China’s shadow banking system is out of control and under mounting stress as borrowers struggle to roll over short-term debts, Fitch Ratings has warned.
The agency said the scale of credit was so extreme that the country would find it very hard to grow its way out of the excesses as in past episodes, implying [...]
At a time when Europe and other parts of the world are governed by forgettable mediocrities, Recep Tayyip Erdogan, Turkey‘s prime minister for a decade now, seethes with ambition. Perhaps the only other leader of a major world nation who emanates such a dynamic force field around him is [...]
Contrary to popular belief, bankers and politicians are not to blame for the financial crisis. Rather, it’s systemic flaws in the very nature of democracy that allowed financial imbalances to take root.
“Social plateshifts fostered excesses of leverage and a dearth of thrift that brought capitalism to its knees,” David Roche and Bob McKee wrote [...]
Is America following the path of the ancient Roman Republic? Will we, as one of the greatest superpowers in human history, one day crash and burn like the Romans did in the fifth century?
In addition to our excesses, over-indulgences and moral decadence, there are many serious problems [...]
The problem here is that prices can’t stay wrong indefinitely. There is a good reason why classical economists are always so focused on allowing markets to find the correct price level. In that way, markets send the proper signals to potential investors on where money should or should not go. If those price indicators are [...]
The Chinese Communist Party knows it has a problem. A billion Gordon Gekkos are blooming, but moral standards are withering on the vine. Corruption pervades. Villainy abounds.
Everybody seems to be cutting corners. Contractors add too much sand to their concrete, causing bridges and buildings to collapse. Shoddy designs [...]
One of the most influential new figures to emerge in Russian politics predicts that Vladimir Putin’s grip on power will crumble within a year and a half.
Alexei Navalny became well known as an anti-corruption activist, using his internet blog to expose widespread excesses and outright theft by Russia’s political elite.
But he [...]
Socgen Ultra-bear Albert Edwards turns his attention to China, where he warns of rampant inflation and little hope of a soft landing.
The coming downturn will surely separate the investment sheep from the goats. …
The second school of thought takes the view that the more stable the cycle, and the more recessions are [...]
So what is at issue is not whether Chinese growth will slow, but when. … We found that fast-growing economies slow when their per capita incomes reach $16,500, measured in 2005 US prices. Were China to continue growing by 10% per year, it would breach this threshold just three years from now, in 2014.
If you want to know the countries that are going to have big problems in the future then find out which ones are building really tall buildings. It looks like Malaysia is the next one on our list. Saudi Arabia is high on the list too.
Really tall buildings represent the excesses that have built [...]