My question is how much control does AG have over the banks' lending practice, and the public companies' accounting practice.
I do agree AG has to do with this bubble to a certain large extend, however he is the only part of the equation, he supplies as much money as the demand is which comes partly from average consumers and investors. People already borrowing money from credit card and second mortgage to go to the biggest casino in the planet before 1997.
The seed of greed has already been sowed in the early 90's, that people saw the stocks price skyrocketed in INTC, MSFT, ASND, cascade communication and etc. And also WS had been pumping up the average investors that the stock market was going to the moon, I remember clearly the days that analyst came out to set the price target for PCLN and QCOM.
It is "painful" for some people to watch their neighbor, coworkers and friends made tons of money in the stock market and they got sucked in at the final blow-off, even Newton got sucked back in at the final stage of the mania and never talked about it for the rest of his life.
Does anyone know how big the role did money supply play in other bubbles, like south seas, canals, railroad, emerging markets around 1820s ?
May be bubbles are created not by one person but by the greed of all participants. Too bad, psychology, basic economics and reasoning are not required for the license of life.
KC. |
