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Tag Archives: South Sea Bubble

  • Blog
    central banks

    The Phantom Mania

    There's nothing of substance underlying the current market melt-up
    by Adam Taggart

    Friday, November 22, 2019, 5:00 PM

    44

    Well, stocks are back at all-time highs. Ignited by the Fed’s “Not-QE” program and endless Trump administration teases of an “imminent” China deal, the S&P 500 has been propelled above its upward Bollinger band — a hyperextension only seen one other time since 2007.

    Every week since Not-QE was announced has seen the S&P close green (this week finally ending the streak, barely). We’re officially in a melt-up, where both good news and bad news are accepted as valid reasons to push stocks even higher.

    But what’s notable about this melt-up is that it’s missing a compelling narrative. Every past asset price mania required a feel-good mantra that convinced the masses “This time is different!”.

    But today? What’s the radically better future being promised? Where’s the party train headed to?

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  • Blog
    Shutterstock

    It’s Bubble Time!

    Wisdom & discipline will separate winners from victims
    by Chris Martenson

    Thursday, February 23, 2017, 9:50 PM

    28

    It's impossible to predict with certainty how much more insane our financial markets will get before an inevitable correction, but my personal bet is “a lot!”

    For my reasons why, take a few minutes to watch the chapter on bubbles below from The Crash Course. For those who haven't seen it before, the takeaway is this: bubbles pop only when greed in the market has been exhausted.

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  • Blog
    Dreamstime

    The Marginal Buyer Holds The Pin That Pops Every Asset Bubble

    So it's important to watch him very closely
    by Adam Taggart

    Friday, August 19, 2016, 6:01 AM

    14

    Those of you who took an Economics class in college may remember the saying that prices are set "at the margin". That's a fancy way to say that prices are set by the person (or people) willing to pay the most.

    This person willing to pay top dollar is called the "marginal buyer". Most of us don't really think about him, but he (or she) is very, very important.

    Why? Because the marginal buyer not only determines price levels, but also their stability and degree of volatility. The behavior of the marginal buyer, as well as the degree of competition for his/her "top dog" spot, sets the prices of nearly every asset class held by today's investors.

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  • Blog
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    Understanding Asset Bubbles – Crash Course Chapter 17

    Why they form & how they pop
    by Adam Taggart

    Friday, October 10, 2014, 11:21 PM

    0

    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.

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