Gary >The credit situation is like a sand castle, and
"All sand castles are washed back to the sea by the tides of time."
I do not argue that the whole US economy is a "sand castle", built on credit, but what I ask is, "Where's the sea?". Who or what is going to wash the sand castle away? As far as I am concerned, if such a person exists at all, he is well hidden.
>Instead of one bubble, we now have multiple bubbles held up by a continuous stream of new credit.
Sure, but so what? We have just witnessed the "popping" of the stockmarket bubble --- and what did we see? In fact, nothing. Some people got burned but so what? Things are going on as if nothing happened --- no depression, no recession, 5% unemployment --- big deal. Germany has 10%. SA has 50%.
I maintain that one must not trap oneself into a "goldbug" mindset where, self-righteously, one dreams that one day, whenever that day is, the gold "Messiah" is going to return and measure all fiat money and all paper, financial instruments against the gold price which, by then, will have ascended to Heaven. And, of course, on that Day of Reckoning, all the short-sellers will be consigned to the insolvency courts or worse --- to jail. And, on that day, all the goldbugs will metamorphose and become gold eagles and will own everything and will be rich beyond their wildest dreams and they will live happily ever after.
And don't laugh --- there are many apparently intelligent people who really and truly believe this. |
