Goldman Sachs yesterday and JP Morgan today are making plenty of money and the newspapers are already talking about new record in terms of bonuses...
As Is -> To be -> As before
:-)
Financial crisis are unfortunately useful to the sistem to consolidate, to purge the inefficiencies and, furthermore, are necessary to make the market makers richer and richer.:-)
Since you cannot create, but just transfer money from
people to the system you have to create speculative bubbles in order to sell dreams to common people and make huge profits with commissions, management fees, titrisation and so on.The big question is: where will be the next bubble?
Two basic ideas/possible candidates:
-Green stocks, supported by the 'green wave' which is hitting the plane
-Commodities, supported by the growing production in China and India.The famous BRIC; B and R will support the I and C with their huge amount of commodities in order to overlap the old players
Which is your idea about that?
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3 comments:
I think it's going to be commodities. Because green industries tend to be heavily subsidized, green stocks are like defense stocks. There may be a green-stock bubble, but it's going to require a specialist in government-industry relations to play it. Real bubbles partake more of "Anyone Can Do It!"
Commodities are more bubble-worthy because they're simpler. Also, there's something about (say) gold that excites the imagination.
Hi Daniel,
I agree with you that commo could be a big bubble, but I just wonder how, because nowadays there are not so many financial instruments that allows the big public to invest in them. Grren stock are easier because there are plenty of stocks availables on the markets.
Oil stocks are still a great place to be long term.
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