"The Everything Bubble Bust Will Keep on Busting"
by David Haggith
Excerpt: "There is SO much to pull together this weekend for a Deeper Dive. It’s amazing how quickly the various stages of the Everything Bubble Bust are coming together to where even the events that may seem to some like they are going suddenly in the opposite direction of what I predicted are really doing exactly what they should be doing in a major, major bust as the underlying fear in investors starts to become irrepressible. It is just that with so many bubbles of different kinds inflated by central banks all over the world, there is a lot of complexity in how they will go down.
I want to lead off by quoting an article just sent to me by one of my founding members in response to my own - someone who has been a stable and strong support for some time. It’s worth quoting as a way of triangulating a location to see where we are because it is written by the guy who wrote the book on the Everything Bubble. He says he even coined the name.
In the days of World War II, the military set up targeting sites around major ports to sight in enemy ships approaching the harbor. Hawaii makes a good example. One site was set up in pill box on top of Diamond Head. Another on Mount Tantalus. The military could site with a telescope from each of those two locations and get an exact angle from that location to the enemy ship. By plotting where the two angles came together on a map of Pearl Harbor and the surrounding ocean, they could determine the exact coordinates of the ship they were siting, including its distance from the port, and aim their guns to those coordinates. That was called “triangulation” - two lines of sight from a different perspective determined the target.
So, I want you to remember what I wrote about the bursting of the Everything Bubble. Because it is the “Everything Bubble,” it will likely be the biggest crash we’ve ever seen if it goes down like I’ve said. The article given to me from another person’s perspective who has spent a good part of his life writing about the Everything Bubble is one I was not aware of until Friday, but when you look from his perspective, you find the exact same scenario laid out with the same complexity as seen from my angle.
Graham Summer from Phoenix Capital Research wrote the following in his newsletter to his paying clients: "In 2014, I coined the term “the Everything Bubble.” In 2017, I wrote the book on it. The thesis was straightforward. U.S. Treasuries are the bedrock of the global financial system and the yields on these bonds are the “risk-free rate” against which every other asset on the planet is priced. So when central banks cornered the sovereign bond market in the aftermath of the Great Financial Crisis and EU Debt Crisis, forcing government bond yields to record lows, everything priced off of those bonds inflated right along with them: stocks, real estate, corporate credit, all of it."
The corollary was just as straightforward. When the bond bubble bursts, everything priced off of it must reprice. That process is now underway. And it is unfolding in a very specific order. I want you to note how precisely that aligns with what I wrote in my earlier article this week: "2027 PREDICTIONS: 2027 Brings the Everything Bubble Bust, and Here is What that Will Look Like." As one reader noted that is a pretty bold set of predictions, so he asked am I really sure of it? Fair question, so let’s explore that."
Full, most highly recommended article is here:
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