By John Rubino – Re-Blogged From Dollar Collapse
Financial crises tend to start at the periphery and work their way into a system’s core. Think subprime mortgages (a tiny little niche of a few hundred billion dollars) that blew up in 2007 and nearly brought the curtain down on the whole show.
There’s no guarantee that the same dynamic will play out this time, but stage one – the bursting of peripheral bubbles – has definitely arrived, with three in progress as this is written.
By John Rubino – Re-Blogged From Dollar Collapse
Back in the 1990s, critics of the dot-com bubble used to point out that the global economy depended on the US stock market and the US stock market depended on, like, ten Internet stocks with negative aggregate earnings. The resulting inverted financial pyramid was, the critics claimed, very easy to tip over.
They were right of course. But apparently not right enough to keep us from repeating the same mistake. From today’s Wall Street Journal:
Warning Sign: Tech Stocks Are Dominating Global Markets Like Never Before
