Comments on: THE CHART OF THE DAY http://pragcap.com/the-chart-of-the-day-3 Sat, 11 Feb 2012 22:06:55 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Rational Investor http://pragcap.com/the-chart-of-the-day-3/comment-page-1#comment-1765 Rational Investor Fri, 05 Jun 2009 15:10:08 +0000 http://pragcap.com/the-chart-of-the-day-3#comment-1765 Sound familiar to the Chinese stock market. Lately if you read Chinese publication in Chinese, you would see that that Chinese banks have been lending money out at the historically high speed and amount in the first half of 2009, mostly to individual borrowers. No wonder the stock and real estate markets have been rising high and fast over there. Official economic statistics do not explain themselves, e.g. GDP growth vs. electricity consumption. In a row of many months, the GDP was reported 6% growth while electricity consumption by domestic and industrial uses was shrinking by 7%. More thoughtful Chinese challenged the inconsistency between these two numbers. Then the government promised to "reconcile" the two numbers next time. Sound familiar to the Chinese stock market. Lately if you read Chinese publication in Chinese, you would see that that Chinese banks have been lending money out at the historically high speed and amount in the first half of 2009, mostly to individual borrowers. No wonder the stock and real estate markets have been rising high and fast over there.

Official economic statistics do not explain themselves, e.g. GDP growth vs. electricity consumption. In a row of many months, the GDP was reported 6% growth while electricity consumption by domestic and industrial uses was shrinking by 7%. More thoughtful Chinese challenged the inconsistency between these two numbers. Then the government promised to “reconcile” the two numbers next time.

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