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Strategies & Market Trends : Greater China Stocks

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From: Julius Wong4/10/2011 7:15:03 AM
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Great Speculations: Why China Is So Bubble-Friendly
Adam Wolfe, 04.07.11, 06:00 AM EDT

A staggeringly broad money supply, positive feedback loops and rampant price divergences from equilibrium.

China can blow bubbles faster and bigger than just about any other country, but the extraordinary salt mania of March 2011 takes the cake for speed, size and bizarreness. The brief, dazed run on salt by investors following the March 11 tsunami demonstrates China's susceptibility to speculative bubbles and the potential to pass on the effects to international markets (discussed further in our China Monthly).

forbes.com
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