By Sasha Agapiev
Taken out of a historical context, our current economical situation could easily be mistaken as fantastic and continuing in a positive direction. With record-high stock prices seen earlier this year, luxury car sales nearly more than tripling over the past decade, and near negative interest rates keep money moving, one could say that things are just fine as they are.
But this illusion only endures if you ignore all of the major financial events of the past 30 or so years.
This week, I came across The Barclays Skyscraper Index, a chart showing a supposed correlation between the construction of massive buildings and economic crises. The index suggests that time periods where many massive buildings were constructed are almost always followed by stock crashes, deflation, or global depressions. This claim was supported by sufficient historical evidence to capture the attention of the masses. The discovery seemed too shocking to those who refuse to accept the theory, while the rest struggled to find an explanation to the mystery.
Here’s a hint for those who are still trying to comprehend the situation: Record-setting skyscrapers are the epitome of nonsensical wealth that has come as the result of an unsustainable bubble.
The chart is basically showing us that skyscrapers represent the peak of wealth bubbles, and that their construction frequently indicates the final moments before common sense kicks in and brings the entire system crashing down. Right now, we have all the pre-crash characteristics flashing right in front of our eyes, yet we deny even considering the possibility of something bad happening to our perfect financial state because the all-knowing economists from Wall Street have told us that everything is in order and that a crash can’t happen again.
If this Skyscraper Index maintains its historical accuracy, then god help all those who have invested in Calls for next year:
Image Credit: The Big Picture