The Cupcake Bubble
Looks like Cupcakes have jumped the shark -- from
The Wall Street Journal:
Forget Gold, the Gourmet-Cupcake Market Is Crashing
The icing is coming off America's cupcake craze.
The dessert became a cultural and economic phenomenon over the last decade, with gourmet cupcake shops proliferating across the country, selling increasingly elaborate and expensive concoctions.
The craze hit a high mark in June 2011, when Crumbs Bake Shop Inc., a New York-based chain, debuted on the Nasdaq Stock Market under the ticker symbol CRMB. Its creations�4" tall, with fillings such as vanilla custard, caps of butter cream cheese, and decorative flourishes like a whole cookie�can cost $4.50 each.
After trading at more than $13 a share in mid-2011, Crumbs has sunk to $1.70. It dropped 34% last Friday, in the wake of Crumbs saying that sales for the full year would be down by 22% from earlier projections, and the stock slipped further this week.
There have always been bubbles --
there was a huge one in
1637 in Holland with
Tulips.
We are building the foundations for another housing bubble, higher education seems to be severely overvalued. What is next?
Posted by DaveH at April 19, 2013 10:11 PM