Time to Party…Or?

By almost any measure, the U.S. and the world economy are booming. We seem to have moved well-beyond the 2008 recession and are moving forward on all cylinders.

That’s why I found Desmond Lachman’s New York Times article, “The Global Economy Is Partying Like It’s 2008,” so intriguing. He wonders if we’re in another bubble. He begins like this:

Certainly, the American economy is doing well, and emerging economies are picking up steam. But global asset prices are once again rising rapidly above their underlying value — in other words, they are in a bubble. Considering the virtual silence among economists about the danger they pose, one has to wonder whether in a year or two, when those bubbles eventually burst.

This silence is all the more surprising considering how much more pervasive bubbles are today than they were 10 years ago. While in 2008 bubbles were largely confined to the American housing and credit markets, they are now to be found in almost every corner of the world economy.


Want more? You can read the full piece here.