So what is the next bubble?

The Art world.

At the present time art work has been on a frenzy upward swing.

 

Perhaps one should ask instead where the next bubble will be.

When Germany collapsed (it was one of the "strongest" pre WW II economies) the Deutsch mark collapsed with it: a wheelbarrow full of those would not even buy a bread.

Then, with the help of outsiders it restored (hey they did not have an expensive army to pay for) and everyone was saying how strong their economy was. This was until East Germany came on board and the borders to the east fell away. Now they are back in shit street again and the old pre WW II slogans are rising their uglly head again (eject all foreigners).

(The DM was one of the strongest currencies pre WW II. The old cable was the strongest, look where they went.)

Maria

 

I'm guessing bonds, oil and euro. I think we'll see the "strong dollar crowd" get their wish.

 

Gold, as soon as the panic ends

 

CleanTech -- too much hype about alternative energy start-ups. 10 out of the 1000 start-ups will make it. I see CleanTech fund-of-funds being pitched by the private equity industry every day at work. It's a bubble in the making.

 

next bubble, Credit Card debt, nearly $1 trillion worth of it. Credit Card delinquencies rising very fast. Sub prime was bad but this could even be even worse for the economy due to the fact that the GDP makes up 2/3 of consumer spending, with the consumer tapped out what else can keep this economy going. This will lead to a drop in GDP under 2% by the second half of 2008.

 

S2007S


Registered: Aug 2006
Posts: 5356


11-02-07 05:42 PM

I know many dont want to agree with this or even bother to acknowlege it, but the truth is credit card debt is at record highs. This is going to be as big or even bigger than the subprime meltdown. There is a record $915 Billion worth of credit card debt here in the US. Many will continue to ignore it until it gets to the point where it can no longer be ignored.

Just like other asset backed securities, credit card debt is sold off as packages of securities.....now the question is what happens when there is a rise in delinquencies????

The banks feel it along with the securities backed by the credit card receivables. As consumers default on their payments this would lead to bank losses and portfolio losses in the institutions, pensions and those big hedge funds.

This is the next major economic problem that should be mentioned but is being completely ignored. Those 1500 SQ foot Piggy banks arent providing for the economy anymore, so what else better to use then the worthless dollar, plastic.............