Every levered boom ends in bust–every one. Whether it be Japan in the late 1980’s, the tech driven stock frenzy of the late 1990’s, America’s housing bubble of the mid 2000’s or China’s boom and the commodities bubble that followed. Human behaviors are typical, and outcomes similar–worldwide. There is much to be learned for those who wish to see and govern their choices accordingly. The fallout in North Dakota (Newfoundland/Labrador, Alberta et al.) is sad for many but also text book. See, Plains crash: North Dakota’s oil patch, a humbling come down:
The fracking party is over, and a quiet desperation has descended on the state’s once-booming communities and the thousands of people who were drawn to them…
As for those still holding on to QE-ballooned financial assets, it’s still not too late to lower leverage and rein in capital risk.
Will equity investors take heed of the message on this man’s shirt after a 3rd market bubble in 15 yrs? No! pic.twitter.com/mVKquYP89y
— Cory Venable CMT (@CoryLVenable) May 18, 2016