Monday, April 28, 2014

All bubbles deflate at some point

The financial markets or asset markets, all of them are in large or small bubbles, and eventually will get deflated. 

Whether it's equities, bonds, real estate, paintings, vintage cars or apartments in Mayfair, London or Madison Avenue, New York, all these assets will come down in value because of credit collapse. I don't know when it will actually happen, but that is a risk for emerging economies.