You can't trust China.
I'm not talking about the government. I'm talking about business. Although many people will still insist China is a "communist" country, I'm pretty sure that "If Marx were living today, he'd be rolling around in his grave," as Randy Newman sang.
China today is a brutally capitalist economy with a kleptocratic upper crust. Before you get into high dudgeon over that, consider America under Ulysses S. Grant.Just as Civil War veterans were raking it in with both hands during the 1870s, so descendents of China's generals are doing the same today. Just as America had yet to see the wisdom of following copyrights in the 1870s, so it is with China today. Just as America's boom of the 1870s masked the brutalities of industrialization, and genocide against native people in the West, so it is with China today. What changed things here wasn't just the government -- the reforms of the 1880s were very superficial. What changed things was the cold hand of organized capitalism, with John D. Rockefeller rationalizing the oil industry and J.P. Morgan rationalizing everything else. It was the "trusts" that were the gateway to market reform, because the trusts did indeed reform the market, in the name of efficient allocation of capital.
|Jay Gould, robber baron|
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV