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Tuesday, June 19, 2012

The Coming Crash | Stock Market Crash!

Why a stock market crash will be caused by the popping of the College Bubble, Healthcare Bubble, China Bubble, Canada Bubble & Australia Bubble.
Will there be another stock market crash and economic crisis so soon after the Crash of 2008? Hasn’t the world learned its lesson after the disastrous U.S. and European housing crashes?
Unfortunately, I believe that another devastating crash and economic crisis will happen in the near future simply because the world has learned surprisingly little from its housing bubble experience. After speaking to and reading the thoughts of thousands of people since the 2008 crisis, I have noticed that most people (the same people who didn’t realize that we had a housing bubble in the first place) view the housing crisis as a one-off “freak occurrence” that remains limited to the housing sector and a few related financial institutions. According to my research, however, I’ve found that our bubble problems didn’t end with the housing bubble. The very same monetary and socio-psychological factors that caused the last decade’s housing bubble have created many other bubbles that have not popped yet.
I’ve identified eight main still-expanding bubbles and have developed an acronym to help people easily remember them: “CCC Aches,” which I will refer to as the “CCC Aches” Bubbles. “CCC Aches” stands for China, Commodities, Canada, Australia, College (U.S.),Healthcare (U.S.), Emerging markets and Social media.
The expansion of the “CCC Aches” bubbles since the darkest days of the Great Recession is largely responsible for creating the illusion of an economic recovery, including job creation and rising stock prices, in a phenomenon that I call a “bubblecovery” or a bubble-driven economic recovery, similar to how the 2003-2007 housing bubble helped to lift the U.S. economy out of its post-Dotcom bubble doldrums.
(Note: I have also identified a Post-2009 Northern & Western European housing bubblein addition to the eight primary “CCC Aches” bubbles.)
I belief that the popping of these bubbles will cause another stock market crash and, quite possibly, an economic depression. (This doesn’t mean that I’m not also concerned with Eurozone crisis–related risks – it’s just that there is already an abundance of coverage of this crisis, so I choose to focus on exposing the extremely important but little-known economic risks that will “come out of left field” and surprise the world.)

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