Monday, January 26, 2009

Green Tea Bubble

Looks like China had its own version of the Dutch tulip bubble:

From 1999 to 2007, the price of Pu'er, a fermented brew invented by Tang Dynasty traders, increased tenfold, to a high of $150 a pound for the finest aged Pu'er, before tumbling far below its pre-boom levels.

For tens of thousands of wholesalers, farmers and other Chinese citizens who poured their money into compressed disks of tea leaves, the crash of the Pu'er market has been nothing short of disastrous. Many investors were led to believe that Pu'er prices could only go up.

Green tea bubbles? Now I've seen everything.

Hat tip to Jeff E. for the link.

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