Wolf Richter: How Will The Global Asset Bubbles Unfold? – Shadow of Truth #41

TND Podcast Spotlight:  Shadow of Truth |

Stock bubble, credit market bubbles and housing market bubbles.  Unfettered money printing by Central Banks globally have created massive bubbles of unprecedented proportions across all asset classes.

Once Government and the Central Banks lose the power to stop markets from going down, you’ll have situation that spirals out of control quickly.  – Wolf Richter, The Shadow of Truth

Wolf sees China eventually emerging as the world’s new number one, but believes that first it must “cleanse” the massive excesses – asset bubbles fueled by a massive credit bubble – with a painful financial and economic correction.

He also thinks that there’s a strong possibility that the 30% stock market correction in China is a preview of what is coming to the United States:

I am convinced that it’s very difficult to impossible to make a significant amount of money in U.S. stocks going forward. I think they’re all pretty much overpriced – way overpriced.  – Wolf Richter

The biggest problem Wolf sees with the United States is the Federal Reserve.  The Fed’s money printing has enabled the Government to incur a massive load of a debt and enables Congress to operate free from any budgetary contstraints:

As long as the Fed keeps buying Government bonds, Congress does not need to address this country’s fiscal problems.

Finally, we take a look at the reinflation of the housing bubble by the Fed.  Wolf is one of the few blog writers who offers insightful analysis on the housing market.

We think Wolf’s blog is one of the best alternative media sources of truthseeking and analysis on the internet. You can find his work here: Wolf Street – Howling About Business and Finance

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About Dave Kranzler:

 I spent many years working in various analytic jobs and trading on Wall Street. For nine of those years, I traded junk bonds for Bankers Trust. I have an MBA from the University of Chicago, with a concentration in accounting and finance. My goal is to help people understand and analyze what is really going on in our financial system and economy. You can follow my work and contact me via my website Investment Research Dynamics.  Occasionally, I publish on Seeking Alpha too. As a co-founder and principal of Golden Returns Capital, LLC Mr. Kranzler co-manages the Precious Metals Opportunity Fund, a metals and mining stock investment fund. 

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