Good article in the AFR about economic trends. Citigroup’s global credit strategist (Matt King) says that the next bubble is likely to come from emerging Asian markets. I couldn’t agree more. In the short-term (next 3-5 years) King thinks that debt won’t be a problem because there is a huge amount of stimulus flowing around the system. But talk of long-term stability is illusory because we haven’t properly dealt with the key causal factors. We have simply thrown money at the problem to make it go away for a while, building up a new bubble somewhere else.
If you look at recent history these bubbles are getting bigger and they are also getting closer together. In my view there will be another bubble (probably carbon or green technology related) and this will cause another crash. Only this will happen sooner than many people expect (I’d say within the next 5-10 years) and will be far bigger than anything we have so far experienced. Buckle up folks its going to be a bumpy ride.