by dumpsterfirestonk
That larger issue ahead of us is Commercial Real Estate.
Symptoms of this bubble will only appear shortly before it pops just like it did in 2008. If I had to take a stab at what those might be, I would imagine the wave of defaults we’re seeing on auto-loans being one of them.
The biggest problem with this scenario isn’t just the bubble popping though. It’s inflation. This kind of bubble popping will absolutely force the fed to lower interest rates which could have extremely serious consequences for the value of the dollar. If the fed is unable to lower rates without causing hyperinflation, the outcome would ultimately be the same even they did which could spell depression.
I know the average reader here isn’t interested in a wall of text, math and data so I won’t do it, but if you are interested in hearing more about this, I’ve linked several great sources below. If you’re curious about how to profit/hedge from this, the first few names that come to mind are physical gold, silver, shares of DRV and VIX. Feel free to chip in if you know of more names.
Sources:
https://www.youtube.com/watch?v=QycowGNfRgs
https://www.youtube.com/watch?v=lI8O08Byapo
https://www.youtube.com/watch?v=lKEe_Ff0U94
https://www.noradarealestate.com/blog/commercial-real-estate-market/