What's the next bubble going to be?

With interest rates at near zero, simply Economics 101 tells you that the cheap money is going to find someplace to park in the next 6 months to a year.

What does this mean?

Another bubble.


In 1997-98, when Greenspan was worried about Japan's troubles spilling over to the U.S., he lowered rates. All this cheap money led to the dotcom bubble, as investors had to find SOMEPLACE to park their money and idiotic startups like pets.com were the "beneficiaries".

After that bubble burst and 9/11 happened, Greenspan lowered the rates again. The resulting cheap money led to the housing bubble, as investors needed SOMEWHERE to park their money and banks came up with the mortgage securities to satisfy them.

Now that bubble has burst.

And what has been Bernanke's response? Lower interest rates to near zero.

That cheap money is going to start being grabbed up... and another bubble will begin to form somewhere.


Some say it will be in "alternative energy"... as many people throw massive amounts of funds at windmill and solar panel companies that will have nowhere NEAR the return commensurate with the amount of investment coming in.

Some say it will be in T-bills... but really, they're already paying out damn near nothing, so its not like investors are going to see their yields fall.

Seriously... lots of smart people on DU.... what's the next bubble? It's an economic fact that one is going to form.... you can't have so much cheap (damn near free) money available and NOT have one form.

She's working all the overtime she wants.

and it must be the last one.

Leading to a soup bubble as more people are in lines at the soup kitchens.

...by 2012.

He's taking the same tact that FDR did... and he'll have the same legacy.

The bubble to end all bubbles

It'll be for these

The Nickel Apple Drive Thru

Hot Ketchup Soup to Go

Beans and Rice Family Buffet

Brother Can You Spare a Dime Coffee Shops

They gambled, they lost. And, so did the rest of the economy.

With the emphasis on going green there will be a LOT of businesses starting up, and 80% of them will eventually fail, just as 80% of ALL new businesses fail. the few with the really good ideas and sound engineering behind them will succeed - the rest will flourish for a time because of all the investment, but will never actually compete.

and derivatives "pops" to get through.

Commodities are going to go insane over the next couple of years, too bad there are so few independent farmers left, and the ME is going to be complete chaos as futures contracts start to default.

I think trying to predict the next bubble is futile right right now. We still have not charted a course.

A massive influx of unstable currency will drive gold and precious metals to triple current prices. You heard it here 5,324,551st.

There wil be no more bubbles to blow up...the economy itself is the last bubble, and it is about to pop, big time.

And that bubble is going to get really high.

Just how many of these storefronts can we support? There seem to be more of these than any other business.

The next bubble is already forming in this field!!

so says Warren Buffett