Why is China so bubble-friendly?, asks Nouriel Roubini’s RGE economics team – and they come up with some pretty good answers. (Sharply negative real interest rates are a large factor – ahem, Singapore, ahem.)
In related news: the country that gave us bubbles in shares, paintings, shares in paintings, jade, table salt, fermented tea, and dubiously-provenanced French wine is merrily inflating a bubble in 19th-century English stamps. Per TMM (who you should be reading if you’re not already):
But it isn’t just metals, how about this for bubble mania: Stanley Gibbons, the stamp collecting company, has almost run out of Penny Blacks after a Chinese company placed an order for 10,000 of the world’s first sticky stamps. “We normally sell no more than a hundred penny blacks in any given year so this trade order creates a demand 100 times the normal market size,” said Mike Hall, philatelist and Gibbons’ chief executive.