{"id":8782,"date":"2015-06-03T20:19:08","date_gmt":"2015-06-04T01:19:08","guid":{"rendered":"http:\/\/olduvai.ca\/?p=8782"},"modified":"2015-06-03T20:19:08","modified_gmt":"2015-06-04T01:19:08","slug":"how-to-spot-a-bubble","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=8782","title":{"rendered":"How To Spot A Bubble"},"content":{"rendered":"

How To Spot A Bubble<\/a><\/h3>\n

We\u2019ve been entertaining ourselves to no end the past couple days with a \u2018vast array\u2019 of articles that purport to provide us with \u2018expert\u2019 opinion on the question of whether we are witnessing a bubble or not. Got the views of Goldman\u2019s David Kostin, Robert Shiller, Jeremy Grantham, Jeremy Siegel, Howard Marks.<\/p>\n

But although these things can be quite amusing because while they\u2019re at it, of course, the \u2018experts\u2019 say the darndest things (check Bloomberg \u2018Intelligence\u2019s Carl Riccadonna:\u00a0\u201cYou had equity markets benefit from QE, but eventually QE also jump-started the broader recovery..Ultimately everyone\u2019s benefiting<\/b><\/i>.\u201d), we can\u2019t get rid of this one other nagging question: who needs an expert to tell them that today\u2019s markets are riddled with bubbles, given that they are the size of obese gigantosauruses about to pump out quadruplets?<\/p>\n

Moreover, when inviting the opinions of these \u2018authorities\u2019, you inevitably also invite denial and contradiction (re: Siegel). And before you know what hit you, it turns into something like the climate change \u2018debate\u2019: just because a handful of \u2018experts\u2019 deny what\u2019s right in front of their faces as tens of thousands of scientists do not, doesn\u2019t mean there\u2019s a valid discussion there. It\u2019s just noise with an agenda.<\/p>\n

And though the global climate system is infinitely more complex than the very vast majority of people acknowledge, fact remains that a plethora of machine-driven and assisted human activities emit greenhouse gases, greenhouse gases trap heat and higher concentrations of greenhouse gases trap more heat. In very similar ways, central banks\u2019 stimuli (love that word) play havoc, and blow bubbles, with and within the economic system. Ain\u2019t no denying the obvious child.<\/p>\n

But even more than the climate \u2018debate\u2019, the bubble expert articles made us think of a Jerry Seinfeld episode called The Opera, which ends with Jerry doing a stand-up shtick that goes like this:<\/p>\n

 <\/p>\n

…click on the above link to read the rest of the article…<\/p>\n","protected":false},"excerpt":{"rendered":"

How To Spot A Bubble We\u2019ve been entertaining ourselves to no end the past couple days with a \u2018vast array\u2019 of articles that purport to provide us with \u2018expert\u2019 opinion on the question of whether we are witnessing a bubble or not. Got the views of Goldman\u2019s David Kostin, Robert Shiller, Jeremy Grantham, Jeremy Siegel, […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[39,2674,1806,122,353,6049,661,1615,6050],"class_list":["post-8782","post","type-post","status-publish","format-standard","hentry","category-economics","tag-assets","tag-automatic-earth","tag-bubble","tag-central-bank","tag-gdp","tag-hoarding","tag-qe","tag-spending","tag-velocity-of-money"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/8782","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=8782"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/8782\/revisions"}],"predecessor-version":[{"id":8783,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/8782\/revisions\/8783"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=8782"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=8782"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=8782"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}