The rich get richer and the poor get poorer in Bernanke's America, but damn, aren't asset bubbles just GRRRREEEAAAATTT?
At what point do the sheeple realize that the Fed should be burned to the ground?
And what Bernanke bubble will end up getting the biggest (before its spectacular flame-out of course)?
A) Gold
B) Wheat
C) Oil
D) Stocks
E) Euros
F) Art
G) _______
February 28, 2008
Well, it looks like Helicopter Ben Bernanke and the Inkjets are doing a fine job of creating new bubbles to drive the fake American economy
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42 comments:
They're going to try to blow up the stock market but it won't work. And who cares anyways when the stocks you're holding are priced in worthless dollars? They don't want it to be oil because it will grind the US to a halt if we have to pay $5+ per gallon and gold going to the moon means inflation is out of control and the dollar has become toilet paper. I think it will be precious metals and oil, so yeah, we're screwed.
I don't think gold, wheat, and oil are bubbly...not by a longshot. For the most part, their prices simply reflect a weakening dollar and sharply increasing demand for commodities. I imagine that all three will continue to run for quite some time.
Stocks and art...well...there you may have a point. When you have people who will pay $150 million for a single framed painting (must be a very nice frame) or $25 for a $1 stock like GM, then you can argue "bubble".
Gold in all currencies, not just the dollar. I would have said oil, but I think we don't have much longer before that gets changed to Euros. Until all the central banks stop excess printing, gold should be the highest flyer, especially once they lose total control and can't manipulate the gold price anymore.
best thing to have during inflationary times is debt. only true imbeciles would brag about being debt free. good for you all, be debt free and earn 2% on your savings account while inflation is 10%. brilliant move.
on the other hand i have a 5.15% 30 year fixed mortgage. in 10 years from now i will probably be able to pay my mortgage with spare change composed of $100 and $500 coins i find in between the couch cushions.
"in 10 years from now i will probably be able to pay my mortgage with spare change composed of $100 and $500 coins i find in between the couch cushions."
Nice theory, only you're making the assumption that wages will rise keeping lockstep or one step ahead of the rate of inflation. Let me see now, it's never ever ever happened in the history of the entire planet, but hey who knows, it might be different this time...
Anon 10:49:
Having fixed-rate debt during high inflation works *IF* there is wage inflation also, and that's a big if. For a lot of people, increased living expenses pushes them over the brink of being unable to service the debt. We're already seeing it in increased foreclosures and car repo's -- and the real inflation is only just starting to build up steam. So yeah, if wages kept pace with inflation, you'd be right. But businesses are feeling the squeeze of rising supply costs, and are facing slumping demand, so they're under pressure to "cut costs" and that means either flat wage growth, or even mass layoffs.
Duh. Alternative energy is the next big one.
Prime the pump with easy money and high energy costs.
I say Bubble Humans, due to the coming Great Starvation
Here in Portugal bakeries are talking about 50% rise in bread prices because of grain prices (+-5USD for a 1 kilo bread) I think the next bubble is going to be foodstuffs, because speculation is being diverted from stocks and housing. Its like a loucust plague, jumping from one filed to another... Im in favour of capitalism but this is outright wrong and cannibalistic...
Dude, commodities are not bubble material. Their increase in price merely represents an inverse relationship to the strength of the dollar.
Could be "green" energy (like Sam said)...
"The Next Bubble?"
http://www.boom2bust.com/2008/01/30/the-next-bubble/
Did Ben Bernake take his economic lessons by watching Forrest Gump?
At what point do the sheeple realize that the Fed should be burned to the ground?
Never, they will ask the fed to make it better while they vote for the incumbent scumbag. I eagerly await the crash.
I don't think that metals and oil keep going up as people think.
As far as bubbles and printing. Refer to this Mish write.
http://tinyurl.com/yrudyv
Danny
Art is way over priced and usually goes down in price / value during recessions.
Drugs for all the depressed realtors?Can someone get greg swan some prozac?
Next Bubble: Politicians.
They all must go and never be seen again.
The gene pool must end permanently.
Do It Now.
Commodities...
Be cautious in the other mans game. Play what you understand and you won't get hurt.
Anonosheepentroll said...
on the other hand i have a 5.15% 30 year fixed mortgage. in 10 years from now i will probably be able to pay my mortgage with spare change composed of $100 and $500 coins i find in between the couch cushions.
All you have to do is keep from loosing it all the next few years. Not an easy task. Been there, done that!
See you all in 20 days; I'm going out into the world of distressed assets.
GOLD TO DA MOON ALICE!!!!!!
FOOD WILL BE KING, WE HAVE THE GRAIN AND THE REST OF THE WORLD DOESNOT...YOU CANT LIVE ON OIL OR GOLD....
"best thing to have during inflationary times is debt. only true imbeciles would brag about being debt free."
And you bought an asset generally purchased with credit...which will get more expensive to initiate during inflationary periods (bankrate.com)...which should do wonders to keep the value of said asset secure. In fact it may just be as easy for you to pay off the $1M mortgage on your $50K home as the person you sold it to. Unless of course things change again in the next 30 years.
Thanks for reading HP, please come again!
I love the people that think debt is a good thing in inflationary times. Note to idiot: debt is never good, and unless we see inflation in our paychecks (which we won't), this round of inflation will be brutal.
Wages are not going up, prices are.
We can't "just inflate" our way out of this clusterf@ck.
