Kiplinger

What is the Central Bankers' Bubble and Will It Burst?

In the 1990s we had the dot-com bubble. In the 2000s we had the real estate bubble. In a book I published at the end of 2005, I predicted that real estate bubble would burst. And now we have the central bankers' bubble.

The central bankers' bubble has formed thanks to a concerted effort by several government central banks around the world to boost their economies. Since 2008 they've used a combination of strategies, including setting low interest rates (even negative interest rates in certain countries), buying their own government bonds and even buying actual stocks. This has driven up asset prices worldwide. Due to all this stimulus, we are currently in the second-longest bull market in history. March 2018 marked the nine-year anniversary of this bull market!

I believe that this current bubble will burst,

You’re reading a preview, subscribe to read more.

More from Kiplinger

Kiplinger2 min read
Stock Market Today: Dow Officially Enters a Bear Market After Monday's Slide
Selling in the stock market picked right back up Monday, and despite a brief mid-morning push into positive territory, the major indexes still ended lower.  "Despite a quiet global economic data front, this weekend and Monday morning have been anythi
Kiplinger3 min read
19 Best Stocks to Buy Now for High Upside Potential
If the goal is to find stocks to buy when prices are lower rather than higher, it stands to reason that the time to go looking for the best stocks to buy is right now.  After all, the market is off by more than a fifth so far this year, which means i
Kiplinger3 min read
I’ve Inherited a Lot of Money. Now What?
It’s no surprise that many people who inherit millions of dollars are uncertain about what to do with their newfound wealth. The possibilities of becoming a multimillionaire overnight can be overwhelming, especially during a period when most are grie

Related Books & Audiobooks