How Much Of Your “Wealth” Is Hostage To Bubbles And Impossible Promises?

Posted on June 17, 2019 3:51 pm

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Authored by Charles Hugh Smith via OfTwoMinds blog,

All asset “wealth” in credit-asset bubble dependent economies is contingent and ephemeral.

A funny thing happens to “wealth” in a bubble economy: it only remains “wealth” if the owner sells at the top of the bubble and invests the proceeds in an asset which isn’t losing purchasing power.

Transferring “wealth” to another asset bubble that is also deflating doesn’t preserve the “wealth” from evaporation.

All the ironclad promises made in bubble economies ultimately depend on