Four Ways To Not Lose Money In A Bubble Economy [moneymorning]


Many experts claim we’re not in a bubble economy because they can’t see the “bubble.”

Why is beyond me.

The bubble is so enormous right now that any serious bailout attempt would have to encompass the entire shootin’ match or roughly $600 trillion to $1.5 quadrillion ($1,500,000,000,000,000) in order for it to work.

That’s the total estimated amount of outstanding derivatives, credit default swaps and exotics outstanding at the moment according to various industry sources.

I say estimated because nobody actually knows for sure. Nearly five years into this crisis, the derivatives markets still remain almost entirely unregulated.

And, that’s why the well-intentioned but completely misguided onesey-twosey’s bailouts we’ve seen so far won’t cut it despite the fact that they’re already into the trillions of dollars.

I say this because, despite what most politicians and central bankers think, we are not staring at a series of independent bubbles blown into the wind, but a single, massive all-encompassing monster bubble that surrounds us all.

To put this into perspective, the total value of the United States’ economy is approximately $15 trillion. The world’s GDP is around $50 trillion while the total capitalization of world stock markets is only $100 trillion.

The market bubble

You can see the problem as easily as I can…there literally isn’t enough money on the planet to bail us out, and I don’t care who’s got the keys to the printing presses.

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