We’re In Uncharted Economic Territory

We’re in uncharted territory …

For example, this is the first time in history that most central banks worldwide have printed money during the same time period.

And one of America’s leading economists (Nobel-prize winner Robert Shiller) just said that – unlike 1929 –  this time, stocks, bonds and housing are ALL overvalued:

This time around, bonds and, increasingly, real estate also look overvalued. This is different from other over-valuation periods such as 1929, when the stock market was very overvalued, but the bond and housing markets for the most part weren’t. It’s an interesting phenomenon.

There’s a connection between the two unprecedented events …

Money printing sucks money out of the real economy, and throws it at the wealthy … who use it to speculate on stocks, bonds and housing.

Indeed, the central banks have consciously been focusing all of their efforts on blowing asset bubbles

But the bigger they come, the harder they fall.

This entry was posted in Business / Economics, Politics / World News. Bookmark the permalink.