There is a lot of talk about which economic bubble will burst first and burst the worst (sounds like a gangsta rap song, no?)
The stock market, real estate, luxury goods, corporate debt and government bond bubbles, and other lesser bubbles, all jockey for the titles. Itâs the âEverything Bubbleâ for good reason.
The âgood reasonâ is: the 1% owns everything of high value, so if Western governments make it their policy to inflate those valuations even higher, then the 1% regains everything they lost in 2008. Welcome to Western Liberal Democracy â if you have a seat in the House of Lords Iâm sure youâre not suffering too badly.
Because of that âgood reasonâ I listed all of these bubbles are worse now than in 2008. Nothing was learned and nothing was delivered: I am not a doomsdayer, but these kind of facts make me write that Great Recession II (Great Depression II?) is around the corner.
However, not all bubbles are created equal:
The luxury goods bubble, for example. Itâs mildly interesting, from a sensational news aspect, that the most expensive bottle of wine is now worth $558,000âŚbut the luxury goods market is a minuscule part of every nationâs ârealâ economy, excepting France, Italy and Switzerland. Back in 2008 a half-million dollars set the record for largest lot of wine ever â 27 bottles â so these stories only prove the existence huge asset inflation (bubbles) â 1/27th in the area of wine sales.
The stock market bubble is also mainly a rich-personâs problem â we only hear about it so very often becauseâŚthe rich own the media in the West, and the coverage thus reflects their interests.
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