Comments on: Great Recession Watch — Living With Mendacity in China http://www.chinahearsay.com/great-recession-watch-living-with-mendacity-in-china/ China law, business and economics commentary Thu, 09 Feb 2012 05:55:56 +0000 hourly 1 http://wordpress.org/?v=3.1.3 By: Daniel http://www.chinahearsay.com/great-recession-watch-living-with-mendacity-in-china/comment-page-1/#comment-70454 Daniel Thu, 02 Apr 2009 02:56:01 +0000 http://www.chinahearsay.com/?p=1871#comment-70454 Too much cash floating around, no where to sink it into. I remember I was at a restaurant in Solana Beijing. Awful location, not great foot traffic, layout of the mall was VERY bad for restaurants. I asked the owner why he opened the restaurant, said he needed to park the cash somewhere. No real experience in F&B, hired some consultants to run it. Just burning cash hand over fist. Chinese economy is many bubbles, searching for a business model. Too much cash floating around. Too much cash floating around, no where to sink it into.

I remember I was at a restaurant in Solana Beijing. Awful location, not great foot traffic, layout of the mall was VERY bad for restaurants. I asked the owner why he opened the restaurant, said he needed to park the cash somewhere. No real experience in F&B, hired some consultants to run it. Just burning cash hand over fist.

Chinese economy is many bubbles, searching for a business model.

Too much cash floating around.

]]> By: Hang http://www.chinahearsay.com/great-recession-watch-living-with-mendacity-in-china/comment-page-1/#comment-70426 Hang Wed, 01 Apr 2009 08:30:10 +0000 http://www.chinahearsay.com/?p=1871#comment-70426 Good post. I've met some guys like the IB in your post. Sometimes I am wondering why these guys would do some deals which apprarently is impossible to generate any frofit for their investors. I assume that some guys are not confident with the deals they do, and they do it for quantity instead of quality. Anyway, the ultimate victim will be the investors. The IB/Consultant guy seems happy to get his management fees and move on. Yes, they are parasites. Good post. I’ve met some guys like the IB in your post. Sometimes I am wondering why these guys would do some deals which apprarently is impossible to generate any frofit for their investors. I assume that some guys are not confident with the deals they do, and they do it for quantity instead of quality. Anyway, the ultimate victim will be the investors. The IB/Consultant guy seems happy to get his management fees and move on. Yes, they are parasites.

]]> By: Stan http://www.chinahearsay.com/great-recession-watch-living-with-mendacity-in-china/comment-page-/#comment-70358 Stan Mon, 30 Mar 2009 05:25:50 +0000 http://www.chinahearsay.com/?p=1871#comment-70358 I certainly hope that no one vets an attorney based on a law blog! How to pick a good lawyer is a good topic, though -- perhaps I can tackle this in a future post. I certainly hope that no one vets an attorney based on a law blog! How to pick a good lawyer is a good topic, though — perhaps I can tackle this in a future post.

]]> By: laurentius Metaal http://www.chinahearsay.com/great-recession-watch-living-with-mendacity-in-china/comment-page-1/#comment-70310 laurentius Metaal Sat, 28 Mar 2009 23:11:02 +0000 http://www.chinahearsay.com/?p=1871#comment-70310 Great piece indeed. Do you remember we had this Chinese dude coming over with a Norwegian Sounding name, just out of business school? That was a great conversation. "So why are you here?" "I want to set up a China fund" "right and what are you going to invest in?" "The Chinese stockmarket has been going up like crazy we put together a portfolio of Chinese stocks" "Can I give you one guarantee: The Chinese stockmarket is based on a lot of speculation, bad accounting reports and very untransparent businesses, you want to put peoples money in something? Buy a company and run it, produce something" Now the guy is started to insult me by turning on his MBA BS mixer how I did not understand the fine analysis that had gone into looking at a 2 month graph. I stopped the meeting. How many of these folks have we had in the office? Not too many but when they stepped in I always got pissed off. You know why? Parasites. That's how they make their money. They do not care about the client, the investor, they just want to get a whole bunch of money in an account, play a bit with the stockmarket and take their inflated fees. It's like Danny de Vito in OPM, nice as a comedy but in real not so funny. Great piece indeed. Do you remember we had this Chinese dude coming over with a Norwegian Sounding name, just out of business school? That was a great conversation.

“So why are you here?”

“I want to set up a China fund”

“right and what are you going to invest in?”

“The Chinese stockmarket has been going up like crazy we put together a portfolio of Chinese stocks”

“Can I give you one guarantee: The Chinese stockmarket is based on a lot of speculation, bad accounting reports and very untransparent businesses, you want to put peoples money in something? Buy a company and run it, produce something”

Now the guy is started to insult me by turning on his MBA BS mixer how I did not understand the fine analysis that had gone into looking at a 2 month graph. I stopped the meeting.

How many of these folks have we had in the office? Not too many but when they stepped in I always got pissed off. You know why? Parasites. That’s how they make their money. They do not care about the client, the investor, they just want to get a whole bunch of money in an account, play a bit with the stockmarket and take their inflated fees. It’s like Danny de Vito in OPM, nice as a comedy but in real not so funny.

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