The Next Bubble After the Housing Crisis

re: The Next Bubble After the Housing Crisis

dbeachler — Tue, 03 Jun 2008 19:50:54 GMT

Some folks here are a little confused. The federal Reserve neither sets the interest rates paid by consumers or creates money. The Fed can target a Federal Funds rate, but it cannot set one. The market sets that rate as well as Libor, prime rates, even T-Bill rates. The only rate the Fed can set is the discount rate, available only to banks at the discretion of the Fed. Banks create money, which is distinctly different than printing currency. Here again, the Fed can influence money creation by open market operations or change in the reserve requirement. That is not to let the Fed off the hook for encouraging low rates or money creation. Greenspan and Bernanke have mortgaged our children's futures.

re: The Next Bubble After the Housing Crisis

grafxman — Sat, 24 May 2008 22:47:50 GMT

Almost everyone ignores what I believe is the true cause of "bubbles." It's the people who want large rates of interest on their money. IOW, greedy people, are the problem. I read several "financial newsletters," and even the most staid, want high rates of return. Not the 3-5% on CD's or bonds, but 15% or more. Yet, they ignore the old axiom of "high rate of return means _high_ risk." So, they bid up whatever is seen as the "next big thing." In part, this is fueled by tax policies that punish low risk investment (like savings).

Black Monday was caused by people thinking that they could make lots of money, with no risk. Now, they think they can make lots of money to spend, without large amounts of risk. Taxation policies encourage spending, and feed the problem. Usually in the guise of "Tax the rich," by those who want money to spend.

re: The Next Bubble After the Housing Crisis

guyverx — Fri, 23 May 2008 23:37:40 GMT

its quite intriguing to note that the entire system which most citizens depend on is almost entirely fictional.

its real in the sense that we are affected by it everyday.

but fictional in the apsect that its a bunch of created entities who have succeeded in making themselves seem necessary to the average person.

we could replace the government with a 'communications/organization hub'. which cannot overpower citizens by deception but can still coordinate business and other nuances as a actual duty.

we use our military as protectors and peacekeepers of our own domain. still keeping the capability of strong defense should someone attempt and invasion, yet focused own our own shores. (one cannot fix other problems unless one fixes self first).

and do away with the paper money system.

give each citizen a duty to perform and provide necessities and some luxuries in accordance with that duty.

because everyone who works does deserve a secure home and abundant food and water , whether they are a janitor or an attorney.

I know this digresses a bit from the main point.

But we would not have the real estate bubble if things were run more efficiently.

re: The Next Bubble After the Housing Crisis

nutritionpower — Fri, 23 May 2008 16:48:54 GMT

Mom68 and others. I do understand what you all say concerning vaccination. But most people in this country are not reading this website. I am only reading it because I got into alternative stuff because I was chemically injured. The average person listens to the news, read yahoo news or Medscape or some other mainstream publication. People like Jenny McCarthy who stand up for the truth are ridiculed as paranoid moms. Logically, as a health professional, it makes sense that some kids would react differently to an injected medicine than other kids. They refuse to acknowledge becuase they are afraid of herd immunity loss. And for the pediatrician, yes kids do die from it. but how many kids die from measles vs kids that have autism. It's 1:150 right? All my friends and I had measles, chicken pox, mumps, I had both "red measles" and "german measles" and I missed school a few days. That is what happens with most kids. If they would allow us to choose to have vaccines against things like diptheria, polio but not everything. But the way Iit is, , it's all or nothing. Also please note that I personally believe we should not have to protect ourselves like this. The truth And do think all the people with the children who will grow up to be gangsters and drug dealers are reading this site? Of course not. I am saying that even those of us knowledgeable to avoid vaccines in our children, may end up with our child being damaged by the large # of kids who have mental health issues because of them now. There are so many vaccines and they keep adding more. Now they are going to add the flu vaccine. The former head of NIH said in the interview that researchers are refusing to even look at their being a subset of kids who have autism because of vaccines because they are afraid of scaring the public away. Refuse to even look! how right is that? Where are the double blind, placebo controlled trials on these. Average people don't know because the truth is hidden from them!

re: The Next Bubble After the Housing Crisis

GB1 — Fri, 23 May 2008 16:23:21 GMT

That's how the little incident started in 1929, with free market economy.

