America’s Bubble Economy Is Going To Become An Economic Black Hole

Economic Collapse ^ | 21 May 2013 | Michael

[Lorianne]

What is going to happen when the greatest economic bubble in the history of the world pops? The mainstream media never talks about that. They are much too busy covering the latest dogfights in Washington and what Justin Bieber has been up to. And most Americans seem to think that if the Dow keeps setting new all-time highs that everything must be okay. Sadly, that is not the case at all. Right now, the U.S. economy is exhibiting all of the classic symptoms of a bubble economy. You can see this when you step back and take a longer-term view of things. Over the past decade, we have added more than 10 trillion dollars to the national debt. But most Americans have shown very little concern as the balance on our national credit card has soared from 6 trillion dollars to nearly 17 trillion dollars. Meanwhile, Wall Street has been transformed into the biggest casino on the planet, and much of the new money that the Federal Reserve has been recklessly printing up has gone into stocks. But the Dow does not keep setting new records because the underlying economic fundamentals are good. Rather, the reckless euphoria that we are seeing in the financial markets right now reminds me very much of 1929. Margin debt is absolutely soaring, and every time that happens a crash rapidly follows. But this time when a crash happens it could very well be unlike anything that we have ever seen before. The top 25 U.S. banks have more than 212 trillion dollars of exposure to derivatives combined, and when that house of cards comes crashing down there is no way that anyone will be able to prop it back up. After all, U.S. GDP for an entire year is only a bit more than 15 trillion dollars.

But most Americans are only focused on the short-term because the mainstream media is only focused on the short-term. Things are good this week and things were good last week, so there is nothing to worry about, right?

Unfortunately, economic reality is not going to change even if all of us try to ignore it. Those that are willing to take an honest look at what is coming down the road are very troubled. For example, Bill Gross of PIMCO says that his firm sees "bubbles everywhere"...

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[BipolarBob]

This rally is like the Titanic. Nothing is going to stop it.

[bigbob]

You can believe actual economists, or book-pimper “Michael”

[rovenstinez]

I’ve got the money stashed away in the game MONOPOLY. I’ll just pull it out and go buy at the local stores. Or rather LOOT,...no one is paying attention, and the person at the WH, will find out that there are really NATURAL laws that one can’t defy. Water always will freeze at 32 degrees Farenheit at sea level, no matter if Congress writes laws to say that it needs to be changed. Family units now dysfunctional will cause the entire society of cities, states and nations, financial institutions will be ruined. Then, we’ll start over from ashes. I pity Mr. Obama, his past will at last be put on display for all the people to see who he really is.

[shove_it]

It’s close to the time to short the SPY and mREITS just like 2007.

[Common Sense 101]

America’s Bubble Economy Is Going To Become An Economic Black Hole

When? Oh, that's right... he's an economist.

[cuban leaf]

You can believe actual economists, or book-pimper “Michael”

---

You mean like the actual economists that laughed out at Peter Schiff on live TV when he said in 2006 that housing was going to collapse?

[Jack Hydrazine]

[cuban leaf]

I pity Mr. Obama, his past will at last be put on display for all the people to see who he really is.

---

And we would have missed that if he had not been re-elected.

[sefarkas]

Where were a-#oles like this in 2007 - 2008? If the problem and its symptoms were so obvious, then the market would have already corrected. The point is that the market has not reacted because there is some extra set of factors that the pundits and weak-brained journalists cannot fathom. When someone can describe the market with a complete model that both explains the current situation and correctly predicts the market break — then post something.

[Cringing Negativism Network]

I don’t know when.

But I sure as heck know all of our economy is now a propped-up bunch of baloney.

China has become the largest exporter in the world. Industry after industry has been absorbed by China, and now they own them all.

Not only that, but their immigration is 100% based on the Chinese race.

Entire stores, are completely stocked by China.

Both parties are now sold-out to this.

And it shows no sign of reversing.

Nothing is being done. Absolutely nothing.

[RedMDer]

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[sarasota]

All I’ve got is this: Jim Rogers spoke on FOX and laid out the fact that every country (who counts) is printing money. All at the same time, first time in history. Bernanke is retiring in January. Expect the “hard fall” (his words) this autumn or January.

[hope_dies_last]

The economic collapse will happen anytime between now and March 2014, so it is only a few months away at best.
Japan`s stock plunge this week is the first sign.
The economies of Japan, the US and Britain will be the first to implode based on collective research on the subject.
People get ready

[American in Israel]

Rome had the same economic bubble for the same reason, overspending by politicians and debasing of the currency.

How did it turn out for them?

[MeneMeneTekelUpharsin]

These guys should just shut up. I’ve been reading this for, what now, ten years? And, the markets just keep going up. Nothing happens. Nothing is going to happen. All of the investment decisions I’ve made based on believing things would go down have totally tanked. It’s NOT going down. They have found a way to keep it up and these liars should be punished.

[himno hero]

I just did a comparison of container prices , leaving
North America, Canada and going to Africa. Reefer cost 2 years ago? $ 8600 , today’s price? $7,340. I had to explain that to a buyer in Nigeria.

That alone speaks volumes, clearly there is a lot lses traffic, so the prices have softened.

[Mike Darancette]

It’s not a bubble it’s an aneurysm. We bleed out afterward.

[Oatka]

I just did a comparison of container prices , leaving North America, Canada and going to Africa. Reefer cost 2 years ago? $ 8600 , today’s price? $7,340.

Probably gonna go lower (was surprised it was still that high). One reason (it's 829 today):

[factoryrat]

Get in bed with the devil, and at some point expect to get totally screwed. Export all of your most profitable industries to third world communist countries in a quest for profits at all costs, and you are screwed. Use every excuse in the book to justify your decisions, blame it on unions, the government, wages, education, whatever. Then complain that whatever line of business that you're in can't compete against cheap third world labor, or abide by tax or environmental regulations created by lobbyists in the first place to discourage competition, and, lobby to import third world labor to displace American workers who used to do those jobs, but won't do it for slave wages. And to add insult to injury, people complain about paying for the unemployed, who USED to have those jobs, that paid those bills, mortgages, and bought those goods. Now they either dropped out of the workforce altogether, rely on welfare, fight with illegals over jobs, or have “gone galt”. It has become a vicious cycle, the systematic looting of the US economy. The US doesn't produce anywhere near what people would lead you to believe. Don't believe me? Stop every shipment from china, and it would send us back to the stone age tomorrow, and completely destroy our economy. Like I said, get in bed with the devil, and you will get screwed.