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Reasons why the U.S. Stimulus spending failed to give the economy the boost it needed.

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Factors making Russia different from other emerging markets are the foreign exchange reserves of $497 billion. From mid 2009 to the end of 2012 portfolio inflows were only 1% of GDP, according to Morgan Stanley. Problems in Russia include growth slowing to 1.5% and higher inflation with reliance on oil revenues. Russia is still dependent on oil and gas revenues and has not diversified the economy. Foreign investment is limited.

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Subprime also includes high rate loans that higher income borrowers used between 2004 and 2006 to buy homes that had inflated prices. And these loans were heavily marketed by mortgage lenders and in the later stages of the boom by thrifts and banks who got into the act also. As a result every corner of the country and every income bracket borrowers have been caught up in the high rate borrowing most were overstretching themselves to meet the higher prices of homes as prices went up. This is the finding of a research done by the WSJ of 130 million home loans in the past decade with particular focus on the period 2004- 2006 when the worst aspects of this bubble were taking place. Note that about $600 billion in adjustable rate loans will adjust by the end of 2008. And a total of 1.5 trillion dollars of high rate loans were made in 2004-2006 so more ogf these high rate loans will adjust in 2009. Places like Las Vegas, Nevada, Stockton, California, and Fort Myers, Florida and these states may be the hardest hit but the problem is spread nationwide is what the Journal's research suggests and is also not limited to poorer borrowers. ...

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Governor Pawlenty of Minnesota will be in a quandary if he vetoes the Minnesota Subprime Borrower Relief Act because he will be described as insensitive if chosen as McCain's running mate. Essentially this bill helps needy borrowers. Minnesota according to a research group Housing Link will see a 39% increase in foreclosures in 208 and is described by some homebuilders as F- in its rating for conditions in the housing market.

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This article by Saeed Shah and Syed Hasan describes the Taliban factions from the tribal areas that control parts of Karachi, Pakistan's main commercial city on the Arabian Sea. It provides a detailed map showing the outlying areas around the city centre, especially the shantytown areas and the areas with Pashtun majority population controlled by Taliban with roots in the tribal areas. The Taliban charge taxes and adminster law in the areas they control. A major operation was launched since Sept. 2013 by the Sharif government to free this key city of Pakistan from Taliban control and the wave of kidnappings, extortion and other violence from Taliban members. About 168 police officers have been killed in the efforts to control the city, but areas under Taliban control are still hard to patrol by government police and special Ranger force. Karachi anxiously awaits the result of peace talks of the Sharif government with Taliban. If the talks fail and an operation is launched against Taliban in tribal areas the repercussions will be felt in Karachi. Shah and Hasan provide a excellent picture of the tribal loyalties, religious extremism and entrenched culture of violent activity that extends from the border tribal regions of Pakistan into the commercial centres such as Karachi that is a vexing problem for the Sharif administration, police, business and ordinary citizens....

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The problem of information providers is linked to the problem of the recipient of the information- the common man in America. For the common man in America these are distant places with strange cultures and manners of living, remote from his everyday existence in an industrialized country. Why should the common man in America care if a small fraction of GNP and a trained military with advanced equipment will be sufficient to deal with situations in remote places. A fast growing economy between 1950- 2000 could also absorb the costs of local conflicts. The reason the common man in America should care is that the economy is expected to grow slowly, so that poor information leading to poor decisions on allocating limited and declining resources for different local conflicts- a war in Iraq costing 1 trillion dollars, and a war in Afghanistan 1 trillion dollars- can compromise future economic security, investment in America and overall defense needs. Especially when money wasted with poor decisions cannot be retrieved or put back in the Treasury, and creates future problems....

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Criticism of the European Central Bank policies and Mr Trichet's role.