tag:blogger.com,1999:blog-34323687.post8185088397198049595..comments2024-03-29T12:26:35.581+00:00Comments on Macro Man: Policy Lending May Not be Your FriendMacro Manhttp://www.blogger.com/profile/12324967552369915949noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-34323687.post-70762528444195756272010-11-18T00:28:43.053+00:002010-11-18T00:28:43.053+00:00Dr Chaos, maybe so until your banking system falls...Dr Chaos, maybe so until your banking system falls on its rear end.... having spent my first year or so in the business looking at Chinese NPL pools I assure you that all those capital raises at Chinese banks generally are needed. I spend a lot of time making fun of Chalco but at least they pay their coupons - many aluminum smelters now don't and no one wants to buy them.Nemo Incognitohttps://www.blogger.com/profile/07345185457108156269noreply@blogger.comtag:blogger.com,1999:blog-34323687.post-77667673599835248902010-11-17T23:24:58.739+00:002010-11-17T23:24:58.739+00:00The intent of Chinese policy lending is NOT to yie...The intent of Chinese policy lending is NOT to yield profitable lending, or profitable companies.<br /><br />It is intended to yield a wealthy and powerful nation.<br /><br />Technology manufacturing requires intense, and concentrated investment and the long-term expertise of key employees. A profit oriented company will fail and eliminate such people in a downturn. These downturns can be greatly exaggerated by non-profit-seeking state-directed expansion combined with hypermerantilist trade and currency policies. This effect is not unintentional. <br /><br />The purpose of the Chinese policy is to acquire manufacturing capacity and expertise in technology, and destroy the technical capability of competitors.<br /><br />Because of competitive substitutability and high capital investments, technology manufacturing is substantially less profitable than other corporations, but it contributes far more to net GNP and national capability. Compare to highly-profitable rent-seekers like 'brand names', institutionalized financial institutions, feudal landowners or Mafia protection rackets. Technology manufacturing is the worst choice for a shareholder, and the best choice for human society.DrChaosnoreply@blogger.comtag:blogger.com,1999:blog-34323687.post-46207267353070491792010-11-16T19:51:22.144+00:002010-11-16T19:51:22.144+00:00Bronte Cap had some good stuff on that sector (spe...Bronte Cap had some good stuff on that sector (speaking as a dilettante).<br />Thanks for the AUD crosses reminder, had fallen off my radar, but I think a general point about avoiding USD for a while is worth making too, even if some crosses are messy.<br />& thanks for reopening anon<br />keep up the good work TMM<br />Cheers, JLAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-34323687.post-47426275588151281112010-11-16T13:15:00.266+00:002010-11-16T13:15:00.266+00:00I like your EURAUD technically. I was looking at ...I like your EURAUD technically. I was looking at EURNZD, GBPAUD too and thinking they looked like great buys this weekend too and AUDCHF is a bearish Gartley pattern.<br />Even AIB looks good at the momentNichttps://www.blogger.com/profile/15083151714732237616noreply@blogger.com