Shifting Bubbles: What Will The Next Bubble Be?

[drsteph]

Yeah, I think that that has some promise too. Cautiously long there, myself.

Biotech I would be cautious on betting on. Conventional wisdom sees a huge aging population and obvious health care needs. At a recent conference, medical professionals were complaining that the FDA is loath to certify any new technology. I suspect there is a mandate from up above to slow down new technologies to avoid exploding costs in medicare. Only specific advances that will decrease costs would be favored in that environment.

Just a cheap opinion though.

 

[Hooked2000]

Looks like its GOOG

153 billion dollar company...worth only 10.8 billion in revenue estimates for 2007...so 15x sales...sold

yahoo in same business trading at 6x sales

 

[JamesVU2000]

Bingo...it's already a huge bubble and the banks are loving it! That money needs to be mobilized and made productive, but I believe the current inflationary confiscation strategy is the wrong answer. As long as cash is sitting on the banks' books they will lend it away.


"If you guessed “from additional loans” you are a winner! Said another way, for interest to be paid, the money supply must expand. Which means that next year there’s going to be more money in circulation requiring a larger set of loans to pay off a larger set of interest charges and so on, etc., etc., etc. With every passing year the money supply must expand by an amount at least equal to the interest charges due on all the past money that was borrowed (into existence) or else severe stress will show up within our banking system. In other words, our monetary system is a textbook example of a compounding (or exponential) function"

This is why the fed can never have tighter money. Nevertheless, the current monetary system wheels are going to unravel at some point. The subprime without a doubt is a serious credit event that is just getting started