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Understanding Asset Bubbles
Submitted by Adam Taggart via Peak Prosperity,
Through the long sweep of history, the bursting of asset bubbles has nearly always been traumatic. Social, political and economic upheavals have a bad habit of following asset bubbles, while wealth destruction is a guaranteed feature.
Bubbles only used to happen once every generation or longer, because it took substantial time for the victims to forget the pain of the damage.
But that’s changed in the new millennium. Less than ten years after the bursting of the dot-com bubble we saw the rise & bursting of the housing bubble. This is simply astounding and thoroughly unprecedented.
More astonishingly, there are now concurrent equity and bond bubbles raging across the entire financial market structure of the world.
We are in our third bubble period in less than 15 years. This new era of serial bubble-blowing signifies that we are now in new turbulent territory with which we have little historical guidance to draw on.
The recent years of money printing by the world's central banks has NOT ushered in a “permanent plateau of prosperity”. And, as with all bubbles, symmetry indicates the downslope after the bursting will be steep, swift, and likely quite scary.
For those who simply don't want to wait until the end of the year to view the entire new series, you can indulge your binge-watching craving by enrolling to PeakProsperity.com. The entire full new series, all 27 chapters of it, is available -- now-- to our enrolled users.
The full suite of chapters in this new Crash Course series can be found at www.peakprosperity.com/crashcourse
And for those who have yet to view it, be sure to watch the 'Accelerated' Crash Course -- the under-1-hour condensation of the new 4.5-hour series. It's a great vehicle for introducing new eyes to this material.
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Ride the wave, dude.
http://www.planbeconomics.com/2014/09/peter-schiff-bubble-economy-cant-s...
Ride the wave BUT watch out for that 18 ft. great white shark (Luciferian Cabal) just skimming along right under the surface.
don't forget about the very rapidly inflating bubble of incompetence in Washington DC
I am pretty sure in 10 years Ivy League and Harvard will translate to mean shit for brains.
cogito, ergo dum
Wave goodbye seems moar likely........
There are pros who are getting ready to spear guys betting short... They are salivating for Monday's action hoping enough "peeps" actually believe markets will be allowed to fall. Don't be another casualty.
I don't need a course to understand the frothy nature of these artificial markets. the big picture keeps telling me to get out of all of them and INTO PHYSICAL ASSETS.
gold, silver, sure. but there is also food, land, and other things people will always need no matter what happens to all these bubbles.
Here's my swirl~O~ gram.
WTF, I can't buy a single 12 oz beer for my mother at Ralphs? I have to buy a (6) pack or " specially package" a bunch of SHIT beers with that single (12 oz) beer to make a purchase.
Carl ICON, would be envious.
Fuck Ralphs.
Ohh, BTW. I chewed through a lot of charts today.
It looks bad for the USD next week. Remember I suggested the money market flows were slowing?
It's one thing to trade cash, and another to "hold" cash. M-1-2-3 Supply. ;-)
How's EKM doing?
The US indices are going to take a beating this week.
~Dipshitmiddleclasswhitekid
I'd say you're the engineer of the train, kiddo. Nice work ;-D
That was a nice presentation.
It seems important to view the financial realities vs bubble realities with the understanding that nations were turned into nation states during the last 30 years. Also the UN's takeover of the US military, the DHS, FEMA etc. as internal military agencies for control of the American people. It is not as if the central banks weren't fully aware of what they were doing. Without these bubbles the NWO would not have been able to attempt world domination. We are at the end of bubble 3 as the globalists attempt to conquer Russia.
Anyhow that is why I do believe this time it will be different. I think that the financial markets will stop instantly not to resume, martial law implemented within all UN nations and a nuclear war unleashed with Russia and China as the ebola pandemic expands. Things will be different this time, much different.
Hi,
Perhaps you will want to show this.
http://patrick.net/forum/?p=1223928
Don't asset bubbles only matter if one actually has assets? I mean, like the old song by the group Alabama: "Somebody told us Wall Strett fell, but we were so poor that we couldn't tell."
until the cards don't refill, then wall st. will mater. but they still won't know what happened...
Just wait until the kind and gentle neighbor bubble bursts..........
The SOBs keep this out of sight.
http://patrick.net/forum/?p=1223928
While most people turn risk-averse after a crash, for some, that's exactly the time to take risks.
Pandemonium is a great time to make money.
Amen Brothah.
Seems Wile E Coyote stopped publishing after July this year.
I'm bleeding tears of regret, out of my eyes.
Bitchez
an economy that produces nothing but debt and is based on perpetual growth sounds like a sure thing to me!!
Let's discuss asset bubbles.
I'm channeling Bill Gross, and the Spanish Bond market. lol
oh oh
http://www.cnbc.com/id/102080180
So anyways , I download this free Cad,Cam software and design a house.
Imagine that ? It's beautifull, 4 quadrants, each with a tablet, with a central water fall. I don't want my idea poached.
YAWN. Yet another elixir stone on bubbles. Want to write a spin on muppets and lemmings hugging crystal balls while star gazing. (Alas such stuffs do not sell).
It is price discovery gone into unfamilar orbits. Just move with the trajectories and be amused by the indefinite formations. Avoiding traps is already sapping energy...why bother with when these traps snap.
Do you play a musical instrument?
Bubbles are an interesting self reinforcing phenomena that feeds on itself and greed. The problem is how to recognize them as they form. The value of "something" is not an issue to take lightly. Value is not a constant and can be derived from several factors such as how liquid a market is, supply and demand or utility value, things can spoil or become obsolete making where you invest very important.
Value is not as constant as many people think or always destined to rise. I have discovered that when you start buying things at ten cents on the dollar your money begins to go a long way. This is a lesson many people may soon learn, or maybe not. The article below delves into how values constantly shift.
http://brucewilds.blogspot.com/2012/11/what-is-something-worth.html
No use singing up at peakprosperity, we already passed that point long time ago.
ths down draft may not be swift. sentiment now believes in a quick correction, which suggest a possible slow drip major loss which sucks in "dip buyers" all the way down to wherever it ends.
It's all a bubble. Money is fiat paper, commodities are manipulated, and stocks will continue "rising" due to m2 money supply injection.
The only thing, in the end, that is real is your own skills and labor. After that, money is in and out. Ride the tide and try to see ahead. Keeping cash in the matress sure as hell isn't any safer. The value is already being stolen from it without them having to touch it. Unless the matress catches on fire. Then you're screwed.
And Kunt Yellen still talking about "mortgages restrictive" ! Believe that shit?
An asset bubble is like the cruise ship, SS BUBBLICIOUS, departing for THE BIG ROCK CANDY MOUNTAIN in 10 minutes.
Get your ticket now.
All ashore that's going ashore.
DON'T MISS THE BOAT!
Don't know if this makes sense but I always ask myself how many loaves of bread could this thing trade for if the worst happens. If I borrow 100k to buy a house at a fixed 5% interest when the 100k buys 100,000 loaves of bread and the SHTF after which 100k buys 20,000 loaves of bread but the house still trades for 100,000 loaves (omitting risks and carrying costs like it becoming a Detroit house, property taxes, maintenace) then I could sell the house for $500k devalued dollars, pay off the 100k loan and come out 400k or 80,000 loaves ahead. For me it all comes down to the real bread when figuring out values because people using real bread is pretty constant.