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China Stocks, Circling the Earth, etc.

The financial media is inventing new and interesting ways to talk about the China stock bubble that, almost unanimously, they think is going to get even bigger (perhaps much bigger) before it meets its pin. In this Bloomberg report, they equate the one-year rise in stock market “value” – $6.5 trillion dollars – to circling the earth 250 times with $100 bills.

It is clearly the newbie investors in China that are driving share prices higher (see this illuminating AP story for more evidence of that), but the financial media isn’t helping either. To wit, the Bloomberg story casually refers to the $6.5 trillion change as “value creation” (i.e., “The figure, $6.5 trillion, sums up the value created in just 12 months of trading on Chinese stock exchanges…”) and this serves to legitimize the gains.

Isn’t there a better phrase than “value creation” when referring to mature asset bubbles?

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China Stock Market Boom Explained

From this story at Quartz comes a rather simple explanation for why China’s stock market has been on a tear, now commonly referred to as perhaps the most obvious asset bubble in a world that has become increasingly full of and disturbingly dependent upon asset bubbles.

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China Stocks: What Could Go Wrong?

Bloomberg reports that China equity markets have become even bubblier after a wave of new irrationally exuberant “investors” that harken back to the U.S. in the 1920s when Joseph Kennedy purportedly began selling stocks after receiving a hot tip from a shoe-shine boy.

On a positive note, they now appear to have their real estate bubble under control…

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Renewed Interest in World Population

The story Climate change isn’t the problem. A population bomb is killing us at Marketwatch that was prompted by a new study in the journal Science that is currently making the rounds (also see The New Population Boom Could Easily Be a Dud at the WSJ) prompted a quick look at world population growth as shown below via this item at worldometers.

Recall that a few decades ago, this was the world’s number one problem, however, the recent flattening of the curve has eased those concerns substantially. The Science report argues that expectations of world population stabilizing during this century are likely wrong and that there could be more than 12 million people on the planet by 2100.

A couple of rather remarkable stats from worldometers:

  • During the 20th century, world population has grown from 1.65 billion to 6 billion.
  • In 1970, there were roughly half as many people in the world as there are now.
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