We’re in midst of the last bubble. This bubble will likely go on for longer than previous bubbles and crash much harder. This current bubble is fueled by being the last chance for baby boomers to strike it rich.
Here is a recap of recent bubbles:
1990s – tech bubble
2000s – real estate bubble
2010s – govt spending and cheap money bubble
2015 College & Grad School Bubble
This is not the last bubble, just the present one. Bubbles won’t stop happening unless humans become the same as computers (rational not emotional). They are here to stay, in other words.
Here’s a question for you: is the hallmark of bubbles an imbalance of greed over fear?
HHHmmm, if the baby-boomer still has a job and that job(s) pays enough to cover their current expenses. Otherwise they are already dipping into their retirement funds. I tried to view http://www.ssa.gov for stats to see if there was any indication that early SS over the past couple of years was taken to supplement income.
Conservative savers have been taking a beating for over a decade. Low interest rates have been tough on savers, and those that did not want to contribute to the current financial system.
They say booms and busts are the market way. But it’s all manmade isn’t it, and if it is manmade it does not have to be this way (google sustainable capitalism). I think the majority of people don’t care about the Wall Street stock market as it exists today, and rather see investing as financing a local school, bridge, road, park, and in return they receive some interest to enable them to buy groceries, keep their home/yard maintained, and spend a few bucks on entertainment. I think the market experiment has mostly expired. There will always be speculators. But people are broke, tired, or have better things to do with their time and money. During the 90’s there were 400k investment clubs, today 39k. Following the numbers and then seeing the destructive actions of the companies, Wall Street, rating agencies, didn’t make sense/cents.
It’s hard to know what the Federal Reserve, politicians, or Wall Street think. So firmly ideological that they can’t what is right in front of their faces; Ayn Rand, Milton Friedman. They say thinks like, Housing prices always rise. Just when you think they can’t say anything crazier, they surprise you. The one thing that we all can say with 99.7% certainty, the average America is given a lot less consideration than Wall Street.