Bitcoin Forum

Economy => Economics => Topic started by: allthingsluxury on April 17, 2018, 04:48:52 PM



Title: Ron Paul: Another Subprime Bubble, The Fed Never Learns
Post by: allthingsluxury on April 17, 2018, 04:48:52 PM
https://image.ibb.co/dxMaHS/Ron_Paul.png (https://goldsilvernews.blogspot.com/2018/04/ron-paul-another-subprime-bubble-fed.html)

What if, back in 2008, when Lehman Brothers, Bear Stearns, Merrill Lynch and many others were toppling like dominoes, someone said to you: “If you think this is bad, wait another decade, and an even bigger financial crisis will loom.” It would have been hard to believe, but it would have been correct. The same policies that created the 2008 crash were adopted and an even bigger bubble is now here. Ron Paul discusses.


Click here to watch this video and to read more:

https://goldsilvernews.blogspot.com/2018/04/ron-paul-another-subprime-bubble-fed.html



Title: Re: Ron Paul: Another Subprime Bubble, The Fed Never Learns
Post by: Beerwizzard on April 17, 2018, 05:26:01 PM
Just imho but the key poing of such alarmist videos (and articles) is that almost always when you see someone warning about bubble then it probably means that there is stoll a half way for this bubble untill it blow up. That is how it was in 2008 and this is what's happening now. Almost all experts that I've seen are aggreed  that stock market is getting into the bubble but allso all of them agree that agree that it won't blow up in the next year and even in the next 2 (or even 3) years.
By the way you can notice that when before december BTC was coming to 10k there was more warnings about bubble. Especially comparing to the 12-20k period.


Title: Re: Ron Paul: Another Subprime Bubble, The Fed Never Learns
Post by: Hydrogen on April 17, 2018, 09:09:41 PM
What if, back in 2008, when Lehman Brothers, Bear Stearns, Merrill Lynch and many others were toppling like dominoes, someone said to you: “If you think this is bad, wait another decade, and an even bigger financial crisis will loom.” It would have been hard to believe, but it would have been correct. The same policies that created the 2008 crash were adopted and an even bigger bubble is now here. Ron Paul discusses.

AFAIK the context of this is. A bubble describes a significant sector of an economy being overvalued with the inevitable negative price correction expected to cause an economic downturn which will generate decreased tax revenues and possibly require additional state spending if institutions are being bailed out at taxpayer expense.

Many current sectors in the global economy are overpriced and expected to lose value on diminishing demand. We currently see this happening with the car loan subprime market. Living expenses and inflation are growing at a much faster pace in relation to wages. Inevitably we will reach a point where consumers can't afford things like real estate whose respective value will plummet as liabilities generally outpace the growth of assets. (Although in nations like the united states this trend is being offset by foreigners buying up US real estate, which will help to mitigate the damage but likely will only decrease the final dreaded outcome over the short term.)

No one may want to admit it but Ron Paul is probably right. The real question may be when these things will happen moreso than whether or not they'll occur eventually.