Another report on the mania which precedes the end of an economic bubble — this time in China, where everyone seems to be getting into the trading game. Recall the story about John D. Rockefeller: in August of 1929 when his shoe shine operator gave him a stock tip, he knew it was the top and time to sell all his holdings. Some think that now is that time, both for the US and China markets.

“But at trading halls in Chinese brokerages, no one seems worried. The stock boom has attracted a flood of new money from millions of newcomers to the market, including elderly pensioners, students, maids, security guards, Buddhist monks, taxi drivers, and even young schoolchildren. A group of 9-year-old students at a primary school in Nanjing is among the latest stock investors. Some Chinese investors are borrowing large sums of money or pawning their possessions to gain money for buying shares.” The Globe and Mail

About 10 percent of Shanghai maids resigned in recent weeks “because they make more money trading shares.” Can there be a better way to celebrate the final vestiges of a Grand Supercycle peak than to let loose a mania on a society that is less than a generation removed from peasantry? The Elliott Wave Financial Forecast June 2007

If you want to know more about these opinions, here is a link to begin:
http://www.sociotimes.com/archives/2007/06/china_displays.aspx

Mike