Why U.S. Wealth Is In A Bubble

[@l1vs100l]

Where did you go? Where are you now?

[@lesley7244]

Just found this video via a link in a blog post you made. Great video! 8 months later, and this is ringing very true. Before I saw this, I just positioned myself to avoid a drawdown as one can be sensed coming in on a storm front. :) Affirmation in this video from 8 months ago. Thank you!

[@johnnyhshify]

Jesse, I've been waiting for the bubble to pop since 2012, avoided many overvalued stocks and property investments back then. Now I feel left out on the debt fuelled boom while my peers rode the QE wave to wealth. Wasted 6 years being bearish. Housing in my city now cost 10x more than the median income looks like a shack. Agree with almost everything you (and Peter Schiff) say but the market is not rational and tends to not follow logic and reflect reality.

[@JesseColombo]

Hi, Johnny - I hear you - that is frustrating. I know it seems like everyone is doing well right now while the bubble is still extremely inflated, but most people are not going to get out in time to keep most of those gains. You can be forgiven for not having rode the wave up. Why? Because we've never experienced this before - it was a giant monetary experiment due to an emergency. Don't kick yourself. It will all make sense when this blows up.

[@johnnyhshify]

+Jesse Colombo what do you expect head of Federal Reserve and central banks around the world will do next when everything implodes? Median housing is down YTD 8% in my city and just last month, revised to 15-20% fall by 2020 which was unthinkable a year ago. Our Reserve Bank hinted reducing interest rate down to zero from current low 1.5%. Do you see more QE and possibly negative interest rate when recession hits?

[@Ton-gm3lf]

So they don't increase interest rates and all is well?

[@drsparwaga]

Followed your work for a few years and believed you from the start. Have a lot of respect for you. Didn’t know you made these videos. Subbed and will watch the others too👍

[@WhittyPics]

Zero interest rates have help create a coming pension crisis

[@JesseColombo]

Yes, I agree. I hope to blog/vlog on that soon.

[@ottl2]

Please do. Thx

[@naveenbhumra]

great information, Would you make a video on current situation??

[@bradyb4]

Do you lend any credence to the fed's gradual unwinding as a mitigating factor of a potential decline in asset prices? The slope of rate increases appears to be less drastic than those of the prior busts. Also curious that the video description classifies wiping out Americans' "hard-earned wealth", but the thesis of the video appears to be that the wealth was not hard-earned and represents an artificial inflation of wealth toward those who are invested in capital markets. Overall -- many good points in the video, definitely somethings to consider, and you've got yourself a new follower.

[@JesseColombo]

Thanks for watching, Brad. I don't see it as a mitigating factor, unfortunately. Soft landings are as rare as unicorns - especially when the markets and economy are as stretched as it is. See my take on that: www.forbes.com/sites/jessecolombo/2018/09/27/how-interest-rate-hikes-will-trigger-the-next-financial-crisis/ As far as hard-earned wealth, I never meant to imply that the vast majority of it is due to bubbles. Much of it is due tohard work and ingenuity, but the problem is that it's also inflated due to the actions of the Fed. It's a mix of both, basically. Thanks for following! Many more videos to come.

[@yurijai9801]

Scary. These facts are undeniable.

[@JesseColombo]

My thoughts exactly. Thanks for watching, Yuri.

[@a.j.martinez6751]

And yet, the majority of the masses have no clue it's coming...

[@WeirdSide]

what is this bubble of which you speak?

[@groob33]

Excellent and Eye Opening Information! Thanks.

[@JesseColombo]

Thank you! More to come :)

[@hag12100]

ZIRP (zero interest rate policy) created this wealth #bubble. Other major economies have similar issues, such as the Euro-zone, Japan, China and others.

[@JesseColombo]

Precisely

[@aleaiactaest8354]

Good overview. Apart from the wealth distribution its also or even more relevant to look at the income distribution of the population. Cheers.

[@JesseColombo]

Thanks for watching!

[@ThorRavnsborg]

Recent subscriber. I believe your analyzes are just about right on the money (pun intended). Even if I must shamefully admit that it took me a few seconds to disregard your accent and the attitudes I seem to associate it with for some reason. 🤠

[@JesseColombo]

Thank you, Thor - I will be making more videos like this :) What type of accent would you say that I have? haha

[@ThorRavnsborg]

@@JesseColombo If you saw my answer before I edited it I apologize. I think I might have been on a goose chase in Texas. Long Island? Will be looking forward to next videos.

[@highwaymen1237]

Does Lance agree with your assessment?

[@JesseColombo]

He sure does!

