That is, China is using its paper reserves to buy real assets in the ground.
Unfortunately, these are the real assets within an organization that are most often ignored.
FORBES: Ask Your Employees What They Need Before Your Business Begins to Fail
In all likelihood, Mr. Madoff was not running a pure Ponzi scheme, but had real assets.
Another investment component, about 18%, is in real assets: timber, oil and gas, property.
However, if that U.S. entity is a subsidiary with no real assets, the issue of recovery becomes moot.
FORBES: American Superconductor Would Be Better Off In Brazil
They may thus, say the three economists, have been buying in order to exchange over-valued equity for real assets.
And a great antidote to deflation is current income: so investing in real assets that also provide yield is a double-purpose move.
That margin means that any punitive levy imposed so far on foreign holdings of Real assets has minimal impact as a disincentive.
For top down investors, the more money flowing into India real assets (as opposed to speculative assets) the better the outlook for the country.
FORBES: Private Equity Prefers India, But Regulatory Uncertainty Still Worrisome
He advocates that people put their money in real assets ranging from cotton to natural gas, because currencies backed by government are being debased.
They told us that SCF was based not on forbidden interest and speculative paper assets, but profits through equity participation and sound investing in real assets.
The American economy will not grow normally, create jobs normally, and convert investment dollars into real assets normally until we once again have a stable dollar.
FORBES: U.S. Unemployment: Our Long Economic Nightmare Continues
They point out that emerging economies have been frantically accumulating real assets, such as assembly lines and office towers, but their generation of financial assets has not kept pace.
Rising commodity prices feed into rising real estate prices, as investors rush to buy real assets that are expected to keep up or even exceed the rate of inflation.
You can own some real assets, and we do.
FORBES: Forget Apple, Buy Microsoft! And Hold Gold, Says Contrarian Kleinschmidt
At the height of the Internet bubble, someone got the great idea that AOL, which had just about no real assets, should merge with Time Warner, which had a ton of assets.
This infers a bad outcome for owners of cash and debt, a less bad outcome for owners of stocks, and a reasonable outcome for owners of real assets like property and commodities.
With fiat currencies being printed, short-term interest rates near the zero-bound, and real interest rates providing negative expected returns, investors have been incentivized to chase higher returns on equities and invest in real assets.
FORBES: After The Gold Rush -- Commodities Prices: Why So High?
They have been claiming all along that Mr Li, the son of Hong Kong's most powerful tycoon, simply used his connections and the heady valuations of Internet stocks to raise money to buy real assets.
Most of the increase in metals prices has happened in the past month or so, suggesting some speculative buying as investors, with war looking likelier by the day, have sought the apparent safety of real assets.
ECONOMIST: The prices of most raw materials have been surging
Meanwhile, he and his son were looting Ultimate Holdings by taking distributions from a company which had no real assets, since the GENI stock was effectively valueless but the margin loans against the stock were still outstanding.
One of the reasons the China real estate market is so hot is because wealthy Chinese are buying up property to hold onto real assets, rather than put money in low yielding bank bonds and volatile equities.
If Zynga as a company is worth less than the real assets within the company then the logical and economic thing to do is to close the company down , sell off the assets and return that greater amount of money to the shareholders.
The plan to invest some of the Social Security trust fund on Wall Street purports to address this: real assets would henceforth back the promise and, you might think, there is a double benefit because returns on Wall Street are higher than returns on the fund's existing portfolio of bonds.
Credit Suisse has advised DP World on the sale of real estate assets.
The financing was provided by Goldman Sachs and is backed by the retailers real estate assets, my colleague Steve Schaefer reported.
FORBES: S&P 500 Closes At Record High As U.S. Stocks Fire On All Cylinders
Their findings: The country's legal and administrative systems force about 60% of Filipinos to hold their real estate assets outside the law.
Credit Suisse (nyse: CSR - news - people ) has advised DP World on the sale of real estate assets.
He is also apparently planning to list real estate assets this year in what could be the first yuan-denominated public offering in Hong Kong.
Angels are becoming more liquid as their stock market and real estate assets recover, and institutions again have earnings to put into venture capital funds.
应用推荐