Facebored...let's talk about something else!

Facebook Status Update: Faceplant (for now).  It is now trading 10% below the debut price.  Anyway, I'm as Face-bored as the rest of you.  Only time will tell what happens.  That said, it was a good distraction.  Just like Facebook stalking can be a nice waste of time, the IPO gave us a much needed reprieve from Europe's problems.  It's certainly much more fun counting Zuck's bucks than it is watching Europe implode.

That said, we can't just blame Europe for everything.  China has its own demons.  Two major stories going around with regards to China right now - Stock-piling and stimulus.  By stock-piling it means the fast accumulation of excess raw materials (like coal, iron-ore, copper etc).  Fair enough, a build up is to be expected as the Chinese economy is slowing.  However the magnitude of the stockpiles are worrisome as it signals things may be slowing to  a halt.   This would be bad for the world.  Moreover when China makes big cuts in their raw-material consumption, resource rich countries like Australia get pretty unnerved (see the Australian Dollar?)  So should you just avoid China altogether?

You see, it's not that easy.  The chatter is China could start introducing some pretty significant stimulus packages into the economy imminently.  Unlike the European situation, China's not handicapped by elections/budgets/ debates.  They are not bound by the trappings of the Democratic process so they can just turn the taps on and start injecting money into the economy.  Pretty convenient indeed but the debate remains on if it will work.  Kind of like Facebook - we'll have to wait and see.