During Alan Greenspan's tenure at the helm of the Federal Reserve, he was often accused of using monetary policy to target asset markets so as to keep the party going. In short, Alan Greenspan was seen by many, including myself, as the bubble blower-in-chief. All of this came to an end with the very hard landing we have experienced after the global housing bubble. However, despite the economy being in tatters and debt deflation looming as a threat, many asset markets have zoomed ahead. The cause: easy money in the U.S. and elsewhere. In the U.S., we have zero percent rates with Ben Bernanke at the helm. So, naturally, you should ask yourself: Does Ben Bernanke blow bubbles too? To get at an answer to that question, I want to highlight a recent post on MoneyWeek called "The next big investment bubble - green energy." In this article, research from James Montier of SocGen about investor attitudes in bubbles is quite enlightening. James Montier at Societe Generale is a specialist in 'behavioural finance'. This basically takes psychology and applies it to the field of investment and economics. As someone who's studied psychology in the past, I'd be the first to admit that it's a pretty 'soft' science compared to something like physics, for example. But compared to the pseudo-science that is economics, it's positively respectable.
However, despite the economy being in tatters and debt deflation looming as a threat, many asset markets have zoomed ahead. The cause: easy money in the U.S. and elsewhere. In the U.S., we have zero percent rates with Ben Bernanke at the helm. So, naturally, you should ask yourself: Does Ben Bernanke blow bubbles too?
To get at an answer to that question, I want to highlight a recent post on MoneyWeek called "The next big investment bubble - green energy." In this article, research from James Montier of SocGen about investor attitudes in bubbles is quite enlightening.
James Montier at Societe Generale is a specialist in 'behavioural finance'. This basically takes psychology and applies it to the field of investment and economics. As someone who's studied psychology in the past, I'd be the first to admit that it's a pretty 'soft' science compared to something like physics, for example. But compared to the pseudo-science that is economics, it's positively respectable.
As someone who's studied psychology in the past, I'd be the first to admit that it's a pretty 'soft' science compared to something like physics, for example. But compared to the pseudo-science that is economics, it's positively respectable.
Here are some more interesting charts. And they worry Citigroup's lead strategist Robert Buckland because they could create the next mania - an emerging markets bubble.
And they worry Citigroup's lead strategist Robert Buckland because they could create the next mania - an emerging markets bubble.
I wonder if Bernanke read the article? As the Dutch said while fighting the Spanish: "It is not necessary to have hope in order to persevere."
The Great American Bubble Machine From tech stocks to high gas prices, Goldman Sachs has engineered every major market manipulation since the Great Depression - and they're about to do it again
From tech stocks to high gas prices, Goldman Sachs has engineered every major market manipulation since the Great Depression - and they're about to do it again
The stories of the Goldman Sachs' scope of influence are boiling quite for some time. At the moment, they seem to be having best times ever...
