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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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Mon, 04/22/2013 - 19:49 | 3485947 fonzannoon
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where's the treasury bubble?

Mon, 04/22/2013 - 20:04 | 3486021 Croesus
Croesus's picture

ANY SECOND NOW:

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

"Where is the Gold Bubble?"

 

 

Mon, 04/22/2013 - 20:06 | 3486028 rajat_bhatia
rajat_bhatia's picture

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

Mon, 04/22/2013 - 20:08 | 3486038 Croesus
Croesus's picture

Just for that, I actually upvoted you.

But you're still a dumbass.

Mon, 04/22/2013 - 20:13 | 3486052 rajat_bhatia
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."


Mon, 04/22/2013 - 20:19 | 3486073 Croesus
Croesus's picture

@ Rajat_bhatia:

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

Mon, 04/22/2013 - 20:26 | 3486074 Manthong
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.

Mon, 04/22/2013 - 22:22 | 3486403 markmotive
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-...

Mon, 04/22/2013 - 20:24 | 3486087 rajat_bhatia
rajat_bhatia's picture

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

Mon, 04/22/2013 - 20:32 | 3486107 Manthong
Mon, 04/22/2013 - 20:47 | 3486142 Croesus
Croesus's picture

@ Manthong:

LMFAO!

 

Tue, 04/23/2013 - 08:06 | 3487372 Harlequin001
Harlequin001's picture

and look, they've even got a key ring...

nice..

Mon, 04/22/2013 - 20:49 | 3486146 11b40
11b40's picture

Gimme' 3

Mon, 04/22/2013 - 21:46 | 3486304 Alpha Monkey
Alpha Monkey's picture

Make it solid 24k and I'm there.

Mon, 04/22/2013 - 22:14 | 3486375 Manthong
Manthong's picture

gotta' Love it :-D

Mon, 04/22/2013 - 19:50 | 3485949 krispkritter
krispkritter's picture

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

Mon, 04/22/2013 - 19:52 | 3485967 Ban KKiller
Ban KKiller's picture

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

Mon, 04/22/2013 - 19:59 | 3485995 willwork4food
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It killed your dog too?

Mon, 04/22/2013 - 20:06 | 3486022 krispkritter
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I hope you weren't smoking...

Mon, 04/22/2013 - 19:51 | 3485961 John Law Lives
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1720 ... John Law Lives

Mon, 04/22/2013 - 19:52 | 3485962 cdntrader
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?

Mon, 04/22/2013 - 20:01 | 3485994 JLee2027
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.

Mon, 04/22/2013 - 20:13 | 3486047 msmith9962
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That would be fine if we only needed the land under our feet to survive and everyone got along ok.

Mon, 04/22/2013 - 21:16 | 3486219 masterinchancery
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But not if everyone wants to be upper middle class.

Mon, 04/22/2013 - 23:04 | 3486568 Herd Redirectio...
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

Tue, 04/23/2013 - 00:54 | 3486832 Raging Debate
Raging Debate's picture

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

Mon, 04/22/2013 - 20:13 | 3486054 Sabibaby
Sabibaby's picture

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

Mon, 04/22/2013 - 20:29 | 3486099 cynicalskeptic
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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.....

Mon, 04/22/2013 - 20:37 | 3486119 NidStyles
NidStyles's picture

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

Mon, 04/22/2013 - 23:46 | 3486691 cdntrader
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 ! 

Mon, 04/22/2013 - 19:54 | 3485976 stopcpdotcom
stopcpdotcom's picture

Must be West Ham supporters:

I'm forever blowing bubbles

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

Mon, 04/22/2013 - 20:02 | 3486013 blindman
blindman's picture

de Nile is not just a river in Egypt.

Mon, 04/22/2013 - 20:06 | 3486027 Major Major Major
Major Major Major's picture

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

Mon, 04/22/2013 - 21:42 | 3486291 W74
W74's picture

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

Mon, 04/22/2013 - 20:02 | 3486017 econprof70
econprof70's picture

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

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

Mon, 04/22/2013 - 20:16 | 3486064 Sabibaby
Sabibaby's picture

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

Mon, 04/22/2013 - 20:13 | 3486056 Caracalla
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     :-(

Mon, 04/22/2013 - 21:42 | 3486292 Alpha Monkey
Alpha Monkey's picture

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

Mon, 04/22/2013 - 20:15 | 3486061 rosiescenario
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Bubbles are a reflection of humans' herding behavior carried out to periodic extremes, or expressed differently, they are momo investments on steroids.

Mon, 04/22/2013 - 20:17 | 3486062 Unprepared
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?

Mon, 04/22/2013 - 20:19 | 3486071 Sabibaby
Sabibaby's picture

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

Mon, 04/22/2013 - 20:18 | 3486065 GrinandBearit
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2009-2013:  Fiat/debt/bonds bubble

2013: Bitcoin bubble

 

Mon, 04/22/2013 - 20:29 | 3486100 pitz
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. 

Mon, 04/22/2013 - 21:21 | 3486228 W74
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.

Tue, 04/23/2013 - 02:22 | 3486946 Jack Napier
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.

Mon, 04/22/2013 - 20:35 | 3486117 CURWAR2012
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No gold bubble because the scale by which all other bubbles are measured is gold, not paper

Mon, 04/22/2013 - 20:41 | 3486126 ebworthen
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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.

Tue, 04/23/2013 - 01:01 | 3486838 Raging Debate
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 :)

Mon, 04/22/2013 - 21:08 | 3486197 22winmag
22winmag's picture

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

Mon, 04/22/2013 - 21:16 | 3486216 W74
W74's picture

Fewer Liberals?

Mon, 04/22/2013 - 23:04 | 3486574 Herd Redirectio...
Herd Redirection Committee's picture

US Dollar, the biggest current bubble.

Tue, 04/23/2013 - 00:01 | 3486727 Peter Pan
Peter Pan's picture

How about the youth unemployment bubble of Spain and Greece? The invalid pension bubble of the USA? I was also going to say the firearms bubble in the USA until I remembered that that might come in handy for popping the government bubble.

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