Contact us
CALL US NOW 1-888-GOLD-160
(1-888-465-3160)

2017: The Year of the Bubbles

  by    0   0

2017 may well go down in history as the year of the bubble.

We’ve talked a lot about the stock market bubble in recent months, but there are a whole slew of bubbles floating around out there – most of them created by loose monetary policy that has dumped billions of dollars of easy money into the world’s financial systems over the last eight years.

Even the Federal Reserve has taken notice of the stock market bubble and seems to be a bit spooked by the monster it created. According to the most recent FOMC minutes released by the Fed, several participants “expressed concerns about a potential buildup of financial imbalances,” in light of “elevated asset valuations and low financial market volatility.”

But the stock market isn’t the only bubble that’s blown up over the last year. Earlier this month, Mint Capital strategist Bill Blain warned us about the bond bubble.

The truth is in bond markets. And that’s where I’m looking for the dam to break. The great crash of 2018 is going to start in the deeper, darker depths of the credit market.”

We’ve also reported the student loan bubble and the auto bubble. We even told you about a shoe bubble. Last summer, US Global Investors CEO Frank Holmes called global debt “the mother of all bubbles.”

Bank of America chief investment strategist Michael Hartnett recently said he expects the stock market bubble to burst in 2018. He said the record number of investors calling equities overvalued combined with simultaneously falling cash positions “an indicator of irrational exuberance.”

Icarus is flying ever closer to the sun. And investors’ risk-taking has hit an all-time high.”

Hartnett has also put together some interesting bullet points that reveal the expansive bubble economy created by eight years of central bank intervention. Hartnett calls 2017 “a perfect encapsulation of an 8-year QE-led bull market.”

  1. Da Vinci’s “Salvator Mundi” sold for staggering record $450 million
  2. Bitcoin soared 677% from $952 to $9700 (and still going up)
  3. Bank of Japan and the European Central Bank were bull catalysts, buying $2.0 trillion of financial assets
  4. Number of global interest rate cuts since Lehman hit: 702
  5. Global debt rose to a record $226 trillion, record 324% of global GDP
  6. US corporates issued record $1.75 trillion of bonds
  7. Yield of European HY bonds fell below yield of US Treasuries
  8. Argentina (8 debt defaults in past 200 years) issued 100-year bond
  9. Global stock market cap jumped1 $15.5 trillion to $85.6 trillion, record 113% of GDP
  10. S&P500 volatility sank to 50-year low; US Treasury volatility to 30-year low
  11. Market cap of FAANG+BAT grew $1.5 trillion, more than entire German market cap
  12. 7855 ETFs accounted for 70% of global daily equity volume
  13. The first AI/robot-managed ETF was launched (it’s underperforming)
  14. Big performance winners: ACWI, EM equities, China, Tech, European HY, euro
  15. Big performance losers: US$, Russia, Telecoms, UST 2-year, Turkish lira

WhyBuyGoldNowBanner.070815.590

Get Peter Schiff’s most important Gold headlines once per week – click here – for a free subscription to his exclusive weekly email updates.
Interested in learning how to buy gold and buy silver?
Call 1-888-GOLD-160 and speak with a Precious Metals Specialist today!


Related Posts

Thirty-Nine States Don’t Have Enough Money to Pay Their Bills

It’s not just the federal government running massive deficits and piling up enormous levels of debt. Thirty-nine US states don’t have enough money to pay all of their bills. That was the grim conclusion of Truth in Accounting’s annual Financial State of the States report. The report summarizes a comprehensive analysis surveying the fiscal health […]

READ MORE →

No Inflation? Money Supply Continues to Grow at Record Rate

To hear Federal Reserve officials, politicians and mainstream financial media pundits tell it – there is no inflation. In fact, the consumer price index remains “stubbornly low” according to those who view rising prices as an economic good. But inflation defined correctly is rampant. In fact, it is at all-time record levels. Strictly speaking, inflation […]

READ MORE →

The Fed Is Backstopping the Enormous Government Debt

The 2020 budget deficit surged passed $3 trillion in August even as the US government continues to borrow and spend at a torrid pace. Since March, the federal government has added $3.3 trillion to the national debt. That is on top of the $1.4 trillion in debt Uncle Sam piled on in the 12 months […]

READ MORE →

The Fed Delivers What’s Expected

If you go to McDonald’s, you expect to get a hamburger. If you go to KFC, you expect to get chicken. And if you go to the Federal Reserve, you expect to get easy money. The Fed delivered exactly what you would expect at this month’s Federal Open Market Committee meeting that wrapped up Wednesday.

READ MORE →

Lockdowns May Have Permanently Scarred the Labor Market

Every week, analysts and pundits pour over the latest weekly jobs report looking for signs of life. Every month, we dive into the monthly unemployment numbers hoping they signal economic recovery. But these unemployment numbers don’t tell the whole story. The government economic shutdowns in response to the coronavirus pandemic have deeply wounded the economy […]

READ MORE →

Comments are closed.

Call Now