Stock Markets News

There is a saying “The only thing we have ever learned from history is we never learn anything from history”

If you look into the current state of the stock markets, this saying fits quite well here. It was just 10 short years ago that the central bankers around the world were trying to contain the economic fallout caused by the overleveraged borrowers in the housing markets going bust, all due to their ultralow interest rate policy.

And look, what they have done now. They have inflated an even bigger bubble with their ultracheap monetary policy. This bubble is of epic proportion, which we have never seen before.

At the pick of the last bubble, only individual investors were overleveraged, this time around, individuals, corporations and the governments are all overleveraged to the level never seen before.

I do not know when this bubble is going to burst but I know for sure that when it burst, the pain it’s going to inflict to the ordinary people will be more severe than that caused by the previous ones.

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