Sunday, October 19, 2008

The state of capitalism as we know it

I know the news of late leads 99% of folks to the conclusion that it has been a bad month for capitalism. Little noticed is this little news from China last week:

China allows farmers to transfer land-use rights

Just my humble opinion, but in the big scheme of things I really think that news is bigger than even the calamitous financial news across the planet. A billion Chinese citizens gaining some of the fundamental rights of property ownership is more important to the future than most anything else in the news of late. It may not seem as significant to our investment returns this quarter, but for what it means a decade from now?? Still, I bet most Americans know much more about Willie Parker's health this weekend.

Except in France maybe? I mentioned the still mysterious case of French rogue trader Jérôme Kerviel a few days ago. Just an anomaly from the past? A French bank had to disclose that it 'lost' another $800 million in an equally ill-explained 'scandal'. Nobody notices financial news of anything under $100 million these days.

OK.. back to our regular programming...


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