Topic: Bubbles - page 2. (Read 540 times)

Really?  I don't follow the bond market, but it wouldn't surprise me if they're corporate bonds--I'm sure debt is rising just as fast in the business world as it is with government.  Debt never interested me as a speculative instrument, though.  I shall watch from afar.

Now, how about crypto?  I've had a lingering suspicion that bitcoin has been in a bubble for some time now, though after the most recent correction from its ATH I now have doubts--it could just be a growing market, who knows.  The other bubble that might be forming is in the stock market with social media stocks and whatnot.  Right now it just looks like a strong bull market, and there's a big difference.  I can vividly recall the internet stock boom of the 90s, and today's stock market doesn't feel like that at all.  We'll see, I guess.

every asset can have bubbles. a bubble is not just the ones that OP listed or you hear about. a bubble is basically when price of the asset is higher than its intrinsic value. every stock can have them, everything else you can think of from gold to real estate and to bitcoin can have bubbles and they do have them from time to time. and after the bubble bursts ALL of them start rising back up again.
bitcoin goes higher than the peak because its demand is still increasing and we are not yet at the mass adoption otherwise it would have gone back up but not to above the peak like what happens to most altcoins. they have no real demand so when the bubble bursts the fake pumped up demand goes away for good.

As long as they have the demand that is sustainable and there is a real life usage for it, then we cannot classify such an asset as a bubble. Yeah, nothing is predictable, but there are some times we just need to use our head even when investing as there would always be some strange movement in the market that should make any investor scared, but all the same, we have a future in our hands and that is all that matters.

not bad

We come from a bubble, however the market of cryptocurrencies is still very small compared to the rest of the economy personally I think we're going to see a crash of most of the economy before we see a crash of the economy caused by cryptocurrencies, the system is very weak it is way weaker than when the last bubble popped, now governments are heavily indebted and they will be unable to nationalize the losses of private companies.

i dont believe crypto is a bubble, at least is too low in world economy, i personally think that USA dollar will be next bubble , it will not blow tommorow but in some years could

there is a lor bubble that were happened in our live. I would add dot-com bubble that happen in 1995-2001. I do think cryptocurrency not a bubble but a development of technology. So i do bet on here too.

Definitely its going to be the crypto bubble, however, the only thing I'm using in those bubble is that once they have been burst, they wasn't able to recover specially the first bubble in history (tulip mania bubble).

However, if we thought that bitcoin is a bubble that already burst specially when we see the price goes as high as $20K and then just pop up and went as well as $6500, then why the price is still above $9K? So I don't know if we can consider bitcoin as a bubble per se.

If this thread has a correlation with cryptocurrency, I mean the next economic bubble is cryptocurrency, unfortunately, I do not agree. Because until now cryptocurrency still has a stable price, despite having crashes in early January 2018 many investors are still willing to save money in cryptocurrency.

This is different from the economic bubble that has happened. The bubble-packed goods cannot have high prices anymore, while bitcoin and altcoin when crashed will recover even higher than previous highs.

I have the same opinion as economists, they say that economic bubble is not there. Just a price game and depending on the assets we have. As happened to the US, where at that time people prefer gold than money so they spend money to buy gold. But basically until now the price of gold has a high value, this is likely to occur in cryptocurrency.

Fiat currency is in a bubble, used to be backed by gold but not anymore, now people just believe it has value. Maybe it will take a government to collapse in the West for this bubble to pop or for metal arbitraging to speed up but it's going to pop at some point.

It's uncanny. At least urban areas seem to be utterly overpriced all over the world, no matter where you look. Whenever I read about real estate in a country it's about how owning a flat has become unattainable to pretty much anyone other than the exceptionally wealthy or the people that already own a flat to begin with. That seems to be true for Northern America, most of Europe and at least India as far as Asia is concerned. Worst case, real estate is in a bubble. Even worse yet, it's not and this modern form of feudalism is our mode of life now.

As far as bonds are concerned -- I'm not sure how bonds can turn into a bubble to begin with. Junk bonds, maybe, but in general bonds are an incredibly boring investment, as they should be. Naturally their prices will fall once monetary policies around the world inevitably change, but I doubt that they are that much overbought to begin with. My hunch is that currently more money is waiting on the sidelines in the form of cash, rather than bonds.

As far as cryptos are concerned -- heck, who knows. Cryptocurrencies are leading the concept of bubbles ad absurdum, as market cycles move at a pace that traditionally took decades. Can one still talk about bubbles if losses can be recuperated within the duration of what usually amounts to a mid-term bond? Or maybe the bubble to end all bubbles is yet to come...

If it would be a crypto bubble, I agree with you that it can happen suddenly without notice, and bitcoin really is the main candidate for it because of too much hype and FOMO it had recently(when it had reached prices near ATH). IMO there are still some holding left, and some other noobs buying now hoping to see btc price soar to ATH in the near future which I think might not happen. If it isn't in bitcoin, I believe the next bubble would be petro.

As soon as any crypto currency will not have demand and the price will fall in a matter of hours - this can be called a bubble in the cryptomir. And such a moment can happen even with bitcoin.

To be honest, i don´t know if cryptocurrencies are in a bubble. We don´t know the future value and opportunities of this lovely coins. Maybe some of them are massive overvalued and some undervalued, who knows.

But i guessing the housing sector could be in a bouble once again, if u follow the price development over the recent years.

I agree that there is once again a housing bubble. Prices in my country are unreal. You cant afford anything with the paychecks we have. It has been brewing for the past 3 years.

The real estate bubble is still going on in some countries, and housing prices have absolutely gone berserk again after the recovery from 2008. If this trend continues, it could potentially brew up into something huge again. Hopefully though that the adjustment comes sooner than later so that the consequences of this real estate bubble v2 isn't as big as the GFC.

A lot of people are saying that crypto is the next big bubble, but honestly it's just the natural cycle of bullishness and bearishness that went on in BTC ever since that it was first traded. That boom/bust cycle has always existed, and the extent or the potential damage of which is probably much lesser than the other bubbles, like real estate. Really depends on how you view the word "bubble".

Bonds can definitely be in a big bubble right now as well, Greenspan himself said so.

I with you no this one. The bond market is the next candidate for sure. Traders keep making money from nowhere on stocks, and that makes no sense at all. I'm pretty sure most bonds are overpriced, and they will eventually crash. That will probably be the biggest bubble in history, as it would affect all sectors, and not just a specific area like the real estate bubble. Hopefully bitcoin will shine once that happens.

Whereas Crypto currencies could be a bubble but as long as its decentralized no one can do that and people will solely support crypto currencies.

Maybe the next bubble is in the digital currency, but I don't think there's a huge bubble now. We need to know that the market is still the early stage of development, and maybe the price of bitcoin has already been 100K at the time of big bubbles.

That's a good list you have there, thanks for sharing

I would add to it:
+ The Mississippi Bubble 1720s
+ The British "Railway Mania" Bubble 1840s
+ The Florida Real Estate Bubble 1920s
+ The Stock Market Crash of 1929
+ Black Monday – the Stock Market Crash of 1987

I believe the next bubble will be crypto related (that is if we're not already living in one )