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All Bubbles Are Different

Tyler Durden's picture




 

Submitted by Lance Roberts via STA Wealth Management,

 

 

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Wed, 08/19/2015 - 16:32 | 6445045 Fester
Fester's picture

Pat, I'll take the ceramic donkey $12,000

Wed, 08/19/2015 - 16:44 | 6445076 Row Well Number 41
Row Well Number 41's picture

Each snowflake is different, and yet they are all the same.

#41

Wed, 08/19/2015 - 17:36 | 6445213 Captain Debtcrash
Captain Debtcrash's picture

At some point there will be a critical mass default, and the debt bubble will pop.  I'm just curious what they will attempt to blow that one back up, should be interesting. 

Wed, 08/19/2015 - 16:34 | 6445052 BandGap
BandGap's picture

Wow, what a load of shit.

Wed, 08/19/2015 - 16:44 | 6445071 Rainman
Rainman's picture

yeah, not a word about the Fed and the next helicopter drop of fiat.

Wed, 08/19/2015 - 16:36 | 6445057 Chuck Knoblauch
Chuck Knoblauch's picture

All earthquakes are different too.

Wed, 08/19/2015 - 16:36 | 6445058 BandGap
BandGap's picture

If you know how to use Excel, or better yet SPC Excel, you can fit a fucking line to anything. Just sayin'.

Bet we have a lot of soothsayers now that we are midway through the final phase.

Lock and load.

Wed, 08/19/2015 - 16:38 | 6445062 gdiamond22
gdiamond22's picture

Ok drawing a downsloped arrow after it has happened isn't valuable to anyone - drawing a downsloped arrow on a chart that you have no fucking idea what is going to happen doesn't help either.

Next.

Wed, 08/19/2015 - 16:52 | 6445100 buzzsaw99
buzzsaw99's picture

bear markets only happen in real markets which we don't have anymore

Wed, 08/19/2015 - 16:54 | 6445114 lasvegaspersona
lasvegaspersona's picture

I'm betting the panic will begin with a random failure of some bond payment....dunno...Illinois?...Frackin is US?....

It did not take much to get things moving in 2001....just a hint that the story was not quite as true as it was being told...

Wed, 08/19/2015 - 17:04 | 6445143 adr
adr's picture

The bubble being blown right now is the largess of all time because the P/E ratios are based on pure fantasy. A realistic measure would find earnings magnitudes lower than reported.

What I see is a massive bubble that has been growing since the early 1950s as the stock market began taking over the economy. From the end of WWII on the goal became to become a publicly traded corporation and reward management with shares of stock they could sell, granting them more wealth than could ever be extracted through the company alone. Increasing stock multiples became more important that investing in R&D.

This destroyed the US and Global economy.

If your company doesn't make a dime in profit, how could you pay your top executives millions of dollars? It would be impossible. Only well run and actual profitable enterprise could exist. Wall Street rewards the worst run business with the greatest success, measured by stock valuations.

Remember the promise of 50 years in the future from the 1950s? 2015 isn't even close to what people expected. Technological innovation peaked in the 1960s. Sure what we have today is faster but it is all just faster versions of what people used sixty years ago. People make it seem like the cell phone is a fantastic 21st century invention. It is nothign but a refined two way radio from WWII.

We don't have unlimited energy, flying cars, real robot companions, hoveranything, transporters, faster than light drives, etc. This October will mark the date of what people thought the future would look like 30 years ago. Thanks to fucking Wall Street rewarding the thieves, innovation was crushed to satisfy the insatiable consumptionist craving of the 1%. Instead of going to Mars or developing the next great innovation, they wanted another yacht or 50,000sq ft house.

Wed, 08/19/2015 - 18:55 | 6445373 stewie
stewie's picture

Fucking EPIC rant!!  +++

Wed, 08/19/2015 - 17:13 | 6445164 TheRideNeverEnds
TheRideNeverEnds's picture

While I agree with the general sentiment of this article I disagree with one major component.

"in a normal market environment, is the price level at which a buyer and seller complete a transaction."

The market hasn't worked this way in a decade. Price is determined almost entirely by the proponderance of HFT actions. Actual things trading hands is unnecessary. The only thing that matters is how much of what quotes are sent where and how fast so it's not about actual buyers and sellers it's about bids and offers giving the perception of supply and demand and subsequent price movements. We moved away from actually needing to trade a while ago. Just quote em progressively higher and away we go. They don't actually want to and will not allow the actual trading of things most of this time. They will pull their bid faster than your offer comes to the SIP because that is their business and they see what you want to do before the 'market' if they don't already have another buyer with sufficient profit margin to buy from you and sell to them (front run you) they will pull the bid and not interact with your flow.

Wed, 08/19/2015 - 17:41 | 6445224 Consuelo
Consuelo's picture

 

One of the largest bubbles of all, is the bubble that this author resides in: The Finanical Services Industry.   And as long as these guys are collecting $$$Fees from a client base, they'll trot out whatever charts & graphs are necessary to project and justify their positions to the extent that it enbables those yearly $$$Fees to keep rolling in.   After all, 'you can't do this on your own' - it takes an 'expert'...    Personally, I'd like to see them all washed from memory and instead maybe hiking around a wheelbarrow load of mortar.   At least they'd be doing something 'real', instead of pushing financial 'products'...

 

 

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