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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Tommaso who wrote (75707)	12/15/2006 10:58:55 AM
From: mishedlo	Read Replies (2) \| Respond to of 110194

Tom - what got me irritated was your statement earlier that I let go by at the time. It was something to the effect that the further one gets away from prices = inflation the more towards lunacy one gets. Somehow I feel that you do not think Issing, Kasriel, and the others I mentioned are idiots especially since you are now saying The jury is still out on the question of how much damage Greenspan has done. I did watch with dismay as he repeatedly eased credit in a way that encouraged speculation, the silliest example being the effort to forestall a Y2K panic. But I guess in that case it was like the man with the bottle of antielephant dust who replied when someone told him there wasn't a wild elephant on the entire continent, "Well, you see how well it works." Greenspand did that not once but multiple times LTCM Y2K Dotcom Bust I guess he thought it "worked" the first two time so he did it a third. Well it works until it doesn't and then it fails spectacularly just like all asset bubbles do. Is there an asset bubble or financial speculation bubble in history that did not fail spectacularly? Tulips South Sea John Law Railroad Boom Roaring 20's Japan US Property/Financial Derivatives Bubble???? To me the fact that deflations are rare is because the conditions that cause them are rare (massive speculation culminated when the CB can no longer force more credit down the throats of consumers or institutions). And that is exactly why Bernanke is WRONG. The cure (throwing more money at things) can not be the same as the cause. Mish