Is that as bad as Santa sitting on a throne of lies?
Lots of pins hovering over many many bubbles........
ok so the SHTF. The question is when. The experts know as much as you and me.
Fear porn to sell a book.
The money was free so nobody cares.
They’re playing Monopoly with Monopoly Money.
“a small deli in rural New Jersey can literally be valued at more than 100 million dollars”
Does this author not understand free markets, or are they deliberately misleading? Things are worth what someone is willing to pay for them.
It seems this deli has shares that are owned by the owner and his family. One of them transfered a handful at $9 a share to someone else.
That doesn’t mean anyone is willing to pay $100 million for all of them.
As with most lightly traded shares, the stock value doesn’t have much to do with the value of the firm.
My IRA earned 10K last month but I might put it all in cash with this crazy run up.
animal spirits can lead to bubbles:
euphoria + decreased risk aversion + herd mentality + excessive optimism = irrational exuberance
“This bubble will inevitably pop, and those that did not sell at the top of the market will be kicking themselve”
Trading halted.
Bailout
Government pensions. Union pensions retirements
“The Paulsboro, New Jersey-based Your Hometown Deli is the sole location for Hometown International, which has an eye-popping market value despite totaling $35,748 in sales in the last two years combined, according to securities filings.”
Sadly the IRS is now going to pay these guys a visit.
Nobody can keep a deli open on $18k in sales per year. It’s easily 10X that, minimum.
To boot, to be on the NYSE, you have to follow a bunch of accounting rules.
I suspect deliberate fraud here.
A few extreme example misses the point. Is the stock market overvalued? Based on historical P/E ratios - yes. However - adjusted for ZIRP and Federal reserve pumping trillions into the system and the federal government pumping trillions...it’s not overvalued at all. Same with real estate - and unlikely last time the average credit score is close to 800 and most homes are being bought with all cash or 30-40% down. In a normal market, this author would be right, but thanks to the actions of the Fed Gov and Fed Res, we’re looking at real asset elevated inflation right now. Yes, there will be bubbles like Dogecoin and the deli mentioned, but most investors are not investing in them - but Apple, Microsoft, Walmart, Amazon, P&G, Hilton, cash flowing real estate, etc.
Today, Coinbase has 56 million registered users and processes a trading volume of $335 billion per quarter.
Not small potatoes
Hi.
I just don’t know...
Savings accounts? No.
CDs? No.
Bonds, maybe?
Real estate at 3% mort rates, maybe?
Gold, maybe?
Commodities, maybe?
See, I don’t know anything either.
5.56mm
With the defects and risks of such businesses formally disclosed in book-length prospectuses and hedged by other forms of disclosure, the legal basis for fraud claims will be hard to prove. The true problem is not so much fraud as that repeated rounds of federal monetary and fiscal stimulus have juiced up the investment markets and make investors heedless of risk. Inflation and rising interest rates will soon rebalance those calculations.
The housing market has always been a giant fraud
Houses around here in Marin County are all worth 1.5 to $2 million and they sit on a 0.3 acre lot
Me and some buddies could build a better house for about 150 K
Meaning that little piece of dirt is worth 1.5 million
My solution rent
The rental market Virginia is always a real market - governed by market forces only( except in commie spots with rent control )
So we’re renting a really nice $2 million house for $4600 a month
I only had to come up with $10,000 to move in
We were able to get out of the other place we’re living and move completely in in a matter of three or four days
Try that with selling the house you’re in and buying a new one!
If you live in a socialist state like here in California - you never own anything
Go ahead and pay cash
Your property taxes are going to be 2% plus or minus of the real estate value or $50-$60,000 a year
If you don’t pay your property taxes the state will steal your house
Legally
Furthermore in a socialist state they will constantly assess your property with this proposition and that proposition of this tax in the tax
Again my solution rent.
Being a renter you have all kinds of rights that landlords do not have
Now don’t get me wrong if I ever buy real estate it’s going to be somewhere that I really really want to live and not leave a whole lot off and it’s going to be in the country
There is something else going on with this deli. This isn’t “speculation.”