I’m confused about which bubble we’re talking; the bond bubble, or as someone termed it RE bubble II? Notwithstanding the recent comments about the postponements of tapering, I don’t know why anyone would still be in bonds, given the clear market signal in June of this year. Fixed income seekers were pushed into them, and again got their fingers burnt. Rotating out of them is fictional. Nobody talks about the silent minority, presumably because they are judged to be better able to cope. It’s now been six years since the bubble burst and the Great Recession. What have we got to show for it, and what are the lessons learnt? Nothing but more bubbles? I see no real signs for hope, just a diminishing pool of alternatives. It is not so much a transfer of wealth as a black hole.
