3 ms·

Feels like western markets have lots of "fictional growth" on the books lately. We'll see if/how that unwinds.

• toomuchtodo 5y ago
  Sure, US equities are frothy but are backed by cashflows backed by a consumerist society in a mostly functioning democracy. China's real estate market are tulips more people collect than live in. https://www.google.com/search?q=china+real+estate+occupied+vs+empty https://www.google.com/search?q=china+real+estate+occupied+v...
  • nemothekid 5y ago
    >US equities are frothy but are backed by cashflows backed by a consumerist society in a mostly functioning democracy. "backed by" is doing a tremendous amount of work in that sentence. For some comparison, Evergrande is currently worth 2x GME.
    • toomuchtodo 5y ago
      > For some comparison, Evergrande is currently worth 2x GME. True! But GME is not a representation of Gamestop's enterprise value at the moment (and therefore, a poor analogy); GME is currently a representation of a microcosm of equity market participants attempting to determine if there "less than fundamental" mechanisms at play (derivative/index based shorts, etc) on the security.