The problem is central banks have created a vast pool of credit-money that is far larger than the pool of sound investment opportunities. Why are asset bubbles constantly popping up around the globe? The answer is actually quite simple. Asset bubbles are now so ubiquitous that we’ve habituated to extraordinary excesses as the New Normal; the stock market of the world’s third largest economy (Japan) can rise by 60% in a matter of months and this is met with enthusiasm rather than horror: oh goody, another bubblicious rise to catch on the way up and then dump before it pops.
Posted on: Fri, 07 Jun 2013 12:03:46 +0000
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