12 ms·
Everything about our current economy looks like one enormous bubble about to pop, and I think it's going to be much worse than 2008, depending on what actions t
by pitaj 8y ago
Everything about our current economy looks like one enormous bubble about to pop, and I think it's going to be much worse than 2008, depending on what actions the government takes. I see malinvestment everywhere, from venture capital to the recent machine learning and cryptocurrency trends.
Edit: As a young person, it scares me.
- RA_Fisher 8y agoWhen central banks print money it destroys the connection of money and wealth. It degrades the signal. Personally I love Bitcoin bc it protects against this. Sure, it may be falling while the Fed tightens, but the Fed prints more often than it tightens.
- Latteland 8y agoBut bitcoins and other cryptocurrencies have fallen far more than dollars have in any short timeframe. The best answer is diversify, stocks in different areas, bonds, cash, maybe real estate.
- RA_Fisher 8y agoWell sure, because there are fewer dollars. They're being decreased and hence it takes less dollars to purchase bitcoin. Yes indeed re: diversification.
- breatheoften 8y agoI agree completely! The amount of misallocated capital and the rate with which it is flowing toward more productive uses is extremely disturbing. There should be ten or a hundred well capitalized Tesla competitors by now rather than all this idiotic old money chasing (fearfully) after dying economies ... It’s very disturbing to think how actively harmful these misallocations are — the amount of money that still thinks an investment strategy that aims to protect the value of existing fossil fuel investment is a good use of capital ... pure blind delusion. We are well past the point where you can make more money by investing to extend the timeline of fossil fuel returns than you could make by accelerating yourself away from your fossil fuel investments ... somebody needs to remind the investment community about the value of skating to where the puck is going to be ...
- QML 8y agoThe misallocation of capital is a natural result of capitalism, which is a distributed, greedy algorithm.
- tomcam 8y agoTrust your instincts on this. It will probably lead you to investments counter to the mainstream. When I was young I felt much the same way. Result: Multiple paid-for properties and a respectable retirement fund. I never participated in any of the spectacular gains of Apple, Yahoo, Amazon, Bitcoin and so forth. Never bothered me a bit. This approach also let me get bargains when people were leaving markets.
- RhodesianHunter 8y agoWhere are you putting your money now?
- tomcam 8y agoStarting a new business