How Long Can the Hype Last?

You don’t want to spend the upside being grumpy and paranoid. But damn, the downside looks so inevitable and severe.

Real estate. Stocks. Crypto. Collectibles. Cars. Boats. Equipment. Supplies. Precious metals. Everything is in a frenzy of rising prices despite less real economic activity and value creation.

Money pumping by the fraudulent Federal Reserve is the primary driver. It creates not only the material conditions (more dollars chasing fewer goods), but the cultural, moral, and psychological conditioning that makes this kind of craziness possible. Everyone wants to engage in video-game like activities on their phone and watch their account balance increase. The entire world is made up of gamblers now.

And it kinda has to be. If you don’t gamble, you may get crushed anyway. People need higher returns, so they chase them. And it’s ominously fun while it lasts!

The challenge is distinguishing what’s real from fake. There is still a lot of real value being created. It’s just very hard to tell it apart from all the hype filled unsustainable bullshit. It’s also hard to know what percentage of the overall economy is being fueled by the real vs the fake. The signals are totally wrecked, as they always are when governments get involved.

I don’t know what to tell you. Some stuff is real. Most isn’t. But the unreal stuff can still keep going up for who knows how long.

Save as PDFPrint

Written by 

Isaac Morehouse is the founder and CEO of Praxis, an awesome startup apprenticeship program. He is dedicated to the relentless pursuit of freedom. He’s written some books, done some podcasting, and is always experimenting with self-directed living and learning. When he’s not with his wife and kids or building his company, he can be found smoking cigars, playing guitars, singing, reading, writing, getting angry watching sports teams from his home state of Michigan, or enjoying the beach.

Notify of

Inline Feedbacks
View all comments