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Wine, Art, and Ferraris: The Bubble in Luxury Goods

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Wine, Art, and Ferraris: The Bubble in Luxury Goods

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23 HOURS AGOMark Thornton

The Bernanke-Yellen bubble is impacting many sectors of the economy. Agriculture land, motor vehicles and auto loans, banking, bonds, contemporary art, corporate stocks, higher education and student loans, mergers and acquisitions, ocean shipping and cruise lines, social media, technology, housing, real estate, and land markets have been noticeably affected.

Credit-fueled bubbles generally have a wide-ranging effect on the economy, but might all this just be a sign of sustainable economic growth?

Possibly, but a long period of ultra low interest rates would indicate otherwise. Interest on savings accounts is practically non-existent, mortgage and auto loans are historically low, and even the junk bond market has experienced a long period of historically low rates. This graph shows the effective yield on BB rated bonds: :snip: https://mises.org/blog/wine-art-and-ferraris-bubble-luxury-goods

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