By Geoff Dyer in Beijing, Financial Times, December 5, 2008
This quote was a beauty. The only thing better than “Heli-Ben” and Bushy dropping moneys from the heavens is the idea that hundreds of Chinese men and woman are going to descend on Floridian property gluts and rescue American homeowners from their levered up losses.
Geoff Dyer’s article was inspired by “SouFun”, which is the largest dot com site in China for real estate. Apparently some 300 Chinese “expressed interest” in soaking in some of fun in the foreclosure sun of California. Oh how times have changed folks. The Chinese are liquid long cash, reminding the USA what being a capitalist means. Buying low, not high.
Since the first week of November, the Chinese Capitalists have plenty of their own “Re-flating” moneys to count. Inclusive of a +6.7% three-day rally to close out this week, the Shanghai Stock Exchange Index has put on a +18% move. This stands in sharp contrast to the depression in some of the homes of levered long American wanna be capitalists who saw the SP500 close down another -2.3% this week, taking the US market’s performance over the same period (from the 1st week of November) to down -13%.
CNBC’s “Fast Money” literally used to get away with espousing strategies of “buy high and sell high-ah!”, while Larry Kudlow used to proclaim his mystery of market faith by having his group thinkers say “free market capitalism is the best path to prosperity.” Watch what these American entertainers do, not what they say. Begging for bailout moneys and government sponsored help is no definition of capitalism. Neither is the notion that buying low and selling high is passé.
Capitalists are called capitalists, because they own themselves and their process… and they capitalize on opportunities to buy low. They don’t need government supports. They don’t need to ask for permission. They are liquid long cash when the lemmings are levered. They may be coming to a neighborhood near you, knocking on your door… looking to mark your home to market!
Just as readily as American Capitalists were 100 years ago, the Chinese are coming.