The idea that we cannot tell the future is a falsehood if we study history. We know that if our kids skipped school and they did not get punished in a meaningful way that they are going to repeat the same action. We know that if our spouse goes out and buys something ridiculous on a credit card that we are going to have to pay the bill. That is not prognosticating. This is cause and effect. We don’t need to wear a funny hat and charm a cobra to know that if we review history we are able to see what causes bubbles and that they are not new.
Qazzoo reviews real estate bubbles over the past two hundred years and we know that we are going to see another bubble within the next twenty years. The signs are pretty obvious but it comes disguised as good news until the bottom falls out.
-We are told that our homes are worth more than we expected. We are
-The economy has been humming along at record pace
-The markets are strong on banking stocks
-Celebrity (fill in the blank) has just bought another mansion
These signs are written for us in bold print all over the web and they are read as positives as they should be… but we have to realize that the good times cannot roll on forever. Sooner or later the economy has to correct itself.
Without the corrections we are going to experience inflation that could be worse than any correction. We need the corrections and we are better off still if we can foresee the coming of the next bubble by reading the news behind the headlines.