Executive Summary
What Is a Bubble?
An asset value that temporarily booms and eventually busts, based on changing investor psychology, rather than on underlying fundamental economic drivers that are sustainable over time.
What Is a Bubble Economy?
An economy that grows in a virtuous upward spiral of multiple rising bubbles (real estate, stocks, private debt, dollar, and government debt) that interact to drive each other up, and that will inevitably fall in a vicious downward spiral as each falling bubble puts downward pressure on the rest, eventually pulling the whole economy down.
What Is the Bubblequake?
Phase I of the popping of the bubble economy, including the fall of the real estate bubble, private debt bubble, stock market bubble, and discretionary spending bubble.
What Is the Aftershock?
Phase II of the popping of the bubble economy. Just when many people think the worst is over, then comes the Aftershock, when the dollar bubble and the government debt bubble will burst.
