Category: Capital markets

Fiscal autonomy = Political autonomy: Part 2, Obstructing his policies

1 December, 2017 (09:00) | Borrowing, Capital markets, China, Cities, Development, Government, Housing, money laundering, Municipal finance, Politics, Speculation, SPVs | No comments

By: David A. Smith [Continued from the previous Part 1.]   As we saw in Part 1, using as the jumping-off-point a disappointingly credulous article in the Economist (November 16, 2017), China’s provinces, territories, and municipalities have indulged in an orgy of off-balance-sheet financing, using Local Government Financing Vehicles.  They did so partly for fiscal […]

Fiscal autonomy = Political autonomy: Part 1, Not subject to the same rules

29 November, 2017 (09:00) | Borrowing, Capital markets, China, Cities, Development, Government, Housing, money laundering, Municipal finance, Politics, Speculation, SPVs | No comments

By: David A. Smith   As every child who’s ever had an allowance knows, among its many virtues money provides autonomy – and almost as good (sometimes better), unobserved autonomy – the freedom to buy what I want, not what my distant imperious parent wants, and not have to listen to a lecture about it […]

Bail out? Bail in?: Part 2, Italians aren’t stupid

6 July, 2017 (08:30) | Banks, Capital markets, Eurozone, Global news, Italy, Markets, Recapitalization, Speculation |

  By: David A. Smith   [Continued from the previous Part 1.]   As we saw in Part 1, the Italian government is following in a series of national governments (previously Greece, before that Spain) that when confronted with a Brussels-issued ultimatum, reject it:   “We accept it!” “We reject it!”     Sources used […]

Bail out? Bail in?: Part 1, Investing might be a bad choice of words

5 July, 2017 (09:00) | Banks, Capital markets, Eurozone, Global news, Italy, Markets, Recapitalization, Speculation |

  By: David A. Smith   Is this really going to work?   As a longstanding fan of the snarky voice of Tyler Durden, one of the pseudonymous authors of the financially morbid, always incisive, and scarily provocative Zero Hedge (which, for example, thinks Uber’s market cap is about to collapse like a flash-frozen soufflé), […]

“Great job! You’re fired!”: Part 2, You’re fired!

1 December, 2016 (09:00) | Capital markets, China, Finance, Global news, Government, Lou Jiwei, organizational behavior, Politics, Speculation |

By: David A. Smith    [Continued from yesterday’s Part 1.]   As we saw in yesterday’s Part 1, using as source material a Wall Street Journal (November 7, 2016) story coupled with a personal experience from thirty-plus years ago (sepia font), Lou Jiwei had been hand-picked as China’s Finance Minister by none other than Xi […]