If companies are worth more than what they make in revenue, stock-holders should be penalized for illegal gambling.
China’s stock market bubble: A goring concern
21–30 of 63 posts
Re: China’s stock market bubble: A goring concern
#22Earlier quoted context omitted.
Are China's capital controls really tight enough to prevent Chinese nationals from finding a way to invest in the same stocks on the HK index for a 30% discount? The answer has to be yes - otherwise, as you say, it would be arbitraged away. It's still a bit leaky, but when it leaks it seems that investors much prefer to diversify into ownership of overseas property. Why capital controls? Because China is more nationa…
China follows a nasty policy of financial repression ( https://en.wikipedia.org/wiki/Financial_repression ) in which the interests of "the people" is an afterthought at best. ADDED: combine that with little to no social safety net, and the One Child policy which most? often results in 4 grandparents supported by 2 children supported by 1 grandchild (not quite so bad in the rural areas, but still inadequate, especiall…
Wow. I didn't know that they really lacked the social safety net. So maybe now that they are more industrialized the could have a real communist revolution and see what happens?
Re: China’s stock market bubble: A goring concern
#23I find myself noticing that a lot of the solutions that The Economist proposes are very similar - opening markets, decreasing regulation - make everything more "liberal". They always make compelling arguments for their suggestions but I also find myself wondering whether they ever argue for any alternative
they also advocated for same-sex marriage - in 1996. their liberal, in the classic sense.
their stance on various wars is often questionable though. supported the second iraq invasion.
Re: China’s stock market bubble: A goring concern
#24I find myself noticing that a lot of the solutions that The Economist proposes are very similar - opening markets, decreasing regulation - make everything more "liberal". They always make compelling arguments for their suggestions but I also find myself wondering whether they ever argue for any alternative
The Economist has always been "The answer is free markets! What was the question?". I always find it a reassuring read, in the sense that well-written, well-researched, persuasive articles that I disagree with are a sign that I haven't been completely engulfed by my own little information bubble, but take it with a pinch of salt.
The Economist hast declined tremendously in my opinion.
Poor researched articles, very short articles with little information. You can build in 1 hour a better blog aggregation with more information.
They are the Jehovah's witnesses of "free markets", or at least what the Economist thinks free markets are.
Very little understanding of the underlying systemic problems we are currently facing.
For me it the Economist has become "noise" in the information jungle.
Re: China’s stock market bubble: A goring concern
#25Earlier quoted context omitted.
They also advocate for things like gun control and health care reform in the US. I believe they've also advocated things like a carbon tax, as they give credence to the scientific consensus on global warming. They also tend to be fairly 'practical' in their support for candidates. I recall some years ago when they absolutely laid into Silvio Berlusconi and recommended the left-wing candidate despite Berlusconi being,…
Berlusconi was really the most "business friendly" candidate. His own business, that is :D
That's exactly the comment you are replying to.
Re: China’s stock market bubble: A goring concern
#26I find myself noticing that a lot of the solutions that The Economist proposes are very similar - opening markets, decreasing regulation - make everything more "liberal". They always make compelling arguments for their suggestions but I also find myself wondering whether they ever argue for any alternative
If you instinctively and intellectually adhere to a system of values, why would you advocate something that goes against it?
Any sane ideologue will admit it's a guide rather than an absolute rule; you might be on the right because you believe free-market approaches are generally better, or on the left because you believe tax-and-spend approaches are generally better, but if you're analysing specific cases rather than just touting your ideology then you should spot at least some exceptions.
Re: China’s stock market bubble: A goring concern
#27I find myself noticing that a lot of the solutions that The Economist proposes are very similar - opening markets, decreasing regulation - make everything more "liberal". They always make compelling arguments for their suggestions but I also find myself wondering whether they ever argue for any alternative
They also advocate for things like gun control and health care reform in the US. I believe they've also advocated things like a carbon tax, as they give credence to the scientific consensus on global warming. They also tend to be fairly 'practical' in their support for candidates. I recall some years ago when they absolutely laid into Silvio Berlusconi and recommended the left-wing candidate despite Berlusconi being,…
>I recall some years ago when they absolutely laid into Silvio Berlusconi and recommended the left-wing candidate despite Berlusconi being, in theory at least, the more 'business friendly' candidate. They rightly argued that he was mostly just friendly to his own businesses.
I seem to recall they were rather taken with the unelected technocrat Mario Monti, as prime minister.
Re: China’s stock market bubble: A goring concern
#28If companies are worth more than what they make in revenue, stock-holders should be penalized for illegal gambling.
Ok, I'll bite. Why illegal gambling? Wouldn't it be legal gambling, if anything, since it's condoned (and encouraged) by the government?
Re: China’s stock market bubble: A goring concern
#29> Kemian Wood Industry, which used to boast of the quality of its composite floorboards, took radical steps to deal with the downturn. It switched its focus to online gaming and changed its name.
> A hotel group rebranded itself as a high-speed rail company, a fireworks maker as a peer-to-peer lender and a ceramics specialist as a clean-energy group.
I've heard of pivoting, but this goes way beyond that. Doing a complete 180 on what you're producing/selling and changing your name? That's both fascinating and scary at the same time. As a customer, how do you know whether the company you're buying from will still be around?
Re: China’s stock market bubble: A goring concern
#30Earlier quoted context omitted.
Actually having lived in China for a significant period of time I can say that the answer is to remove capital controls on Chinese citizens and allow them to invest anywhere else. This will deflate the Chinese market bubble(and property bubble) almost immediately, you'll see this happen however when pigs are flying to the moon.
The answer to what question? The policy has to be to defer the bubble collapse as much as possible in hope of the mythical "soft landing". Far more than western countries they depend on continuous economic growth as the tradeoff for lack of political freedom.
Deferring bubble collapses doesn't work so good as they just pop later and bigger.