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They Never Announce the Bubble

21 May

They Never Announce the Bubble

Gold Market Discussion

There is an old expression in the stock market that they never ring a bell at the top.  It’s true.  

They shouldn’t need to ring a bell.  This expansion is already long-in-the-tooth, almost ten years old.  In a few weeks it will be the longest on record.  Ever.  And one of the weakest, too.

In place of the bell, look at the burgeoning trade war.  Or look at some of the ridiculous IPOs.  Uber and Lyft are the biggest money-losing companies to ever go public.  Doesn’t anybody remember the Nasdaq bubble and Pets.com, eToys.com, Drugstore.com, or    DrKoop.com?

Just as they never ring a bell at the top of the market, former congressman Ron Paul says that the Federal Reserve never announces that it created a bubble.  

It has created so many that you might think they would know exactly how and precisely when they do it so that they could announce it.  

It’s just that they really don’t want you to know it’s a bubble.  Besides, you’ll find out soon enough – once it pops and the damage is done!

In the meantime, they can’t announce a bubble like the dotcom bubble, the housing bubble, or today’s stock market bubble because, as Dr. Paul says, they want to avoid a panic.  

Ron Paul with Jim Clark
Ron Paul stopped by our booth at the New York Hard Assets Conference in New York City, 2013.

“The bubble is there,” he says.  “No one wants to admit it.  I think people should prepare for it.  And quite frankly, my opinion is, this bubble is really big!”

Of course, he’s not the only one who notices that this bubble is much bigger than the others the Fed has created.  And that’s really saying something, since most have them have been stupendous.  “When the Nasdaq bubble burst, it lost 80 percent of its value,” Paul reminds us.  

“It will be the worst in my lifetime,” says Jim Rogers of the coming bear market.

But they don’t ring a bell at the top.  

And the Fed never announces that it created another bubble.

That’s okay.  You’ll find out soon enough.

jim-sign

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