The Place Where All the Bubble Money Goes
The Place Where All the Bubble Money Goes by Bill Bonner – Bonner and Partners
PARIS – Global warming has yet to get a firm grip on Europe. This week, the weather in Ireland turned in the direction you might expect.
It is midsummer, but in Baltimore, it could pass for a bad day in February.
It was rainy, windy, and cold when we left this morning. Even with a sweater and an umbrella, you have to stop in a tea room to warm up.
Here in Paris, it is about 10 degrees warmer… but still chilly.
Meanwhile, look out below…
Beginning to Wobble
The techs are beginning to wobble. It could be nothing. Or it could be the beginning of the end. Sooner or later – we remind readers of the obvious – asset markets will crash and the economy will go into recession.
Janet Yellen says this is unlikely to happen during our lifetimes. That she would say so reveals three startling things:
First, the crisis is probably closer at hand than we thought.
Second, Ms. Yellen is not afraid to tempt fate.
Third, the two people most important for the future of the United States of America, the president and the Fed chief, are both morons.
We wrote yesterday that we never know where a crisis will begin. But with the tech stocks lost in space, it wouldn’t be at all surprising if their owners were to get nervous.
Yesterday, that’s what seemed to be happening.
From The Wall Street Journal:
Major U.S. stock indexes slumped Thursday, as technology shares tumbled anew…
Tech shares led declines in the S&P 500, falling 1.8%. Google parent Alphabet fell $23.19, or 2.4%, to $937.82 and chip maker Nvidia shed 5.07, or 3.3%, to 146.68. The S&P 500 tech sector is up 17% this year, but has fallen 2.6% in June as some investors have questioned whether the group’s run-up has been overdone.