GOLD 0.51% $1,391.7 gold futures

Some of this may be scaremongering but for some may be not. This...

  1. 5,237 Posts.
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    Some of this may be scaremongering but for some may be not. This is because for some people there is a natural rate of interest, which when perverted by the FED it has to bring disastrous consequences in the form of a terrible misallocation of resources.

    So, with interest rates being kept artificially low by the FED a bubble in the share market must have been created, a bubble that inevitably must end by being deflated with a big bang.

    Of course that prices cannot go up forever, but a correction, a long period of price stagnation or a crash are different things. And as Keynes said, markets can behave irrationally much longer than you can stay solvent.

    By the way. During the fifties and sixties interest rates were low but nothing major accursed. For some that was the case because banking at that time was regulated.











 
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