Economy: In Consumers We Trust X

In the recent days there was much talk about an alleged double-dip recession in the U.S.. But the doom & gloom fueled by some notorious fear mongers doesn`t have a foundation. The hard data show that the motor of the economy is still running smoothly.

Today the U.S. Commerce Department reported that the consumer spending grew in July by 0.8 %. Consumer spending is very important because it accounts for 70 percent of economic activity.

The Commerce Department also told that personal incomes increased 0.3% last month. That is an encouraging number. In spite of the sluggish job market the majority of the Americans enjoys rising incomes. This should fuel the consumer spending in the fall.

New York: After The Storm

Irene, downgraded from a hurricane category 1 to a tropical storm, has passed the city. I had spent the night on the Lower East side at my girlfriend´s flat. This area stayed quiet, I heard no storm noises. But some unfortunate car owner will find his vehicle covered with a big tree branch.

Other areas of Manhattan were hit harder. At some places we saw trees felled by the storm gusts. The southern peak of Manhattan had another problem: The water. Irene, which arrived during high tide, had pressured the water up the Hudson River and caused problems in lower parts of the city. In Tribeca some streets were flooded because a lot of water spilled out of sewers and huge steam clouds signaled problems with the steam pipelines.

There was another phenomena. The streets were almost empty and many restaurants and shops stayed closed. The mass transport system was still shut down and a taxi ride from the south peak of Manhattan to Lower East side costs double of the usual $10.
The spooky street scene reminded me of the movie "Devil`s Advocate" when Tom Cruise stood alone on 5th Avenue and nobody else was to be seen.

But there were many police cars with their flashing lights on. It seems they wanted to show their presence to discourage looters and other suspicious elements, especially in areas which were evacuated. The cops also warned by loudspeaker about fallen electricity wires, which could electrify the street (just like in the movie "Ice Storm) and the risk of falling branches.

Its seems the otherwise very busy metropolis used the storm to take a short time out.

New York City: Preparing For The Hurricane II

New York City 8 pm east coast time. The city is still preparing for Hurricane Irene. Still no severe winds, but it seems the rain is getting stronger. The streets in south Manhattan, usual full of life, are almost empty and dark - somewhat spooky.

Most shops, restaurants & bars are closed. Many places are secured against possible damages by strong winds. They don`t have many customers because the Metropolitan Transport System (subways & buses) is shutdown. Therefore many shop & restaurant employes stayed at home.

There are a lot of police cars on the street. Maybe  the cops have to demonstrate their presence to discourage possible looter to abuse this emergency situation.

New York City: Preparing For The Hurricane

Visiting New York City always delivers a lot of fun & entertainment. Now the city is preparing for the hurricane Irene. The storm is still around 300 miles away and expected to arrive in the evening. But now at 1.30 pm east cost time there are a lot of preparations.

The city already shut the whole Metropolitan Transport System down and stopped subways & buses. JFK airport already cancelled all incoming flights and will be closed soon. My flight back to Europe, scheduled for Sunday 6pm, is already cancelled.

Therefore I am preparing now for a long cosy weekend at the flat of my girlfriend. For some New Yorkers the weekend will be less comfortable. The officials evacuated some parts of the city, like Battery Park and Rockaway Beach. They expect that the storm surge will pressure the tide up the coastline and into the channels like the East River, which is likely to flood some low-lying areas close to the waterfront.

Its a great time for the media who get a lot of viewers and page clicks now. And the mayor gets a lot of tv-time and can show how he cares about his citizens. Maybe that earns him a lot of voters in the next election.

Some minutes ago we were shopping and preparing for the coming storm. We got some candles and stored a lot of water in case the electricity & water supply breaks down. The nearby Essex Market, which has lot of grocery shops, was already closed. Other grocery shops were jammed. There were long lines waiting at the check out. It seems a lot of people are foraging for the storm.

We will see.

Economy: In Consumers We Trust IX

Do you believe in a new global recession? Then you might take a look on Tiffany´s. The luxury retailer reported today that its profit jumped 33 percent in the second quarter, more than the analysts have predicted.

Yahoo Finance writes: "The best performance was in the Asia-Pacific region, where sales surged 55 percent to $173.2 million. Sales in Europe rose 32 percent, while sales in the Americas gained 25 percent. Even Japan, which is still regaining its footing following an earthquake and nuclear scare earlier this year, posted a 21 percent sales increase" (finance.yahoo.com ).

The New Yorkers also gave an encouraging outlook and lifted their guidance (the profit they expect) for the whole year.

These numbers fit well to the strong reports other up-market consumer companies, like Starbucks or Victoria`s Secret, gave in recent days. At least the well-off are still in buying mode and keep the motor of the global economy running.

Movies: Another Earth

 

(Drivebycuriosity) - How would you feel if you accidentally ruined the life of others? How would you deal with that guild? This is the subject of the movie "Another Earth", directed by Mike Cahill (www.imdb.com). The film tells the story of a student girl who caused a fatal car crash. We are learning how she adapts to her new life caused by the accident and how she tries to heal mentally herself and her victim, a male composer. 

The title of the film refers to a phenomena: Another earth appeared suddenly in the sky. The pictures of this huge blue disk in the sky, much bigger than the moon, are pretty. But the mirror planet is just the icing on the cake. The director isn`t really interested in the other earth. We don´t learn much about the twin celestial body. The movie isn´t really science fiction and doesn´t pretend to have a scientific explanation for this event. We just learn that there might be people on the other earth who could be duplicates of ourselves.

Cahill is much more interested in the interaction between the girl and her victim and there lies the charm of "Another Earth". Its fascinating to watch how a relationship develops between the girl, played by the newcomer Brit Marling, and the man, William Mapother, who won a bit fame for his role in the tv series "Lost".

The movie focuses on Brit. Its appealing to watch her clean and almost innocent face. Her expressions make her face a book you can almost read. Doubts, suspicion, comprehension, joy, disappointment and other emotions are moving like clouds over her face.  

"Another Earth" is a slow and quiet film, both fascinating and calming.

Investing: What We Can Learn From Warren Buffett

Doom & Gloom? Not for Warren Buffett. When (almost) everybody sells, he buys. Buffett's holding company Berkshire Hathaway Inc. announced today that it would invest $5 billion in Bank of America Corp. He got the stocks very cheap, the papers had plunged 50 percent from a year ago.

That separates Buffett from the hedge funds and the clueless masses of speculators. In the recent weeks both groups reacted like lemmings. They followed blindly the gloomy herd and dumped stocks with falling prices, a reaction to the speculations about an alleged double-dip recession in the U.S.

In contrast the legendary investor shows a long-term thinking. He demonstrates patience and confidence in the strength of the U.S. economy which shapes the business of the Bank of America.