Valuation contraction
Comment of the Day

December 26 2012

Commentary by Eoin Treacy

Valuation contraction

Visitors to this site know a great deal about high-frequency trading, or if not, they can read about it by using the Search facility shown upper left, fourth item down. Here are two key paragraphs from an article on the subject: "Ruthless efficiency of hi
Violence that's plagued South Africa's platinum mines may spread to more operations in the country, National Union of Mineworkers General Secretary Frans Baleni said.

Fighting could break out elsewhere as the rival Association of Mineworkers and Construc

Eoin Treacy's view The Chinese made a focus on human development rather than outright economic growth a pillar of the most recent five-year plan and this is likely to accelerate with the new administration. Urbanisation is such a clear and well tested route to higher living standards that it is an integral part of any development program and is a priority for a country such as China with such a large rural population.

When we consider what the primary advantages of advanced versus emerging economies are from a governance perspective, property rights would have to be close to the top of the list. Strengthening the tenure of rural people to the land they live and work on is a route to building wealth which has previously been reserved for the local administrations.

China's lack of property taxes has boosted speculative interest among investors and removed an income source from local governments that forced them to rely on land sales. A resolution of this situation would represent an additional step towards improving governance.

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