third world with expensive taste: pertpetual appetite for imports in both public and private sector

A country like the Philippines will always have an appetite for imports. Now that we're bringing more money in via the OFW and BPO dollar superhighways we're also spending more of it via imports. With infrastructure spending on the rise, we have another reason to smile. But the private sector seems to be reviving its fancy taste.

Public Sector Spending
The Asian Wall Street Journal reported a surge in imports in the Philippines and associated it with rising oil price and infrastructure spending. If there is one thing we should spend on I'd say its infrastructure. I can only be happy to hear that we're spending more on infrastrucure. Yet, I still wonder where that infrastructure is. I don't see many new bridges, flyovers or roads.

Private Sector Spending
Just the other day I saw a rare site. In a single gas station, I saw two porsches, and a lamborghini. These were the new models. I thought to myself that they probably belong either to a cabinet member or a stock trader that rode the way last year.

I also notice that there has been a surge in new and expensive cars. On any given day, I'm no longer surprised to see a Benz here and a BMW there. We're a third world country with expensive taste.

Comments

Post a Comment

Popular posts from this blog

abundant information: globalization's irony

In this day and age, we see ironic things like a stock trader in the United States worried about pigs being stolen in China. There was "pignapping" in China, Kosovo declared its independence and the U.S. government is working on putting more money in the pockets of overspending Americans. News like this and more is readily available via the internet. Sometimes the funniest headline can be considered as a relevant concern for a trader. Take for example the "pignapping." Silly as it seems, the surrounding circumstances of the devastating winter in China and the falling supplies of pork can cause concern. The chinese are known to have a ravenous appetite for pork, some even use it synonymously with the general word, "meat". Depserate acts like a pignapping can give us an idea of how bad its getting and contribute to other factors to justify a conclusion that inflation in China is getting to be a real problem.
Read more

cheers to the rally

The market is only less than twenty points shy of its resistance at 2600. Tomorrow will be interesting. Will it break above and finally break the downtrend and possibly climb to 2900? Or will the PSEi disappoint all of us again and accelerate the downtrend? Short trends cause too much excitement and anxiety for my taste so I won't bother with making an intelligent guess. Right now, I'm just enjoying the show and looking for good entry points for a long play.
Read more

signs of hope

The market's movement last week shows us signs of hope. 2700 was a level that some TAs pointed to as a possibility. While that may still be true at this point, it also seems that there is a possibility that we'll see the bulls take charge for a change. Tsupitero's says the level to watch is 3333. High value turnover breaking above this level will point to a rally that will likely push to the higher end of the market's current consolidation between 2900-3900. We may finally be able to find good short term trades with a lot less trouble.
Read more