Bill,
Regarding "easy Al's" comments that it's very difficult to identify a bubble.
Almost every reasonably competent and experienced investor I know thinks it's a bubble. And I suspect that "easy Al" knows it, and has known it for a long time.
IMO he faces three problems in admitting it.
One, it forces an admission on his part that he has created a mess of the financial system.
Two, it forces an admission that the goal of CPI stability over and above all else is a bogus and faulty policy.
Three, it forces an admission that fiat credit has an enormous downside in terms of economic stability, financial excess, wealth transfer via bailouts, the experienced taking advantage of the less experienced etc...
For the Fed, and by proxy, Washington, to admit to those three things is like admitting they are complete idiots and their biggest critics were right all along. NO CHANCE IN HELL!
Wayne |
