CHINA: No Need to Feel Sorry over the Billionaire’s Shrunk Pocket (Part II)

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(Free-Press-Release.com) January 11, 2009 --

The shrinkage of the super-rich’s wealth is mainly manifested in the evaporation of stocks’ market value, especially for those who engage in financial business, real estate enterprises, merger and asset reorganization play. This in fact reflects the huge bubble of virtual economy over the past few years. Since 2001, the world economy has turned impetuous, fanatic and got carried away as other areas in society, which resulted in a large number of entrepreneurs got drunk on virtual economy such as going public, capital reorganization, tender offers and development of new financial products, and invested their fortunes in quick profits seeking industry like real estates, the overheating capital market, high leverage and gamble-like risky futures and products similar to subordinated debt. During this period, economic terms like packing, capital operation and going public became real popular. Moreover, research from replicaestore.com said, the macroeconomic policy’s execution of over-liberal monetary policies led to the irrational rising of commodity prices and the surge in stock market and oil prices, pushing the global economy to bubble boom. Some entrepreneurs and rich people are accessories to this bubble boom. It is also the impetuous, fanatic and got carried away world economy that brought up the morbid super-rich.

Bubbles burst eventually as puffy wealth slims down eventually. The economic crisis and financial crisis every time help make the global economy more mature and rational, the votary of wealth sober-minded and understand themselves thoroughly. In editor’s opinion, why the crisis this time is so serious is largely because people have got carried away and less alert, and let down their guards to do whatever they like in the economic and financial fields with the wrong idea that economic crisis and financial crisis are histories since there haven’t been any in nearly a hundred years time after the 30s of last century.

Many experts come up with a ‘three must’ summary from this financial crisis: must handle well the relation between virtual economy and real economy, must return focus onto the fundamentals of economy, and must develop virtual economy on the base of well-developed real economy. Even U.S. President George Bush said angrily that Wall Street should stop creating puzzling things (financial products). From this point of view, this crisis is a good thing that it allows people to calm down, bringing them back to the earthy ground from castle in the air to do something practical for the sake of economic development. And no need to feel sorry over the shrinkage of the billionaires’ wealth, because perhaps what has vanished is itself the bubbles, the worldly possessions. （Edit by：Louis Vuitton bags Studio - handbagsoutlet.biz Designer Handbags）

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