Hi Mark, The entrepreneurial spirit of Hong Kong is adapting, by monetary policy, by fiscal policy (new port, Disneyland), at the same rate as the US. We are even discussing spending billions to put in a Magnetic Levitation train linking Hong Kong and the mainland border, to save just 10 minutes off the normally 30-minutes trip. We are driven to think such thoughts because Shanghai is doing one, around the city and to Beijing and Guanzhou, and Beijing is doing one to Tianjin and Guangzhou. Hong Kong does not want to be left out of the loop. This is the ‘good’ part.
Hong Kong is adapting much more rapidly than the US via layoffs, downsizing, refocus of capital investment, and average compensation decline. This is the scary part, and a consequence of not wishing to devalue the currency vis-à-vis the USD.
Hong Kong is a service economy that is affiliated with a manufacturing economy across the border, and for the first time in a long time (100 years), the cost of service is declining, making HK more competitive. Competition is bad for profit, and terrible for wealth enveloped by competition.
Competition, is, however, wonderful for entrenched wealth, scooping from far above the valley, with its weapons trained on the suicidal bulls below, staring out into the seemingly calm ocean, with its apparently gentle wave front meandering in.
More on Hong Kong …
Message 15061631
<<rents … in Shanghai>>
On Shanghai rent, say 40-50% of Hong Kong.
And on Message 16535547
The companies mentioned are real companies and some may do well, assuming the world continues at least as is.
<<Kinda makes me want to visit … world with which you seem at ease, represent a grand opportunity to be of service to others while reaping financial rewards for doing so>>
Control your enthusiasm, because the environment is treacherous, and will be littered with pioneers, lying perfectly still, stripped of their worldly possessions. A third of my time but half of my business income is wrapped up in helping folks to get out of deals they got themselves into. Very bloody work.
Chugs, Jay |
