Economist Predicts Expanding ‘Everything Bubble’
A well-esteemed analyst in the area of macroeconomics Henrik Zeberg feels the economy has hyperinflated to the point of a situation he refers to as an "everything bubble" that will supposedly expand even further.
Meanwhile, he insists on his forums on Zs that the bubble of the economy is not yet in its highest point.
Zeberg highlighted market capitalization to GDP ratios from previous bubles:
1929: 105%
2000: 138%
2007: 105%
Current: 188%
He also underlined the growth of the Crypto and Private equity bubbles, claiming the outcome that the next recession would blow up the “everything bubble.”
READ MORE: Trump Holds Talks with Bitcoin Miners, Backs Crypto Sector
The private investment arena has been extraordinary over ten years rising from $9.7 trillion AUM in 2012 to $24.4 trillion last year, according to Ernst&Young.
Besides that, Zeberg states that as a rule, central banks, for example the Federal Reserve and the European Central Bank (ECB), generally lower their rates prior to a recession. He raises the issue of whether the recent interest rate cut by the ECB indicates that the quarter is at the end of the economic expansion cycle than a beginning of a new cycle.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
