Sooner or later — within a few years, I predict — this latest Wall Street bubble, inflated by an egregious flood of phony money from the Federal Reserve rather than real economic gains, will explode, too.
A “bubble” is a strategy, not a tactic. As my posting Bayesian Strategy suggests, American corporation no longer think strategically, so the strategy will mostly be lost on them.
I no doubt that this bubble will “explode”, as in the past, but that is a part of the strategy, i.e., explode everything–buy-back what was not actually in the bubble.
When these bubbles explode, everything drops, which means there is an opportunity for great wealth, if entropy can be recovered in the “explosion”.
Entropy is energy that is not available in a distribution of energy. In a bubble, the energy not available is that which is not expanding.
In other words, the corporations or the land that was actually worth the exorbitant price at the time of explosions were not a part of the bubble, but represented energy that was not available to those expanding the bubble.
The entropy energy that internet corporations and real estate represented in their respective bubbles was not available to speculators buying corporations or real estate, because the entropy energy within the bubbles was just too costly to be of any use to speculators.
Remember, power (in this case the movement of entropy energy) is not something of nature it is created by man in God’s image, and, as described in the New Testament, speculated on.
So bubble speculators needed to buy internet and high value real estate at greatly reduced prices, hence the the strategy of the bubble was born.
The corporations or real estate that were in entropy came out of entropy and fell as everything else fell. This is called creative destruction.
Creative destruction along with creative creativity are a part of what is called the OODA loop. In this diagram destruction and creation is labeled “D&C”.
This “explosion” of the bubble allowed individuals or corporations to gobble up prime corporations and prime real estate for near nothing and begin the process of waiting for prices to increase.
Once the price increases bubble speculators sell the entropy energy for unimaginable profits, which is one way entropy energy is put to use in a system.
The same thing will happen when this new Wall Street bubble explodes. The wealth that inflated this bubble will be gobbled up by bubble speculators and the entropy energy extracted.
The Cheap Trick of this strategy is catching the entropy as the price drops, but the question is: who is inflating this new Wall Street bubble?
I will give you a hint, it’s strategists It’s the people who see the End, Ways and Means of things.
My guess is that these people are global and multinational, and will represent a change, in what was once an American financial institution, forever.
Of course American institutions are still a buy at twice the price, but, fortunately for those who are doing the inflating, they will not have to pay that much.