The party’s almost over — but not in the land of the weeping camel

The Dow Jones Industrial Average of leading US stocks passed 13200 for the first time last week, after its strongest run (23 rises in 26 sessions) since 1955. The S&P 500, a broader indicator, stood at just over 1500, a fraction below the record high set in the final spurt of the dotcom boom. London’s FTSE-100 index, at 6600, is not far behind. Both markets are being driven by a fever of takeover activity and rumour in the ‘digital media’ sector, including talks between Microsoft and Yahoo and an approach to Reuters from the Thomson empire of Canada — all ominously reminiscent of the AOL-Time Warner deal, announced in January 2000, that was subsequently judged one of the most value-destroying mergers of all time.

And as if this isn’t enough evidence that the global balance of money and sense is wobbling dangerously again, the Daily Telegraph tells us that ‘savvy investors’ are snapping up real estate in Ulaan Baatar, capital of Outer Mongolia.