Submitted by: Morgan O’Hara

At the last Speaker Series Dr. Fisher talked about the housing bubble, and whether that term is even appropriate for what we’re experiencing. I’m sure he’d cringe at my understanding of bubbles – a runaway from equilibrium prices. To me, it seems like we’re standing on the cusp of two quasi-bubbles: the explosion in consumer debt and the fictitious Wall Street boom. It feels like an earthquake has struck, the ground is shaking, and you have no idea how bad it’s going to get.

To better understand a bubble, here’s a fascinating article on the Pu’er Tea bubble which hit China’s Yunnan province. Please check out the audio slide show, too. The photos are spectacular. And just think, we’re going to be in China in four months!

CLICK HERE

My question: how does the collapse of the Pu’er tea market relate to what’s happening across the globe? The tea traders in Yunan ‘behaved like idiots,’ and manipulative buyers drove prices up. Who has taken on these roles in the U.S.? I ask because I don’t know. Can we consider our big banks as the manipulative buyers? Investors as the idiots? I don’t think the comparisons stick – help me out.

And who’s looking forward to drinking some Pu’er? I might try to bring some home – purely as an investment.