A week before the 1929 crash, economists such as Irvine Fischer were commenting that the stock market was at a permanently high plateau and only heading higher. When the dust settled, an economic theory called “debt deflation” was developed – which ascribes financial crashes to the busting of a credit bubble.
In our age of misallocated capital, we’re again laboring under one of the biggest credit bubbles in human history.
But, although irrational exuberance has gripped the markets just like back in 1929, not everyone is buying that “it’s different this time…”
Host Ross Ashcroft is joined by the fund manager and author of Planet Ponzi, Mitch Feierstein.