple iPad, HP is trying to assure its employees, through an internal presentation, that HP Slate wouldn’t be anything less than competitive. As Engadget reports, HP Slate will have a 1.6 GHz processor compared to iPad’s 1 GHz, and the minimum storage would be 32 GB compared to iPad’s 16 GB.

    HP Slate will also have an SD/SDHC.SDXC Card Reader providing up to 12 GB of extra storage for all those movies and songs. It will run on the very successful Windows 7 Home Premium edition and will have a VGA Webcam. While Webcam and SD Card give a big advantage to HP Slate, the smaller screen, lower-performing battery and an extra 50 bucks would make it difficult for HP to win the hearts.

    Some other specs also include a 1 GB RAM, USB Port, a 1024 x 600 multi-touch display, an extra 3MP outward facing camera and an HDMI outlet. The whole list of specs is displayed below via Engadget.

    Over all, iPad might be the better looking one of two, but when it comes to functionality and possible integration with other devices such as Computers and Mobile Phones, I believe HP Slate would be better off.  What do you think? Would you wait for an HP Slate or are rushing to get an iPad right now?


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  • Late Late Night FDL: Sea Change

    Featuring new videos from Turin Brakes and Claudio Montuori.

    What’s on your mind tonight?

  • PlayStation Magazine: Red Dead Redemption has the greatest multiplayer lobby ever

    Someone’s mighty impressed with Red Dead Redemption. PlayStation Magazine just dubbed Rockstar’s Wild West themed title as “The Greatest Multiplayer Lobby in the History of VideoGames”. Awesome.
     
     
     

  • If People Feel Good About the Economy then the Economy Must Be Good Itself

    Before we launch into this week’s reckoning, a quick note if you’re reading this in Western Australia. Your editor will be speaking Friday night at the second annual Freedom Factory conference, sponsored by Ron Manners and the Mannkal Economic Education Foundation. For more information on how to attend, go here. It should be a great afternoon of discussion and debate with good food and good people.

    The theme of this year’s conference is a question: Where to From Here?: Economic Survival post-GFC: The Individual, the State and the Nation. Your editor is going to be speaking on the Nation, which is naturally a perfect topic for an ex-patriot American. And our first point is that we are not “post-GFC.” We are in a more advanced phase of it in which the disease of politics has infected the body economic via nationalisation. This grows the body politic itself (the Welfare/Warfare state) even though the way in which the State feeds/funds itself is clearly leading to cardiac arrest (via a sovereign debt crisis).

    But really, isn’t that all so passe? Stock markets are fixing to make their highest highs since September of 2008. The Dow nearly closed at a post-Lehman high of 11,000 overnight in New York trading. And here in Australia, the ASX/200 looks to break out of a long channel of indecisiveness and close above 5,000.

    Surely those numbers indicate that people feel good about the economy. And if people feel good about the economy, then the economy must be good itself, right? Isn’t this the power of the collective mind over the little matter of recession?

    And speaking of matter, it’s not just stock indices that are screaming ahead. Crude oil futures made an 18-month high and closed at $86.82. Palladium cleared $500/oz for the first time since March 2008. Platinum was up to its highest level since August of ’08. Iron ore trades at $140/tonne in the spot market and coking coal at $250/tonne.

    Happy days are definitely here again, if the headlines can be believed. And if you’re a resource speculator – it’s hard to be an investor at these valuations and with so much liquidity distorting underlying commodity prices – this is definitely time to make hay. But how much longer will the sun keep shining?

    China’s State Council believes the nation is in a “race against time” to secure its natural resource needs, according to John Garnaut in today’s Age. The story quotes from a Chinese reports called How China Should Improve Its Overseas Resource Investments: Reflections on the Chinalco-Rio Tinto Deals. It reportedly concludes that, “With the recovery of the world economy, the opportunities [to cheaply secure overseas resources] are becoming less, so we should race against time.”

    The race may already be lost, though. For one, take the example of rising iron ore and coking coal prices. These are great for Aussie exporters, but not so good for steel producers. Steel producers can either eat the higher cost or pass it on to customers. Markets being what they are, we’d expect the increase in raw commodity prices to make their way into higher construction material prices. That’s one self-regulating way of dealing with soaring prices: it reduces demand.

    But remember those “red flags” we mentioned last week? In Edward Chancellor’s excellent article on China for GMO clients, his first two red flags were that “great investment debacles generally start out with a compelling growth story,” and that “A blind faith in the competence of the authorities is another typical feature of a classic mania.”

