Bubble bubble toil and trouble

Posted | 01/07/2014 / Views | 2062
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“A ‘funny’ thing happened during the post-mortgage Bubble's [GFC] so-called ‘deleveraging’ period. Since the end of 2008, total TMDS [total amount of marketable debt securities in the US] has jumped $8.348 TN, or 29%, to a record $37.542 TN. As a percentage of [US] GDP, TMDS ended Q1 2014 at a record 220%. Even more importantly from a Bubble analysis perspective, in 21 quarters Total Securities (debt & equities) inflated $27.2 TN, or 61%, to end March 2014 at a record $72.039 TN. To put this in context, Total Securities began 1990 at $10.0 TN, ended 1999 at $33.0 TN and closed 2007 at a then record $53.01 TN. Amazingly, Total Securities as a percent of GDP ended Q1 at 421%. For comparison, Total Securities to GDP began the nineties at 183%, ended Bubbly 1999 at 356% before peaking at 378% in a more Bubbly 2007. No Bubble today? "Valuations in historical range"?”

Doug Noland, 27 June 2014

What does this all mean?  Well when things go pop, as they simply must do, you’d want to be in proven quality defensive hard assets like gold and silver with no counterparty risk.  Period.