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While there does seem to be an abundance of free capital, it doesn't seem to be fueled by the kind of reckless lending that fueled the 2008 housing crisis, so t
by pm90 9y ago
While there does seem to be an abundance of free capital, it doesn't seem to be fueled by the kind of reckless lending that fueled the 2008 housing crisis, so there might be a crash, but IMO its unlikely to bring down the entire civilization as we know it.
However, there might be something else going on... I wonder if China's efforts to prop up its economy? It would be interesting if someone could tell me where all this capital is coming from.
- csomar 9y ago> it doesn't seem to be fueled by the kind of reckless lending that fueled the 2008 housing crisis How do you know that? The 2008 was led by public borrowing. This might be led by bigger investors borrowing or figuring out "schemes" to leverage themselves. Either way, what we know and are certain of, is that US stocks are rallying. Not quite hard to worry, but they are showing signs of bubbly like behavior. It'll be time for the "larger public" to take notice and plunge themselves.
- JumpCrisscross 9y ago> How do you know that? The 2008 was led by public borrowing Equity versus debt.
- csomar 9y agoExcept that if you prop-up the value of equity then everything looks good even though it isn't. The 2000 tech boom had companies with no revenue. This tech boom has companies with revenue. But it'll be a bubble if this revenue is derived from bubbling sectors.