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Goldman founder, Marcus Goldman's son, Henry Goldman, helped create the concept of valuation of companies based on their earning power at the turn of the century. Around this time public finance was in its early stages and credit was based on balance sheet assets. Goldman took public companies like Studebaker, Sears Roebuck and May Department Stores, and formed a partnership with Henry Lehman of Lehman Brothers. He maintained close contacts with Germany during that time. The book by his grand daughter June Breton Fisher is titled- When Money Was in Fashion: Henry Goldman, Goldman Sachs, and the Founding of Wall Street. It an apt title about the Goldman style and culture. When Henry Paulson, former CEO of Goldman was asked during a college reunion what languages he had learned and all about his travels by a classmate, Henry replied that he had learned the language of money and that was the only language he would need.

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Foreign institutional investment in India declined to a mere $172 million in April 2012, from $5 billion in February. Foreign direct investment in India is falling. It was down to $27.5 billion in 2011, with only $4.2 billion in Jan-Feb. 2012.

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A WSJ survey of U.S. housing market prices and inventory in November 2013. Price gains moderated in the 3rd quarter of 2013. Gains were 1% in Orange County, 2% in San Diego, and 3% in San Francisco in the 3rd quarter 2013. Gains were over 20% in the 12 month period ending in September 2013 for San Francisco, Phoenix, San Diego, and Orange County, according to Zillow Inc, real estate website. Increase in interest rates on mortgages and rising prices have reduced the affordability of homes for new buyers.

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It is a reminder of far household debt went up in 10 years. Household debt was only 66% of GDP in 1998, Today it is 96% of GDP, and it is 130% of disposable income. For it to go back to the level only 10 years ago, it would have to drop 30%.

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Th Obama administration's Home Affordable Modification Program, or HAMP, is designed to provide relief to homeowners facing foreclosure. HAMP has also prevented these homes -from the seven million home loans that are delinquent -from joining the overall inventory of homes, and depressing home prices further. Eighteen months after HAMP was introduced, it looks like HAMP has failed to help homeowners to the extent needed to revive housing. Of the 1.3 million modifications extended to homeowners, about half have been cancelled, and about one third or 422,000 homeowners have received permanent loan modifications. The results for July 2010 show that it is slowing down even more. The number of homeowners receiving modifications in July is growing at a much slower rate. 17,000 new trial modifications were started in July, 2010, but 5 times that number of loan modifications were cancelled. HAMP has reduced the montly payment through a lower interest rate and longer term, with the average borrower receiving a montly modification of $500. But even with lower payments and permanent modifications homeowners still have lots of debt. The median rato of total debt payments to pretax income is around 63.5%. And analysts estimate that 20% of borrowers with permanent modifications will re-default. The program had aroused huge expectations, hoping to help 3 million homeowners. Which is why Professor Kenneth Rosen, of the University of California, Berkeley, considers the results embarrassing for the Obama administration. Adding that the Obama administration should be ashamed of these results after all the hopes that were aroused for real help to homeowners. ...

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Job loss nubers for 2009 from the Labor Dept are- February 681,000, March 699,000, April 539,000 as govt payrolls expanded by 72,000. About 8.9 million people work parttime, adding in the people who have given up looking for a job, the underemployment rate is 15.8% in April 2009.

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Shiller says the underlying problems in the economy such as the sociological factors that led to overoptimism about real estate prices and the dot com stocks play out over many years. They are lost in the headlines about the Fed or some short term developments that get cited along with the bad economic news about unemployment. Yet these underlying factors such as the bubble phenomena in housing are what makes these problems so intractable. The bubble in home prices caused a 131 percent rise in home prices in the period 1997-2005, 85% in inflation adjusted terms, according to the Case-Shiller National Home Price Index. The long term expectations of price increases well into the indefinite future lag the price decreases as the bubble bursts, even as the expectations decrease. For 2012 the Case-Shiller survey shows expectations are for a 1% increase in prices. With the increase in the personal savings rate from about 1% in 2005 to about 5% today, Shiller says consumer spending will not support a strong recovery....