The Next Market Bubbles: Food and Farm Land?

Balloon Pop

Photo: Andrew Magill (CC)

Robert Schiller writes for Al Jazeera:

There have been three colossal stock-market bubbles in the last century: the 1920s, the 1960s, and the 1990s. In contrast, there has been only one such bubble in the United States’ housing market in the last hundred years, that of the 2000s.

We have had a huge rebound from the bottom of the world’s stock markets in 2009. The S&P 500 is up 87 per cent in real terms since March 9 of that year.

But, while the history of stock-market prediction is littered with too much failure to try to decide whether the bounceback will continue much longer, it does not look like a bubble, but more like the end of a depression scare.

The rise in equity prices has not come with a contagious “new era” story, but rather a “sigh of relief” story. Likewise, home prices have been booming over the past year or two in several places, notably China, Brazil, and Canada, and prices could still be driven up in many other places.

But another housing bubble is not imminent in countries where one just burst. Conservative government policies will probably reduce subsidies to housing, and the current mood in these markets does not seem conducive to a bubble. A continuation of today’s commodity-price boom seems more likely, for it has more of a “new era” story attached to it.

Read more here.

See also: Finance Capitalism is Causing Starvation

, , , , ,

  • JoiquimCouteau

    Vertical farming. Next

  • Anonymous

    Vertical farming. Next

  • Luke

    Makes total sense, the very basis of capitalism is survival of the richest, no matter how many lives are at stake, the Milton Freidman theory of unregulated market has failed and caused millions of lives worldwide since the 70’s and now his disciples will starve people for profit…….

  • Luke

    Makes total sense, the very basis of capitalism is survival of the richest, no matter how many lives are at stake, the Milton Freidman theory of unregulated market has failed and caused millions of lives worldwide since the 70’s and now his disciples will starve people for profit…….

  • http://www.arunthestocksguru.com Stock Tips

    Visiting this blog is our real pleasure. Should like to thank admin for sharing such a useful information and starting this thread in addition to that we suggest traders not to panic when market is in profit booking state. Investors and traders should understand that in volatile stock market conditions they should switch to swing trading.
    Stock Tips
     

21
More in Agriculture, Economics, Financial Crisis, Food, History
IMF Prepares For “Threat To International Monetary System”

Tyler Durden writes on Zero Hedge: There is a new threat to the international monetary system which means Europe May 2010 redux is imminent. US taxpayers: our condolences. Back in...

Close