Every Bubble Is in Search of A Pin

Every Bubble Is in Search of A Pin

The comments below are an edited and abridged synopsis of an article by Chris Martenson

Now that the world’s central banking cartel is taking a pause from printing money and handing it to the wealthy elite, the asset price bubbles within the Everything Bubble are starting to burst.

The cartel is hoping it can gently deflate the bubbles it created, but bubbles always burst badly. Economic suffering and misery always accompany their termination.

History shows that, after the puncturing, pundits obsess over what precise pin triggered it, as if that matters. It doesn’t, because the cause of a bubble’s bursting can be anything.

It doesn’t matter what the pin actually is. The fatal trigger is often something completely unexpected and impossible to have predicted. So obsessing over what will end the Everything Bubble is a fool’s errand.

Rather than focusing on the pin, we should focus on the pop, or what the aftermath will be. The duration and height of a bubble is directly correlated with the scope of the destruction its bursting will wreak, as is the number of asset classes that get caught up in the mania.

It’s wiser to focus on where the damage will occur, what path it’s most likely to take, and how bad the losses will be, so that we can position ourselves in advance for safety and for profit.

There’s never been anything like the bubble we’re in. Stocks, bonds, real estate, fine art—nearly everything has been inflated to all-time highs. When this Everything Bubble pops, the pain is going to be epic. And it looks like the pop has already sounded.

Martenson discusses greed and fear; the greed is now gone; and the ‘big one’ is here.