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Realistbear

Dot.com Frenzy Hits China -another Recession Trigger?

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http://business.timesonline.co.uk/tol/busi...icle1812968.ece

From The Sunday Times
May 20, 2007
China's rocketing markets
China’s stock markets are roaring to record levels as millions of small investors bet their savings in a frenzy of speculation. But there is a danger the markets may overheat and even crash with unforeseeable consequences
Michael Sheridan, Far East correspondent
Stock-market fever has spread so rapidly across China that dozens of taxi drivers in the city of Chongqing, far down the Yangtze river, have lent out their coveted cab licences while they spend the day trading shares.
It might be a classic “sell” signal to developed markets, but among Chinese investors the popular instinct to speculate has defied expert wisdom, official warnings and mathematical reason.

Sounds like our BTL frenzy? All of it is going to end in tears very soon. And when it does watch out because the implications are world-wide.

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Sounds like our BTL frenzy? All of it is going to end in tears very soon. And when it does watch out because the implications are world-wide.

Why? What do you think will happen?

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Why? What do you think will happen?

SM crashes. Great Crash 1 was set in motion by the events of 1987. Things happen faster today due to communication and the entire world has been sitting on too many speculative bubbles. When one goes they all go. The central banks bought time when they reflated after the Dot.com/9-11 events. Too much credit, too much debt, too much..................

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http://observer.guardian.co.uk/business/st...2083529,00.html

But without the rampant growth China has achieved over the last decade, Beijing will struggle to resolve social pressures. Chinese politicians may not face the discipline of elections, but they still need to manage tensions between rich and poor, urban and rural. President Hu Jintao conceded in a speech earlier this year that the Chinese economy needs to create 25 million jobs a year to keep pace with the sheer size of the population - and that means rapid growth. As China develops further, however, it will need to make the transition to a more home-grown, consumer-led pattern of growth.

Already, its middle class numbers 200 million on some estimates. For countries such as the UK, which exports few 'investment goods' such as machine tools, but has a strong competitive advantage in areas such as financial services, an expanding consumer sector in China could be a huge opportunity.

The transition to full market economy will be interesting.

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manias like this never end pretty! nasdaq was a mild exception ussually big manias end in panic and economic depression (tulip mania, southsea bubble, 1929, 1937 etc). I think numerous other countries have parabolic stock markets to, india, brazil, russia, venezuela, dont quote me on those, it should all come crashing down when the great collapse happens. This is gonna be a huge event imo :ph34r::ph34r::ph34r:

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