Financial bubbles have been popping up like “whack a mole” for more than 15 years now.
Since the fall of the Berlin Wall we’ve had the Tequila Crisis of 1994, the Asian Financial Crisis of 1997/98 which also claimed Brazil and Russia, the dotcom bubble (which claimed Gerry Davies), the US-led mortgage bubble which began to collpase in 2007 and finally the commodities bubble which collapsed just less than a year ago.
The latest could be in China, where stimulus money is said to be being funneled into stocks. Rising stocks brings in “hot monty” flows from outside the region and pumps the bubble up further. What happens when the world’s banker has its own economic meltdown? We may never know because China is so opaque, thanks to an authoritarian government. Maybe best we don’t know…
