China defaults

Henry C.K. Liu hliu at mindspring.com
Wed Feb 3 08:19:12 PST 1999


As I wrote in an earlier post (Subject: Re: Stocks and GDP, Date: Wed, 27 Jan 1999)

It is a game where profits are privatized, and losses are socialized and express themselves in high interest rates and high unemployment and depreciation of local currencies. In that sense, the American/global economy is already half socialistic: the loss half. The question is: when are we going to socialize the profit half for balance.

Henry C.K. Liu

Michael Pollak wrote:


> Apropos, James Grants says in his newest newsletter:
>
> <quote>
>
> Recently, the Chinese government disowned any responsibility for the debts
> of failed "international trust and investment corporations," or "Itics,"
> claiming -- as _The New York Times_ reported -- that "gone are the days
> when foreign bankers could rely on political connections as a substitute
> for proper credit-risk analysis." It's a funny old world when the
> communists stand up for the integrity of credit analysis while the
> capitalist continue to socialize the risk of loss.
>
> <endquote>
>
> __________________________________________________________________________
> Michael Pollak................New York City..............mpollak at panix.com



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