VIDEO: Understanding Asset Bubbles

Through the long sweep of history, the bursting of asset bubbles has nearly always been traumatic.  Social, political and economic upheavals have a bad habit of following asset bubbles, while wealth destruction is a guaranteed feature.

Bubbles only used to happen once every generation or longer, because it took substantial time for the victims to forget the pain of the damage.

But that’s changed in the new millennium. Less than ten years after the bursting of the dot-com bubble we saw the rise & bursting of the housing bubble.  This is simply astounding and thoroughly unprecedented.

More astonishingly, there are now concurrent equity and bond bubbles raging across the entire financial market structure of the world.

We are in our third bubble period in less than 15 years. This new era of serial bubble-blowing signifies that we are now in new turbulent territory with which we have little historical guidance to draw on.

The recent years of money printing by the world’s central banks has NOT ushered in a “permanent plateau of prosperity”. And, as with all bubbles, symmetry indicates the downslope after the bursting will be steep, swift, and likely quite scary.

For the best viewing experience, watch the above video in hi-definition (HD) and in expanded screen mode


Coming next Friday: Chapter 18: Fuzzy Numbers

For those who simply don’t want to wait until the end of the year to view the entire new series, you can indulge your binge-watching craving by enrolling to PeakProsperity.com. The entire full new series, all 27 chapters of it, is available — now– to our enrolled users.

The full suite of chapters in this new Crash Course series can be found at www.peakprosperity.com/crashcourse

And for those who have yet to view it, be sure to watch the ‘Accelerated’ Crash Course — the under-1-hour condensation of the new 4.5-hour series. It’s a great vehicle for introducing new eyes to this material.

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  • MOLON LABE

    YOU ARE 100% RIGHT ABOUT SILVER — The Wealth Watchman Oct 5, 2014

    As the Wealth Watchman notes, despite the cartel’s paper games, Silver & Gold demand has EXPLODED and Western demand is back with a vengeance judging by the past week of Silver Eagle sales from the US Mint: The big players, the smartest guys in the room were busy buying nearly 24 tonnes of silver from the U.S. Mint! So the cartel can slaughter the paper silver market, but they do so at their own peril as the inverse reaction to their criminality is a RUN ON PHYSICAL precious metals.

    https://www.youtube.com/watch?v=4xiajkBuekU&list=UU2nQYGjfe9I_tgWpqgJorUg

  • jadan

    Bubbles are made of derivative paper profits created by interest rate arbitrage. Derivative profits are theft of real wealth and devalue the currency. “Money printing” is not a cause, it is an effect. You’ve noticed the increasing frequency of bubbles, but have you also noticed the expansion of the casino (“financial”) economy? No coincidence.