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The Red Tulip Bulbs Of China Are Crashing

Yesterday China’s richest man, Li Hejun, lost more than half his fortune when his solar company stock suddenly crashed over 50%. Overnight it happened again, and Hong Kong’s securities regulator, warned other investors to exercise “extreme caution,” as Hong Kong’s best-performing stocks this year are crashing in a serial, tulip-like manner. And another billionaire was promptly wiped out: Pan Sutong started the day engorged with wealth after his companies Goldin Financial and Goldin Properties had risen 300% this year. By the close he had lost 60% of his wealth!

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The Red Tulip Bulbs Of China Are Crashing

Yesterday China’s richest man, Li Hejun, lost more than half his fortune when his solar company stock suddenly crashed over 50%. Overnight it happened again, and Hong Kong’s securities regulator, warned other investors to exercise “extreme caution,” as Hong Kong’s best-performing stocks this year are crashing in a serial, tulip-like manner. And another billionaire was promptly wiped out: Pan Sutong started the day engorged with wealth after his companies Goldin Financial and Goldin Properties had risen 300% this year. By the close he had lost 60% of his wealth!

Quivering About “Winter”——The FOMC Minutes Go From Lame To Pathetic

To preserve any idea that the US is not heading into recession, the FOMC is now wholly reliant on statistical processes within the BEA’s use of the Census Bureau’s updated ARIMA-X13 modeling system. It is amazing to see this policy body that once proclaimed, unequivocally and forcefully, that it could perform the monetary equivalent of…

Just Where Is This Housing Rebound?

These may be desperate times indeed, where every small piece of anything not wholly dismal is singled out as the indicator that either the worst has passed or it never was. I am simply at a loss to describe housing construction figures in such unequivocally glowing terms. For the most part, construction activity hasn’t deviated…

The Crash Which Cured Itself—–Why Jim Grant’s Book On The 1920-1921 Depression Is A Must Read

Harding, that least fashionable of American presidents, was likewise able to look at falling prices soberly and without today’s hysteria. He insisted that the commodity price deflation was unavoidable, and perhaps even salutary. “We hold that the shrinkage which has taken place is somewhat analogous to that which occurs when a balloon is punctured and the air escapes.” Moreover, said Harding, depressions followed inflation “just as surely as the tides ebb and flow,” but spending taxpayer money was no way to deal with the situation. “The excess of stimulation from that source is to be reckoned a cause of trouble rather than a source of cure.”

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