Friday, February 5, 2010

Flight of the Bubble Bees (Musical Tribute)

Muni Debt Is Bubble Near Bursting, Marketfield’s Aronstein Says

“There’s always a feature in the economy that lives off its credit,” he said, citing the technology and housing sectors. “The next phase of it is government. They’re operating under the same kind of illusion of infallibility and unlimited access to credit.”

The London Real Estate Bubble Is Back—and It's Scary

The average home in London, including all those dreary outskirts that go on and on and on, is $436,000. That's even higher than it was as recently as 2006, when the bubble was in its late stages.

What happens if China's 'bubble' pops?

"Because prices are so heavily managed, China could easily flood the U.S. and the world with extremely cheap stuff," says Morici. If nearly everything America buys is made in China now, just wait. The trade imbalance would spiral further out of control; and manufacturers in other nations fighting China for market share would be at a greater disadvantage.

"Remember, when we talk about bubbles, the stakes are the future of the Communist Party," says Morici. "They'll try to survive no matter what; and it could mean destroying other economies to do it."


Oil, commodities approach bubble?

Disappointed by losses in stock markets and bonds during the recession, investors had turned to commodities in the hope of better returns, many borrowing at very low interest rates.

Bubble gum time!

There's something really satisfying about a perfect bubble gum bubble. It's also fun to see just how big you can make it. Of course, when it eventually pops, trying to peel the pieces off your face and pluck them from your hair puts a damper on things.

We'll clearly need something epic to do this musical tribute justice.

6 comments:

EconomicDisconnect said...

Mark,
you know some obscure shiiite. All my best my man, we are brothers in sarcasm.

mab said...

Stag,

Here's the "buzz". Everyone is now an "expert" at spotting bubbles. Bubble this, bubble that. Oil, gold, silver, China, London "get real" estate, muni-debt, etc.

IMO, we had a giant credit bubble that has not popped thanks to the Fed.

Bernanke has received lots of praise for preserving the value of trillions in fraudulent credit. But in eCONomics, no "good" deed goes unpunished.

The creation and preservation of trillions in bad debt will be a needlessly and unproductive tax the majority for years to come.

People will CONtinue to have to pay more for a house, more for gasoline, more for food, more for a college education, more on debt service etc. than they would have otherwise.

Price is what you pay, value is what you get. By keeping prices artificially high relative to wages, Bernanke is destroying value for the majority. The loss of value is evident in the great moderation of the American middle class.

Unpayable debt is not wealth. Bernanke knows this. The Fed does not serve the majority. Laisse faire "free market" policies only apply while the majority are being impoverished with debt. "Free market" corrections have thwarted - for now.

Stagflationary Mark said...

GYSC,

I aim to please. :)

http://www.youtube.com/watch?v=y1Kg2K8t7D0

Stagflationary Mark said...

mab,

"Here's the "buzz". Everyone is now an "expert" at spotting bubbles. Bubble this, bubble that. Oil, gold, silver, China, London "get real" estate, muni-debt, etc.

IMO, we had a giant credit bubble that has not popped thanks to the Fed."

One giant credit bubble to rule them all!

Three Rings for the Elven-kings under the sky,
Seven for the Dwarf-lords in their halls of stone,
Nine for Mortal Men doomed to die,
One for the Dark Lord on his dark throne
In the Land of Mordor where the Shadows lie.
One Ring to rule them all, One Ring to find them,
One Ring to bring them all and in the darkness bind them
In the Land of Mordor where the Shadows lie.

watchtower said...

"Because prices are so heavily managed, China could easily flood the U.S. and the world with extremely cheap stuff,"

"They'll try to survive no matter what; and it could mean destroying other economies to do it."


Possibly shooting wars?

I can't help but feel like this is leading someplace uglier than we are now.

Stagflationary Mark said...

watchtower,

"I can't help but feel like this is leading someplace uglier than we are now."

Perhaps it is just a Chinese Fire Drill?

http://www.youtube.com/watch?v=UWk-U-vur80