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The “Bubble In Everything” Threatens $400 Trillion In Assets

Summary:
BCA then goes on to note that the current episode of elevated risk-asset valuations is not unprecedented, but there is a crucial difference today with past experiences. Previous episodes of elevated risk-asset valuations tended to be localized, either by geography or sector: 1990 was focused in Japan; 2000 was focused in the dot-com related sectors; 2008 was focused in the U.S. mortgage and credit markets and preceded the emerging market credit boom. By comparison, BCA warns - echoing a point made here on numerous occasions - the post-2008 global experiment with quantitative easing, and zero and negative interest rate policies have boosted the valuations of all risk-assets across all

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BCA then goes on to note that the current episode of elevated risk-asset valuations is not unprecedented, but there is a crucial difference today with past experiences. Previous episodes of elevated risk-asset valuations tended to be localized, either by geography or sector: 1990 was focused in Japan; 2000 was focused in the dot-com related sectors; 2008 was focused in the U.S. mortgage and credit markets and preceded the emerging market credit boom.

By comparison, BCA warns - echoing a point made here on numerous occasions - the post-2008 global experiment with quantitative easing, and zero and negative interest rate policies have boosted the valuations of all risk-assets across all geographies and all asset-classes - global equities (see chart), global credit, and global real estate. The "bubble in everything" as some call it.

https://www.zerohedge.com/news/2018-09-16/bca-bubble-everything-threatens-400-trillion-assets

David Stockman
David Alan Stockman (born November 10, 1946) is a former businessman and U.S. politician who served as a Republican U.S. Representative from the state of Michigan (1977–1981) and as the Director of the Office of Management and Budget (1981–1985) under President Ronald Reagan.

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