News Analysis China’s corporate insiders are cheating small American investors of billions of dollars through advance information that enables lucrative trades just before the stock price falls. The total losses that insiders of Chinese companies listed on American exchanges have avoided by selling prior to price drops are at least $10 billion between 2016 and…
China Insiders Steal Billions From US Investors
Two Inflation Approaches, One Likely Outcome
Commentary Over here in the United States, officials at the Federal Reserve have expressed their angst over consumer prices both publicly as well as in private. To the latter, according to the text of the minutes to the FOMC’s policy meeting held last month on March 15 and 16, released Wednesday, though the committee voted…
US Economy: Slowing Growth and Inflation
Commentary Two important economic indicators recently released tell the same three-part story: the post-pandemic recovery continues to proceed nicely; the pace of growth is slowing, but that is to be expected; inflation shows no sign of abating. The first of these indicators is the Labor Department’s employment report. It shows that unemployment has continued to…
Central Banks: Who Needs Them? No One
Commentary As the Federal Reserve hikes its lending rate to a range of 0.25–0.50 percent, murmurs are heard around the world, with financial pundits predicting doom due to the increased pressures imposed on the cost structures of firms that are recovering from the pandemic lockdowns. The Federal Reserve is leader of the group of central banks around the world…
Wisdom of Crowds Isn’t Always Wise to Follow
Commentary The “wisdom of the crowd” isn’t always wise to follow. A recent article by Scott Nations via MarketWatch made an excellent point: “It’s easy to become anxious as an investor. It’s particularly easy to become anxious when war is erupting in Europe, stock markets are gyrating, inflation is spiking, and the Federal Reserve is…
Auditing Takes Center Stage, Especially in China
Commentary The world of financial auditing is rarely the center of attention. In fact, most auditors operate under the simple premise that no news is good news. In China, auditing is at the center of a major problem for real estate developers and the Chinese stock markets in Shanghai and Hong Kong. Auditors are required for…
The Irresponsibility of ‘Responsible Investing’
Commentary The ESG (environmental, social, and governance)-focused investing sector has once again called its standards into question. The $2.7 trillion global market for ESG funds invests in debt and equity of companies purported to be socially responsible. There’s an entire cottage industry formed around ESG including ratings agencies, auditors, and investment consultants. The industry has…
The Longest Housing Crash in History
What would you think if you walked into your favorite grocery store and saw that the shelves were 80 percent bare? It echoes in there. The store is only one-fifth stocked. It’s eerie. Let’s call it “shelf awareness”. What kind of feelings does this evoke inside of you? These store shelves represent the available supply…
Putin’s Inflation? Homegrown Modern Monetary Theory Is to Blame
Commentary Prices of goods and services in the economy seem to be going through the roof, and both consumers and producers suffer from the falling value of their money. Unfortunately, the public turns to politicians in Washington and economists around the world for answers. While President Joe Biden and his administration call it Putin’s price hike, the U.S. Bureau of…
Diesel, Fertilizer Shortages Endanger Food Supplies
Commentary In the 18th century, the average French working man spent about 50 percent of his wages on bread. By 1789, that percentage had increased to as much as 60 to 80 percent and the French Revolution ensued. King Louis XVI and Marie Anoinette met the guillotine. In 1930, a little-known Indian attorney named Mohandas…
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