Thursday, December 22, 2011

12 economic things about Christmas and 2011

Many people always wonder, how does Santa build all those great toys and gifts and get them to every home around the world in just one night?  Well, the truth is, Santa requires alot of help from the global economy, and in 2011, those foundations were causing much grief to the jolly ole elf.

So to celebrate the business model and economic processes of the North Pole corporation, Tick by Tick was kind enough to provide the 12 economic facts of Christmas here in 2011.

  1. In the last 12 months, the Federal Reserve has increased Money Supplied to the Economy (M2) by 9.9%.
  2. Despite the Insolvency of Europe. If you had shorted EURUSD at this very day last year, you would have only made a 0.7% profit.
  3. The Greek Stock Index (ASE) has outperformed Citigroup by 10.36% if held for the last 5 years. If you discount the reverse stock split, Citigroup is now trading at $2.60 vs. $55.70 in 2007.
  4. Consumer Goods producer Procter & Gamble can now borrow money over a 5 year period for less than every Eurozone member with the exceptions of Germany and Finland.
  5. Linkedin, Pandora and Groupon are all loss leading companies. Yet, if you had bought their stock at IPO, you would have made +171%, 8.9% and 50% in the first days trading.
  6. China's stock market is now trading at the same level as it was during Q3 of 2000. During this period, Chinese GDP has almost tripled.
  7. The sum of all US debt both Public and Private equates to $56tn with underfunded future liabilities of $1 037 000 per capita. The official US public debt figure reached 100% of GDP just yesterday.
  8. "Legendary" Hedge Fund Manager John Paulson, about whom a variety of books have been written, has lost over 50% of his funds value in this past year.
  9. In a Bloomberg poll held during December 2011, eleven Sell Side Analysts predicted, on average, that the S&P 500 would grow by 11% to 1379. Of these, the most bullish was Goldman Sachs who openly predicted a 17% rally. The index of the 500 largest American companies is currently down 1.49% YTD.
  10. Being long S&P Volatility has been a successful strategy for 4 of the last 5 years.
  11. In the last month, Bloomberg have published 25 179 articles with the words Europe and Concern included in the prose.
....And Finally
12. Santa has to visit 832 Homes per Second to deliver all of his gifts.

Merry Christmas to all, and to all a good.... wait a moment... where did I put that Mayan Calendar.


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