Get out of debt or you may find yourself in a FEMA camp with all the other idiots that couldn't live within their means.
Oh, and gold is no where near a bubble. The bull market is just beginning, baby!
Anonymous said...
best thing to have during inflationary times is debt. only true imbeciles would brag about being debt free. good for you all, be debt free and earn 2% on your savings account while inflation is 10%. brilliant move.
Interest tends to keep up with inflation. Back in the stagflation days of the 70's I was getting %15 on my CD's. Wages, however, for the people who still had jobs, did not go up anywhere near the inflation rate.
gold
Collectible coins.
Paris, Lindsey and Britney memorabilia, unless they adopt the cause of a starving African nation.
too bad you gave up on Ron Paul so quick, Keith.
Your Obama is not going to change a damn thing.
My mining Mutual Funds are up 16.7percent in the last 3 months. Big fluctuations in the beginning but lately, steadily upward.
Should have bought physical gold also just got a little too conservative.:{
on the other hand i have a 5.15% 30 year fixed mortgage. in 10 years from now i will probably be able to pay my mortgage with spare change composed of $100 and $500 coins i find in between the couch cushions.
February 28, 2008 10:49 AM
We are in STAGFLATIOPN, smarty. YOU aint getting no $500 coin. eat shit, peon.
best thing to have during inflationary times is debt.
How is being in debt a good thing?
only true imbeciles would brag about being debt free.
How is not being in debt a bad thing?
No matter how you run the numbers, you don't owe anybody any money.
I predict we will have a Soylent Green bubble in 2022.
The taste does differ from person to person.
LAME Duck Bush said...
Ex-baseball team manager, 12 step graduate and former US 2 term el presidente Jorge W. Bushco today formally declared war on wheat.
The crowd at the White House was chanting "I've got RELIGION NOW" and "GO GEORGE" take us to WAR!
Vice President 'shotgun' Dick Cheney was seen talking to Dubai via the Halliburton direct line, which is color coded green (for free money) for quick identification.
Former reformed drinker Bush was said to comment "we'll smoke that wheat out of thier caves" repeatadly before trying to exit through a locked door.
US SS men were on hand to help the perpetually confused and disorientated leader-of-the-free-world off the stage into a waiting helicopter where he promptly bashed his head on the entrance door. Bush was flown to Walter Reed for emergency care but the helicopter couldn't land as protesting war veterans were demonstrating the poor care and conditions at the hospital for veterans.
Bush, meanwhile was recovering nicely, or not...
*WE HAVE THE GRAIN*
Pssst: It's grown with oil.
You could always get out there with a jackass pulling a plow.
Dubai
Gold, just like last time 'round. When it comes down to it, who really absolutely needs gold? Compared with, say, energy, or food.
Wow what a genius! Stay in debt...Huh? All this time I've been trying to downsize and pay my bills...What a DOPE I've been.
Yes sir I'll take the Tahoe with the 5 TV's in it...Oh and charge it!
Sarcasm aside...I am seriously spooked...Even all the braggers here have to be bothered in a way...I'm a prison cop and I'm telling you your $$$ means nothing if crime runs rampant...People do crazy shit for $20 what will they do when there is no money in the poor community?
That's right start attacking the middle class and rich...Ask a Brazilian if you know any, they tell you what it's like to live in a box.
"The taste does differ from person to person."
DOPES over liguinie...mummm
Anonymous said...
"The taste does differ from person to person."
DOPES over liguinie...mummm
Don't you see Andrew Hac is slowly turning us all into cannabals?
Anonymous said...
Dubai
Funny, you should think that. Our mutual fund advisor is telling us that Dubai has SHUAA Capital that is opening offices all over the middle east. Halliburton, Carlyle Group, Bechtel and many others have moved into Dubai to assist with what is being called the "New Financial Center of the Middle East". Maybe its not funny, maybe your right.
http://tinyurl.com/yvfcgs
The prison cop is right. Coming from someone who lived in Manhattan before Giuliani's reforms, I can tell you that rising crime is going to be terrifying. Americans are spoiled by wealth, increasingly amoral and agnostic, and unfamiliar with how to live with little money. No money and no scruples is bankruptcy indeed.
We really needed Ron Paul.
...damn.
Listen to the prison cop. Maybe not a chaos cycle coming, but I remember the 70s and living in the poorest part of my town. Wife and I had very little, but got robbed monthly. She gave up owning a purse, and we quit locking the house, when we went out, because I couldn't afford window replacements anymore. We drove beat up cars and struggled along. People in the better parts of town lost more and better.
A good friends dad was shot dead on the the street, by a 13 year old, for a $20 bill. My worst night I had to cock the 12 gauge and keep it pointed in the guys face as I backed and talked him out of my house.
Thank God I didn't have to pull the trigger. I was so upset, I couldn't believe I was back in the world and here was this shit happening again. It was one of the sad times.
These are just sad times, again, and it's not the wage earners fault. This is a good time to get rid of your debt so you are free to move on. If nothing else, debt free gives you choices of interesting work and new places. That can be worth more than gold, money, stocks, or whatever. You won't regret it.
Good luck with your choices (no sarcasm meant).
Swiss watches have been a great invesment, Rolex, Patek, AP, Panerai, etc. Plus you can sell them in auction anywhere in the world. Want to sell them in GBP? NO problem. Put watches up there with art.
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