Joe, You are saying there are some similarities? No way, Jose. We are much more overpriced and over-euphoristic now than in 1929. -g-
What is funny, when I watched a horrible movie about the 1929 Crash, they were showing people on Wall Street who were consulting astrologers about the market. Then, Arch Crawford shows up on CNBC. Deja Vu all over again, as Yogi would say. -g-
The Austrian School of Economics has all the pieces in place. Financial asset inflation with crappy real investment, lousy savings rate, the extreme looseness of money world-wide, but especially in the USA, the accellerating accumulation of dollars in foreign hands, the meltdown of bubbles in other countries, especially Asian Tigers, etc. Of course, some things are different. They had solid productivity growth in 1927-1929, and we don't have that now. And they had tariffs while we just play an anti-dumping shell game. But it looks very similar. A financial inflation bubble that has grown grotesque and will be popped with great suffering and gnashing of teeth. The only question is when. Does the tulip run to $20,000 before crashing down to 50 cents, or is $10,000 considered pricey enough? Stay tuned. -g- MB |