[@bobsmith2886]

Powell and the Fed will *NEVER* allow the everything bubble to pop

[@NexGenSlayer]

Where is the empirical data backing your claims that assets boosted by monetary authorities lead to a bubble? I don't disagree that stocks are rising to a level well above their fundamentals across the board, but with the FED raising interest rates in the manner they currently are, it should only slow economic growth, and not crash the stock market. When interest rates rise, the dollar appreciates. This causes a decrease in expected inflation and allows price levels to fall (correct me if I'm wrong here). Additionally, because of the increased value of the dollar, we are able to buy more goods thus increasing imports and offsetting the negative effects of the current trade war. In the end, price levels in the U.S. will remain stable and consumers won't be hurt. Their wealth will still grow, but at a steady pace (people will move some of their wealth from stocks to alternative assets such as bonds and savings accounts). Thus, the FED's contractionary policy should stabilize our economy without the effects of another Great Recession (if anything, a minor recession). If there is something I'm missing here, let me know. I don't see any systemic problems like occurred in 2008 (The yield curve is flattening, but shows no signs of going negative). I just asserted above that the increased wealth isn't a bubble waiting to be bursted, and the economy will continue steady growth at around 2.1%. Again, let me know if I'm not seeing something you are (I'm here to learn). Thanks.

[@HelicalPilesNY]

Great video. Lots of information. So many sheeple are living in denial... The crash is going to be very painful.

[@David-bq8cm]

could you explain, which sectors of the stock market will take the hit first?

[@Hmosapiens]

There's no escaping the inevitable.

[@JesseColombo]

Agreed - we should never have let it get to this point in the first place.

[@jmitterii2]

Capital markets a systemically flawed since their inception in 1600's. A new economic structure is greatly needed. I'm for converting corporation toward co-op enterprises with votes of employees on leadership management, supervisors, and plans of operations using a Co-Op Reserve Bank to assist in capital formation. Our current method of capital formation via aristocracy backstopped by national banks has been a disaster for most nations either causing boom bust deflationary or hyper inflation collapses and often a catalyst for war between nations and civil/revolutionary war within nations. US literally squandered it's golden era that was provided after world war 2. Reminds me how fast Athens squandered theirs after their success in repelling the Persians.

[@WayneWhitewater]

Jesse - Excellent presentation and outline of the facts. What is your strategy at this point for your own investments in prep for the inevitable?

[@JesseColombo]

Thank you. I like a mix of hard assets (precious metals, farmland, etc.), staying liquid with some cash, a conservative trend-following investing system. In the past, I've experimented with intraday trading, but it's not for most mom 'n pop investors who just want to preserve their 401(k).

[@WayneWhitewater]

Jesse Colombo agreed. I’ve been following you for quite a while. Keep up the great work and the KZbin channel.

[@JesseColombo]

@@WayneWhitewater Thanks, Wayne! Many more videos to come :)

[@martincocchinan]

Thanks for this video Jesse !! Amazing !!

[@KarenB-um1by]

Why does the Fed set interest rates? Why not allow the 'market' to sort it out?

[@tomcalderaro7164]

First, the Fed can only affect short term interest rates, long-term rates are a result of 'market-pricing'. The fed has a dual mandate to try and target a tight corridor of low inflation and low unemployment. The fed uses rate increases to curb inflationary pressures and rate deceases to stoke employment (increases economic activity). That's the plan anyway.

[@koundamanee]

Amazing presentation, look forward to more from you on KZbin, Jesse 👍👏

[@roselynwest2604]

Thanks for the post, Jesse.

[@JesseColombo]

Thanks for watching!

[@TochaAlvinegra]

but they will CUT rates and implement MMT, with Fed purchasing equities this time as BoJ has done for years....

[@raulrodgers2080]

You warned us and now we have just experienced the worst month all year. How do you feel about the next upcoming months state of volatility (Specifically Nov. & Dec.) ? Do you think the DJIA will continue to drop or is there some optimistic news that could come via mid-term elections? Reason why i ask this is because its been a very negative month for me in Oct. and i am soon cashing out of my 401k account soon by 12/31/18. However, i fear the market will keep dropping so i don't know if i should keep having my funds all over the place or just move everything to cash right now? Sorry for the long paragraph. Thoughts ?

[@highwaymen1237]

Looking forward to your next video.

[@vladimirtess]

I am not satisfied!! I want more such quality videos!

[@hse6144]

Is this the spam prepper guy from the news? Lol

[@gregthaumaturgus2455]

What are your thoughts on using bitcoin as a safe-haven asset like gold or farmland? Are you worried about it’s volatility?

[@JesseColombo]

I like having a small % of it in a portfolio as a diversifier, but I certainly wouldn't put a high % in it. What bothers me about cryptos is that an unlimited quantity of them can be conjured up out of thin air - not unlike fiat money. Whereas you can't print gold and farmland.

[@frankmargel3305]

Good to go, Thanks!

[@JesseColombo]

Thanks for watching, Frank :)

[@eduardopernambucoo]

It happened

[@jojaryong]

The covid became the scapegoat to cover the Everything Bubble.

[@johnnyhshify]

Post some new videos and analysis, channel been dead for 2 years. The next financial crisis has edged closer.

[@Andrearuch97]

Richard wolff and David Harvey talk about debt bubbles you lier