'The word “bubble” is tossed around quite a bit in the financial markets, but it’s rarely used correctly. See, the thing that defines a bubble isn’t that valuations are extremely high, or that expected returns are extremely low. Instead, what defines a bubble is that investors drive valuations higher
without simultaneously adjusting expectations for returns lower. That is, investors extrapolate past returns based on price behavior, even though those expectations are inconsistent with the returns that would equate price with discounted cash flows.
..
We’re currently farther away from “typical” expected returns than at any moment in history, including the 1929 and 2000 market peaks.‘
- John P. Hussman, Ph.D.,
How to Spot a Bubble, March 15, 2021
'I received a friendly email a few weeks back from a reader inquiring whether my analysis is Fact or opinion. Well, it’s my opinion that the world is in the “Terminal Phase” of history’s greatest Credit Bubble. It is opinion that U.S. and global equities markets are historic speculative Bubbles, fueled by runaway Monetary Inflation and Acute Monetary Disorder. It’s my opinion that markets in U.S. stocks, cryptocurrencies, corporate Credit and derivatives have evolved into full-fledged manias. It’s certainly my opinion that this all ends very badly.'
- Doug Noland,
Let the Facts Speak: Q4 2020 Z.1, March 12, 2021
'Monetary and fiscal stimulus, however, has spawned rampant asset inflation. As a result, with stocks in the stratosphere and rampant speculations like GameStop, IPOs, SPACs and electric vehicles, there’s no room for economic disappointments later this year. Even a twitch by the Fed in response might touch off an agonizing reappraisal.'
- A. Gary Shilling (
Source, March 10, 2021)
Context(Banking Reform - English/Dutch) '..a truly stable financial and monetary system for the twenty-first century..''The GDP measure fails to register this loss of wealth .. When debt capital, like any other factor of production, is overused its marginal revenue product declines.''..the disconnect between Wall Street and Main Street .. unsound money is incompatible with social and political stability.'