07-17-2020, 07:38 AM
** 15-Jul-2020 World View: Normal behavior
What's going on today is normal behavior.
How is it possible that someone would take a large amount of money, an
amount comparable to the price of an entire house, and use that money
to purchase a certificate that is to be traded for a tulip to be grown
over the next eight months and become available the following spring?
I would like someone to explain how that kind of behavior -- by many,
many people -- is even possible, since I honestly don't have a clue.
The reason that people don't believe in bubbles is because that kind
of behavior is so ridiculous that it's almost impossible to believe
that it actually happened. Then when it happens again, people make up
excuses to pretend it isn't actually happening.
This isn't ancient behavior. I've repeatedly discussed the housing
bubble of the 2000s. Alan Greenspan knew it was going on. I knew it
was going on. Mish Shedlock knew it was going on. But here's what
the élite were saying: "Housing prices can't go down -- people have to
live somewhere," and "Banks won't foreclose -- it's not in their
interest to do so" and "These housing construction firms know what
they're doing, and they wouldn't be building houses if it were just a
bubble." It wasn't until 2009 that the "experts" even admitted to a
housing bubble, but by then it was always PAST TENSE.
The same thing is happening today. Investors' behavior is so
unbelievable, that in the future people will deny that it actually
happened.
Today, MMT is so laughably ridiculous that it's hard to conceive that
anyone believes it, but it's the core of most the excuses today. And
it's produced a global bubble that's probably several quadrillion
dollars in size. And as we've all pointed out, when that bubble
bursts, it's going to create the most disastrous financial crisis the
world has ever known.
For more information on mass delusions, see the following:
** The bubble that broke the world
** http://www.generationaldynamics.com/pg/w...071009.htm
Or just go read about the Salem Witch Trials.
Generational Dynamics is about analyzing and predicting the results of
mass delusions of all sorts.
richard5za Wrote:> More and more people are saying that this market in relation to
> the economics makes no sense at all; but it keeps going up and
> up. Maybe its something connected to a Covid psychology: Lets
> gamble our way into riches?
What's going on today is normal behavior.
How is it possible that someone would take a large amount of money, an
amount comparable to the price of an entire house, and use that money
to purchase a certificate that is to be traded for a tulip to be grown
over the next eight months and become available the following spring?
I would like someone to explain how that kind of behavior -- by many,
many people -- is even possible, since I honestly don't have a clue.
The reason that people don't believe in bubbles is because that kind
of behavior is so ridiculous that it's almost impossible to believe
that it actually happened. Then when it happens again, people make up
excuses to pretend it isn't actually happening.
This isn't ancient behavior. I've repeatedly discussed the housing
bubble of the 2000s. Alan Greenspan knew it was going on. I knew it
was going on. Mish Shedlock knew it was going on. But here's what
the élite were saying: "Housing prices can't go down -- people have to
live somewhere," and "Banks won't foreclose -- it's not in their
interest to do so" and "These housing construction firms know what
they're doing, and they wouldn't be building houses if it were just a
bubble." It wasn't until 2009 that the "experts" even admitted to a
housing bubble, but by then it was always PAST TENSE.
The same thing is happening today. Investors' behavior is so
unbelievable, that in the future people will deny that it actually
happened.
Today, MMT is so laughably ridiculous that it's hard to conceive that
anyone believes it, but it's the core of most the excuses today. And
it's produced a global bubble that's probably several quadrillion
dollars in size. And as we've all pointed out, when that bubble
bursts, it's going to create the most disastrous financial crisis the
world has ever known.
For more information on mass delusions, see the following:
** The bubble that broke the world
** http://www.generationaldynamics.com/pg/w...071009.htm
Or just go read about the Salem Witch Trials.
Generational Dynamics is about analyzing and predicting the results of
mass delusions of all sorts.
