Pete, then why are stocks so overvalued, real estate so overvalued, and money supply expanding at unsustainable levels of growth? And they all have been for quite a while. Easy credit made this bubble.
American banks are awash with derivative contracts, which are much more dangerous than stocks and bloated real estate. That bank regulation is a joke is something we already learned in the 1980s.
However, you are right that you cannot compare the US bubble with the Japanese bubble. The Japanese export. We import. We have huge trade deficits. The Japanese have always had huge trade surpluses. The Japanese have a culture that allows leaders to snow them for a long time. We never believe anything our leaders say. In other words, when the Japanese bubble popped, there was still some real economic value to which overpriced securites could fall. When ours pops, we will still be importing because our economy is uneconomic. BTW, inflation, when stated correctly, is much higher than that reported. Short term, "risk free" rates tell us that.
Pete, we have to chip in for a ticket to send you to Vienna. You need to study at The Austrian School of Economics. <G>
BTW, it could be worse. If you were quoting technicians instead of de-frocked economic pundits, we would have to make you eligible for The Vienna Boys Choir. <VBG>
The fun thing about bubbles is that we can all disagree and keep a smile on our faces until they pop.
Good luck, MB |
