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The “Everything Bubble” Has Popped

8 points by howard941 8y ago

partiallypro 8y ago
Why is this even trending? The author has been calling for a market meltdown/crash for the past decade. Now stocks are 10% from the ATH and he's celebrating. These people are shysters, that's why you should only read things like ZeroHedge for entertainment rather than investment advice. Example: He said in 2013 stocks were going to "crater" https://safehaven.com/article/28874/warning-stocks-likely-to-crater-from-here https://safehaven.com/article/28874/warning-stocks-likely-to... If you'd have listened to him, you'd be down...a lot.
- mjevans 8y ago
  It's trending because we believe in the fear; monetary systems aren't rational and prices seem to be entirely made up rather than reflecting the actual value or cost of a thing.
  - partiallypro 8y ago
    Huh, it's almost like there's a subjective value, one might even call it a subjective theory of value. Crazy. I bet this hasn't been thought about for literally thousands of years. https://en.wikipedia.org/wiki/Paradox_of_value https://en.wikipedia.org/wiki/Paradox_of_value Anyhow, it's much much easier to be negative than to be positive, especially when the market (hell even life) is in a slight downtrend.
JohnJamesRambo 8y ago
>How was it that the famous Tulip Bulb bubble came to a crashing end back in the 1600’s? No one knows the exact moment or trigger. Actually we have a pretty good idea about what crashed the tulips- 1. In 1636, cash-settled futures were introduced in the tulip market. A futures contract is one where a buyer and seller will agree a price for a commodity that will be delivered on a certain date. This previously meant that the physical product had to be delivered. But cash-settled futures contracts allow cash to be delivered upon expiration. This method was used during the tulip bubble and a year later in 1637, the market crashed. 2. In 1974 the first gold futures contract was traded on the COMEX exchange in New York. Trading started on December 31. The initial reaction wasn’t pretty — a nearly 50% drop in price (of gold) over 2 years. Can we say for sure that this was caused by the futures market? No — but it sure is interesting the gold had an all time high the day before futures trading began — a price which wasn’t seen again for 3 and 1/2 years. 3. And of course cash settled bitcoin futures were introduced at the start of this year and, would you look at that, the price crashed and had an all time high right before the futures launched.
- hikarudo 8y ago
  Are there counter examples? That is, cases where futures where introduced but not followed by a crash?
- r00fus 8y ago
  Was this (cash-settled futures introductions coincident with market crashes) due to the fact that powerful players recognized the market was saturated/oversold and then introduced a further way to milk the market thereby squeezing the last drop?
lostmsu 8y ago
Everything, that wiggles on a 1 dimensional vertical chart eventually goes up and down.

8 points by howard941 8y ago

Why is this even trending? The author has been calling for a market meltdown/crash for the past decade. Now stocks are 10% from the ATH and he's celebrating. These people are shysters, that's why you should only read things like ZeroHedge for entertainment rather than investment advice. Example: He said in 2013 stocks were going to "crater" https://safehaven.com/article/28874/warning-stocks-likely-to-crater-from-here https://safehaven.com/article/28874/warning-stocks-likely-to... If you'd have listened to him, you'd be down...a lot.

mjevans 8y ago
It's trending because we believe in the fear; monetary systems aren't rational and prices seem to be entirely made up rather than reflecting the actual value or cost of a thing.
- partiallypro 8y ago
  Huh, it's almost like there's a subjective value, one might even call it a subjective theory of value. Crazy. I bet this hasn't been thought about for literally thousands of years. https://en.wikipedia.org/wiki/Paradox_of_value https://en.wikipedia.org/wiki/Paradox_of_value Anyhow, it's much much easier to be negative than to be positive, especially when the market (hell even life) is in a slight downtrend.

JohnJamesRambo 8y ago

>How was it that the famous Tulip Bulb bubble came to a crashing end back in the 1600’s? No one knows the exact moment or trigger. Actually we have a pretty good idea about what crashed the tulips- 1. In 1636, cash-settled futures were introduced in the tulip market. A futures contract is one where a buyer and seller will agree a price for a commodity that will be delivered on a certain date. This previously meant that the physical product had to be delivered. But cash-settled futures contracts allow cash to be delivered upon expiration. This method was used during the tulip bubble and a year later in 1637, the market crashed. 2. In 1974 the first gold futures contract was traded on the COMEX exchange in New York. Trading started on December 31. The initial reaction wasn’t pretty — a nearly 50% drop in price (of gold) over 2 years. Can we say for sure that this was caused by the futures market? No — but it sure is interesting the gold had an all time high the day before futures trading began — a price which wasn’t seen again for 3 and 1/2 years. 3. And of course cash settled bitcoin futures were introduced at the start of this year and, would you look at that, the price crashed and had an all time high right before the futures launched.

hikarudo 8y ago
Are there counter examples? That is, cases where futures where introduced but not followed by a crash?
r00fus 8y ago
Was this (cash-settled futures introductions coincident with market crashes) due to the fact that powerful players recognized the market was saturated/oversold and then introduced a further way to milk the market thereby squeezing the last drop?

lostmsu 8y ago

Everything, that wiggles on a 1 dimensional vertical chart eventually goes up and down.