Bernanke's Bubble Will Sink Like A Stiletto Into The “Heart of The Monetary Systems”

04-26-2011 • MarketWatch.com/

“It’s as if 2008 never happened. Once again the worlds investors are pumping up bubbles that will probably explode in their faces. After the popping of a real estate bubble led to the first global recession since the 1930s, world markets are frothing like shaken Champagne. Pundits claim to have spotted price increases that are unsupported by economic fundamentals in assets ranging from U.S. farmland to Israeli biotech to Australian housing to Chinese cemetery sites. Commodities have soared. Global junk-bond issuance hit a record in the first three months of the year … this is the granddaddy of them all, an almost-encompassing bubble right at the heart of monetary systems.” Yes, the “granddaddy of all bubbles” will explode right in Fed Chairman Ben Bernanke’s face, a bubble that will then sink like a stiletto deep into the “heart of the monetary systems” across the world, proving something Nassim Taleb said about Bernanke when Obama reappointed him in 2009, “he doesn’t even know he doesn’t understand how things work,” and that his methods make “homeopath and alternative healers look empirical and scientific.” Market Crash: Will it happen by Christmas? Warning, same prediction also made 18 months before the 2008 crash Now here’s the fascinating part of that prediction. Today’s new bubble-blowing resembles the four-year run-up to the 2008 crash, even replicates the pre-election timing. Why? First, because Jeremy Grantham, GMO chief, money managers of $100 billion, made virtually the same warning as the Coy-Farzad team 18 months before the 2008 meltdown.