Hawaiian vacations signal countries’ differing strength
An easy way to see the difference in strength between the U.S. and Asian economies is to look at boring gross- domestic-product figures.
A more enjoyable way would be to check out the beaches of Hawaii. Honolulu is 4,230 miles by plane from Chicago and 3,810 miles from Tokyo, according to WebFlyer.
In June, the number of domestic visitors to Hawaii sank by 16 percent from the prior year to 439,895, according to Hawaii’s Department of Business, Economic Development & Tourism. The number of international visitors fell just 4 percent to 140,967.
Ignorance isn’t bliss.
Are Americans really this ignorant? Among examples John W. Budd cites in a National Bureau of Economic Research working paper are: 18 percent think the sun revolves around Earth, and 35 percent can’t identify Germany as the Allied forces’ D-Day enemy.
In his paper, the University of Minnesota professor found that many Americans also have no idea about their employment benefits, but that may be their employers’ fault. For example, 23 percent of employees covered by profit-sharing plans aren’t aware of it. “Put simply, how can incentives work if employees are not aware of their existence?” Budd asks.
Fantastic farm values.
Not all U.S. real estate is suffering. Farmland values in the Lower 48 states, including land and buildings, surged to a record high of $2,350 per acre in 2008, according to the Department of Agriculture.
Gains in grain and meat prices have helped push up farmland values, with the highest percentage gains coming from the Dakotas and other Northern Plains states. But the surge reminds Citi Investment Research strategist Tobias Levkovich of the housing market earlier this decade. He warns against jumping on the “dot-corn” bandwagon — buying stocks that gain from agricultural growth.
Benefiting from shorts.
“Short sellers” have been blamed for helping to pull down the stock market in recent months. Such investors borrow shares of stock, then sell them and hope that they fall. They can then buy the stock later at a lower price and pocket the difference.
Some academics say short sellers may have helped tip Bear Stearns into collapse earlier this year. Some mutual-fund managers, though, say short selling could eventually have a positive impact. If a rebound occurs and short sellers scramble to buy shares before they rise higher, that pumps up prices. Associated Press
