The Next Big Financial Bubble is Forming



Comments (2)

  1. Greg says:

    Louis,

    Appreciate your insight. Must ask though, how does this comoare in scope to $85B/mo. ($1T/yr) in monopoly money from the fed, 0-1% discount window $’s & $17T and growing National dept? Seems but a blip on the screen.

    Greg

    [Reply]

    Wall Street Daily Research Reply:

    Thank you for your question Greg.

    In terms of absolute size, you’re right. It doesn’t compare in scope.

    However, the markets are confidence based. And another collapse in any type of collateralized investment would go a long way to erode confidence quickly. Especially in this case, since reinsurance is such a vital market to everyday life.

    The more actionable implication of the article is to avoid – or consider selling short – reinsurers, as their fundamentals are bound to deteriorate.

    -Louis

    [Reply]

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