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China Faces "Minsky Moment" on Ponzi Financing

MishTalk

China’s private sector debt has increased from 115% of GDP in 2007 to 193% at the end of 2013. Mike "Mish" Shedlock [link] Mike "Mish" Shedlock is a registered investment advisor representative for SitkaPacific Capital Management. That 80% increase over five years compares to the U.S.’s s 26% in 2000-2005. trillion GDP.

Finance 75
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Economies of Scope - Tom Spencer consulting blog

Tom Spencer

More stable cash flows are attractive for three reasons. Secondly, a strong cash position can also be used to extend credit to customers and thereby increase sales. Management Consulting. Copyright © 2013 Tom Spencer. Firstly, they can be used to negotiate more favourable credit terms with banks. Categories.

Cash Flow 117
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Housing Starts in China Plunge 25%; Did China's Property Bubble Finally Burst?

MishTalk

The unregulated shadow banking sector has played a strong role in the recent credit boom, with the share of credit growth financed by the sector rising from 11 percent in 2006 to 32 percent in 2013. Property activity indicators have been trending lower since mid-2013, and the downturn in the sector now threatens to turn into a bust.

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SBA Acquisition Loans – A Win-Win-Win Especially for the Seller

Martinka Consulting

2013 - it’s hard to find a non-SBA acquisition loan on a deal that meets the SBA qualifications. It’s much better for them to buy a larger business with systems, processes and a management team instead of an owner-operator business-and they can do so easier because of the SBA program. Who benefits? 5-year term, 5.5%

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Time to Short the US Dollar? Go Long Commodities?

MishTalk

A position I established back in Q4-2013. 2.50% and geo-political risk and lag of global earnings for S&P-500 companies reduces margin and cash-flow. Mike "Mish" Shedlock [link] Mike "Mish" Shedlock is a registered investment advisor representative for SitkaPacific Capital Management.

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What GE’s Board Could Have Done Differently

Harvard Business

Since Immelt’s departure, GE’s stock is down another 30%, as its new CEO, John Flannery, has struggled to cope with the cash flow drain from years of problematic acquisitions, divestitures, and buybacks. in 2013 to 3.7 Because of these dubious decisions, GE’s ratio of debt to earnings has soared from 1.5

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Chinese Malls Hit With Low Traffic, Rising Vacancies, Plunging Rent, Massive Overcapacity

MishTalk

Add poorly managed properties into the equation and the empty malls aren't much of a surprise. Less foot traffic means cash flow of mall owners and developers are getting squeezed - a potential hazard for an economy growing at its slowest pace in decades. Major listed mall operators are also feeling the pain.