The Journal ran a piece today about how Chinese insurance companies are selling risky products to retail investors to invest in risky business opportunities. For example, Anbang Life Insurance bought the Waldorf-Astoria in New York for about $2 billion:
One of its funding sources is 28-year-old Dai Yiyun, an executive assistant in Shanghai who decided to plow $22,500 into a three-year interest-bearing deal that also includes a small amount of life insurance. When Ms. Dai checks Anbang’s app, she says she is monitoring the rate of return and has no idea how much insurance the product includes. She adds that Anbang’s high-profile investments give her a thrill. “I feel I am part of the process, part of the deal,” she says.
This deal mentality amongst average citizens is probably not a good thing. The idea that we are going to become wealthy by buying and selling things -- or participating in the buying and selling of them by others, is pretty silly. It may end up in tears, and having a President who proclaims himself the master of the deal will probably not help.
This deal mentality amongst average citizens is probably not a good thing. The idea that we are going to become wealthy by buying and selling things -- or participating in the buying and selling of them by others, is pretty silly. It may end up in tears, and having a President who proclaims himself the master of the deal will probably not help.
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