Gov't Coercion and Bribery. China or the US?
I've been somewhat bemused these last few months of writing on this blog by the folks who claim that China is a sham and that America is light years ahead. I even have some co-workers who share that opinion. And while I won't hold China up as any sort of beacon for ethics or accounting, I do think it's important to note that at the end of the day, on a case by case basis, it's not all that worse than things that happen here in the USA. Today's exhibit? A recap of The Final Days of Merrill Lynch (at The Atlantic).
If you don't read the article, here's the troublesome quote that I somewhat agree with: Some observers are convinced that government officials crossed a line—“There’s no question there was coercion and bribery here,” argues Sunshine.
All of this is to say that you should have your eyes wide open no matter where you invest and that "home bias," although it makes you more comfortable investing in the US, also leaves you susceptible to risks you may not assume are out there.