Monday, May 21, 2007

Merryn on the ball as usual

Bubbles are everywhere

Great article. Key points:

From US: By the end of March the amount of debt taken on by US investors specifically to buy shares totalled £318 billion. That’s more than in March 2000 – the peak of the tech bubble.

From US: Mastercard saw the number of transactions using its US cards rise by nearly 20% in the first quarter of 2007. That’s clearly not sustainable.

From Japan: From June 1, its standard mayonnaise will cost 10% more. To the outsider’s eye this may seem a trivial matter but, said Allum, it is not. It is the first time “any branded mass-market condiment has put in a price rise for at least a decade”.

Posted by sold 2 rent 1 @ 10:16 AM (538 views)
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5 thoughts on “Merryn on the ball as usual

  • If the price of mayonnaise doesn’t force the BoJ into action regarding interst rates, nothing will!

    Bad jokes please, like: I’m placing a spead bet on mayonnaise stocks… (sorry)

    S2R1, sorry to make light of what is a significant story.

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  • sold 2 rent 1 says:

    There are 3 significant things to watch out for:-

    It looks like Japan’s IR is certain to rise by July. How many rises will it take before the carry trade implodes?

    China’s stock bubble is the fastest growing ever (95% above 200dma). The Nasdaq 2000 and 1929 crash were only 55% above their 200dma. With the number of new accounts opening (300,000 a day) up 50% on last month (200,000) this bubble still has further to inflate. Things will get interesting when the rate of new accounts starts to decline.

    The US economy is going from bad to worse with debt growing on a monthly basis.

    Other issues include: Spanish and Irish housing bubble bursting, Eastern European pending currency crisis, as well as a general asset/debt bubble worldwide.

    It seems that the perfect storm is brewing for the latter part of 2007. Prepare now.

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  • I can’t find anything I want to invest in, yet I know inflation will wipe away my savings.

    Should I invest in a mayonnaise plant?

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  • bidin'matime says:

    Merryn’s one if us! Where’s Glorious Sunshine – may I suggest “I’m forever blowing bubbles..”?

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  • S2R1, Yes the China dimension is a very interesting development indeed – their stock graph is growing exponentially, who knows how high it will climb before it collapses – at the present rate of increase I would imagine only a few months at the most. Exponentially growth is inherently unstable whether it’s in a population or market. The bulls on Wall Street must be increasingly worried (as they are in the British press) that the China syndrome is going to bring their party to an abrupt end. Now what a shame that would be… think of the City bonuses and the effect on HPI that that would have. Hmmm.

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