I'M FOREVER BLOWING BUBBLES
In the 18th century a tulip-bulb could cost you 6 to 7000 guilders. An amount of money, you could buy a nice house for. This was at the end of a period of speculation and collective greed. The market-value exceeded the intrinsic value of the product many times.
The market collapsed, the bubble exploded and many people did loose a lot of money. The same happened in England, where the stock of railway-companies only seemed to rise. When the railway-stocks crashed, many investors, especially the private one, remained empty handed.
Economy is filled with bubbles. In the last century bio-technology was hot. New companies drew lots of eager investors, who all expected big profits. Everything went well, untill the results were meager and the money went elsewhere.
The Western economy is in crisis, because in 2008 the next bubble exploded; the house- and real estate market collapsed. Speculation and a belief in eternal growth had driven prices through the ceiling. On the other hand houses, appartments and office-buildings became unaffordable for the general public or stayed empty because of the stagnating economy. Banks and investors are in very big trouble, so are private owners. Prices are going down. This means for house-owners, that their mortgage is actual higher, than the market value.
Banks and investors will have to take enormous losses. The property they own is sometimes even worth nothing (a brandnew airport, that is never used). A small Dutch bank is slowly going under, because the estate-division is bankrupt.
But the next bubble is about to burst. It's called: the dot.com-bubble. In recent years dot.com-companies, like Microsoft, Apple, Yahoo, Google and many, many more, have made a colossal amount of money, while delivering a “virtual reality”, which experts predict, is losing (economic) ground. While almost everybody is expecting the dot.com-bubble to inflate, the next one is gaining momentum. When you want to make money in the nearby fruture, you have to invest “green”. If you want to keep the money, you have “to leave the building” at the right moment.
