Bubble and Crash

Bubbles

Credit Bubble

Startup Bubble

Housing Bubble

Stockmarket Bubble

Crashes

Past crashes

While no two crises are exactly the same, economic collapses can be categorized into the following types:

  • Fiscal: inability of the government to finance its regular activities

  • Credit: reduction in the general availability and accessibility of loans

  • Financial: value of financial institutions or assets suddenly drop

  • Currency: doubt as to whether a country’s central bank has enough reserves to maintain the country’s fixed exchange rate

  • Economic: country experiences sudden downturn brought on by a financial crisis

  • Hyperinflation: extremely rapid period of inflation, usually caused by fast printing of money

  • Supply Side Shock: unexpected event that changes supply of product, resulting in a sudden change in price

  • Speculative Bubble: spike in asset value with a particular industry caused by exaggerated expectations of future growth

  • Stock Market Crash: sudden decline of stock prices across a large part of the market

Was the 2008 recession a depression?

Signs of the next Crash

Is Deutsche Bank the next Lehman?
Deutsche Bank: Something is Seriously Wrong

Financial firms liquidating:
The Eerie Echo Of 2007: It Really Is Bear Stearns, All Over Again
$1.3 Billion Hedge Fund Founded By Ex-Bear Stearns Traders, Just Suspended Redemptions

Another High Yield Domino Falls As $900 Million Lucidus Capital Liquidates

Banks Scramble To Collateralize Loans To Record Levels

 

 

Demand for core industrial materials is plunging (most due to China):

Decoupling of freight industry from average during the period it is supposed to be booming

 

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