Short-Term Gain Quest Makes Bubble Likely

The Associated Press ^ | October 10, 2009

[Strategy]

The next financial bubble could come sooner than you think.

A year after the collapse of home values triggered the financial crisis and Great Recession, another rapid and irrational rise in the price of assets - whether stocks, home values, oil or something else - would seem unlikely. After all, major bubbles through history have been spaced decades, if not centuries, apart.

Today, though, amid the wreckage of the last bubble, the ingredients for the next are still with us. The price of gold spiking to unprecedented levels - $1048.60 an ounce on Friday - is one warning sign, as is the 66 percent surge since March in the Nasdaq Stock Market index.

[griswold3]

I’ve had a chart since 2000 on global economy. So far (maybe missed by a few months) it’s been fairly right.
The bad news is...it calls for a 10 year decline before it levels off....???

[montag813]

Bubbles don’t burst when everyone is predicting it. Every day for months we have seen articles about how the stock market would collpase any day now...and it hasn’t. Currently at yearly highs, 10k a breath away. The famous saying holds “The market climbs a wall of worry”. It has ever been so.

[FastCoyote]

[The bad news is...it calls for a 10 year decline before it levels off...]

Any business person who can read a balance sheet knows the core of the country is bankrupt. The banks are bankrupt, the Federal government is bankrupt, and the Fed is paying off it’s Wall Street cronies at Goldman Sachs. The citizens aren’t completely guilt free, but they were in part duped into the feeding frenzy. It doesn’t matter how they got there, the consumer is eyeball deep in debt.

So ten years has been my guess too, but with a loooong bottom. I can make money for a while as a business carcass scavenger, but it is my little niece I worry about.

[SkyPilot]

So...............what does this mean, exactly?

- Will to dollar collapse and result in a world currency almost overnight?

- Will we have hyperinflation?

- Will the housing market collapse back to 1998 (or even 2000) year prices?

- Will the stock market fall?

The article is sort of "there is a cold front, probably" statement, but no forecast.

I give him credit for at least reaching out to future events, but he does not go into substantial speculative details. We are already flooded with "experts" on TV telling what happened yesterday (I know what happened yesterday), but very few who are willing to go out on a limb and tell what will happen tomorrow.