China Another Enron?
Really, when you think about it , what is the difference between the two, when they both are great benefactors of ghosts and zombies and then go on to apply the most opaque and misleading accounting practises, at all levels of organization with utter impunity? No wonder investors and creditors are heading for the hills. To answer the question: there is no difference - and the results are sure to be the same.
Now that brings up the next question regarding Bernie Madoff...
Moody's Cuts China Outlook to Negative
US ratings agency Moody's has cut its outlook for China from "stable" to "negative".
While reaffirming its current debt rating, the agency warned that reforms were needed to avoid a downgrade.
Moody's said the change in outlook was based on expectations that Beijing's fiscal strength would continue to decline.
The negative outlook comes on the heels of fresh data suggesting China's economy is continuing to lose steam.
Moody's said it was concerned over China's incomplete implementation of much needed reforms.
High debt burden
"Without credible and efficient reforms, China's GDP growth would slow more markedly as a high debt burden dampens business investment and demographics turn increasingly unfavourable," Moody's said in a note.
'Even God Forgot This Place': Welcome to the Oilfields of Azerbaijan
It's unlikely that any European Games spectators will make it to Balakhani, yet the coveted crude that fuels what was the world's first oil industry was originally dredged from this exact spot. In 2013, while Europe was still bleakly trudging through recession, Azerbaijan sold an average of 880,000 barrels of oil per day, and was one of the world's fastest-growing economies for several years.
To be sure, the bond promptly surged, even as the stock priced tumbled, on what was seen as a very bondholder-friendly action (and thus to the detriment of shareholders) and hit a price of 95 cents while the stock tumbled by 15%, generating a 30% return for anyone who had decided to go along. At that moment we urged anyone in the trade to take their profits and go home, taking a few weeks, or the rest of 2016, off.
Today, the equivalent of those bankers are shareholders. They expect not just interest, but tremendous returns on their initial investments. They witnessed the success of Facebook and Google and want those sorts of returns, too. So they put money into a company like Twitter, and then expect to earn back 100 or 1,000 times on their original investment. The fact that Twitter makes 500 million dollars a quarter is considered an abject failure by the investors. And so Twitter must look for some way to “pivot”—that is, change from a super successful company that lets people send 140-character messages, into something else.
https://www.rt.com/business/334108-china-layoff-steel-coal/
http://uk.reuters.com/article/us-china-economy-layoffs-exclusive-idUKKCN0W33D
China Prepares Massive Lay-offs and Compensation
Beijing has prepared a plan to lay off five to six million state workers in the next three years, Reuters reports. According to the media, the authorities are aiming to tackle overcapacity and pollution and have prepared lots of cash to prevent social unrest.
Remember Ghost Cities?
(Curator's Vdeo Note)
China will spend 150 billion yuan ($23 billion) in compensation for laid-off workers in just the coal and steel sectors. The overall job cut could reach 5-6 million workers in sectors facing a supply glut, the media reports, quoting two ‘reliable’ sources close to the Chinese leadership.
The figure will grow according to the report, as more spending will be needed to help other industries. China will also have to pay to handle the debt left behind by ‘zombie’ state companies. These are firms that continue to operate even though they are insolvent or near bankruptcy; some of them continue to pay workers fearing the social impact.
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