Many in the financial industry claim the problems are primarily liquidity based and driven by irrational fear.
The issue goes deeper. The issue is insolvency and a credit pyramid that has been building for 27 years that held up on the ponzi belief that was always going to be a greater fool.to keep bidding up assets, and if there wasn't , the Fed would come to the rescue.
Well, the house of cards got too big for even the Fed to save.
Gold says it.
The dollar says it.
and the Feds desperate actions say it.
I only widh it wasn't so, but everyone is acting as if Ludwig von Mises wrote the svreenplay.
A succesful rescue now, if somehow they pull it out of the hat, will only result in a later fianal catastrphy of even greater magnitude.
The boom should never been allowed to happen, and it would never would have if we had constitutional mone, no legal tender laws, and no central bank.
But then we never would have been able to afford all those lovely wars.
I never disagreed with any of the below in what I wrote. Just that
Bear Stearns was not that large in the scheme of financial
institutions.
-Derek
Derek,
Many in the financial industry claim the problems are primarily
liquidity based and driven by irrational fear.
The issue goes deeper. The issue is insolvency and a credit pyramid
that has been building for 27 years that held up on the ponzi belief
that was always going to be a greater fool.to keep bidding up assets,
and if there wasn't , the Fed would come to the rescue.
Well, the house of cards got too big for even the Fed to save.
Gold says it.
The dollar says it.
and the Feds desperate actions say it.
I only widh it wasn't so, but everyone is acting as if Ludwig von
Mises wrote the svreenplay.
A succesful rescue now, if somehow they pull it out of the hat,
will only result in a later fianal catastrphy of even greater
magnitude.
The boom should never been allowed to happen, and it would never
would have if we had constitutional mone, no legal tender laws, and
no central bank.
But then we never would have been able to afford all those lovely