Jeremy Grantham – always thought-provoking. His latest on the question on bubbles and commodity trends:
http://www.gmo.com/websitecontent/JGLetterALL_1Q11.pdf
biggest influences are deemed China and the weather.
Tagged: bubbles RSS
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jock
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Bubbles
The market is coiled up waiting for the Fed to speak on Tuesday. The sentiment on the blogs and tweets that I follow suggest hope for a positive pop post-Fed announcement. Is it odd that this was paired with a lot chatter about bubbles on the web today?
Minanville posts Why the China Miracle Is Really a Debt-Financed Bubble This coincides with China starting a stronger round of banking stress tests. The new tests are supposed simulate a 60% drop in housing prices (previous stress tests were at 10%, 20% and 30%) as well as well as a hit to the steel and cement sectors. A 60% drop – wow!
Fortune asks “Is the party about to end in Brazil?”
Bloomberg – Structured Notes Are Wall Street’s `Next Bubble,’ Whalen Says
The WSJ says there is a ‘Frenzy’ in MLPs
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Teresa Lo
There is No Real Estate Bubble in China
Absolutely not, as you can plainly see from the faces of the people as they “battle to join a queue in order to get on a waiting list for new apartments in Qingdao, eastern China.”
There’s nothing going on here either, just “prospective home buyers check out new housing projects at a property fair in Beijing.”
My brother got back from China a couple of weeks ago, and when I asked him about the state of the Chinese property market, he said something to the effect that yes, it was overdone to the upside, but no, there is lots of pent up demand below. He didn’t sound very convincing, giving me the impression that the Chinese real estate market is in the “it’s different this time” stratosphere. (More …)
ArlingtonJB 10:11 AM on August 10, 2010 Permalink | Log in to Reply
Let’s add talk of a Yen bubble.
Pete 11:57 AM on August 10, 2010 Permalink | Log in to Reply
That’s a lot of potential bubbles! :)