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.
Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 374.22-0.2%Nov 21 4:00 PM EST
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
Recommended by:
dvdw©
elmatador
To: THE ANT who wrote (109434)1/2/2015 9:27:04 AM
From: Elroy Jetson2 Recommendations  Read Replies (2) of 217927
 
The driving force of an economic depression is a liquidation of excess debt, which is why the Fed and other central banks have been implementing the higher capital requirements of Basel-III - so they are financially prepared to handle new loan liquidations. It's only unfortunate that governments prevented this from happening ten years earlier.

In coming years things which generate income will be increasingly prized. An increased valuation for income producing businesses is not a bubble in the same way that the price of "trading sardines" were during the credit bubble - things whose income was not relevant but were valued as something whose price would rise as debt did and could be sold on in the greater fool theory.

The Fed is doing everything they should and those who insist the Fed will "have to" raise rates to a "normal" 3% or 5% at some point are perhaps 10 to 20 years too early. There won't be any surprises coming from the Fed, and the central bank making the mistake is the ECB whose hands are tied by Germany. It will be interesting at which point Germany relents. God knows I too would like to see Italy's cheating ways overhauled, but I doubt it's within Germany's ability to remake Italy's defective culture.
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