The financial bubble in everything could all end in tears soon

The financial bubble in everything could all end in tears soon, by Jonathon Shapiro.

Hedge fund legend Ray Dalio fears the ‘mini bubble’ in property could all end in tears, reports

“Australia, like many other countries, is coming to the end of a longer-term debt cycle,” he said. “The world is coming to the end of a longer-term debt cycle because when central banks can’t lower interest rates, they have to try print money.

“When they print money and buy financial assets, it drives up financial asset prices.”

But he says central banks throughout the world are more limited. As interest rates approach zero, the upward force on prices of assets such as property is reaching an end.

Yep. As we’ve been saying for abut six years now. We’re on emergency low interest rates now, so next time there’s a recession the central banks have no tools left except (disguised) printing. So the game for the last few years for the central banks has been to avoid a recession at all costs. But eventually the historically high and rapidly increasing debt levels will drag the economy into a tail spin. Might be soon, might be a few more years.