Uncommon Sense

February 25, 2021

The China Hustle

If you needed more ammunition to support the belief that the stock markets need to be shut down, do watch the documentary “The China Hustle” on various streaming services.

What this hustle comes down to is some “investors” saw that China recovered from the 2008 Great Recession very quickly and investing in Chinese companies might be a way to offset losses from the stock market crash. The only problem was most Chinese companies were not traded on American stock markets. So, a workaround was devised. They arranged for small Chinese companies to be merged with now defunct U.S. companies that had one crucial characteristic: they were already approved for trading of “their” stock on the U.S. exchanges.

So as to not spoil the documentary, let it be pointed out that lying to foreigners is not a crime in China. The upshot is that hundreds of billions of dollars were extracted from “investors” which then flowed into China through fraudulent descriptions of these “companies.” And, apparently, none of the usual “checks and balances and regulations” apply.

And it is still going on, because those who are making money off of the process don’t want “the problem” to be solved.

The stock market has no real purpose other than to be a giant casino where people gamble their money. That there are “losers” in the game is acknowledged, but only the winners are celebrated and because the “house” skims its fees off of the top, there is no impetus to close the casino.

This is a well-made documentary and well worth watching. If you wonder whether our democracy is strong enough to withstand all forces, you need to think again. If we fall, it will because of greed being our most serious failing.

 

Create a free website or blog at WordPress.com.