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Gold/Mining/Energy : Big Dog's Boom Boom Room
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From: teevee1/19/2016 12:52:32 PM
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30 Years Plus
Broken_Clock

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The Next Bubble-already arrived and burst-why is it not broadly recognized?

I now believe the next bubble after '09 was commodities and it has burst-energy is just the sign post. The QE's and cheap money resulted in the misallocation of investment and resulted in over production of not just energy, but all soft and hard commodities. Inflating the money supply is supposed to create inflation, but with low interest rates, it resulted in misallocation of investment, creating over supply of all commodities resulting in deflation.

Factoring in indebtedness of soft and hard commodity producers, lender exposure, with most producers faced with over leveraged balance sheets due to collapse of commodity prices resulting from over investment, and then adding in all the related CDS's and derivatives, I think we are about to face the "unintended consequences" of QE......will be interesting this time 'round to see how the central bankers deal with it.
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