{"id":19196,"date":"2023-03-28T02:47:36","date_gmt":"2023-03-28T02:47:36","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/market-strategist-discusses-super-bubbles-bursting-warns-of-outrageously-consequential-painful-effects-economics-bitcoin-news\/"},"modified":"2023-03-28T02:47:36","modified_gmt":"2023-03-28T02:47:36","slug":"market-strategist-discusses-super-bubbles-bursting-warns-of-outrageously-consequential-painful-effects-economics-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/market-strategist-discusses-super-bubbles-bursting-warns-of-outrageously-consequential-painful-effects-economics-bitcoin-news\/","title":{"rendered":"Market Strategist Discusses ‘Super Bubbles’ Bursting \u2014 Warns of ‘Outrageously Consequential, Painful Effects’ \u2013 Economics Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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Market strategist Jeremy Grantham, co-founder of asset management firm GMO, has warned of \u201csuper bubbles\u201d bursting. He explained that the Federal Reserve has \u201ccreated an environment conducive to a chain-linked series of super bubbles that break with outrageously consequential, painful effects.\u201d<\/strong><\/p>\n

Jeremy Grantham\u2019s Warnings<\/h2>\n

Investment strategist Jeremy Grantham shared his U.S. economic outlook with economist David Rosenberg during a Rosenberg Research webcast, published on March 16. Grantham is a co-founder and chief investment strategist of asset management firm GMO. He has been an investment strategist for over 40 years and has served on the investment boards of several non-profit organizations.<\/p>\n

Grantham criticized the Federal Reserve for repeatedly causing asset bubbles. He noted that he was not surprised by the recent collapses of major banks. He compared the present economic situation to that of 2000, emphasizing that back then, \u201cthe economy had a gentle recession\u201d without any real estate or debt markdown issues.<\/p>\n

\u201cIt\u2019s bad enough just doing the equity market in 2000. This time, we have done a dead ringer for the equity market, plus for gravy, we\u2019ve done the housing market and the bond market,\u201d the strategist opined, elaborating:<\/p>\n

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The trouble with this bubble is it\u2019s an everything bubble. We have bubbled the important and dangerous housing market to record prices. We bubbled the bond market to levels that had never been seen in the history of man with the lowest rates ever recorded.<\/p>\n<\/blockquote>\n

\u201cThe big picture is we have a little handful of these super bubbles. Every one of them is followed by a recession. If you get anything really wrong, like 1929, it\u2019s followed by depression. If you mess around with the financial system, you have the terrible happenings of the Great Financial Crash,\u201d Grantham detailed.<\/p>\n

\u201cI don\u2019t think the bear market is likely to end until deep into next year,\u201d the investment strategist continued, adding that \u201cthe fundamentals could drag out for quite a while.\u201d Noting that \u201cafter April, we will probably begin to see pressure on profit margins, GDP growth, and the labor market,\u201d he concluded:<\/p>\n

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I hope it\u2019s well known by now that the Fed has never got anything right since Paul Volcker. They have merely created an environment conducive to a chain-linked series of super bubbles that break with outrageously consequential, painful effects.<\/p>\n<\/blockquote>\n

Do you agree with Jeremy Grantham? Let us know in the comments section below.<\/strong><\/em><\/p>\n

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\nKevin Helms <\/h6>\n

\nA student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons, lev radin<\/em><\/p>\n

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