From The New York Times Magazine: An unsettling fact of Wall Street today is that some of the same people who accurately predicted the housing bubble are now describing another bubble, whose collapse will make the financial crisis of 2008 look mild. Perhaps the most famous is Jeremy Grantham, a founder of the Boston-based asset management firm GMO. We are, he says, in the midst of a historic period of mispricing. Because the global economy depends on hydrocarbons, practically every asset in the world relates in some way to oil and gas. Grantham believes hydrocarbons will be priced, or regulated, into submission. In light of that belief, not only oil companies’ stock but practically everything else on the market looks falsely inflated. In the last few years, Grantham has committed all but 2% of his personal fortune to funding projects — energy storage, pesticides, lightweight cars — that might help save us in the event of 2°C of warming. In June 2018, he gave a keynote address at an ...
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