China has 106 billionaires

That’s up from 15 last year (according to Bloomberg TV)

Barron’s reports (behind their subscription firewall) that more than a few of new Chinese stocks available on US markets were reverse splits into shell corporations, something which should immediately arouse suspicion. Many of these stocks are currently zooming upwards for no apparent reason, defying gravity, amid reports of financial irregularities.

Beijing real estate floats like a bubble on a bubble

Asian bubble out of control thanks to US rate cut

What’s happening in China is a transformation event. Rarely before, if ever, have investors been able to make so much money so quickly with so little knowledge of what they are buying.

It’s too late to call Chinese stocks a bubble, when Asia’s No. 2 economy is experiencing a bubble in bubbles.

There’s no telling what will happen when the China bubble pops, especially considering that their at least nominally Communist government is often a partner or has a controlling interest in their supposedly private companies. Also, Chinese nationals are currently not allowed to invest outside the country, so much of the speculative mania probably comes from them – and they’ve no experience with what happens when a bubble pops. Ditto for their economy at large. Expect angry citizens when their stock market craters and companies lay off workers or go out of business.

What is China now anyway? There’s been considerable discussion of this in socialist circles. Are they still true to socialist principles or a sell-out? When you have a communist government owning major parts of large capitalist businesses then you do indeed have some kind of weird new hybrid.

However, these hybrids are pumped full of helium and sooner rather than later will come plummeting back to earth, causing severe damage when they do.

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