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10 Rules About Economic Bubbles You Need to Know

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The Fed is creating one bubble after the next by its policy of pushing down short-term and long-term interest rates. We've studied all the bubbles in modern history. Here are 10 rules about bubbles that you must know to fully understand the situation our economy is facing.

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Page 1: 10 Rules About Economic Bubbles You Need to Know

Presented by:

Page 2: 10 Rules About Economic Bubbles You Need to Know

All growth, progress and evolution is exponential, not linear.

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2

not incremental.

All growth is cyclical,

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the greater the burst.The greater the bubble,

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Bubbles always burst. There are no exceptions.

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a bitlower.

or

Bubbles tend to go back

to where they started

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6Financial bubbles tend to get more extremeover time as credit availability expands along

with our incomes and wealth.

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Bubbles become so attractive…

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that they eventually suck in even the skeptics.

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No one wants the “high” and easy gains of the bubble to end

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so everyone goes into denial, especially in the latter stages.

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Major bubbles only occur about once in a

human lifetime, so it’s easy to forget the lessons

from the last one…

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The last bubble burst of this magnitude was from 1922 to 1929:

The Great Depression.

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Bubbles may seem fruitless and destructive when they burst, but they actually serve a very essential function

in the process of human innovation and

human progress.

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There you have it.

So the next time someone tells you we’re not in a bubble right now,

slap them and then show them this presentation.