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Jun
27th
Sun
permalink
The nation’s 13.6 trillion yuan ($2 trillion) of new loans in the past 17 months, bigger than the economies of South Korea, Taiwan and Hong Kong combined, is “unprecedented in 400 years of economic history,” said London-based hedge fund manager Hugh Hendry, co-founder of Eclectica Asset Management, which manages $420 million.
Tags: real estate   bubble   finance   china  
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Jan
28th
Thu
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Recession-Plagued Nation Demands New Bubble to Invest In.
Tags: finance   bubble   real estate  
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Nov
17th
Tue
permalink
My view is that markets are still in denial about the structural wreckage of the credit bubble. There are two more boils to lance: China’s investment bubble; and Europe’s banking cover-up. I fear that only then can we clear the rubble and, very slowly, start a fresh cycle.
Tags: finance   china   investment   bubble  
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Aug
2nd
Sun
permalink
To be sure, France doesn’t face a U.S.-style mortgage crisis. French banks are generally conservative lenders, nearly all home loans are fixed-rate, and foreclosures are rare. But the housing market had clearly overheated, with prices rising 210% from 1995 to 2008. That’s not quite on a par with the 270% rise in Spain during the same period – but it’s more than the 190% growth posted in the U.S.

Shocker: real estate prices rose more in France than in the US 1995 to 2008.

Pop Goes the French Housing Bubble - BusinessWeek

Tags: real estate   economics   france   bubble  
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Apr
9th
Thu
permalink
Tags: bear   bull   stock   bubble  
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Feb
12th
Thu
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How to Call The Top

It always surprises me how newspapers are able to unknowingly mark the top of any bubble with top stories talking about fortunes to be made, staggering growth and bright future. It happened with oil at $150 last july and now again with Dubai.

Here’s what New York Magazine said less than three months ago, right at the top: Escape to Dubai.
Here’s the sad reality coming up now: Laid-off foreigners flee as Dubai spirals down.

Tags: finance   dubai   bubble  
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Dec
27th
Sat
permalink

Bubble bubble

The Economist has an article on The beauty of bubbles, arguing that even asset bubbles popping leave behind lasting value.

Examples are the Florida Real Estate bubble in 1920, the railway bubble in 1840, the telecom bubble in 1990 or the more recent real estate bubble in UK and Dubai.

My favorite quote is from an IPO prospectus during the South Sea bubble of 1720, where the company described itself as:

a company for carrying out an undertaking of great advantage, but nobody to know what it is
Sounds a lot like a Special Purpose Acquisition Company (SPAC) of modern days …
Tags: economics   finance   bubble  
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