When will the next bubble pop, and where will it start?

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When will the next bubble pop, and where will it start?

Postby 68Camaro » Fri Oct 31, 2014 6:34 am

Seems like a good time to post this topic.

QE3 has ended. The USD has (at least in the moment) gone higher and might continue. The Dow is back over 17K and might go still further if traders are feeling good. Minimum wage jobs are briefly increasing (and seniors have to pay the bills somehow). The Republicans might possibly take back congress.

The US economy is appearing to expand, but is that a mirage?

Non-workers are at an all time high. Half the economy is dependent on welfare checks and food stamps distributed by the USG on borrowed dollars. There are early signs of new weakness in the housing market and non-government construction industry. The price of oil has caused the US oil boom to go on hold, layoffs underway, and the new rush in oil shale is in danger of collapsing.

Something will burst. What will it be, and when? And will it burst the adjacent bubbles and result in a crash, or will "they" be able to contain it?

I predict QE4 will restart (even if under the table) to support new market highs, the DOW will go past 20K, but will be unsustainable as other countries abandon the USD and the bubble burst will start in late 2015, leading to a 2016 crash and blame for the new Republican congress, which will result in a Democrat taking the Presidency again in 2016 and a landslide loss for the Republicans and re-entrenchment of the country into a new and even more pervasive type of socialism.

What's your prediction? :)
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Re: When will the next bubble pop, and where will it start?

Postby 93_Confirmed » Fri Oct 31, 2014 3:04 pm

The next two major events in my opinion will be the buble bursting with student loans. There is reportedly over $1 TRILLION in student loans currently and the market is due for a collapse. College is insanely overpriced and students are taking out loans that with this economy may likely never be paid back. The other is with regard to the petrodollar. I don't have the time to explain this but will come back to post thoughts on this later.
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Re: When will the next bubble pop, and where will it start?

Postby Thogey » Fri Oct 31, 2014 4:00 pm

I hope it's with the price of beef.
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Re: When will the next bubble pop, and where will it start?

Postby 68Camaro » Sat Nov 01, 2014 3:51 pm

I'm all for the beef bubble popping.

If the Chinese are really consuming as much PM as some believe what will they do when orders for physical delivery on their new physical-only exchanges go unfilled? And how long will that take. The Chinese are smart dudes with a super long outlook. How long have they been planning their moves and will the US even recognize we've been checkmated? I think our leaders must think we're playing checkers.
In the game of Woke, the goal posts can be moved at any moment, the penalties will apply retroactively and claims of fairness will always lose out to the perpetual right to claim offense.... Bret Stephens
The further a society drifts from the truth, the more it will hate those that speak it. George Orwell.
We can ignore reality, but we cannot ignore the consequences of ignoring reality. Ayn Rand.
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Re: When will the next bubble pop, and where will it start?

Postby Morsecode » Sat Nov 01, 2014 5:37 pm

Won't interest rates have to rise at some point. Once they do it might tick up faster than expected...perhaps due to massive defaults like 93_confirmed suggested.
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Re: When will the next bubble pop, and where will it start?

Postby IdahoCopper » Mon Nov 03, 2014 7:24 pm

Thogey wrote:I hope it's with the price of beef.


Me too.

Www.beefjerky.com
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