Nobel Laureate Signals Worried, Fearful U.S. Markets: “Financial Bubble Ready to Burst”

http://www.shtfplan.com/headline-news/nobel-laureate-signals-worried-fearful-u-s-markets-financial-bubble-ready-to-burst_09152015


Nobel Laureate Signals Worried, Fearful U.S. Markets: “Financial Bubble Ready to Burst”

Mac Slavo
September 15th, 2015
SHTFplan.com


As if there haven’t been enough financial worries, now a Nobel economics laureate is now signalling the alarm.
According to Yale University’s market scholar Robert Shiller, confidence levels are at an all time low for the 21st Century – with clear indications that investors see the market as overvalued, and vulnerable to collapse.
The Financial Times reported:

Quote :

A growing number of investors believe that US stocks are overvalued, creating the risk of a significant bear market, according to research by Yale University market scholar Robert Shiller.
… [H]is valuation confidence indices, based on investor surveys, showed greater fear that the market was overvalued than at any time since the peak of the dotcom bubble in 2000.
“It looks to me a bit like a bubble again with essentially a tripling of stock prices since 2009 in just six years and at the same time people losing confidence in the valuation of the market,” he said.
However […] it remained impossible to time any fall in the market…

But even news that a pop in the bubble and a subsequent collapse could occur, seems like a foregone conclusion for Shiller, who is hardly surprised:

Quote :

“It’s been talked about for so long, everyone knows that it’s coming. It’s just not much of a big deal.”
[…]
He said the recent bout of volatility “shows that people are thinking something, worried thoughts. It suggests to me that many people are re-evaluating their exposure to the stock market. I’m not being very helpful about market timing but I can easily see aftershocks coming”.

Not a big deal isn’t how most financial analysts and observers would put it, but nonetheless, the warning is there: the stock market bubble is set to burst, and a collapse is likely coming. Aftershocks to follow. Even ivy league financial authorities agree.
Shiller made extended remarks on the situation is this video interview with the Financial Times:

RT reported on Shiller’s comments, noting that the situation “may result in a major bear market – characterized by falling prices and widespread pessimism.”
Though the Federal Reserve is still rumored to be considering a rate increase that could shake the financial landscape that the world moves upon, Shiller dismissed the idea that a stock market crash would be timed specifically with the hike from zero percent interest – even if it altered a seven year norm.
The world knows it is coming. The point is that investors are spooked, and the stock market has clearly been built up on a huge bubble of artificially high prices for things like real estate. The levels easily compare with the potential to match or exceed the 2000 dot com bubble burst.
In fact, things could be much worse than both that crash, and the 2008 global financial crisis that has precipitated this new disaster.
Read more:
“On the Verge of a Massive Collapse”: Ron Paul Says Stock Market Headed for a Day of Reckoning
How to Survive a Stock Market Crash: “Take These Immediate Steps”
Expert Sees Repeat of Horrors He Predicted: “Next Great Stock Market Crash is Imminent”
“The Market Has Turned”: It Begins… So How Bad Will the Crash of 2015 Become?

http://www.blacklistednews.com/World_Holds_Breath%2C_Waits_for_%E2%80%9CDeath_of_the_Dollar%E2%80%9D/46204/0/38/38/Y/M.html

World Holds Breath, Waits for “Death of the Dollar”
Published: September 16, 2015
=======================

http://www.blacklistednews.com/Grand_Theft_Auto_%E2%80%93_UK_and_EU_Bank_Depositor_Bail-In_Regime_Implemented/46200/0/38/38/Y/M.html

Grand Theft Auto – UK and EU Bank Depositor Bail-In Regime Implemented
Published: September 16, 2015
=========================


http://www.zerohedge.com/news/2015-09-16/last-time-happened-was-never

The Last Time This Happened Was... Never


Submitted by Tyler Durden on 09/16/2015


Submitted by Simon Black via SovereignMan.com,

Every few centuries a new technology is invented and adopted that fundamentally changes everything about how a society is structured and organized.

The Agricultural Revolution allowed early humankind to stop being nomadic hunters and establish the roots of civilization in a single location.

The invention of the moveable type printing press in the 1400s (the Internet of its day) created a rapid spread of ideas that spawned lasting political revolutions across Europe.

The Industrial Revolution lifted millions of people out of poverty, empowered the middle class, and finally ended the feudal system.

Today it’s the Digital Revolution, which, along with robotics, genomics, and AI, is already creating fundamental changes in society.

Now, to say that the world is constantly changing is a statement of the obvious.

But the changes we’re experiencing right now have never been seen before in all of history.

Because in addition to major social changes, we’re also seeing a change in the world’s dominant superpower.

This happens from time to time throughout history.

The Italian city-states. The Ottoman Empire. Spain. France. Britain. All of these great empires held the top spot in the world for a time. Sometimes centuries.

But each was ultimately displaced by another rising power. Nations, like people, have natural life cycles. They rise, peak, and decline. It’s completely normal.

The United States as the world’s dominant superpower today is in its own period of decline.

Over the past 55 years, the US government posted a budget surplus a grand total of TWO times (one of which was a razor-thin surplus of just 0.01% of GDP), showing that this downward slide has been essentially uninterrupted.

There’s simply too much debt, military folly, and pitifully unsustainable entitlement programs for it to get back on track.

To quote former US Treasury Secretary Larry Summers, “There is surely something odd about the world’s greatest power being the world’s greatest debtor.”

Both of these trends are also playing a role in precipitating a reset within the third: finance.

Every few decades, the dominant financial system in the world is replaced, usually tracked by the rise and fall of global reserve currencies.

The current financial system, based on central bank innuendo and false political promises, is decades old.

Wreaking havoc on markets and decreasing the living standards of the majority of the population today, it’s clear that it’s time for a reset.

This is already in motion as we are seeing significant challenges to the US dollar’s dominance, with the Chinese dumping their US Treasury securities, and the establishment of the Asian Infrastructure Investment Bank.

You’ve seen and felt all of these trends, but what you may not realize is just how unique this is.

We’re seeing a shift in the world’s dominant superpower at the exact same time there’s a shift in the global financial system, and reserve currency, and game-changing technology. And even more trends that we haven’t even discussed.

The convergence of all of these trends at the same moment is the MEGA-trend.

The last time this happened was… never.

And it is bringing with it a whole host of unusual and unprecedented risks, which we’re already starting to see.

Financial markets are topsy-turvey, rising and collapsing in double digits within a few hours. That’s not supposed to happen.

Entire nations are going bankrupt. Radical and socialist politicians are surging.

Banking systems are on exceptionally shaky footing. Interest rates in many countries are actually negative.

And there are massive financial bubbles everywhere we look.

These risks are very real, and this is absolutely no time to be asleep at the wheel.

But behind each of these risks are incredible opportunities, and that’s what makes these changes so exciting.

In forgotten corners of financial markets, there are successful, profitable companies that are selling for HUGE discounts to their book values… and in some cases for less than the amount of cash they have in the bank.

Next-generation financial assets (including gold, silver, and even cryptocurrencies) are selling at historic discounts.

And alert individuals have the chance to invest in game-changing technologies that will dominate the next 100 years.

This is all incredibly exciting for anyone who’s actually paying attention.

There are huge risks. And huge opportunities. It’s important to be prepared for both.

Book 10 of Virgil’s Aeneid is one of the earliest references to the phrase “audentis Fortuna iuvat,” which is most commonly translated as “Fortune favors the bold.”

Perhaps. But if history is any guide, Fortune favors the prepared.



======================



Are we prepared?