Go West California

February 2012

Global Economic Growth

World EconomiesDecelerating

Not Collapsing

Advanced EconomiesAvoid Recession

Except Euro

Slower Growth

Emerging EconomiesWeaker Growth

Deteriorating External Environment

Slower Domestic Demand

U.S. Economy

Housing Affordability Index

Apartment Rent Increases Y/Y

Rent vs. Own

Rent Increases and Desire for Homeownership

Change In House Price

Home Prices w/ and w/o Distressed Sales

0

0.5

1

1.5

2

2.5

3

3.5

2009 2010 2011 2012

U.S. Economic Growth (% Change Year over Year)

Forecast

Zero

Will Euro Survive?

Recipe for RecessionCredit Crunch

Fiscal Restraint Low Confidence

- 5

- 4

- 3

- 2

- 1

0

1

2

2009 2010 2011 2012

Eurozone Economic Growth (% Change Year over Year)

Forecast

Zero

Eurozone Jobless Rate

What to Do?Austerity

Restructure LoansFiscal Union

Breakup

IreIreland

Outstanding

Portugal Greece Spain IItaly

Outstanding Debt by Country

Asia: Go West

Asia’s Contribution to Global GDP Growth

AsiaNot Just Cheap

Goods

Computational Photography

China

Who’s Bigger? China or Japan

ChinaBig Consumer

China’s Love Affair with Cars

Buy a Car and Buy a Flat

Growth, Not Inflation

China RisksEurope

Real Estate Local Gov’t Debt

New Home Prices in China 70 Cities

China’s Trade Surplus

Chinese Currency Appreciation

China: Current Account Surplus % GDP

2.7%

10.1%

U.S. Says

Japan Unemployment Rate

Japan RisksExports to Europe

Strong Yen Recovery after

Tsunami

Wise, Strong, Rich

Risks Medium-termEuro: Sovereign Debt CrisisU.S and Japan: DeficitsChina: Real Estate BubbleOil: Iran Supply Shock

panWeaker Food PricesVolatile Oil Prices

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