Blotienso

History repeats: cheap money fuels bubbles; rising yields burst them. Today yields rise globally while AI-led assets stay richly priced, signaling risk as easy money fades.
Abstract: This essay argues that historically, cheap money creates bubbles that burst as yields rise. It reviews Japan (1989), the US dot-com era (2000), and China (2007), where rising yields foreshadowed crashes. It then cautions that current global conditions—high valuations across AI, tech, crypto, private equity, and real estate, plus rising yields—signal growing danger of asset-price instability as funding costs climb.