"Funny Money" Drying Up at Ferrari Speed
Here is a very important leading indicator of the economic troubles ahead. Why? It tells us that the "funny money" is drying up and a more conservative mood is sweeping into the minds of the well- to-do investor or luxury goods buyer. Quite simply, the smart money is taking the high ground - that makes sense given the unprecedented collapse and recent shattering of realty values and activity in China, Singapore and Hong Kong, for starters.
In turn, placing huge credit strains on the global banking system thereby raising the ominous tides of a looming international credit crunch.
So again, be careful out there...
PS: Many thanks to our good friend Jesse Colombo, a regular contributor to Forbes; he is widely considered as a leading expert on global economic bubbles being recognized by the Financial Times as a top analyst for his projected forecasts including the 2008 meltdown. He also publishes " The Bubble Bubble" where you may follow him along with other top international analysts, investors and economists who are regularly considering his current views and forecasts.
Jesse Colombo
Ferrari stock is down 40% from its IPO highs:
That's what happens when wealth bubbles pop...
