Early this month Martin Wolf had another of his very interesting articles, this time on China, which I think suggests some of the concerns we must have about the upcoming adjustment. Wolf argues that it may be useful to think about Japan as a model for understanding the adjustment process in China since the Japanese model …
Read More…Category: Liability management
The unacceptable behavior of the market
Last night I arrived at my family’s home in Spain just in time to catch Spain play Italy. The whole family and lots of friends watched it, while feeding on great seafood and lots of wine, at a neighboring chiringuito on the beach, and I guess if you weren’t there you can only imagine the excitement. I suppose this spectacular win …
Read More…Zaiteku and China’s January inflation
A large part of my newsletter earlier this week discussed emergent scandals in the railway industry and their implications for the overinvestment debate, and this was even before the Alibaba scandals broke, but I think a lot more interest this week surrounded the inflation numbers. Last week the National Bureau of Statistics released inflation data …
Read More…Companies need stable capital
There is an interesting article in yesterday’s Xinhua headlined “Capital shortages top risk for China’s SOEs.” This seems at first counterintuitive given China’s rapid reserve accumulation, but the explanation may be in the article itself. According to the article: Lack of capital was the biggest risk facing China’s centrally-administrated State-owned enterprises (SOEs), according to …
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