    Call us paranoid and delusional, but there is an obstinate faith in the sustainability and inevitability of China’s resource-driven growth. Visible signs to the contrary – empty cities – are inconvenient and thus ignored. And here in Australia at least, everyone has faith that local political leaders “saved” the economy from the worst of the GFC and that China’s communist central planners will be able to keep the Big Red Machine rolling for years on end.

    And those are just two of the signs that we are in the midst of an even bigger bubble! But that does not fit the current narrative. In fact, Australians are now so sanguine about their national prospects that one of the front page stories in today’s Australian Financial Review is about how to set aside superannuation money for infrastructure funds.

    Rod Eddington, the government’s infrastructure adviser, told the paper that, “Given the infrastructure investment challenges we face and given the many calls on government capital, there is a real need for the private sector to increase investment in infrastructure. Superannuation funding is an obvious source but the construct has to be right if the people who manage superannuation funds are going to put those funds into infrastructure.

    Hmm. “The many calls on government capital”? You got that right. The government is busy paying for everything these days with borrowed money and higher taxes. And what “construct” would a fund manager require in order to invest in an infrastructure fund? Granted, the super assets represent an irresistibly giant amount of capital that any number of people would like to get their hands on. But it’s there for a reason.

    John Brodgen of the Investment and Financial Services Association is protecting his group’s turf. He says that, “Whilst I understand the pleas for more funding, the primary objective of superannuation trustees is to get the best return for their members. They make decisions based on returns. It’s pretty black and white. I don’t think members would thank super trustees for backing a tunnel that was a lousy investment but a good piece of infrastructure.”

    He’s probably right. But that doesn’t mean it won’t happen anyway.

    Meanwhile, while this great argument rages about how to fund Australia’s infrastructure needs AND provide for everyone’s comfortable retirement, house prices keep going up. “No ceiling to housing prices in sight yet,” reports Carolyn Cummins in the Age. Is it demand growing faster than supply? Is it foreign buying? Or is it just a classic bubble that begins with too much credit? Some reader mail on the subject below.

    –Hi

    Why all the concern about the Chinese buying up units and houses?

    You frequently write how money spent on Mc Mansions is dead capital but if we start selling to overseas customers, house building becomes an export (productive) industry!

    Of course we not only sell the house but also the block of land on which it sits, so to some extent this export industry involves a bit of “selling the farm” too unfortunately. But, hey, we need to import capital and selling land may not be a bad way of doing it. Unlike selling coal or iron ore the sold goods cannot be taken out of the country and we do not lose dividends as we might do if we sell parts of our businesses to foreigners. Of course we may lose capital appreciation but isn’t it better that foreigners buy from us believing property prices will increase for ever than us believing it ourselves?

    It sticks in our claw [sic] because it is pricing our young out of the property market. If we believe in free (international) markets we just have to wear this. If we are not prepared to wear it we must wear the alternative of government intervention (first home buyer’s grants, restrictions on imported capital etc).

    Kind Regards,

    Ian H.

    When the government intervenes and sets the price of money, as the Reserve Bank is set to do today, somebody always “wears it.”

    –Dear Dan

    I have thoroughly enjoyed reading the DR and its sister (paid) publications. Good work. My family and I moved to Perth from Canada in 2002 to take up an employment opportunity.

    We fell in love with the climate, the people and the lifestyle but we could never make sense of how people made ends meet with the cost of living being so high, especially the cost of property.

    Having owned our house in Canada outright, it was (emotionally) difficult for us to take on a large mortgage for what appeared to us to be a pretty average property.

    As we all know, property went up from there and for nearly 8 years we have rented. When the GFC hit, we decided to start looking at buying a property as we expected the prices to relax, even if only just a little. We soon realised that the government was working against us, and for good reason: the whole ‘miracle’ economy is dependent on ever increasing property prices.

    To make a long story short, we have decided to ‘vote with our feet’ and move back to Canada. We have already purchased a property there which is far from average and will own it outright at far less than we would have paid here for a basic 4×2.

    We love Australia and may even return one day but it seems that, at least for now, the property “crisis” has changed the course of our journey and has cost Australia an Oil & Gas Engineer/Project Manager, a Maths Teacher and three bright young kids with heaps of potential.

    To have it attributed to a ‘land shortage’ is an assault on any form of intelligence, but anyone who subscribes to such rubbish will recognise that we have helped alleviate the shortfall in available properties by one!

