The spectre of the 1929 stock market crash looms large for UK investors as traders borrow record amounts to invest in rising stock markets
Nothing has been learnt from the madness of the 1929 stock market crash as once again traders reach for record amounts of debt to pile into rising share prices.
The level of margin debt that traders are using to buy shares in the stock market reached the highest levels on record, according the latest data from the New York stock exchange. Continue reading
Essentially, what we have is an overvalued market where investors have seen a prolonged period of rises and have jumped to the conclusion that the markets are all good again. However, they’re missing the critical fact that it’s all built on hot air. The best examples, like the article pointed out are Facebook, Pintrest and Twitter… all of which have never seen a profit, yet are suppoed to be worth millions and billions (Facebook). It’s a fool’s rush to the top of the financial mountain to see who the biggest idiot is before it all implodes in a financial crash likely worse than 2008’s, or possibly the worst in U.S. history.
One of the men that won the Nobel Prize for economics this year says that “bubbles look like this” and that he is “most worried about the boom in the U.S. stock market.” But you don’t have to be a Nobel Prize winner to see what is happening. It should be glaringly apparent to anyone with half a brain. The financial markets have been soaring while the overall economy has been stagnating. Reckless injections of liquidity into the financial system by the Federal Reserve have pumped up stock prices to ridiculous extremes, and people are becoming concerned. In fact, Google searches for the term “stock bubble” are now at the highest level that we have seen since November 2007. Despite assurances from the mainstream media and the Federal Reserve that everything is just fine, many Americans are beginning to realize that we have seen this movie before. We saw it during the dotcom bubble, and we saw it during the lead up to the horrible financial crisis of 2008. So precisely when will the bubble burst this time? Nobody knows for sure, but without a doubt this irrational financial bubble will burst at some point. Remember, a bubble is always the biggest right before it bursts, and the following are 15 signs that we are near the peak of an absolutely massive stock market bubble… Continue reading
Global Geopolitics 