Today the USA federal pension guaranty board is itself bankrupt. It has too many obligations and not enough resources to cover the pension funds that are defaulting.
Pension funds must invest in China now to assure that there will be resources for the future.
One thing we have learned is that while unions and corporations can continue to make promises and write them into legal contracts, it is the bankruptcy system that allows those promises to be broken. Onward marches the national socialism through bankruptcy movement, with federal judges acting as captains of the USA's failing industries.
United Air Wins Right to Default on Its Employee Pension Plans
By MICHELINE MAYNARD
Published: May 11, 2005
United Airlines, which is operating in bankruptcy protection, received court permission yesterday to terminate its four employee pension plans, setting off the largest pension default in the three decades that the government has guaranteed pensions.
You just recommended folks invest in CEA. http://clearstation.etrade.com/cgi-bin/details?Symbol=cea&Refer=http://clearstation.etrade.com/cgi-bin/intra%3fSymbol%3dCEA
I wouldn't suggest they follow your investment advice. CEA is a Chinese airline traded on the NYSE. ZNH is another Chinese airline. It has a similar looking chart. ( Just insert ZNH instead of CEA. The old US airlines are being replaced by Southwest, Jet Blue, Air Tran and a couple of others. Because of competition in the US, the old airlines are having to adjust or disappear. That is part of the capitalist system. There have to be losers in addition to winners.
I don't know enough to know what is wrong with these Chinese airlines. I suspect it has to do with oil prices. I would recommend LUV and JBLU in the US. They are doing well in spite of the price of oil.
I have China tracking portfolio, it is down 10 percent on the year. Two years ago investing China was a good idea. There was a bubble in the Chinese market. Last year and this year the Chinese market has gone down. You would know that if you were invested.
There are investment opportunities almost everywhere. If you are looking for stocks, the Chinese market is not yet a good buy, in general. CYD, and CHL look like good buys though, along with NTES.