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Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: John Hunt who wrote (29810)	3/12/1999 7:29:00 AM
From: John Hunt	Read Replies (1) \| Respond to of 116762

The Trouble with Bubbles << It was about the time that the Fed Chairman made his famous quote regarding irrational exuberance that I published a short cautionary tale in comic form "The Trouble with Bubbles" (available Fraserbooks.com or Amazon.com). Jim Grant thanked me for an advance copy and included a note that "the trouble with bubbles is they keep on expanding". At the time I thought the turn of phrase cute, in retrospect astute. Now bubbles are part of our everyday lexicon, with legions of gainfully employed individuals gleefully quitting their jobs to become day traders. Not as impressed by the bull hysteria was Warren Buffet who voiced a word of caution on the ABC News Nightline program saying that the US equity market was in a "dangerous phase that could see value drop sharply. After a while the very act of stocks going up starts drawing in other people who get excited about the fact that their neighbor is making money and that's when you get in to the dangerous periods." Neighbors seem to be a pretty all encompassing category. On Monday March 1st the Swiss National Bank reported it was thinking about shifting some of its assets into stocks and shares. Apparently the Swiss central bank is no more immune to envy than ordinary mortals and has been eyeing its colleagues in the Netherlands where fully 28% of that bank's capital was invested in equities as of the end of 1997. Norway took the plunge in 1996 and now has a portfolio worth $20-25 billion. The Swiss, assuming their referendum is not voted down by the populace next month, will sever their link to gold. This will allow the Central Bank to sell 1,300 tons of gold and give them at current price $2 billion to play the market with. -- cont'd -- >> gold-eagle.com Bankers and especially central bankers should be given a 'greed test' before being appointed to their positions ... This is shaping up to be the mother of all crashes. ****** And on the lighter side...... syndicam.com