I tend to be bearish and spot bubbles long before they pop. That being said, most asset classes seem awfully frothy right now. Some asset types, like commodities, are correcting to some degree, thankfully, but it remains to be seen how connected everything is. Are the rich leveraging up, using one type of asset class in order to buy another?

You don’t need funky loans for the lower classes in order to have a bubble. You just need speculation…add leverage and a lack of other good investment options, and you can easily get a bubble.