Sunday, Nov 15, 2009

Bubble Trouble

Guardian: Have prices risen too much, too soon?

Everywhere the story is the same. Gold: at a record high. Shares: 50% up since March. Oil: back up to $80 a barrel. Bonds yields at a record low. Average UK house prices: up £11,000 this year.
Around the world, asset prices are booming. The question is: are policymakers trying to solve the problems caused by one of the biggest bubbles in history by pumping up another speculative frenzy?

Posted by little professor @ 02:12 AM (1395 views)
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6 Comments

1. fubar said...

I have to admit that when I read the article title my first thought was the Guardian are running a "Stop - Press. Bears sh1t in the woods" article. Then I read it. Its an excellent synopsis of where we're at. The photograph they picked to lead it is like a still of the Zombies in Dawn of the Dead, a saucy little hint about what they think? The first sentence is a blinder "Central bankers are relaxed about booming asset markets" - if that's true then they need hanging. I like the uber bearish overall tone. Because of the interventions last year's crisis will look like a warm up act when this bubble/delusion ends. Get your helmets on ladies and gents - wave two is inbound.

Sunday, November 15, 2009 08:14AM Report Comment
 

2. taffee said...

yes

Sunday, November 15, 2009 08:42AM Report Comment
 

3. techieman said...

wave 2 or is that wave 3 Fubar? ;-)

http://marketthoughtsandanalysis.blogspot.com/2009/11/projections-in-corner-of-my-mind.html

Sunday, November 15, 2009 09:16AM Report Comment
 

4. letthemfall said...

The 4th paragraph from the end hits on something fundamental - that we now live in a bubble economy because production has moved to the East, demand in the West only sustainable through a continuous flow of cheap credit. In short, our economies are broken.

Sunday, November 15, 2009 10:46AM Report Comment
 

5. paul said...

I haven't read the article because I have a limited connection today, but it should be noted that the asset boom is primarily a US-UK thing. Why? We refused to give interest rate setting powers over to Europe as Ireland has done. Guess who will emerge out of recession first?

Seriously, to all those people who are anti-EU, think about how easily the BoE would be able to blow bubbles like this one and the last and the last etc., if they weren't allowed to by the ECB...

Sunday, November 15, 2009 05:31PM Report Comment
 

6. Alfie said...

A plant will grow as long as the gardener keeps watering it, it he stops it stops growing and dies...simple

1. Plant = Economy, House prices etc
2. Water = Money, Debt
3. Gardener = Government, BoE

These people are driven by their own greed for a cosey retirement.

Sunday, November 15, 2009 05:38PM Report Comment
 

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