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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (77969)	4/18/2008 5:09:47 PM
From: koan	Respond to of 116555

mish: " this would not have happened if there was no fractional reserve lending and no Fed. Do not even need a gold standard, just those two things would have done it." I agree. Although regarding the state of our economy we do need to start living within our means. The idea we tell people it is better to spend then save is truly Alice in Wonderland economic thinking. And we need to let the normal business cycles work out excesses. Just look at any stock that trades. It looks like a saw blade for a very good fundamental reason. The micro and macro economic functioning is no different. Greenspan had all of that power (which he relishes) and in retrospect it is easy to see he was/is sort of a nut case. I can remember when he told people to use adjustable rate mortgages (arms). That blew my mind. In 16 years of real estate, not once did I ever advise anyone to use arms. What is even more nuts is when he advised it, fixed rate lonas were at 40 year lows and arms were only a tad lower, and some of those those arms were not based on prime (which is bad enough), but just quickly ratched up in a short period of time. People are too crazy (in general-all of us-lol) to let power like the fed has, get out of control of the people. Although I have seen so much crazy thinking in my life I am not sure how one brings sanity to civilizations. The majority of people, in my opinion, are greatly irrational for many reasons. Just look at the number people worldwide who refuse to recognize scientific fact when it is placed right in front of their face. Twice this week alone I showed two friends scientific facts, one based on Mitcondrial DNA and the other based on pictures of king crabs moving into antarctica (where they have not existed for millions of years)and one walked out of the room and the other said it was lies put forth by the media-lol. National Geographic and ten other sources-lol? So you can lead a horse to water, but--------lol.