There really are two related but distinct things people have in mind when they talk about a “hard landing” for China. The first is a rapid deceleration of GDP growth – below, say, 7%. The second is some kind of financial crisis. I think we’re already seeing some signs of the first, and the second is a bigger risk than most people appreciate.
In my last several posts, I’ve focused on the former — the slowdown in China’s GDP growth. I want to switch gears here for a moment and call attention to a rather alarming story involving the latter — the risk of financial instability — which somehow slipped under most people’s radar screens.
Finance News
How Does Marital Status Affect Your Federal Taxes
Laws have always regulated who may marry, the obligations related to marriage and children and whether and how a marriage can be ended. Governments have always put their own social agenda above the pluralism of personal choice. Never in history have governments considered marital relations strictly private.
Looking for a new job? Entrepreneurial Companies Show the Way...
Looking for a new job? Perhaps it’s time to go entrepreneurial. Recent SEC filings show that entrepreneurial companies have been hiring at a red hot pace, skyrocketing 13+% over last year’s levels. The rate of growth far outstrips the relatively modest 3% average increase for non-entrepreneurial firms and exceeds the prior year’s entrepreneurial growth rate of 10%. Though capital markets appear choppy, the US market seems to be celebrating its best job rate increases since the pre-recession 2006-2007 era. Not surprisingly, entrepreneurial companies lead the way. And the good news does not appear to be limited to only economic upswings. Striking differences between entrepreneurial and non-entrepreneurial firms exist during economic downturns as well. According to company disclosures, when the economy turns sour, entrepreneurial companies retain more of its employees. In fact, during the worst part of the 2008-to-2009 recession, entrepreneurial companies actually had modest increases in employment, compared to a significant drop-off for the rest of the market. Does this mean that entrepreneurial companies actually dominate during both good times and bad? The data seem to think so.
PALO ALTO, CA - AUGUST 18: Facebook founder and CEO Mark Zuckerberg pauses as he speaks during a news conference at Facebook headquarters August 18, 2010 in Palo Alto, California. Zuckerberg announced the launch of Facebook Places, a new application that allows Facebook users to document places they have visited.
