Is Preparing For 'The Grand Finale', the world's biggest asset bubble
Increases in interest rates have the ability to deflate asset bubbles ...
...by raising the cost of borrowing and decreasing liquidity.
However, millionaire investor Stanley Druckenmiller doesn't think the bubble has burst despite the Federal Reserve's relentless rate hikes.
He added, "I'm sitting here staring in the face at the biggest and probably the broadest ...
...asset bubble — forget that I've ever seen, but that I've ever studied," at the 2023 Sohn Investment Conference.
It lasted for 10 or 11 years before the dramatic conclusion, according to him.
If bubbles don't deflate, they risk bursting and destabilizing the economy.
"The worst economic outcomes tend to follow too easily engineered asset bubbles," Druckenmiller observed.
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