6 Bubbles Beginning to Pop

By: Curtis Wayne 0 Comments   8/13/2017

Since the 2008 recession, the Federal Reserve has added trillions of dollars to the economy.  In the process they have created debt and asset bubbles all over the economy.   

What goes up eventually comes down, because at some point consumers cannot go any further into debt.

Consumers are just about at their limit with consumer debts nearing a record 13 Trillion. 

When the consumers stop buying, the asset bubbles begin to collapse.

Here are the top 20 bubbles

  1. Auto loans
  2. Student loans
  3. Farmland
  4. Stock market
  5. Bank derivatives
  6. Real Estate
  7. Bonds
  8. Crypto-currencies
  9. Dollar value
  10. Health care industry
  11. State pension funds
  12. Retail stores/malls
  13. Restaurants
  14. Rent prices/Apartment construction
  15. Food stamps
  16. Credit card debts
  17. Smartphone sales
  18. Digital advertising from 2Billion to 76bBillion
  19. Social media platforms, build on digital advertising bubble
  20. Entertainment - National sports, computer gaming

Many of these bubbles have begun to pop, because the Fed has stopped adding money and begun raising interest rates.   Everyone from consumers to state governments to businesses are loaded with debt and have begun pulling back on a few of these industries.   

6 Bubbles Beginning to Pop

  1. Retail - 6000+ retail stores closing this year 
  2. Auto Industry – Major US auto makers reporting drop in sales
  3. Student Loans – Higher Education is poised for a major contraction as student enrollment likely to drop 
  4. State Pensions – Several state pension funds are in major trouble and if they asset values drop they could pull several states into recession 
  5. Real Estate – Real Estate prices has just reached record highs, last seen since the housing bubble in 2007 
  6. Dollar Value – As the petro-dollar continue to collapse global trade, the value of the dollar is dropping fast

6 bubbles of 20 is still not enough to crash the markets yet.  It may take a few more rate increases to push a few more bubbles over the edge before we see an official recession.

At the same time, Trump sees the crash coming and is fighting the trade wars in an attempt to create jobs in several other industries that are offsetting the effects of these 6 crashing bubbles.

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