Economic Shorts: Volkswagen and a Billionaire’s Chinese Misadventure

Published by clickbroker.blogspot.com.

While the Treasury and Federal Reserve’s “strong dollar policy” is killing our currency, some empirical evidence might be showing its benefit. Volkswagen will soon be rolling out its new Americanized “supersized” Passat from Chattanooga. The car is to be built for America in America. Previously VW could not compete in the American mass market with German built cars.

CEO Martin Winterkorn spoke of benefits beyond anticompetitive exchange rates: “Trends are set in America … A U.S. factory can capitalize on those trends faster.” Speed to market and agility will drive America’s new manufacturing renaissance.

If housing bust billionaire John Paulson got fooled in the Chinese stock market, amateurs don’t stand a chance. Paulson & Co has lost more than $500m after selling its entire holding in Sino Forest, the Chinese forestry company fighting allegations of fraud. I have read many recent stories of Chinese companies reporting different results to American investors than Chinese regulators.

No disclosures.

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