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The Fed Is Setting Us Up For A Historical Economic Implosion
Although stocks have tripled since 2009, that does not mean all is well. In fact, an article from Forbes tells of a terrifying situation we face, we’re in the calm of the storm right now. There is a two decade old stock bubble, a new one has developed, that is actually another wave of the bubble that has existed since the mid-1990s. Disaster is inevitable. When this bubble pops the results will be absolutely terrifying, and could take down the Global economy. The Federal reserves is responsible for the Bubblecovery, we’ve been in a continuous bubble wave, that has continued to balloon since, how much longer until it burts.
Investmentwatch.com - Disaster Is Inevitable When The Two Decade-Old Stock Bubble Bursts
Six years after the Global Financial Crisis, the U.S. stock market
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continues to soar to new heights with nary a pullback or correction. In this piece, I will explain why the stock market is experiencing a new bubble that is actually another wave of the bubble that has existed since the mid-1990s.
A two-decade old bubble? Yes, you’ve read that correctly. Most people will consider this assertion preposterous, but the facts don’t lie. Though the U.S. stock market has been experiencing a bubble for two decades, it will not last forever. I believe that the ultimate popping of this bubble will have terrifying consequences for both investors and the global economy that is tied so closely to the stock market
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.
The SP500 stock index has more than tripled since its low in 2009, but that doesn’t mean that we are out of the woods. On the contrary, this is the calm before the storm.
image: http://blogs-images.forbes.com/jessecolombo/files/2015/04/Sp500.png
Source: St. Louis Fed
Since the mid-1990s, the U.S. economy and stock market has experienced three different bubbles: the 1990s Dot-com bubble, the mid-2000s housing bubble, and now another bubble that includes stocks, bonds, tech startups, certain segments of the housing market, higher education, and much more. I believe that this new bubble is creating what I call a “Bubblecovery” or a bubble-driven temporary economic recovery that will end in another crisis.
The U.S. Federal Reserve also created a Bubblecovery in the early-2000s to recover
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from the Dot-com bust, which led to the housing bubble. After the housing bubble burst, the Fed inflated the post-2009 Bubblecovery. After each bubble/Bubblecovery ends, the Fed simply inflates another bubble to recover from the last one. In essence, the U.S. economy and stock market has been in a bubble cycle for the past two decades. Each time, the bubble gets larger, and the Fed has to keep re-inflating it to avoid the economic Depression that would occur if asset prices were allowed to find their true value.
Jesse has it right: a 20year bubble levitated repeatedly by the Fed setting us up for mega challenges ahead
There is only one way to end the financial tyranny of the Federal Reserve–abolish it, and put an end to the predatory pathologies of its policies.
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would borrow to invest in new productive capacity and consumers would buy the new goods and services being produced with cheap credit.
Leveraged Loans may be the today’s malinvestment & in the future the FED’s next bubble
When this all blows, everything they have stolen should be recovered, returned to the people and leave them penniless.