The Greatest Financial Bubble In History

[Swordsmyth]

The toxic combination of government debt, corporate debt, WMPs, and unrealistic growth expectations have set up China for the greatest market crash in history. But, not yet. As analysis will continue to prove, political forces will put off a day of reckoning until early 2018.

More at: http://www.zerohedge.com/news/2017-0...bubble-history

[devil21]

Marc Faber was on CNBC today and left the entire panel practically speechless. His appearance was some of the most truthful talk I've heard on CNBC in a long time.

"We have a bubble in everything!"

http://www.cnbc.com/2017/05/31/marc-...verything.html

He also said what the Fed has been doing would land every other banker in jail.

[Danke]

STBY 4 Zippy.

[oyarde]

Well , the current stock markets do look like the biggest bubble ever .

[merkelstan]

Well , the current stock markets do look like the biggest bubble ever .

Yeah some call it 'the Wall Street casino' now.

Why are stock valuations soaring? Is it because middle and upper class America can't get sh1t on a savings account so they desperately look for something that will keep-up with real inflation - stocks?

Why are the financial services companies in the US (and to a lesser extent, Europe) comprising like double the percentage of GDP what they did over a few decades ago? Did our countries suddenly need more moneypushers to service a shrinking pool of private savings and a dwindling industrial base? Or is the shrinking pool of private savings and dwindling industrial base the result of the moneypushers finding a way to keep more of the money?

Money as Debt is a jacked-up system. The more you learn the more you get sick.

Anyway I like Faber as a friendly, colorful character who appeals to the disgruntled, But thats's not enough to make me trust him --t NEVER get financial advice from the TeeVee.

[Madison320]

I'm taking a guess that the next potential "pin" to pop this bubble is around Aug/Sep when we run out of cash from the debt ceiling limit.

[Zippyjuan]

I'm taking a guess that the next potential "pin" to pop this bubble is around Aug/Sep when we run out of cash from the debt ceiling limit.

Like we did the last dozen times we hit the debt limit?

[timosman]

Like we did the last dozen times we hit the debt limit?

Zippy is a true expert in economic matters. Thank you for your very well thought off response. Thank you for continuing to grace us with your presence.

[Madison320]

Zippy is a true expert in economic matters. Thank you for your very well thought off response. Thank you for continuing to grace us with your presence.

From Zippy's perspective there is no bubble. Everything is great. No damage was done from 8 years of ZIRP, 10 trillion in borrowing, 3.5 trillion in printing, 4 trillion in trade deficits. When this imaginary bubble bursts it will be 100% Trump's fault.

[Zippyjuan]

Zippy is a true expert in economic matters. Thank you for your very well thought off response. Thank you for continuing to grace us with your presence.

What did happen the last dozen or however many times we hit the debt limit?

[devil21]

What did happen the last dozen or however many times we hit the debt limit?

Continued economic decline but you're displaying a normalcy bias.

Bigger agendas in play this time around, however. I looked at the BoA hq lobby murals the other day and what did I notice? A depiction of a full solar eclipse. The Great American Eclipse, perhaps.

[Madison320]

What did happen the last dozen or however many times we hit the debt limit?

First panic, then they raise it. I'm merely suggesting it could be the pin that pops the bubble.

https://en.wikipedia.org/wiki/United...crisis_of_2013

[timosman]

First panic, then they raise it. I'm merely suggesting it could be the pin that pops the bubble.

https://en.wikipedia.org/wiki/United...crisis_of_2013

We have a perfect patsy to blame it on!

[Madison320]

We have a perfect patsy to blame it on!

I don't mind blaming it on Trump, but it's also going to be "free market capitalism".

The only good news is that Bernie Sanders or whoever is probably not going to be able to borrow and print much. They'll have to live within their means by necessity.

[WebbRowan]

I personally don't think that China is set to crash any time soon. Although there are is probably a very long list of things that they are doing wrong, they are currently at a stage where they are maximising on their endless streams of potential. The amount of profit and benefit that the can generate is going to overshadow all of the bad things that are lined up for them now and as long as they work to correct these mistakes, there won't be too big of a problem in the future...

[r3volution 3.0]

Well , the current stock markets do look like the biggest bubble ever .

That prize belongs to the bond market, treasuries in particular.

[Madison320]

That prize belongs to the bond market, treasuries in particular.

I agree. At some point the major fiat currencies have to give. It's impossible to keep printing without devaluing. I'm amazed central banks have been able to keep their currencies from collapsing for this long.

[devil21]

I agree. At some point the major fiat currencies have to give. It's impossible to keep printing without devaluing. I'm amazed central banks have been able to keep their currencies from collapsing for this long.

