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Do you think sovereign risk is something that businesses should account for? Would you hold that same opinion for other things as well? Say you own your house,
by djbebs 6y ago
Do you think sovereign risk is something that businesses should account for?
Would you hold that same opinion for other things as well? Say you own your house, and suddenly the local government mandates that you give it to them with no compensation. Would you say "that's just a risk of owning a house"?
Let's be reasonable here, having a clear, consistent and enforced legal system is a key requirement to make long term investments in anything. If you want to have a stable country and strong economy you must have such a legal system
- beiller 6y agoReplace the word house with land. Does that change anything? Who owns the land? The "government" is just people. And if there is not enough land because one person owns it all, absolutely I would be in favor of taking it and giving it back to the people. That is actually a normal risk of ANY business - government passing legislation that makes you less profitable. ISP? Google? Cable Companies? All face government pressure. And they also lobby the governments to get their way. No different from REITs also probably lobbying hard to force rents up, and force money to be spent on shelter instead of productive uses like investment, buying goods and services, hiring employees. I think you have a bit of reverse logic there, thinking that by kicking renters out and protecting landlords, we are "improving the economy".