http://www.washingtonpost.com/blogs/wonkblog/wp/2015/06/24/meet-the-worlds-biggest-stock-market-bubble-since-the-dot-com-boom/It's sad to me that the majority of Chinese retail stock investors are going to get burned, as they were of course late to the party. Once it pops, their stock bubble will continue to fall over the next 6-12 months, maybe even longer.
Instead, they could have bought bitcoin at the bottom of the bitcoin market (i.e., like NOW), and just waited it out for demand to increase. Just imagine if all those billions of Chinese stock investments from the last 2-3 months had instead got pushed into the Bitcoin market now? We'd definitely have a new rally.
I think their gov't neutered the bitcoin rise in Dec 2013 on purpose. I think their gov't saw all of the pent up demand that their own people had for investing, and knew that if their people invested in bitcoin it would not directly benefit anyone in their own country or their domestic economy. But if they could engineer and rally a Chinese stock bubble instead, and then promote it from within, then their corporations and executives would directly benefit.
Their poor, uneducated people just unwittingly participated in one of the largest "bail ins" in history. All coordinated and endorsed by the Chinese gov't.
