The Bubble Decade Is Far from Over

by: Cullen Roche

CNBC has had a good piece running in recent days titled “The Bubble Decade”. It’s a fine piece of work by David Faber. I only had one problem with the piece. It leaves the viewer believing that the era of bubbles is somehow a thing of the past. As if the 00s were the only decade in which we will have a series of massive bubbles that implode. What he fails to tackle is that the bubble decade has in fact been alive and well for 25 years (and continues to this very day).

As regular readers know, the cause of these bubbles has been a world of easy money (started by the Japanese and perfected by the Americans). All of this easy money has led to excessive greed, leverage and carry trades that appear low risk, but are in fact high risk gambles. That world is perpetuated in the actions of Central Banks today who believe they can simply print their way to prosperity and reflate everyone back to health while ignoring financial prudence and the repercussions of high debt levels.

I highly recommend you take a look at the piece on CNBC when you have some time. But don’t be fooled – the bubble decade is far from over. In fact, we might be entering the most fantastic bubble era of all time as unprecedented levels of government stimulus rain down on us all…