SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Politics : Ask Michael Burke
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: PaperChase who wrote (66457)8/20/1999 12:18:00 PM
From: Mike M2  Read Replies (1) of 132070
 
PC, my fear mongering is based upon the lessons of history while your views seem to be based upon its different this time fallacy. I do agree with your views that the central banks has been a major factor in creating and perpetuating this bubble there are limits to their powers. IMO their reckless actions to delay the inevitable will only increase the magnitude of the bust. When evaluating the role of the central banks it is important to remember that commercial banks create loans if they are willing and able to extend loans to customers who are willing and able to take a loan. This point was demonstated in the US in the 30s when banks had not extended loans to the limit of their reserves. The other important point is the fact that financial sector ( nonbank) has created more credit than the banking sector in 1998 and their paper is marked to market daily - you cannot hide bad debts for long. I would also suspect this sector has much greater leverage than you would find at a bank. One final comment - ho ho ho mike
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News