They already are collapsing and devaluing. It's just that they measure one collapsing currency against another collapsing currency, instead of against unmanipulated hard assets. Even manipulated metals markets are showing it. Remember when they could dump in short contracts and knock silver down a few dollars in a couple days? Not any more. Now they dump in $billions at a time and barely affect spot prices. Food is expensive, the portions keep shrinking and much of the packaged stuff is non-food chemicals and low end ingredients, packaged to look appealing and loaded with flavor-bending MSG (labeled something innocuous like autolyzed vegetable protein) to trick your brain into thinking that something that tastes like $#@! actually tastes palatable.

[Madison320]

They already are collapsing and devaluing. It's just that they measure one collapsing currency against another collapsing currency, instead of against unmanipulated hard assets. Even manipulated metals markets are showing it. Remember when they could dump in short contracts and knock silver down a few dollars in a couple days? Not any more. Now they dump in $billions at a time and barely affect spot prices. Food is expensive, the portions keep shrinking and much of the packaged stuff is non-food chemicals and low end ingredients, packaged to look appealing and loaded with flavor-bending MSG to trick your brain into thinking that something that tastes like $#@! actually tastes palatable.

I agree but prices are still rising slowly compared to the increase in the amount printed. There's a lot of catching up to do.

[mosquitobite]

June 16th:
https://www.peakprosperity.com/blog/...er-all-bubbles

Honestly, from a planning and execution standpoint, I have to give the central banking cartel very high marks for pulling off such a magnificent heist almost completely undetected by the average person.

Of course, they needed lots of assistance from a compliant media.

Economic Propaganda
Propaganda – noun - information, especially of a biased, emotionally charged or misleading nature, used to promote a political cause or point of view.

June 27th: Why You Shouldn't Pay Off Your Mortgage

[Zippyjuan]

June 16th:
https://www.peakprosperity.com/blog/...er-all-bubbles



June 27th: Why You Shouldn't Pay Off Your Mortgage

Mortgage Tax Deductions

In addition to still having to pay this monthly payment, you lose out on the benefit of having that money help you come tax time. One thing to remember about your mortgage is that the payments are tax deductible. This means that a percentage of the money you pay each month decreases your taxable income. This is one of the largest upsides to maintaining a mortgage throughout your lifetime.

The mortgage tax deduction is giving you back a portion of the interest you paid on your mortgage that year. If you are in a 20% tax bracket, you get back 20% of what you paid in interest. If your mortgage is paid off, you get back 100% of the interest you would have been paying (since you aren't paying any interest anymore). That is actually saving you more money than the deduction was. For every $1,000 in interest you were paying a year, you get $200 off your taxes. Without a mortgage, you get to keep all $1000. Which sounds like the better deal- $1,000 or $200?

Reduce Monthly Payments

Although this is a great concept in theory, does it still hold true today? The answer, quite frankly, is a resounding no. The main reason people try to eliminate their mortgage is that pesky monthly payment. Let’s say you bought your home with a 30-year fixed mortgage and paid every month on time without refinancing. The month after your last mortgage payment, you still have to make a payment on your house. This time you are paying your taxes and insurance. What was once conveniently saved monthly for you by your bank or lending company is now your responsibility. Thus that pesky monthly payment you tried to alleviate continues. It is proven that an affordable mortgage payment helps individuals and families run and maintain a personal financial budget. It just helps everyone plan and maintain a financially healthy mindset.

You were paying taxes and insurance before when you had the mortgage. The difference is that your disposable income is increased by the amount of the payment you had been making on the mortgage. My disposable income increased about 25% when I made my final mortgage payment. If your housing payment was $1,000 a month, you will now have an extra $12,000 a year you can invest or do something else with. $2,000 a month? Now you are near $25,000 extra a year. A resounding no that it does not benefit you?

The longer you keep the loan, the more of your money you are giving to somebody else.

Should you pay EXTRA on your mortgage to get it paid off early? That depends. First of course is "do you have the extra money"? Not everybody does. Secondly, can you reliably get a rate of return by investing the money into something else (after all fees and taxes on capital gains)? If you WILL invest the money then it may make sense to put the money into that investment. If Capital Gains taxes are 25% and your mortgage rate is five percent, you need an investment with a solid return of at least seven percent to cover the taxes.

[mosquitobite]

I know! The whole piece is utterly ridiculous!

[Pauls' Revere]

Continued economic decline but you're displaying a normalcy bias.

Bigger agendas in play this time around, however. I looked at the BoA hq lobby murals the other day and what did I notice? A depiction of a full solar eclipse. The Great American Eclipse, perhaps.

Creepy....

https://vigilantcitizen.com/sinister...merica-murals/