    Cheers,
    Steve

    Dan Denning
    for The Daily Reckoning Australia

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  • Yelp Changes Features to Address Extortion Claims

    Though Yelp steadfastly denies allegations — and now lawsuits — that its salespeople pressure local businesses to buy advertising in exchange for removing negative reviews and getting preferential treatment, the company tonight addressed them head-on. Specifically, it’s making two major product changes to become more transparent about its filtering process and give less favorable treatment to advertisers.

    • First, Yelp is removing the cloak of invisibility from its review filter. Yelp previously made reviews disappear off business profiles, often when they seem to be gaming the system (for instance, a spate of similar positive reviews of a shop could mean the proprietor is asking people to write them — see the video below explaining the filter). Those reviews remained on the site — visible on the authors’ profile — but weren’t something you could find in the course of browsing businesses. Company owners complained that Yelp was editorially skewing reviews about their businesses. Now, Yelp will allow users to toggle to a page of filtered reviews for any business and read them for themselves.

    Yelp CEO Jeremy Stoppelman wrote in a blog post explaining the changes:

    [M]ost importantly, you can see that Yelp’s review filter works just the same for advertisers and non-advertisers alike. There is not — nor ever has been — a bias. So will Yelp be easier to game now? No, our engineers remain hard at work to make sure that Yelp is the most useful and helpful online resource for everyone.

    Yelp’s new transparent review filter

    • Second, Yelp is discontinuing the paid feature of allowing advertisers to choose and promote a positive review of their establishment on their Yelp profile. This “Favorite Review” feature would highlight a previously submitted user review prominently above the fold, pushing recent reviews down the page. It was misconstrued as a way for businesses to control the content on their page, Stoppelman said. He did not specify how the change would impact advertisers who’d already paid for the feature.

    Yelp said it was also creating a Small Business Advisory Council, and it has already incorporated feedback from meetings with business owners, such as including advertiser videos on their profile pages (a feature that also launched today).

    Related content from GigaOM Pro (sub req’d):

    How Social Networks Could Help Yelp, Not Kill It

  • EarthSky Interview | The Loom

    At the AAAS meeting a few weeks back, I sat down with Lindsay Patterson of the radio show EarthSky to talk about evolution. Here’s a new 90-second piece that’s now airing.


  • Chinese ‘Bright Road’ Art Price Soars 300% Year Over Year

    Chinese art prices had collapsed 70% from their March 2008 highs during the financial crisis, but now they’re back. Big time.

    Luxist:

    Seven lots fetched more than $1 million at the last Sotheby’s auctions in Hong Kong, led by Liu Ye’s acrylic and oil “Bright Road,” which sold for more than $2.5 million. This was the top take for a Chinese contemporary artist in two years, indicating that Chinese art is on its way back to levels we haven’t seen since the financial crisis. Last year, similar pieces were moving for only a third of this year’s pricing.

    That’s roughly 200% inflation for Bright Road, below via Sotheby’s.

    China Bright Road

    Join the conversation about this story »

  • Zipper: We’ve got something for MAG in the coming months

    Getting bored with MAG yet (but how is that possible?!?)? Don’t worry, Zipper Interactive has something up their sleeves for you in the coming months. How do we know? They said so.
     
     
     
     

  • Forrest Claypool announces independent bid for Cook County Assessor Tuesday

    below, from Claypool campaign…..

    Claypool to Announce Independent Bid for Cook County Assessor

    Who: Cook County Commissioner Forrest Claypool

    What: Announcement of Independent campaign for Cook County Assessor

    Where: Hotel Allegro
    171 West Randolph Street
    Chicago, IL 60601

    Screening Room II
    3rd Floor

    When: Tuesday, April 6th
    Start time: 9:30AM
    Doors open at 9:15AM for setup

  • The U.S. Senate (Sort of) Backs Morocco in the Western Sahara

    by Julian Ku

    It’s not exactly a hot topic, even among international lawyers, yet the ongoing dispute over the Western Sahara (and Morocco’s claim to it) has drawn the attention of 54 U.S. Senators, who recently sent a letter to U.S. Secretary of State Clinton about it favoring support for Morocco’s 2007 proposal for autonomy in the disputed region. This analysis claims the letter’s approach would trample on the people of the Western Sahara’s right to self-determination.  I don’t think it’s that clear cut, but it is interesting to see the U.S. Senators even getting involved in this fight. Does Morocco have lots of really good lobbyists?

