What is wrong with the runaway economy in China?
One aspect of it is something called ‘ramping’.
Prior to 2006 a man by the name of Wang Jianzhong had become known as China's "god of stocks" for his amazing ability to pick stocks that were about to rise.
At the peak of the trading frenzy in China, which is still continuing right now, his influence was so great that reports by his company, Beijing Shoufang Investment Consulting, republished in dozens of influential newspapers and websites, were, it is said, many times considered the main reason for a particular share price rising.
Do you recall the commercial, ‘When E.F. Hutton talks, people listen.’ ?
When Wang Jianzhong talked people listened also.
It is reported that by late 2006 it any companies Wang recommended in his columns would turn out to be some of the biggest gainers the next trading day in the Shanghai and Shenzhen stock markets.
It must have become apparent to Wang and he reportedly put that knowledge to use.
Records indicate that between January 2007 and May 2008, Wang bought shares in 38 companies, wrote reports on them, and then sold the stocks after his recommendations seemed to help lift the share prices.
That is what is called ‘ramping’. This was a lucrative ramping scheme. According to investigators in 55 separate transactions during that time, Wang pulled in 125 million yuan ($19.5 million).
That’s not much, though, is is? 19.5 million. Chump change for Wall Street.
Now we get to another issue.
The Mayor of New York. I do not mean to impugn his reputation or attack his character but I want to point out to you, as a fellow American citizen a couple of important points about the present Mayor of New York.
It has been reported that in 1973, Bloomberg was a general partner at Salomon Brothers. He headed equity trading and systems development.
Not often mentioned, it appears that in 1981, he was fired given a $10 million severance package.
He then went on to set up Innovative Market Systems.
Merrill Lynch became the new company's first customer. They installed 22 of the company's Market Master terminals and invested $30 million. The company reformed as Bloomberg L.P. in 1986 and by 1987 it was operating more than 5,000 of these information terminals.
Expanding on this the company added other products including Bloomberg Tradebook (a trading platform), Bloomberg Messaging Service and Bloomberg newswire.
As recently as 2009 it is reported the company has more than 250,000 terminals operating around the globe.
The company has a radio network.
Bloomberg took some time off from his company to become the Mayor of New York. The company is now run by president Daniel Doctoroff, a former deputy mayor under Bloomberg.
So – there he is and there you have it.
You can come to your own conclusion, but ask yourself this, if this kind of information company and its political protection is so good for capitalism and our nation what exactly is going on right now all around us?
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