Drunken Speculation

MR | Third Edition, July 2013

7d5532deebba11e29aee22000a9f38e6_7Last week on our blog:

This week is Queensland Beer Week – or “Great Beer Week” or “Craft Beer Week” depending on who you ask and where you are – which is pretty cool for those of us based in the Sunshine State. I’m still nailing down which activities I’m going to but there’s a boozey week in the offing. Of course, we’ll be doing our best to cover the action in our upcoming posts.

Here are the other highlights from last week:

A note on the craft beer “bubble” (something I want to elaborate on another time, after a bit more research) – nothing I’ve read has presented sufficient data to be able to draw the conclusion that there is a bubble in the craft beer market. Firstly, no one ever explains which asset is in a bubble: is it the price of beers, breweries, brewers? Secondly, an economic bubble is created by speculative mania where assets prices are divorced from their economic fundamentals, which doesn’t describe anything we’re seeing. From the data provided (limited to the rapid growth in the number of breweries, which doesn’t tell you much), we are seeing a saturation of craft beer offerings. A saturated market and a bubble have entirely different economic outcomes and it is erroneous to conflate the two.

In other news, developing Brisbane’s Circular Quay; the dang gummint interfering in the production of sultanas; if you add up all the lost productivity surveys, the economy would be wiped out; and settling big mysteries.

2 comments

  1. Glad you enjoyed my article. Speaking of whether or not there’s a bubble, that’s going to be the subject of The Session #80, which will be hosted by yours truly. I look forward to the discussion!

    • Perfect! I’ve written a post in the past on the subject and used the word “bubble” too but the more I think about it, the less bubblicious it seems.

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