“To keep any great nation up to a high standard of civilization there must be enough superior characters to hold the balance of power, but the very moment the balance of power gets into the hands of second-rate men and women, a decline of that nation is inevitable.”
Christian D. Larson
Today was the day of Alibaba, the biggest IPO ever. Huzzah!
The great BABA ran up to $99.70 in the first hour after its open, and then settled back down into the low 90's. This is quite jump over the IPO which priced out last night at $68.
Is there a fat lady singing in there anywhere? I am not sure, but I think I hear a familiar melody.
The equity market is an asset bubble. And when it breaks, there will be another attempt to transfer the debts to the broader public, with no penalties to the perpetrators.
And then we shall see how the cards may fall. And who knows? They may do it all over again after that? What is to stop it?
Have a pleasant weekend.
