Mercury Rising 鳯女

Politics, life, and other things that matter

Archive for June 21st, 2009

The ten percent dilution

Posted by Charles II on June 21, 2009

China is expanding state ownership of stock to 10 percent. Kathrin Hille, FT:

Every state-owned company that has listed in China since 2005 must transfer stock equal to 10 per cent of the shares offered to the National Social Security Fund, according to a weekend government edict.

A similar requirement already covers listings of Chinese state-owned companies in Hong Kong…

The shares [which can’rt be traded for at least three years] are estimated to have a market value of Rmb63.9bn ($9.3bn)…

The lock-up periods for a large amount of non-tradable state enterprise shares will expire this year, which could put supply pressures on the market. Analysts estimate the amount of tradable shares in the Shanghai and Shenzhen markets could expand by up to 50 per cent this year as a result.

Since financial analysis quickly renders people comatose, here’s what I think is the nub: China is printing money using stock certificates in order to fund medical insurance. This is likely to cause a decline, if not an outright crash in the Chinese markets, perhaps a weakening of the yuan, and possibly a long-term loss of confidence in China’s capital markets. But it probably makes sense in an overall sense. If Chinese health can be raised, productivity will rise and, with it, standards of living.

I wonder if we could do that in this country.

Posted in China, stock market | 5 Comments »

Not even the best of a very bad lot

Posted by Charles II on June 21, 2009

Dean Starkman of Columbia Journalism Review had a piece on Gretchen Morgenson of The New York Times, calling her “the most important financial journalist of her generation” for her reporting that AIG may have written credit default swaps for Goldman Sachs that did not adequately account for risk, with the result that Goldman Sachs unfairly benefited by the government bailout of AIG.

Granting that the ranks of outstanding financial journalists are thin, one can easily come up with a half-dozen outstanding journalists with achievements that leave Morgenson in the shade. I would start with David Cay Johnston, Gillian Tett, Michael Lewis, Donald Bartlett and James Steele, and others… even Paul Krugman, if one’s boundaries of what defines a journalist are generous.
Read the rest of this entry »

Posted in economy, financial crisis, media, Media machine | Comments Off on Not even the best of a very bad lot

Most Americans Want The Government To Step In And Fix Health Care

Posted by Phoenix Woman on June 21, 2009

In news that will make Pete Peterson cry when he hears it, we find that most Americans would prefer the government rather than private industry to run the nation’s health-care system.

However, our legislators — many of whom have been bought off by people like the billionaire Peterson — are a little deaf to that news. Let’s help them hear us, shall we?

Call your legislators and tell them that you want the public option at the very least (and no, the co-op nonsense of Kent Conrad’s doesn’t count), and single-payer as the preferred choice.

Posted in health care, health issues | 1 Comment »

%d bloggers like this: