This last-gasp financial plan to purchase and support the Treasury market was and is, at best, a short-term fix to prevent the bubble of all bubbles from bursting. If we flash back to last fall, the stock market panic was driving some investors to guarantee a negative return on their money for the safety of the full faith and credit of the Federal Reserve. That same money that ran to bonds in order to escape equities is in danger of unwinding and going on the move again – after all, money goes where it is treated best. Don’t believe me? Just ask Warren Buffett…
June 17th, 2009 | Alan Knuckman | 2 comments | ContinuedAll Posts Tagged With: "bubbles"
Obama Insists That Not Only Can We Detect Bubbles We Can Also Deflate Them
For instance, check out this headline from a piece from several days ago on Politico: “Obama Would Regulate New ‘Bubbles.’”
Yes, you read that right. “Bubbles” just occur spontaneously. They have no cause or explanation. We need government to identify and destroy them.
Fed’s Inflation Would Go into New Bubbles – In Commodities, Oil, and Gold
When the tech stock bubble popped, for example, the next big thing was a bubble in housing and housing-related debt. When the housing and subprime bubbles popped we guessed that the authorities would pump hard to try to reflate them…
June 2nd, 2008 | Bill Bonner | 1 comment | Continued