bubble

Just News – Zero Hedge – James Montier: This Is A “Greater Fool Bubble” And I’m Getting Out

Zero Hedge – James Montier: This Is A “Greater Fool Bubble” And I’m Getting Out
How does one explain the existence of this particular “greedy bear”? To Montier the cognitive dissonance noted above is a function of the Fed-reflated bubble the US finds itself in: the near rational – or cynical – bubble, also known as the greater fool bubble. Here’s Montier:
I am not a great fan of this nomenclature as it suggests a veneer of respectability that I find undeserved. To me these are really better described as greater fool markets. They are cynical bubbles in that those buying the asset in question don’t really believe they are buying at fair price (or intrinsic value), but rather are buying because they want to sell to someone else at an even higher price before the bubble bursts. Chuck Prince, the former CEO of Citibank, aptly demonstrated the typical cynical bubble mentality when in July of 2007 he uttered those fateful words, “As long as the music is playing, you’ve got to get up and dance. We are still dancing.”
If the presence of the proposed buyer of last resort rings a bell, it’s because that’s precisely the market environment the Fed has created: there is no longer any risk not because fundamentals are strong or the economy is improving, but because the Fed will always step in and rescue the market when things turn south. Montier agrees:
I would suggest that this is exactly the sort of market we are observing at the current juncture. Fund managers for the most part all agree that the US market is expensive but still they choose to own equities – a cynical career-risk-driven position if ever there was one. I have been amazed by the number of meetings I’ve had recently where investors have said they simply “have to own US equities.”
While such a bubble can make speculators extremely wealthy if only for a period of time – because putting money into what everyone knows is a ridiculous valuation is not investing, it’s speculation, and as Montier admits “that the US equity market is obscenely overvalued can hardly be news to anyone” – it only works as long as there is at least one more greater fool to sell to.

Just News – RT – 1,000s of children rescued from slavery in England – report

Cambridge House – How to Profit from the Coming Trump Train Wreck – Peter Schiff

Cambridge House – Why the Air Is About to Come Out of America’s Bubble Economy – Peter Schiff

X22Report Spotlight – The Economy Is Being Prepped, Everything Is About To Change: V & CJ

RT – 1,000s of children rescued from slavery in England – report
Published time: 4 Jul, 2017 14:19
Edited time: 5 Jul, 2017 07:39
Thousands of children in England have been rescued after being exploited for slave labor, suffering sexual or domestic abuse, a damning new report has found.
According to the study, more than 1,200 children have fallen victim to modern slavery. Anna Longfield, the children’s commissioner for England who is behind the report, believes the true number is likely to be far higher as cases go unreported.
Longfield has called on politicians to act.
“Child slavery leaves deep scars on the lives of those children who suffer horrendous exploitation by adults – and this could well be only the tip of the iceberg,” Longfield said, according to the Daily Mail.
“These appalling crimes need to remain in the spotlight and be consigned to the past.
“I hope today’s report highlighting the large number of children living vulnerable lives will be a spur for politicians to act.”
According to the report, which cites the government’s National Referral Mechanism (NRM), a scheme designed for the UK to account for all modern slavery victims and support them, at least 1,203 children aged up to 17 were referred to the scheme, up from 901 in 2015.

 

Keiser Report: Housing Bubble Ponzi (E499)

Max Keiser and Stacy Herbert discuss the triangle of fraud in the housing sector and the policy of Icarus economics in which banks can’t crash soon enough because then they can get their bailouts from the taxpayer. In the second half, Max interviews Simon Rose of SaveOurSavers.co.uk about the George Osborne’s ‘New Deal’ of putting estate agents to work as flocks of pigs fly across the London sky. They also discuss the five years of unintended consequences, including that which has led to the idea being floated of a government cap on house price rises to correct the problem of government intervention in the mortgage market.
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House prices to continue surge as bubble fears grow

House prices to continue surge as bubble fears grow

House prices are set to increase far faster than first thought, according to Britain’s biggest online property site.

Rightmove, which advertises thousands of properties across the UK, said it was uprating its forecast for annual house price inflation from 4.5 per cent to 6 per cent with a vigorous autumn in the UK property market expected. 

The decision will add further weight to the argument of Business Secretary Vince Cable that the UK property market could be in danger of overheating and that interest rates may have to rise sooner rather than later.