Street Walk Art-Shockingly Realistic!

The Amazing chalk art man is back.

This time he has created more fantastic art pieces on the sidewalk.

Look at these. It is a marvel that he can create such realistic three dimension street walk art.

What a genius!

The US Economy: In Positive Territory

Reuters reported that the US economy grew in the third quarter for the first time in more than a year as government stimulus helped lift consumer spending and home building, fueling an unexpectedly strong advance.

Signaling the end of the worst recession in 70 years, the Commerce Department today said the economy expanded at a 3.5 per cent annual rate in the July-September period, snapping four down quarters with its fastest growth pace since the third quarter of 2007.

The report, which followed improving third-quarter corporate earnings, lifted stock markets around the world and the broad S&P 500 index of US stocks rose more than half a percentage point at the open. Prices for US government debt and the US dollar fell as traders switched out of safe havens and into riskier assets.

Growth was generally broad-based, with solid gains in consumer spending, exports and home construction. But it was also driven by government programs like the popular “cash for clunkers” incentive for new auto purchases and an US$8,000 (RM28,000) tax credit for first-time home buyers.

The auto discount program ended in August and the home tax credit is due to expire next month, although Congress is working on a plan to extend it.

Stripping out auto output, the economy would have expanded at only a 1.9 per cent rate in the third quarter.

“Better than expected GDP is confirming that the Great Recession has ended,” said Kevin Flanagan, fixed-income strategist for Global Wealth Management at Morgan Stanley in Purchase, New York. “The question going forward is, is this more of a statistical recovery or are we going to get some meaningful momentum on a sustained basis?”

Officials from the Federal Reserve — the US central bank — meet next Tuesday and Wednesday and will sift through the economic tea leaves to try to determine whether a sustainable recovery is building. They are widely expected, however, to keep stimulative monetary policies in place for some time.

Consumer spending, which normally accounts for more than two-thirds of US economic activity, surged at a 3.4 per cent rate in the third quarter, the fastest advance since the first quarter of 2007. Spending had fallen at a 0.9 per cent pace in the previous quarter.

Residential investment jumped at a 23.4 per cent rate, contributing to GDP for the first time since 2005, after declining 23.3 per cent in the April-June period. A housing slump had been the main factor behind the economy’s downturn.

A sharp moderation in the pace of inventory liquidation by businesses also supported recovery in the third quarter. Business inventories fell US$130.8 billion, slowing from the record US$160.2 billion plunge in the second quarter. The change added nearly 1 percentage point to the growth in GDP.

Analysts are hoping that the slowdown in the inventory decline by businesses will continue to support the economy in the fourth quarter, even as consumer spending is expected to retreat under the weight of the worst labour market in 26 years. With inventories at a lean level, any advance in consumer spending is more likely to lead to an increase in output.

Excluding inventories, GDP rose at a 2.5 per cent rate compared to a 0.7 per cent increase in the second quarter.

The weak dollar boosted exports, but a rise in imports subtracted from real GDP during the quarter. Federal government spending contributed to growth, but both state and local governments were a drag.

Business investment fell at a 2.5 per cent pace, with spending on non-residential structures dropping at a 9 per cent rate. A lack of credit has hit the US commercial property market hard.

A separate report from the Labour Department showed the number of US workers filing new claims for jobless benefits dipped by 1,000 last week to 530,000. Analysts polled by Reuters had forecast claims to fall to 521,000 from 531,000.

The number of people still on jobless aid after an initial week of benefits slid by 148,000 to 5.8 million in the week ended Oct 17. It was the lowest reading since March, hinting at some stability in the downtrodden job market.

This is good for global trade and stock markets.

Cautious View from Bank Negara

At its meeting on 28 October, Bank Negara has decided to leaves the overnight policy rate (OPR) unchanged at 2%.

In a statement yesterday, Bank Negara said the outlook for the global economy continued to be uncertain, with recovery likely to be slow and uneven in view of the ongoing adjustments.

However, in the domestic economy, stronger evidence had emerged to suggest conditions were improving and a recovery in economic activity was gaining some strength, the central bank said.

“These improvements are more broad-based and are reflected in stronger labour market conditions, consumer and business sentiments, industrial production, financing activity and external trade.

“These positive developments are expected to continue into 2010, with growth in the domestic economy expected to continue to be supported by existing policy measures and the growing confidence in the private sector,” it said.

Bank Negara said with improving domestic economic conditions, and as price pressures and inflationary expectations expected to remain contained going forward, the assessment is that the current monetary policy stance was appropriate and would continue to provide support to economic activity.

Bank Negara said consumer prices declined at a slower rate in September. It said the decline in prices largely reflected the cumulative fall in fuel prices since June 2008 and the easing pressure on food prices.

“The decline in consumer prices, however, is expected to be temporary. Excluding further unanticipated price adjustments and external influences, inflation in 2010 is projected to be positive but remain subdued,” it added.

I guess the "feel good" sensations for the local economy are yet to be felt and caution rules the the minds of these central planners that savers' interests should still be sacrificed for the interest of business!

Maxis the Marvel Returns!

Yes, this is the largest public offering in the history for Malaysia as far as an IPO is concerned.

Maxis Bhd’s initial public offering (IPO) will see the sale of 2.25 billion Maxis shares equivalent to 30 per cent of the company to new investors with an indicative offer price of RM5.20 per share.

“This is by far the largest public offering the country has ever seen,” said chief executive of CIMB Group, Datuk Nazir Razak, in a statement released during Maxis’ prospectus launch here today.

CIMB Investment Bank Bhd, Goldman Sachs and Credit Suisse are joint global coordinators for the IPO.

Based on current time-lines, the pricing for the IPO is expected to be concluded by Nov 10 and Maxis is expected to be listed on the Main Market of Bursa Securities on Nov 19.

At listing, it is envisaged that Binariang GSM Sdn Bhd through Maxis Communications Bhd will effectively own 70 per cent of Maxis, the statement added.

What a Theory!

This is a very logical way of explaining intelligence!

I don't think you have ever heard the concept explained any better than this ... ....

'Well you see, it's like this .. . . A herd of buffalo can only move as fast as the slowest buffalo; and when the herd is hunted, it is the slowest and weakest ones at the back that are killed first.

This natural selection is good for the herd as a whole, because the general speed and health of the whole group keeps improving by the regular killing of the weakest members.

In much the same way, the human brain can only operate as fast as the slowest brain cells. Now, as we know, excessive intake of alcohol kills brain cells. But naturally, it attacks the slowest and weakest brain cells first.

In this way, regular consumption of beer eliminates the weaker brain cells, making the brain a faster and more efficient machine. And that is why you always feel smarter after a few beers...'

So bring out the chilled glasses ,won't you?

Best Definition of "Rape"

I think that this must be one of the few honest and best quotes of the decade.

Judge Judy to prostitute: "So when did you realize you were raped?"

Prostitute, wiping away tears: "When the check bounced."

Petrol on Free Float?

Bernama reported that the Second Finance Minister, Ahmad Husni Hanadzlah did not discount the possibility that petrol price at the pump could follow the market price or without subsidy once the restructuring of petrol subsidization is implemented early 2010.

He said with the new structure, the offer of subsidy will be more targeted to the qualifying group or the holders of MyKad to enjoy the subsidized petrol price.

“The system is being developed and will be implemented between the first and second quarter,” he told reporters.

So what is the means test for subsidized petrol since this could differ from rural and urban areas?