27 July 2006

The Coming End of the US Foreign Investment Bubble - iTulip.com Forums

The Coming End of the US Foreign Investment Bubble - iTulip.com Forums: "If you go to google and type in 'what will pop the internet bubble' the first link returned is a piece I wrote for bankrate.com February 1999. It explains what will pop the tech stock bubble: Credit Squeeze, Bankruptcy, Fraud, and Weakness in the Real Economy. The article comes up first in a google search more than six years later because no one else at the time was making specific predictions on the causes of the impending collapse of the stock market bubble. Now, more than six years later, I'm going to do it again.

Here I'm going to explain the most likely causes of the collapse of the simultaneous bubbles in real estate, equities, and bonds that are the latest asset bubble products of the most recent cycle of the Bubble Cycle System. They all emanate from a single source, a bubble in foreign net acquisition of US financial assets. If you understand the dynamics of events that are likely to collapse the foreign net acquisition of US financial assets bubble and when, you are on your way to understanding the fate of all of the secondary bubbles that it has spawned and the result: a major inflationary recession."

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