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Inquiring minds are tuning into a report on the Ponzi finance setup in China. Our analysis indicates that China’s economy has arrived at that unstable state where speculative and Ponzi finance appear to dominate. China’s private sector debt has increased from 115% of GDP in 2007 to 193% at the end of 2013. reached in 2007.
In the high flying days of 2005-2007, banks around the country relied heavily on these scores to make quick decisions on millions of uncollateralized small business loans, with disastrous results. After all, isn’t the customer’s voice relevant if you are going to finance a plumber or restaurant?
A national survey released in March by the Southwestern University of Finance and Economics in Chengdu, China, found that households across the country had 66 percent of their assets in their homes, a figure that rises to 84 percent in Beijing. The greater risk to China lies in the pervasive consequences of any property bust.
Annual Update Between the end of 2007 and end of 2014, pension plan assets rose from $3.29 S&P 500 2007-12-31 to 2014-12-31 In the same timeframe, the S&P 500 rose from 1489.36 Imagination I have a musical tribute to imagination in regards to pension finances, especially imagination in Illinois. trillion to $3.71
It could represent a hidden vulnerability, especially if backed by domestic currency cashflows derived from overextended sectors, such as property, or used for carry trades or other forms of speculative position-taking. This share was higher than during the pre-crisis period from 2005 to mid-2007.
To help provide a better factual base for this debate, MGI, working with McKinsey colleagues from our Strategy & Corporate Finance practice as well as the team at FCLT Global, began last fall to devise a way to systemically measure short-termism and long-termism at the company level. Earnings quality: Accruals as a share of revenue.
Chicago finances are even worse than I thought which is saying quite a bit because I have written about the sorry state of Chicago finances on numerous occasion. Many of these uses of bond proceeds are not eligible for tax-exempt financing under the federal tax code." Who Is Kristi Culpepper? You should be.
Get Involved The State of the Unions Finances: A Citizens Guide. So refraining from any forecast of what will happen in the near term, it’s sufficient to observe that the economic data is not nearly as strong as widely perceived, and the impact of QE on stock prices does nothing to improve the underlying cashflows.
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