A Visual History Of All Asset Bubbles

Tyler Durden's picture

Maybe not all, but certainly the vast majority of the most popular asset bubbles since before even the Tulip Mania of 1637 (including the Kipper and Wipper currency debasement of the German 30 years War, circa 1621, which is appropriately enough deja vu in contemporary retrospect, only the war is missing). While it may be worth noting that all the bubbles to the right of center have been central-bank induced (except for that amulet bubble of 2006, although even that is likely debatable), we will not note it as it is quite obvious even without us highlighting this simple fact. One can only imagine what would happen to asset prices - all of them - when the world's central banks, which are now collectively and voluntarily "all in" on reflating the biggest asset bubble of all time across all asset classes, decide to close the liquidity spigots (if ever).

Source: Goldman

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fonzannoon's picture

where's the treasury bubble?

Croesus's picture

ANY SECOND NOW:

rajat_bhatia will be gracing this thread with his presence, to ask:

"Where is the Gold Bubble?"

 

 

rajat_bhatia's picture

Wow! Change your name brother! Call yourself 'The Oracle'

Croesus's picture

Just for that, I actually upvoted you.

But you're still a dumbass.

rajat_bhatia's picture

LOL, And I thought you intelligent and were being sarcastic with this comment

 

"If going long on physical Gold is wrong, then I don't want to be right."


Croesus's picture

@ Rajat_bhatia:

No, I was being 100% serious. The barbaric relic has treated me well.

Manthong's picture

 

I did not see the fall of the Roman Empire up there when the middle class was driven out of the city by taxation and into the welcoming arms of Alaric.. but that’s OK  a) it’s happening again now and b) we will get the same result.

 

geezus..somewhere a village is missing it's idiot.

markmotive's picture

Love the graphic - one of the best books on the subject is this: A Short History of Financial Euphoria.

Another one on the biggest bubble of them all - the rise of private credit creation and fiat money - is called "Web of Debt" by Ellen Brown.

http://www.planbeconomics.com/2013/04/interview-with-ellen-brown-author-...

rajat_bhatia's picture

How well? enlighten me, what have you really got out of the gold you've held?

krispkritter's picture

 'Pop! Go the Weasels'...thanks to the banks.  I'll stick with things that I can hold...

Ban KKiller's picture

I saw an asset bubble in my bathtub. It didn't end well. 

John Law Lives's picture

1720 ... John Law Lives

cdntrader's picture

Well, actually, the human race is THE biggest bubble the earth has seen!

http://www.jayhanson.us/David%20Price3.gif

Any timeframe before it bursts, anyone?

JLee2027's picture

You're fear mongering with a hand-picked graph to show extreme compression followed by a sudden rise. There is no population ""bubble."" Everyone on Earth, standing shoulder to shoulder could fit inside Jacksonville Florida. Twice. We have plenty of room.

msmith9962's picture

That would be fine if we only needed the land under our feet to survive and everyone got along ok.

masterinchancery's picture

But not if everyone wants to be upper middle class.

Herd Redirection Committee's picture

Actually, if planned obsolescence is abandoned as the dominant paradigm we could do alright for ourselves on this planet.  They said the East Germans made a light bulb that didn't go out. The materials were scarce in E. Germany, and they couldn't afford to make shitty lightbulbs.  The engineers from West Germany laughed at them, saying "How many of those will you sell?"

It just shows you how much things can change with a simple change in mindset.  No more usury, no more fiat currency, no more gov't ponzi, no more fractional reserve banking, not more laws, but actually enforcing the ones that we have...  Right now the justice system is two-tier, depending on how many lawyers you can afford.

1 lawyer = 1st tier justice system. 

2+ lawyers = top tier = do what you want

Raging Debate's picture

You forgot no lawyer Herd. No lawyer = an expensive and long payment plan.

Sabibaby's picture

What's this "we" stuff! You got a mouse in your pocket?

cynicalskeptic's picture

problem is food, water, energy - resources n general on  a planet with an expanding population, expanding WANTS and limited resources.  No way possible for the whole world to exist at even a lower middle class US standard of living - small house, appliances, car, etc.....

NidStyles's picture

Feel free to alleviate yourself and us of worry by hanging yourself.

cdntrader's picture

"Everyone on Earth, standing shoulder to shoulder could fit inside Jacksonville Florida. Twice. We have plenty of room."

 

Yeah ! And we have plenty of resources, food and wealth for everyone... Current famines and class warfares are so overrated ! 

stopcpdotcom's picture

Must be West Ham supporters:

I'm forever blowing bubbles

http://www.youtube.com/watch?v=yvuOtlpSAeY

blindman's picture

de Nile is not just a river in Egypt.

Major Major Major's picture

Correct, it also flows through Rwanda, Ethiopia, Tanzania, Uganda and Sudan.

W74's picture

And South Sudan.  You need to update your map sir.

econprof70's picture

On this topic, thought you folks might appreciate this chart:

http://www.macrotrends.org/1311/asset-price-bubbles-since-1976

Sabibaby's picture

Easy there... that's quite a bit of chart porn!

Caracalla's picture

I'm such a fool.  Been losing money the past two years stacking phyzz silver and could of made a killing on Netflix     :-(

Alpha Monkey's picture

I'll go with that, but only cause I think you shoulda been stacking gold.

rosiescenario's picture

Bubbles are a reflection of humans' herding behavior carried out to periodic extremes, or expressed differently, they are momo investments on steroids.

Unprepared's picture

My gf's assets are bubbly too and hope they don't pop any time soon. All that $85/week balance sheet expansions had to go somewhere, right?

Sabibaby's picture

You're getting a good deal there. That's no bubble at $85 a week!

GrinandBearit's picture

 

2009-2013:  Fiat/debt/bonds bubble

2013: Bitcoin bubble

 

pitz's picture

Uranium bubble?  Hardly.  There was no hoarding of uranium.  Nobody was buying uranium on credit.  Uranium producers' stocks barely only doubled or tripled -- not the large outsized gains you'd expect from a real bubble.  If Uranium was a bubble back in 2007, then I can think of many other asset classes, including gold, oil, potash, etc., that qualified for 'bubble' status far more. 

W74's picture

So then housing was never in a bubble because it "barely only doubled or tripled" over the course of a decade or more?  What makes something a bubble then?  Your criteria isn't size, so is it that housing was bought on credit? Is it because people speculated in it rather than use it for it's intended purpose? What's the criteria here?

Side Note: Rhodium shot up 1000% or more for a couple months.  Look into that, it can happen to anything.

Jack Napier's picture

I was going to say, no love for rhodium in the infographic? That was a nice bubble there. They forgot Apple too.

CURWAR2012's picture

No gold bubble because the scale by which all other bubbles are measured is gold, not paper

ebworthen's picture

All the way back to the Thirty Years War.

I'll have to re-read the Three Musketeers Trilogy:  "The Three Musketeers", "Twenty Years After", and "The Vicomte de Bragelonne: Ten Years Later".

God those are fantastic books, I recommend the Oxford World's Classics editions.

Same with "The Count of Monte Cristo".

Lots of political and financial shenanigans, just like today.

Worth every page.

Raging Debate's picture

Your a wise man Ebonworth. Those that fail to learn from history are doomed to repeat. I like to read and am doing just fine as well :)

22winmag's picture

I wonder if the student loan bubble will top them all in the number of related suicides.