The Fifteen Biggest Bubbles In 2017

By: Curtis Wayne 0 Comments   7/26/2017

One of the best ways to survive a recession is to avoid the bubbles that are created by all the money printing.   

Last year I wrote about the 5 biggest bubbles of 2016 but this year I see at least 15 major bubbles.  

The Fed has successfully expanded credit into so many industries that the economy has created bubbles all over the place. 

Bubbles eventually pop and when these crash it is going to be very difficult.

15 biggest bubbles in 2017  

  1. Auto loans/debt – Reaching $1 trillion.  Financial terms has been the primary driver of this bubble.
  2. Student loans/debt – Reaching $1.3 trillion.  After the 2008 recession, Obama took government supported loans away from banks in order to allow higher loans with better terms.  This allowed many unemployed to live on students loans for years.
  3. Farming – Farmland values/debts have reached $8 trillion, primarily because of low interest rates. 
  4. US Stock market - $100 Trillion increase in the last 5-years, stocks have tripled.  This has created a wealth effect as people spend more of their income when they see their investments increase.  
  5. Derivatives / Banks - $700 Trillion, 20% increase since 2008
  6. Real Estate – Home prices have reached record highs they were at in 2007.
  7. Bonds – Bonds are at the end of a 30 year bull market.  Rising interest rates are bringing this to an end.
  8. Crypto Currencies – The bubble in crypto currencies is a demand for honest money (gold backed money), because the world is flooded with fiat currencies tied to massive debts and inflation.
  9. Dollar Value – With 60% of the dollars in the world outside the US, used for reserves by other nations for trading goods and oil, the value of the dollar is unsustainable without 4% US growth which is not happening.
  10. Health Care Industry – Government involvement in healthcare had created massive overhead and become 1/6th of the economy.  The nation cannot afford Obamacare or any other government involvement. 
  11. State Pensions – Illinois pension’s liability is now $130 billion.  Several states have massive pensions that they cannot pay because they were created with the idea that bonds would return an average of 7%, not the 0-1% that interest rates have been at for nearly 10 years.
  12. Retail – The US consumer can no longer shop at the malls because they have too much debt. This bubble has begun to pop this year as major retail chain are closing thousands of stores.
  13. Restaurants – Restaurants have helped provide part time jobs for many that have lost jobs in other industries.  The restaurant industry has been one of the bright spots in the economic slowdown.  Millennials like to spend their money on experiences like trying new local beers and getting out of their apartments or parents basements in the evenings.  And the baby boomers are tired of cooking for themselves all their lives, with retirement and social security checks, they are more than willing to pay someone else to do the dishes. 
  14. Rent Prices – Rent prices have increased since the 2008 recession ended, but they are approaching a peak as they have been increasing faster than wages for several years.  This has also driven the construction industry to build a record number of apartment buildings, many will be half empty for decades, but it didn’t matter because the high rent prices and low interest rates made the math work out.  When this bubble pops it will also collapse the apartment builders and every industry associated with them.
  15. Food Stamps – Food stamps have drastically increased since the 2008 recession began, with 47 million people now receiving food from government programs.  This reveals the truth about the economy, since the recession ended in 2009, most people have not recovered and probably never will.  Government programs like this one have been added to the national debt (20 Trillion), which cannot continue forever and needs to be paid back to the nations that borrowed us the money.   

It is easier said than done, but one of the best ways to survive a recession is to avoid all of the bubbles. 

Most of these bubble have not popped yet, which is why we still see a 1-2% GDP.   

Copyright © 2021 HowToSurviveARecession.com. All rights reserved.

Reader Comments

Be the first to leave a comment!
Write a Comment

Please keep comments civil and on-topic. Abusive or inappropriate comments will be removed without warning.

 Name (required)   
 Email Address (required)   
 Website URL 
Comment  
Empire of Debt

Many Americans have resisted the notion that their country is an imperial power. The idea seems to contradict the values of the Republic and its Founding Fathers. But in Empire of Debt, prominent financial analysts Bill Bonner and Addison Wiggin argue passionately that not only is the United States an empire, but it is also one whose end is coming soon.

Currency Wars: The making of the next global crisis

This is one of the best books to understand why the global markets are crashing. We are in a war, a currency war that has become global. Debts have never been this high in the history of the world. Central banks all over the world are printing massive amounts of money to support their debts. “Today the risk is the collapse of the monetary system itself—a loss of confidence in paper currencies and a massive flight to hard assets.” Then the process of globalization that started after WWII will reverse.

Driven Abroad: The Outsourcing Of America

Anyone who wants to see the real impacts of outsourcing should read this book. It leaves you thinking the real workers are never the winners, and makes you question what we are allowing to happen. The result of outsourcing is cheaper products for the consumers, which are mostly Americans � who are losing their jobs and will no longer be able to buy the products. Therefore, the products will eventually follow the jobs.

Aftershock: Protect Yourself and Profit in the Next Global Financial Meltdown

This book is about how to protect yourself and profit in the next global financial meltdown. David points how that endless debt is never sustainable and it not going to end well. “… eventually forcing both a burst, creating a worldwide mega-depression.” David also explains that the financial crisis was not a uncontrollable random act, rather it was an inevitable consequence of the popping debt bubble.