Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
Well, at least during the first five years of this century Greenspan actively encouraged a relaxation of lending standards in real estate. What US actions, other than the relatively low interest rates, contributed to the Asian and Russian debt crises? I thought that the US banks got to play in a carry trade financed by cheap US money. The Y2K bubble was certainly also encouraged by direct spending on infrastructure and rationalized as a prophylactic against Y2K bugs. But thanks for the comments about the feasibility of bubbles even with high interest rates. At this point that is an historical curiosity, living as we do at the lower bound of interest rate policy.

As to goldbuggery, I certainly do not recommend return to a gold standard. That would be a disaster. But I do strongly suspect that the price of precious metals has been strongly manipulated downwards for psychological impact on market participants and that, especially in the silver market, this has gotten out of control. It IS a very small market but, if some of the PM analysts are right about the size of the naked shorts, an unwind could do major damage to JP Morgan.

I missed most of the bull markets in stocks due to believing, not without reason, that the basics were bullshit. I think I have finally found a way to play bullshit to my advantage, especially in silver, where I am approaching a 200% gain since Aug. '09, so indulge me that, ok? There are risks, but doing nothing seems even riskier. After all, "Strong Dollar" doesn't buy much gas these days.

"It is not necessary to have hope in order to persevere."

by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Tue Apr 26th, 2011 at 12:17:48 PM EST
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