The David Lin Report · Friday, July 31, 2026
Florian Gomez elaborates on the "crack-up boom" theory, suggesting it explains the divergence between booming stock markets and struggling real economies. He posits that central banks' continued money printing, despite diminishing confidence in fiat currency, fuels asset inflation while the real economy suffers.
“And and basically it states that while governments and central banks are expanding their money supply on the one hand, on the other hand, the the trust or the confidence in that system in that fiat currencies is diminishing.”
“And so they have to keep on doing it. And that means while the real economy is suffering, the stock market prices can go higher even though maybe the economic activity is not as good anymore as it looks like when you look at the stock markets.”
“And I think that's exactly what we're seeing over the years. Maybe many people have faced that conundrum and try to explain it and I think the crack-up boom is still the best explanation to that on the one hand, you're seeing most of the stock market indices near or at all-time highs while many people struggle in their real lives.”