Posted on 09/14/2009 8:07:46 AM PDT by edpc
One year after America's brush with economic catastrophe, there's plenty of looking back at the bubbles that caused financial chaos.
But what's next?
There are surely dangerous economic bubbles forming as we speak. As Alan Greenspan warned this week, "They [financial crises] are all different, but they have one fundamental source," he said. "That is the unquenchable capability of human beings when confronted with long periods of prosperity to presume that it will continue."
The trick, of course, is spotting them. By definition, most people don't spot a bubble before they form and burst.
Here's 10 for which you should be on alert:
(Excerpt) Read more at finance.yahoo.com ...
4. Federal Reserve bubble: Is the Fed saving the financial system or creating another dangerous credit bubble by snapping up mortgage-backed securities?
At first glance, the Fed's effort to clean up mortgage-backed securities is a winner. But, as Heidi Moore wrote for Slate's The Big Money, the Fed is actually creating a bubble similar to the one it's trying to do damage control on. By eagerly trying to save banks and stabilize the housing market, Washington is taking on too much: $1.25 trillion of mortgaged-backed securities, including both the original toxic assets and products of foreclosures to come. So who would bail the Fed out? You.
We seem to be reaching a point where the next bubble could be an avalanche/collection of bubbles.
Gold .... doesn't really bubble.
The Life insurance SCAM mentioned (securitization) ... that's just insane.
Bubbles ping
Bubble Boy is addressing wall Street today.
2. Green bubble: Green has been everywhere. With observers saying the "Age of Cleantech and Biotech" will be the next major economic revolution, and Washington pouring billions of dollars into alternative energy projects, you'd think a bubble would have already formed. But, as we noted this spring, it did not, at least from an investment perspective.Still, as the economic recovery takes shape, alternative energy could see excess investment on hopes of big future returns. There's plenty of hype left, and if investors regain the cash to get in the game, could green become the next internet or housing bubble?
Please, God, pleeeease let the "green" bubble burst in my lifetime!
My opinion is the FED bubble. Isn’t BO the best? He sends Tax Cheat Tim and then Hillary, both on their knees(wonder who was better at it) to China to beg them to buy our debt then last week kisses up to the tire worker’s union by slapping a tariff on tires from China. Great way to keep your main customer happy BO!!!!
My opinion is the FED bubble. Isn’t BO the best? He sends Tax Cheat Tim and then Hillary, both on their knees(wonder who was better at it) to China to beg them to buy our debt then last week kisses up to the tire worker’s union by slapping a tariff on tires from China. Great way to keep your main customer happy BO!!!!
Where I have I been? I can’t believe I haven’t had to post “why gold is NOT in a bubble” since March 12 (when it was about $920, down from $1000 three weeks earlier). Well all right:
Let’s review why gold is not in a bubble:
- Nothing can be in a bubble unless it is well past the previous inflation-adjusted all-time high
- Gold regularly drops up to ten percent in three days or less and once dropped more than twenty percent nearly without a break in 2008. Bubble price action goes one way.
- In every case, gold “corrections” have taken weeks and months to recover. Bubble price action is exponential — not a grinding, grudging “recovery”.
- It is almost a commodity, yet supply is not readily available. That’s a supply shortage, not a bubble.
- Boiler-room companies (i.e. cash4gold) are begging the masses to sell to them, not to buy from them
- CNBC is still bashing goldbugs instead of worshipping them
- We haven’t seen a TIME or Business Week magazine cover with a cartoony John Q. Public engaging in borderline-sexual acts with Lady Liberty from the Saint Gaudens Double Eagle
- Nobody you know, knows what Lady Liberty from the Saint Gaudens Double Eagle looks like
- Hollywood hasn’t yet made gold-related TV shows, movies, etc.
previously posted here
http://www.freerepublic.com/focus/chat/2205674/replies?c=30
A clarification: Yes there are plenty of commercials on TV (up to three in a single commercial break on many FOX daytime shows for example) for people begging you to buy gold, but these are long-established companies not recently created companies like cash4gold. We’ll see boiler-room operations springing up to sell gold, but they aren’t here yet.
You are 100% right. And you put it better than I have seen it yet.
Thanks. It’s very annoying to copy the link directly from the story and have that occur.
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