
© B. Rich Hedgeye
When Nobel Laureate and
Irrational Exuberance author Robert Shiller says he sees bubbles in the financial markets — you'd better listen up. He literally wrote the book on stock market crashes and bubbles after all.
"I see bubbles everywhere," Shiller, economics professor at Yale University and author of just-published
Narrative Economics told investors gathered in Los Angeles Wednesday.
"There's no place to go. You just have to ride it out. You invest even though you expect the price to decline." Shiller famously predicted the 2000 stock market crash and the 2007 crash of the housing market.
The timing of Shiller's ominous warning comes at a scary time. This is the month of the 90th anniversary of
Black Monday. That day on Oct. 28, 1929, the Dow Jones Industrial Average fell 13%. That still stands as the second-worst drop in history and, combined with the pounding the stock market took in early days of the depression,
took 25 years for investors to recover from.
Shiller sees bubbles in the stock market, bond market and the housing market. "You get ... in a situation where you know it's going to decline, but you still saved enough to hold you over; you have no choice."
Comment: Increasingly people all over the planet are rising up to have their voices heard and it seems the situation in Britain is not much different. Having been ignored and manipulated for for so long they're willing - or so they think - to sacrifice peace in order to implement what they consider to be democracy. But with this surge in protest movements around the globe, one wonders if there's also something 'in the air'?
- World in Flames: Why Are Protests Raging Around The Globe?
- Is democracy a dying species?
- Still Confused About Brexit? It's Actually Pretty Simple...
- Behind the Headlines: Earth changes in an electric universe: Is climate change really man-made?
Also check out SOTT radio's: