ABCT and 'Bureaucracy' in China
In their eagerness to keep the pot boiling somehow, somewhere, many finanical pundits are spinning the line that Emerging Markets now offer a form of 'safe haven' from the problems affecting Western credit markets - an angle that finds an immediate resonance with the many who have been seduced by the sheer magnitude of the numbers involved in any description of China's recent rise.
Some of those numbers do not bear such close scrutiny, however, suggesting as they do that a violent credit expansion - one made worse by pervasive government interference in the nascent market - may be nearing its inevitable conclusion.
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Comments (3)
8
Traders just use whatever is working at the moment. China was immune when the rest of the world went loco in July & August, ergo ride China till she falls.
As an investor, I wanted to buy some Hong Kong stocks in July 2006, but didn't because my broker didn't have any traders in Hong Kong, so the fees would have been far too high, more than 30%! One company in particular was trading at a decent price, not too expensive, but not a screaming buy either. Today it is 400% higher. Another stock, the Hong Kong Exchange, has a higher market cap than the NYSE.
Published: September 14, 2007 9:09 AM
Artisan
This article I find even more realistic and threatening now.
One thing is sure, it isn't the right moment to buy gold. Maybe later when everything went bust, right before major devaluation of currencies...
So it's really questionable where to put your assets in safety when that BIG THING comes now.
Published: September 14, 2007 10:45 AM
rtr
Wrong. The only things which are ever traded are that which is valued more in exchange for that which is valued less, WITHOUT TIME, PLACE, or MEANS exception. Imperfect non-omniscient knowledge and information is always the case everywhere.
Mises, wrong. rtr, right. (Ba-da-bind, at least someone has the courage to not lie. Ha. Ha. Nobel Prize # more than you'll ever have. {That's right, I'm *begging* for someone to knock me down a notch.}
Yup, really that simple. ABCT *proved* FALSE. I gotta repeat myself? I was kidding? No. I was wrong? No. "In their eagerness" to type filler CRAP ... nothing could be possibly more embarrassing than so-called Misesians violating the simple fundamental economic rule of TRADE. Nothing WHATSOEVER is exchanged unless that which is received is valued MORE than that which is given away in exchange. EVER! NO MATTER WHAT THE IS IS! No wonder I always take the head position at the table around here when the effort is so weak. Stop holding on so tight, out of blind pathetic worship. QED. 1.) Ha. 2.) Ha. 3.) Ha.
Five, five, five, eight, five, three.
The ABCT is *PROVED* FALSE. Please forward. P.S. Not like this is the first time, either. Really, gimme another "Austrian" with credibility who thinks the "pride and joy of Austrian achievement" ABCT is legit. Here's an epistemological (uh what's that 'Austrian' word signifying the same?) hint, that means it's *NOT* true.
Published: September 16, 2007 6:09 AM