Re: Generational Dynamics World View News
Posted: Wed Nov 27, 2019 1:05 pm
** 27-Nov-2019 World View: China and Japan stock prices
my mind: At that time, the value of the property in just the one city
of Tokyo was greater than the value of ALL the property in the entire
United States.
Of course, that was just before the bubble burst, leading to a huge
financial crisis, real estate bubble crash and stock market crash
in Japan.
I wrote a lengthy article on this in 2007:
** Japan's real estate crash may finally end after 16 years
** http://www.generationaldynamics.com/pg/ ... tm#e070220
This graph is from the article, showing the Tokyo Stock Exchange (TSE)
index. What it shows is that the TSE's previous crash was in 1919,
ten years before the US stock exchange crash in 1929.
This reminds me of a financial stat from 1990 that's always stuck inutahbob wrote: > https://www.scmp.com/comment/opinion/ar ... t-collapse
> China’s property market is the grey rhino, overfed on massive
> liquidity steroids. One injection was the massive stimulus
> introduced in response to the 2008 global financial
> crisis. Another injection was from the six consecutive interest
> rate cuts in the 12 months to November 2015. Awash in liquidity,
> Chinese stock markets took off too, but by late 2015, the bubble
> had burst and the benchmark Shanghai Composite Index tumbled about
> 50 per cent from its 2015 peak. Real estate, however, partied on.”
> “Zhongnanhai’s worst economic nightmare is a Japan-style
> collapse. Despite Xi’s caution that ‘houses are for living in, not
> for speculation,’ China’s real-estate market value has risen to
> twice the size of the G7 economies combined. At US$65 trillion, it
> is almost five times China’s GDP in 2018, and more than 10 times
> China’s stock market capitalisation. In 2019, China’s property
> bubble is being pricked – on both the supply and demand sides.”
my mind: At that time, the value of the property in just the one city
of Tokyo was greater than the value of ALL the property in the entire
United States.
Of course, that was just before the bubble burst, leading to a huge
financial crisis, real estate bubble crash and stock market crash
in Japan.
I wrote a lengthy article on this in 2007:
** Japan's real estate crash may finally end after 16 years
** http://www.generationaldynamics.com/pg/ ... tm#e070220
This graph is from the article, showing the Tokyo Stock Exchange (TSE)
index. What it shows is that the TSE's previous crash was in 1919,
ten years before the US stock exchange crash in 1929.
- Nikkei 225 Index -- Tokyo Stock Exchange -- 1984-2007 and 1914-2007
