When the masses start saying “it can’t go down” lookout below...
This is just my take, and I’m not a banker or stockbroker or anything like that, I’m a programmer.
Nothing was there to stop the sovereign governments and the financial houses from creating money and instruments FAR BEYOND what had any meaning.
What I mean is this: A government could print a note and say that note is worth 600 gazillion yabba dabba dillion if it wanted to. It could print notes that exceed the world GNP, even ten times the world GNP’s whatever...
In a sense, the rating agencies DID THAT with the real estate bubble. Here’s some rambler in LA that sits on 1/5th of an acre of land and it needs a complete re-do but it’s WORTH 750K BECAUSE WE SAY SO.
So what does it mean when the numbers being banteed around represent amounts that are completely unrealistic or immeasurable in a day to day meaning sense? When the numbers go beyond anything in terms of understanding or ability to pay back?
If there is a bubble, THAT’S THE BUBBLE!! And it is GROSS FINANCIAL MISMANAGEMENT, if not OUTRIGHT FRAUD!
Gold, in this context, represents a return to something real. A return to a place where people are at least all talking the same language and measurements.
Just my two cents, anyways...