Its one of those periods again when markets are falling and people are feeling down. And when they feel down, they sell assets and markets fall, and they feel even more down.

In the May 5th edition of the Economist magazine, there appears an article on China’s banks. It points to the high profitability of the banks and the low level of NPLs.

A few months ago the ECB’s long term loans to the banking system appeared to have staved off risk of default or breakup for at least as long a term as the facility. The fears of default and breakup have returned with a vengeance.

Since 2008, raising capital for a hedge fund or private equity fund has become very difficult. In the case of some would be institutional or family office investors, it has always been difficult.

Take a small island with an open economy highly dependent on trade and intellectual property, grow the economy to the hilt, run out of ideas, grow the population to grow the economy, to the hilt, or the shoreline, and what do you find? High inflation at each level of economic output.