Really great links - Bank equity - China

Andrew Smithers - Supporters of Capitalism Should Read This - "Bankers have brought capitalism into disrepute. To their traditional enemies on the Left they have added those who favour free markets. Despite the remarkable achievement of uniting such a broad spectrum of political opponents, bankers clearly expect to avoid retribution for their misdeeds. Supporters of capitalism, who want its benefits preserved, call for large increases in banks’ equity capital. US banks have responded by buying back their equity. The Left denounce the outrageous pay levels and bankers respond by awarding themselves huge additional bonuses.
        These actions suggest that bankers, as a group, are not unduly sensitive people. But it is nonetheless incredible that they do not realise that large increases in their equity will be part of the new regulations. Their motive in buying back part of their already inadequate equity calls therefore for examination."

Scott Sumner - China - "Is there anywhere else in the world where a 1076-foot skyscraper would be built for “farmers” and located not in a city, but in the “countryside?”"