Argentina Defaults the Third Time in Row

The Peronist Government of Argentina declared that has no money to repay the monster loan received after the last default. Fools bought more than a hundred billion dollars worth of loans, including hundred-years bonds which - in another universe - will be paid back around 2120.  The creditors, mostly American investment firms, had no choice but negotiate with President Alberto. Their position was very weak, they have no gunboats and the Cave Canem sorry Caveat Emptor Latin legal principle is still in effect. They had to accept 55 cents for dollar of debt. Make no mistake, no one is transferring actual money to their accounts. They will receive new bonds and promissory notes and securities with assurances that this time they are serious and some future government actually may contemplate paying out something to those vultures capitalists. 

I told them not to be greedy. But they are fools.  

Dragon Boats Race in the Grand Canal

Van Gulik describes the boat race in the Grand Canal that transverses his district. One of the drummers collapses and dies (poisoned). The public rejoices because the White Woman, the river goddess, has therefore been paid her due, an annual human sacrifice, and she will bring good harvests and good fish catch. The psychology of the tension before the sacrifice, followed by the general eruption of joy and free drinking, is well described. The Dutch have been in the Far East for five hundred years, and have a deep understanding of its peoples. Van Gulik's China makes sense and it is a good distraction in these troubled times in Israel and for me, as my daughter is divorcing and I cannot sleep at night.  

The Greedy Mandarin 法官狄 Tee

Another Robert Van Gulik mystery of the famous Chinese Judge Dee. Van Gulik was a Dutch diplomat that spent many years in China. The job must have been boring and he became so fascinated with Chinese Classics that he took up the stories of Judge Dee, an historical magistrate who lived during the Tang Dynasty, and wrote a dozen new Judge Dee adventures.

Judge Dee appears in these books as a cruel, rapacious dictator of the Poo-Yang district. In The Emperor's Pearl there are three murders in the first day and Dee, as is his habit, directs his attention to the wealthiest families of the town. Dee maneuvers skillfully the judicial investigation till the rich serial killer confesses and his wealth is duly confiscated by the Judge. The psychological background is clear: Yang is in love with Gold Lotus, he raped her and was rejected, causing him a compulsive mania to punish and murder dozens of prostitutes.

The adventure ends satisfactorily with a full confession of Yang, where all the facts fall into place; Yang's fortune passes into the hands of the Judge, and everybody stands in awe of his rectitude and intellect. In the end, the clairvoyant Judge finds the Emperor's long lost pearl hidden in a nest. He writes the entertaining story of his achievements to the Emperor and returns him his fabulous pearl, gaining the favor of his superiors in addition to gold and fame.   

Progress through Pandemic

The Pandemic has been raging in Israel for six months and it is sickening and killing more people than ever. Yesterday more than 2000 were infected. Hospitals are full. A quarter of the shops in Kfar Saba's Weizmann Street are to let. People connected to the food industry, theater, tourism and foreign travel have lost their subsistence. They are worried and desperate.

I have noticed that the people punished by the virus has been forced to look for new sources of survival and they have found them, many for good. Restaurants are providing take off services, students of engineering have become builders, hobbies have been developed into flourishing small business. More startups than ever. In any crisis there are sectors that will profit, like booming Hollywood during the Great Depression. The stone-heart capitalists of Wall Street are right, wars, crisis and depressions are necessary features of the system, eliminating inefficient business and creating new ones. I think that the system in Israel is healthy and working well. 

Turkey puts war with Greece on hold

Turkey  defuses some of the tension in the Eastern Mediterranean., suspending research by its seismic vessel Oruç Reis as a goodwill gesture for ongoing negotiations with Greece. President Recep Tayyip Erdoğan told his aides to “be constructive and put this on hold for some time.” 

Li Bai Loved to Drink

Chinese porcelain Yuan dynasty Chizhou vase with TANG poet Li Bai ; The image represents the famous Tang dynasty poet - Li Bai - ; The inscription says when Li was drunk, he would write many poems.

I do not really enjoy Chinese classics. It must be my fault. I do admire Spanish literature of the Siglo de Oro.

The visit to the Forbidden City and the museum was a disappointment. 

Israeli banks selling at half price

The TASE valuation of Discount and Leumi banks covers about 60% of its own equity. TASE thinks that they have many dubious loans outstanding that will not be repaid in the coming crisis. Beinleumi and Mizrahi are selling at market capitalization / equity of about one.  I have bought some today. The P/B ratio should not be used as a single evaluation of a stock because, while a low P/B may mean an undervalued company, it can also be a result of serious underlying problems within that company. 

In short, they are under priced.