  • 4 people injured in Long Beach shooting [Updated]

    Map shows 22 homicides within one mile of Monday's shooting. Click for details of the homicides on The Times' interactive Homicide Report Four people were injured Monday evening in Long Beach in a possible gang shooting, police said.

    At least one gunman walked up to the group outside an apartment complex in the 200 block of West Burnett Street about 5:20 p.m. and opened fire, said Nancy Pratt of the Long Beach Police Department.

    A 19-year-old man shot in the torso was taken to a hospital, where he was listed in stable condition. Two teenage girls and a 22-year-old woman suffered non-life-threatening wounds, Pratt said.

    No suspects were in custody Monday night as police investigated “the possibility that it may have been gang-related,” Pratt said.

    Anyone with information should contact Long Beach detectives at (562) 570-7370.

    [Updated 11 p.m.: Since January 2007, there have been 22 homicides within one mile of Monday’s multiple-injury shooting, according to data collected for The Times’ interactive Homicide Report.]

    — Joel Rubin

    Map locates the 200 block of West Burnett Street in Long Beach and shows locations of homicides in a one mile radius of shooting scene. Source: Homicide Report.

  • China Credit Growth Must Blow Past Government Targets

    Shanghai Bubble 4

    The Chinese government has set a target for just 7.5 trillion yuan in new credit for 2010, yet it’s hard for some analysts to see how this is even possible given soaring investment into urban fixed assets already taking place.

    It’s not like these projects will want to just suddenly stop, half-way finished. And it’s tough to see how they would be forced too, given that this could expose and create bad loans in the banking system:

    China Daily:

    Projects newly started this year totaled 18,462, a slight drop of 71, while total planned investment reached 1.06 trillion yuan, up 42.7 percent year on year, despite the government’s pledge to cut the number of new projects from late last year in its effort to squeeze credit.

    “That makes the (government) cap of 7.5 trillion yuan far from enough to sustain these projects,” said May Yan, an analyst at Nomura International (HK) Limited.

    Based on the NBS data, the average investment in a newly started project rose to 58 million yuan from 40 million yuan a year ago, which means the scale of these new projects has swollen, and some of them may be large infrastructure projects requiring additional input for many years, Yan said.

    “That must bring continuously thriving demand for credit and raw materials,” Yan said, estimating new credit this year would reach 10 trillion yuan if the investment trend in the first two months continues.

    “Otherwise, many existing projects will be short of funding and non-performing loans will rise at banks, because, while some projects can be temporarily suspended, many cannot.”

    Read more here >

    Join the conversation about this story »

  • Brighter Planet, Founded in Vermont, Sees Brighter Future in Bay Area

    Brighter Planet logo
    Ryan McBride wrote:

    It’s another win for the Bay Area’s formidable social networking cluster. Brighter Planet, a provider of online and offline products that aim to help people and businesses reduce their carbon footprints, is downsizing its Vermont offices and expanding in San Francisco, company CEO Pattie Prairie says.

    The startup, which was formed by students and a faculty member at Vermont’s prestigious Middlebury College in 2006, is moving out of its headquarters in Middlebury, VT, at the expiration of its office lease this month, Prairie says. The CEO and the company controller plan to stay in the Green Mountain state in a smaller office just south of Burlington, but more and more employees, many of whom are Middlebury College alumni, are moving to the firm’s San Francisco office. News about the firm’s move to San Francisco first appeared late last month in Middlebury’s Addison County Independent newspaper.

    Brighter Planet has found that California has a more fertile business landscape than Vermont’s rolling green hills. The firm, which launched a social Web app for the environmentally conscious set last year, is following in the footsteps of other social Web firms—most notably Facebook and Twitter—that are based in the Golden State. California is also one of the most progressive states in taking measures to combat climate change, enacting some of the strictest rules in the U.S. on minimum gas mileage for automobiles and carbon dioxide emissions.

    While living “green” in Vermont is more the norm than a lifestyle choice, it almost goes without saying that the small state cannot compete with the scale of sustainability-oriented business activity in California. For Brighter Planet, having a base of operations in San Francisco also brings it closer to a large number of potential customers. according to Prairie. The company started out by supporting Brighter Planet-branded Bank of America …Next Page »

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  • A Neuropathy Success – My Doctors Tell Me to Keep Taking the Nerve Support Formula

    A Neuropathy Success – My Doctors Tell Me to Keep Taking the Nerve Support Formula.

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