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One Last Gasp

Markets go hyperbolic more often than we would like.  The only predictable fact is that markets cannot continue to go hyperbolic indefinitely.  I got a lot of flack for doubting the ability of bitcoin to continue its rocket trajectory, but in all bubbles comes a burst.  The burst is usually more noteworthy than the rally.

The Nikkei is our newest darling:

The most interesting question is whether this is the beginning of the unraveling for Japan.  Their 10 year yield has gone from 44bps to 85bps in a matter of a month and their stock market is overheating.  Is this the result of effective central bank intervention or the spasms before the collapse?

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  1. Michael says

    Without a doubt, we have entered an era of bubbles of a new type. If we put bitcoin aside, these bubbles are different because they are driven by insanity of the central bankers, and not by insanity of crowds. Although it has been coming for quite a while, but has never been so obvious as now. Those are not good times to seek and expect rationale…

    By the way, who knows how long the bitcoin bubble would last, should it be in Fed interests to continue.



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