Shanghai'd

Stocks.

I have no idea how to say "irrational exuberance" in Chinese, but I can sure recognize it when I see it. Every day at lunch, my colleagues relate the latest story of the barber-cum-mutual fund account manager from Suzhou, or the day-trading street sweeper from ChongQing who tripled his money in a week trading gu piao.

It's really amazing to me how so many people with so little money to lose and so little knowledge about even basic economic theory - let alone investing - are getting caught up in it all. Sound familiar?

This recent exchange with a taxi driver in Shanghai pretty much sums up the situation:

Me: [seeing him intently watch the stock market news on the in-cab TV] So, are you playing the stock market too?

Taxi driver: Yeah.

Me: How are you doing?

Taxi driver: Up 100% so far.

Me: Aren't you scared of losing your money?

Taxi driver: Yeah, but I'm more scared of missing out.

It doesn't take a PhD in macroeconomics to realize things have gotten out of hand. A lot of people are going to get burned badly - it's just a matter of time. But at least it will be interesting to watch how it all plays out.

UPDATE:
This article from the Shanghai Daily sums things up pretty well.