Money and Finance
- Bill Gross – February 2013 Investment Outlook: Credit Supernova!
Economist Hyman Minsky did. With credit now expanding, the sophisticated economic model provided by Minsky was working its way towards what he called Ponzi finance. First, he claimed the system would borrow in low amounts and be relatively self-sustaining...
- The Real Origins Of Boom And Bust – By Edward Chancellor
Modern economists do not understand how finance shapes economic activity. They see money as an inert veil draped over the “real” economy. By contrast, in Victorian times the credit cycle was viewed as an essential characteristic of capitalism. Today,...
- China Set To Continue Supersize Binge - By Edward Chancellor
It is easy to see why Chinese premier Wen Jiabao is calling for a “greater emphasis on growth”. China’s property market is stressed and the country’s main export market, Europe, is contracting. Several economic indicators, including electricity...
- Gmo: Something's Fishy In China
A wide gulf separates the two most prominent views regarding China’s future. Faced with slowing economic growth, one side says its leaders will deftly navigate a soft landing, while the other claims it will face an implosion similar to those that befell...
- China's Epic Hangover Begins - By Ambrose Evans-pritchard
Found via Mish.China's credit bubble has finally popped. The property market is swinging wildly from boom to bust, the cautionary exhibit of a BRIC's dream that is at last coming down to earth with a thud. It is hard to obtain good data in China,...
Money and Finance
GMO White Paper: Feeding the Dragon: Why China's Credit System Looks Vulnerable - By Edward Chancellor and Mike Monnelly
The conventional view is that China’s economy has recently experienced a "soft landing" and is now poised for take-off. In this white paper, GMO’s Edward Chancellor and Mike Monnelly tell a rather different story, namely that the Chinese credit system is displaying many of the indicators associated with rising financial instability – most notably, in the explosive growth of shadow banking instruments. As nonbank credit expands, "Red Capitalism" – that is, the ability of Beijing to control domestic credit for public policy purposes - is facing an existential threat.
- Bill Gross – February 2013 Investment Outlook: Credit Supernova!
Economist Hyman Minsky did. With credit now expanding, the sophisticated economic model provided by Minsky was working its way towards what he called Ponzi finance. First, he claimed the system would borrow in low amounts and be relatively self-sustaining...
- The Real Origins Of Boom And Bust – By Edward Chancellor
Modern economists do not understand how finance shapes economic activity. They see money as an inert veil draped over the “real” economy. By contrast, in Victorian times the credit cycle was viewed as an essential characteristic of capitalism. Today,...
- China Set To Continue Supersize Binge - By Edward Chancellor
It is easy to see why Chinese premier Wen Jiabao is calling for a “greater emphasis on growth”. China’s property market is stressed and the country’s main export market, Europe, is contracting. Several economic indicators, including electricity...
- Gmo: Something's Fishy In China
A wide gulf separates the two most prominent views regarding China’s future. Faced with slowing economic growth, one side says its leaders will deftly navigate a soft landing, while the other claims it will face an implosion similar to those that befell...
- China's Epic Hangover Begins - By Ambrose Evans-pritchard
Found via Mish.China's credit bubble has finally popped. The property market is swinging wildly from boom to bust, the cautionary exhibit of a BRIC's dream that is at last coming down to earth with a thud. It is hard to obtain good data in China,...