If you’re over 40 you’ve lived through at least three epic financial bubbles: junk bonds in the 1980s, tech stocks in the 1990s, and housing in the 2000s. Each was spectacular in its own way, and each threatened to take down the whole financial system when it burst.
But they pale next to what’s happening today. Where those past bubbles were sector-specific, which is to say the mania and resulting carnage occurred mostly within one asset class, today’s bubble is spread across, well, pretty much everything – hence the term “everything bubble.”
When this one pops there won’t be a lot of hiding places.
February 8, 2021
Is This The Biggest Financial Bubble Ever? Hell Yes It Is
[I wrote about complex systems and emergent behavior last night. Our financial markets are another example of emergent behavior. The rule sets are large and complex but behavior still emerges that some may claim can only be explained by a conspiracy. But, again, no conspiracy need exist.
There is a financial bubble about to pop. Simultaneously there is a growing mass delusion about the existence of millions of “extremists” who must be “canceled” or even killed. And there is a pandemic (real or imagined, it doesn’t matter much in the context here) that are all contributing to epic shear forces in our society.
Prepare accordingly. It’s going to be a bumpy ride.—Joe]
Shear or sheer forces?
It’s weird but homophones I didn’t know existed flow out my fingers all the time. I catch most of them but not this one this time.
Quanah Parker wrote about this phenomenon and wives.
If you have one wife. It’s to much work for just one.
If you have two wives. They will always be fighting all the time.
If you have three wives. Two will always be picking on the third.
If you have four wives. Two will always side against the other two.
But if you have five wives. It forms a constant imbalance in which can be found a measure of peace. And still perform the duties of life.
Sorry folks! Should have put that comment in the previous post!
One interesting question is whether precious metals are part of the bubble this time. I’m wondering about that. Is there a bubbly explanation, or an actual real market explanation, for the fact that the price order (high to low) used to be platinum, gold, palladium and is now the exact reverse by a large margin?
The short answer. Yes. As long as any entity is allowed to create money by issuing credit. All commodities will be used in bubbles one way or another. Money supply is the key, though.
Good point. Fractional reserve banking is the root problem; fiat money is simply an additional scam enabled by the first.
The destruction of the dollar is fundamental to the destruction of America.
And there are a LOT of people working hard to destroy America. And unless
we get our collective asses in gear and start rounding them up and hanging them
they are going to succeed. It may be too late already to undo the damage they’ve done.