Federal Reserve Creating Stock Market Bubble Concerns

Here is a fascinating article that outlines new worries concerning the creation of a stock market bubble as economists start to sound an alarm.

http://www.msnbc.msn.com/id/41936325/ns/business-stocks_and_economy/

What makes this so egregious is that it's impossible to predict a "bubble" in any market until it actually "pops" or breaks. When that happens, it's usually too late to do anything about it and then that's when the "bubble" begins to affect everything around it.

Thank you for printing all the great articles!!!

You're welcome ... The real worries is that the stock market bubble is going to crash and when that happens, watch out, because it's going to be worse than the mortgage crisis from 2007 that killed those wall street banks.

What I've been trying to tell everybody is that the stock market is grossly overvalued and that it's only a matter of time before it comes crashing down. When that happens, and there is no doubt that it won't happen, it's going to take everybody out and those jobs that are left in America? Say goodbye because it will crash our entire economy.

I think that is because it isn't a bubble until it pops, until the it is a boom.

Like all the .com millionaires from the late 90's.

Totally agree, however, the .com bubble greedies that lost everyone's money went to jail. That didn't get anyone their money back, but it makes me sick to think this house of cards can happen again and we have made anyone who was responsible pay for this one.

I thought this was a great quote, just wanted to share

To quote Warren Buffett:

"The line separating investment and speculation, which is never bright and clear, becomes blurred still further when most market participants have recently enjoyed triumphs. Nothing sedates rationality like large doses of effortless money. After a heady experience of that kind, normally sensible people drift into behavior akin to that of Cinderella at the ball. They know that overstaying the festivities -- that is, continuing to speculate in companies that have gigantic valuations relative to the cash they are likely to generate in the future -- will eventually bring on pumpkins and mice. But they nevertheless hate to miss a single minute of what is one helluva party. Therefore, the giddy participants all plan to leave just seconds before midnight. There's a problem, though: They are dancing in a room in which the clocks have no hands."

The reason the dot.com bubble burst was because the speculators drove up excitement over the tech stocks and it overvalued itself too quickly. The comic book industry experiences this phenomenon all of the time ...