8 APR 2018 Michael Hartnett (Michael Hartnett), chief investment strategist at Bank of America, warned investors that the recent fluctuations in the price of bitcoin is similar to the behavior of
other financial bubbles, including the stock market crash of 1929 and the end of the Tulip fever of the 18th century.
Not exact matches
That's the smallest
bubble I've ever seen relative to the scale of
other financial crises.
In fact, if I were RS, I'd worry more about
financial and
other sectoral (housing)
bubbles ending expansions more than I'd worry about full employment driving wage - push inflation.
MH: The
bubble of the 1990s has been called a dot.com
bubble, an internet
bubble and
other forms of technological
bubble, but technology was only a vehicle for what basically was a
financial bubble.
We won't pound the tables about imminent recession until we observe fresh weakness in the equity market (even a 7 - 8 % market loss would sharply raise our probability estimates), but it's important to recognize that
financial risks are already fully developed, and as in
other bubbles, one usually finds «catalysts» to blame for a collapse only well after the downturn is in full - swing.
But while some onlookers see bitcoin and
other cryptocurrencies as a massive
financial bubble,
others say the bitcoin rally is just getting started.
While
other Northern and Western European countries have seen their housing
bubbles inflate since 2009 due to «safe haven» investment inflows, Iceland's Housing
Bubble is unique because it has inflated (or reinflated) primarily due to currency controls that were enacted after its epic
financial collapse in 2008.
In its Q1 report, the
financial institution centered on
bubbles throughout the monetary markets; for Q2 it's alerting buyers to the truth that we're nearing the «end of a cycle like no
other.»
If that is not enough, Enron, WorldCom, Tyco and
other schemes that cost investors dearly, such as the recent mortgage - backed securities
bubble, provide adequate proof that the current corporate
financial reporting system does not adequately serve the interests of investors.
In this classic, first published in 1978, the late
financial economist Charles Kindleberger looks back at the South Sea
Bubble, Ponzi schemes, banking crises and
other mass disturbances of purportedly efficient markets.
They take pride in the fact that a dividend was paid even through the depression, world wars, tech
bubble burst,
financial crisis, and
other recessions.
The collateralized debt obligation in particular enabled
financial institutions to obtain investor funds to finance subprime and
other lending, extending or increasing the housing
bubble and generating large fees.
Value is currently cheaper than at any time
other than the height of the Nifty Fifty, the tech
bubble, and the global
financial crisis.
If they took the time to do so today, they would find value is currently cheaper than at any time
other than the height of the Nifty Fifty (1972 — 73), the tech
bubble (1998 — 2003), and the global
financial crisis (2008 — 09).
But as with
other Onion parodies on
financial topics — my favorite is «Recession - Plagued Nation Demands New
Bubble to Invest In» — there is an underlying lesson: Unless you want to spend your «golden years in relatively stable destitution,» you'd better do some retirement planning.
In
other words, if the collapse of a
financial asset
bubble does not create systematic
financial and economic risk, the Federal Reserve need not intervene.
OTHER He is well - known for being prescient about the 2008
financial crisis; the Asian crisis months before it happened; warning his clients to cash out before Black Monday in 1987; forecasting the burst in the Japanese
bubble in 1990; correctly predicting the collapse in US gaming stocks in 1993; foreseeing the Asia - Pacific
financial crisis of 1997/98; and so on.
People that handle
other people's money are now called
financial engineers and they clearly were active in building the
bubbles first in the tech - stock market, then the housing market and now they are building similar
bubbles in the future markets.
(The question extends well beyond climate policy; as I did the
other day, I encourage you to listen to a great recent discussion of
financial bubbles and busts on Leonard Lopate's radio show.)
This will help to avoid catastrophic climate change and will reduce any individual
financial institution's exposure to the potential threat of a carbon
bubble or any
other climate - related risk.
He said short - termism in
financial markets was the
other major reason for the carbon
bubble.
Some
financial experts see cryptocurrencies as a
bubble that will eventually pop, while
others still believe that they should be a part of everyone's investment portfolio.
In the recent past, prominent figures from banking and
other financial institutions have voiced out strong criticism to the decentralized nature of cryptocurrencies saying it is just a «
bubble».
If bitcoin prices fall, it will not be for the same reasons as the
other bubbles since bitcoin is not yet embedded in the economy and the
financial structure the way dot - com and housing stocks were.
Many experts worry that the trade in Bitcoin futures, crypto funds and
other highly speculative
financial products will inflate a speculative
bubble, while running the risk of losing all their money.
The major news media outlets, the same ones that have been pitching bitcoin as a potential
bubble over the last few weeks — CNBC,
Financial Times,
other top - tier outlets — are patting themselves on the back and calling for the end of the
bubble and, in turn, the space as a whole.
The
financial institution at the time and just like many
others «froze» our account when the real estate
bubble burst in 2008.