Chapter 1: What is the main topic discussed in this episode?
Okay, welcome back to Gary's economics.
Chapter 2: Why are global stock markets reaching all-time highs?
Today we are going to explain why asset prices keep going up. Okay, you're probably expecting me to do a breakdown of the local election results.
Chapter 3: How did the 2008 financial crisis influence asset prices?
But I've been in France all week promoting my book. So you are getting this video which I shot last week, which is inspired by the pretty insane situation which you may or may not be aware of, which is that last week, on both Monday the 27th and Tuesday the 28th of April, which are just a couple of days ago and I'm shooting now, the US stock market hit a new all time high.
And just sit with that for a second. Not just the US stock market, the Japanese stock market hit a new global all-time high today. I'm shooting this on the Wednesday morning, 29th.
Chapter 4: Do interest rates play a significant role in asset price movements?
And this, I think, is for anyone who didn't know this, this is the first thing you need to know.
Chapter 5: What impact did COVID-19 have on asset prices?
We're sitting here in the middle of a war which has been focused on destroying the economy that is you know the basically iranian sort of primary plan is to like damage the global economy we are expecting to see like a pretty significant collapse in living standards all around the western world well not just the western world the entire world and
Yet, despite this intentional destruction of the economy, intentional collapsing of living standards, global stock markets are, in many cases, the highest they've ever been.
Chapter 6: What are the underlying reasons for rising asset prices?
And it's not just Japan and the US, right? So, you know, Japan and the US, all-time highs. The Germany stock market is not even down on the year. It's flat on the year. The UK stock market, FTSE 100, is up 21% in a year.
Chapter 7: How do economic crises affect asset prices positively?
I'll just go through them, yeah. France up 11% Australia is up 2% Spain is up.
Chapter 8: What should individuals consider when responding to rising asset prices?
Can that be right? Spain is up 32% and you know, these are one year moves from a situation where even one year ago, mostly stock markets were at all time highs. It's not just the stock market of the gold price. Gold has gone absolutely mental. Gold has gone up 98.5% in the last two years. The silver price has gone up 174% in the last two years. So we're sitting here,
in the midst of like an enormous economic crisis and what we are seeing is like all global asset prices all global stock markets like doing incredibly well and a lot of people are confused about this because people have generally been led to believe and there is a general assumption that when The economy goes good, stock markets go up. When stock markets go up, it's because the economy is good.
When the economy is bad, stock markets go down. If stock markets go down, that means the economy is bad. And yet here we are in the midst of like probably the most obvious piece of economic like sh**ness we've seen in a long time. Stock market's going through the roof. We are going to explain to you what is happening. So the first thing to say is like this is not new.
So I'm talking to you now in 2026, in the midst of one economic crisis that appears to be pushing stock markets up. And obviously, five years ago, we had COVID, which was another enormous economic crisis. And what was the long term effect of COVID on asset prices, gold stocks, housing, they went up 2011 sovereign debt crisis. pushed asset prices up.
And 2008, obviously the credit crisis, the Lehman shock, the massive 2008 economic crisis, in the long run, pushed asset prices up. So, you know, what is happening? Why is it that we have this thing happening, which is like totally the opposite of what is supposed to happening?
Why does it seem to be that whenever there is an economic crisis, Iran war, COVID, 2008 crisis, why do they always push asset prices up? when we expect them to push asset prices down. So a narrative was starting to form on this sort of like 10 years ago. which was that, so 2008, for anyone who doesn't know, I guess I'm getting older now, 2008 was like a massive credit crisis.
It turned out that basically like all of the banks, at least in the Western world, had lent money to people who couldn't pay it back. The banks would have gone bankrupt. The banks stopped lending. Nobody could get a loan. Governments had to like go in and bail them out. There's a massive collapse in the economy, in living standards, a massive spike in unemployment.
It's generally accepted that this was bad for the economy. After that, three years later, we had the 2011 sovereign debt crisis, which was a crisis where basically primarily European governments found that traders and economists thought that they couldn't pay their debts back. And governments in many cases were forced to do austerity.
The UK was already doing austerity, but most obviously Greece was forced to do enormous public spending cuts. This was also bad for the economy. So it was generally accepted that these crises were bad for the economy. But a narrative started to form about why they pushed asset prices up, which was quite simple, which was that these crises caused interest rates to be pushed down.
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