Silicon Investor (SI) -- The First Internet Community

STOCKTALK

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.

Politics : Politics of Energy -- Ignore unavailable to you. Want to Upgrade?

To: teevee who wrote (10714)	7/6/2009 4:12:58 PM
From: RetiredNow	Read Replies (1) \| Respond to of 86356

I couldn't agree with you more. However, I believe that bubbles are a symptom of free market speculation. Take away the speculators and you'll have more friction in the allocation of capital to areas of the economy that needs it most. I also don't believe that one company, GS, is the architect of all of our bubbles. We have a complex economy with many variables that interplay. Cycles are natural. Periodic bubbles are also natural, especially in times of serious productivity growth. The problem really comes when we interfere with the process of creative destruction, by trying to avoid the necessary corrective cycles after a bubble bursts. That's essentially what our gov't did after the Internet bubble burst. They created a mortgage bubble to replace it by lowering rates and keeping them low too long and not enforcing regulations on the books and encouraging home ownership for people who couldn't afford homes. That's left toxic assets on the books and Americans a whole lot less well off. Anyway, the next bubble I see coming will be the renewable energy bubble, which will also benefit this country tremendously, but we shouldn't ameliorate the aftermath when it comes.