The Everything Bubble Is Bursting, In Real Time

Summary

The Everything Bubble Is Bursting, In Real Time Authored by Daniel Lacalle via Daniel Lacalle , For years, extraordinary money supply growth and negative real rates have pushed asset prices to unwarranted levels. The resulting "everything bubble" spread across real estate, private equity, bonds, and stocks. Now, it is bursting. The process begins when cheap and elevated liquidity, which is the assumption underpinning inflated valuations, suddenly evaporates. Fiscal deterioration pushes up sovereign borrowing costs, the energy shock squeezes purchasing power, and monetary tightening…

Description from Zero Hedge.