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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 368.31+0.6%Nov 7 4:00 PM EST
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From: elmatador11/7/2007 10:58:14 AM
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Black Swan wrote 6 years ago: 'The fact that they are pushing money doesn't mean credit has been expanded...it means banks are trying to make money wherever they can'

Of course that statement is correct. What I indicated in my examples is 'easy credit' , symptoms of an expanded money supply which greatly facilitated the formation of the bubble as opposed to:

' Well, I would not agree that the recent bubble was based on the extension of credit.'

which would seem to imply no connection..ie. absolutes are dangerous things. Correct me please or expand on your statement if I've misinterpreted you. I trust you are aware of the telecom situation ?

The retirement account loans in my example were often secured by securities directly or indirectly trading at our bubble valuations. Rational lending ? Responsible business practices ? Is it in the interest of the banks shareholders to provide questionable loans ? I think not. Easy credit ---> over speculation (High risk reward), ---> bubble.

'You will find that it is impossible to find a proper technical definition to fit a bubble.'
Of course I did define it: 'However, when 'investing' in stocks with ridiculous valuations becomes so commonplace that creating bagholders out of the 'investors' affects the general economy.."
but again it cannot be proven by theorem and is only based on anecdotal evidence.
Seeing and feeling and being in tune with things around me is why I have my 'winnings' still. They could have been greater but they could have been zero. Waiting for the 'technical definition' of anything to occur often makes you late to the party.

eg: The climate defined for a specific region is part of a technical definition of an ecological system.... unfortunately what we usually get is called the weather.

Hey Martha ! Would you say that was just heavy run off or a flood that wiped out the crops ? LOL.

'13 years ago, when I took out my first mortgage ever, the same thing happened.'
Yep I bought my first house at the beginning of the Toronto real estate bubble (I mean period of rapid real estate development :0). That's another good story and classic bubble example.

regards
Kastel
siliconinvestor.com
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