An economic trend getting a lot of attention recently is emerging market trade facilities. Banks are struggling with the fact regulatory capital now not only must be applied to lending facilities but operations as well. They are looking to shed both - for short and long-term trade.

On the other hand, emerging markets continue to plow through the recession. Look at my column for The Examiner.

Business and Finance

Hartford International Trade Examiner

Holiday Investing and Bonuses

December 10, 8:38 AM

Hartford International Trade Examiner

Maurice Johnson

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The English have thrown down the gauntlet regarding taxing banker bonuses at 50%. The French may follow suit - jury out on the Germans and the US will likely not do much. There has to be massive pressure on the White House to enact some sort of measure to mitigate the bonuses with a 10+% unemployment rate, a taxpayer bailout of Wall Street and 0% interest rates.

Traditionally, the US has been loathe to intervene in compensation and even the "Payment Czar" Feinberg has proven ineffective. However, my prediction is that Americans will not take too kindly to nice pay packages at institutions having accepted TARP funds in a moment of crisis and then repaid them.

On the other hand, what's the FED Window? It's been sitting there for 60-something years whereby banks can borrow from the FED at overnight rates to ensure liquidity. Taxpayer subsidy? - yeah. System equilibration and necessary? - most definitely.

What I love the best is the ol' "talent" argument - "if we don't pay top salaries then we lose top talent."

Hello! Did you not see above the 10+% unemployment rate. Where is this top talent going?

Which brings me to my next point, trade finance.

There are a lot of funds and investors looking at this asset class. This is an opportunity for CT investors and businesses to participate in a growing trend. Since the days of the Levantine (Lebanon) and formalized by Locke and Adam Smith (Mr. Invisible Hand of Greed) - people "get it". Comparative advantage necessitates trade. Countries produce that product that they are the most competitive in and export to other countries that are not as competitive. It actually works.

Is it rational for the US to produce automobiles? VW announced a "relationship" with Suzuki - a major auto provider in India of small autos. Comparative advantage - Makes sense. I find the US auto manufacturers plans "challenged." So do numerous Congressional committees.

Holidays. Many of my readers are heading off shortly for visits to rellies or just chilling at home. Be safe and enjoy the annual respite from a tough year. Wear a seat belt (Officer Safety Dog just got dinged with a ticket as you know) and no drink driving (that will make Officer Safety Dog very very upset).

All the best and may the Holiday Spirit treat you and your loved ones well! Please stay safe and enjoy.

Merry merry!

Maurice Johnson

http:/postroadadvisors.com