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Companies Vs. Countries: Comparing US Corporate Market Caps To Emerging Markets
Back in July, during the depths of Greece's fraught bailout negotiations, BofA made a rather amusing observation:
"The market cap of MSCI Greece is now the same as Bed, Bath and Beyond" - BofA
— zerohedge (@zerohedge) July 2, 2015
That's pretty astonishing, although we'll admit that during June and July, choosing between spending an afternoon in Athens and spending an afternoon in a Bed, Bath, and Beyond would have indeed been a tough call.
Well, if you've ever wondered how your favorite US corporations stack up against the entire MSCI free float market cap of the world's emerging economies, BofAML has the complete map for your viewing pleasure, presented below without further comment:
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BOA is full of shit along with the ML branch. Rothschild dictated and worked for is enough for me to say Let them all go to hell.
Rediculous PE'S making chumps out of everybody.....but isn't that the point
This is the best visualization I've ever seen of what the NWO looks like. Those of you out there who want corporations to run the place because John Galt knows best -- you've already got your wish.
But "Who is John Galt?"
You really don't understand objectivism. We want corporations to run the place? We don't want anyone to "run the place" except for the individual to run his/her own life without interference. Right now that's pretty hard to do.
Rand railed against government and companies colluding, which is pretty much the status quo these days. Have you actually read Atlas Shrugged?
Rand and her co-author Alan Greenspan had a lot to say. I tend to pay attention to what they sow.
Get your eyeballs out of your ass and look at what the graphic describes. Corporations (US) vs corporations (other countries in index form.) It says nothing about national wealth vs corporate wealth which is what your comment alludes to.
Rather than shoot off your keyboard, why don't you take the time to do a little independent research and then post it?
To cut a long story short, what this really does is raise serious questions about the nature and meaning of modern money and national sovereignty. It definitely testifies to the fact that we are living in the oligarchic age, the mother of all bubbles. All of us here at ZH know that those valuations are shit; that as soon as the music stops and the forced liquidations begin, we'll find out just how much these companies are really worth. Meanwhile, sovereign governments seem to be playing second fiddle, yet they are still the ones with the militaries, the state ministries, and ultimately the hearts of the people. But for as long as the illusion lasts, we are all forced to go along with the notion that Apple is really worth four-fifths of a trillion dollars. Should Apple have a seat at the UN, then? Would anybody put it past Tim Cook to agitate for one?
Eventually this unnatural situation will be reversed. The chaotic power vacuum that always results from oligarchic rule will be filled by strong men, nationalists and realists, who know what leadership is all about. In the meantime, though, the corporations will continue to do their best to jack things up...but they haven't got very much longer.
Okay, this is bullshit.
The chart compares individual company market caps to the market caps of stock indexes, which only include publicly traded firms. Privately-held companies aren't included. In the developing world, especially, that's most of them. In countries that can't print reserve currencies, interest rates are a lot higher, and the dividends demanded by investors are a lot higher.
To put it another way: on what planet would Russia's capital stock and natural resources only be worth USD134 billion? Even with oil at USD40 a barrel that's a small fraction of the fair value of Russia, Inc.
One very rough way of figuring out fair value for a country's capital stock is to just take GDP and multiply by three. For Russia that gives you USD3.5 trillion (give or take).
Maybe the point is, while western commentators love to obsess about EM bubbles (not only equities admittedly, but stock markets are definitely part of it) we should put in perspective the size of said bubbles relative to the mother bubble of them all in the home of the free. The biggest (and really only) bubble machine is in the Mariner Eccles bldg.
This is an excellent starting point for a comparison of the financialization degree of countries.
What, BB&B is undervalued? Must be a glitch.
If you liked Atlas Shrugged, you should read Thieves Emporium. It's objectivism brought into the digital age. The Daily Anarchist called it 'Barely Fiction'. Readers at Amazon and Smashwords must agree as they rate it 4.6.
http://www.amazon.com/Thieves-Emporium-Max-Hernandez-ebook/dp/B00CWWWRK0