The Inevitability of Bubbles
May 14, 2021 14:38:51 GMT
themotherhen, wildhorseluvr, and 1 more like this
Post by Ozarks Tom on May 14, 2021 14:38:51 GMT
I haven't read Charles Hugh Smith in some time, every since the demise of Ol' Remus, but he's always been a smart and observant guy whose essays are worth reading.
In this instance, it's about inevitability, predictable results of previously observed scenarios. The only thing in question is when.
And here we are, in the Greatest Bubble of All Time (GBOAT) hanging on the thin thread of speculators rotating out of one bubble into another even more improbable bubble. If there is no heir-apparent for the rotation, then players rotate back into an asset that already reached bubblicious heights and is awaiting the next booster.
The Everything Bubble is one for the ages, but alas, even the most glorious global Tulip Bulb manias crash back to Earth. So how do Everything Bubbles end? Like every other bubble ends:
Preposterous moves to implausible which moves to plausible which moves to inevitable. In other words, bubbles inflating to even more outlandish valuations are no longer merely plausible, they've become inevitable: the Federal Reserve will continue printing money forever, Americans have trillions of dollars in stimmy and savings they're itching to spend, and so on.
The Everything Bubble is one for the ages, but alas, even the most glorious global Tulip Bulb manias crash back to Earth. So how do Everything Bubbles end? Like every other bubble ends:
Preposterous moves to implausible which moves to plausible which moves to inevitable. In other words, bubbles inflating to even more outlandish valuations are no longer merely plausible, they've become inevitable: the Federal Reserve will continue printing money forever, Americans have trillions of dollars in stimmy and savings they're itching to spend, and so on.
