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Non-Tech : Kirk's Market Thoughts -- Ignore unavailable to you. Want to Upgrade?


To: Investor2 who wrote (303)12/23/2013 9:56:04 AM
From: Kirk ©  Respond to of 26630
 
Good, long article about Bubbles in many large papers Sunday. That is good for bulls as it keeps some bricks in the "Wall of Worry."

By Josh Boak

Associated Press

WASHINGTON — The Federal Reserve’s super-low interest-rate policies have inflated a slew of dangerous asset bubbles. Or so critics say.

They say stocks are at unsustainable prices.

California homes are fetching frothy sums. Same with farmland, Bitcoins and rare Scotch.

Under Chairman Ben Bernanke, the Fed has aggressively bought bonds to try to cut borrowing rates and accelerate spending, investing and hiring. Its supporters say low rates have helped nourish the still-modest economic rebound.

Yet some say the Fed-engineered rates have produced an economic sugar high that risks triggering a crash akin to the tech-stock swoon in 2000 and the housing bust in 2006.

Looking back on the eve of the Fed’s latest policy meeting last Tuesday and Wednesday, here’s why — or why not — these five assets might be in a bubble:

Has the Fed been fueling bubbles?