re: The Next Bubble After the Housing Crisis

kamitoc — Fri, 23 May 2008 15:27:13 GMT

In my country in Europe the limit on house taxation is around $1000 per year for the biggest houses. Much lesser if you have a small house. We are NOT forced to vaccinate our children. Our economy is one of the best in Europe and the taxes are quite low. It doesn´t cost anything to go to a college or to study at a university. When we are treated at a hospital we only pay around $12 per day. And when we have visited a doctor or a hospital and the total sum we have paid is $300 we got free medical tratment for a year and can, "if we want", go to the doctor every day if we want. As an employed all my medicin is paid of my employer. We have 7 weeks full paid vacation every year and are also able to save up to 40 days for further vacations in the future. If you are a mother the governement pay you so you can stay at home for 18 months with your newborn baby. Even the father can stay at home with the child for 6 months and be full paid.

re: The Next Bubble After the Housing Crisis

george tolhurst — Fri, 23 May 2008 13:50:23 GMT

BELEIVE IT OR NOT

all of the people in the world will fit into the city limits of jacksonville, florida.

DIVIDE ALL THE PEOPLE IN THE WORLD, DIVIDE THEM INTO FAMILIES OF FOUR AND GIVE THEM AN AVERAGE SIZE AMERICAN HOME AND LOT AND THEY WILL FIT INTO THE STATE OF TEXAS.

NOT amazing just TRUE

re: The Next Bubble After the Housing Crisis

Barbra — Fri, 23 May 2008 05:00:25 GMT

Hardly anyone knows it, but you are NOT required to vaccinate your children. You just THINK

you are. Go to www.mercola.com and read all about it. Dr. Joseph Mercola, M.D. He has taken

on Congress and anyone who doesn't answer his questions to get the best and the correct info

for the rest of us. The next time you think you need to have your child vaccinated, as the person

who is requiring that procedure to give you, IN WRITING, their guarantee that your child will

not be made sick by the serum. The can NOT do that. Vaccinations ARE making our children

sick, and some have even developed autism from the mercury and lead and other crap that are

added to the serum. Who knows what other illnesses are caused by flu vaccines . . . .

BGee

re: The Next Bubble After the Housing Crisis

nahman — Fri, 23 May 2008 03:29:51 GMT

The author is an idiot. He states that Keynesian Inducements failed to stimulate the economy. Keynes's teachings states that DEMAND stimulates the economy, considering that having a war STIMULATES DEMAND which in turn stimulates the economy. I suggest a more knowledgeable person be posted in this study of 'finance'. Clearly he doesn't even know the basics or is anti-Keynesian.

re: The Next Bubble After the Housing Crisis

fogjan — Thu, 22 May 2008 17:33:46 GMT

Did anyone read the book (now old, from the 60-70's) called 'FUTURE SHOCK'? These kinds of rolling crashes and 'depressions' were one of the things predicted. If you've never read this book, do. EVERYTHING that was predicted is happening, plus more. Prophets do exist in many venues.

re: The Next Bubble After the Housing Crisis

USMom68 — Thu, 22 May 2008 16:46:18 GMT

We all know who or what is causing this mess. Research people. Find out who "YOU" is, than figure out who "you" are, and research "commercial law". These Bankers function under commercial law and the commercial process in hopes that American's are too stupid to figure out the legal details. The people that know how to play them at their own game will be the real patriots to this country, because they can (through the commerical process") relieve this country of its own debt and their ability to use "YOU" as their collateral to put this country into more debt. YOU are the Banker's asset and they have set your overall lifelong value. This is what they play with in the "debits and credits" game.

These master manipulators have duped us with a serious "play on words" in paperwork that very few people even understand. They've started it, but the American people WILL finish it. This is how you fight a powerful force (with countless faces) in a peaceful, non-combatative way.

re: The Next Bubble After the Housing Crisis

chubby — Thu, 22 May 2008 16:43:07 GMT

HEY --- ITS BEEN A NICE LONG DRUNKEN WEEKEND PARTY FOR TOO MANY AMERICANS ---- AND FINNALY MONDAY HAS ARRIVED --- AND ITS TIME TO SOBER UP --- AND GET TO WORK----

CHUBBY

re: The Next Bubble After the Housing Crisis

keepingfit — Thu, 22 May 2008 15:51:26 GMT

"JamNjim" is right, Americans are required to vaccinate their children, even though the law allows exemption for 'religious', 'philosophical' or medical reasons. However, make no mistake, the public at large are totally unaware of these exemptions.....reason, the government doesn't publicize it!! So you have the teeming masses who are perhaps the lesser informed of our society who blindly follow the herd and THINK that they have no other options! Do you think for one minute the drug companies are going to inform them!!

So YES, Americans are required by law to vaccinate their children unless they request an exemption and fill out the appropriate forms! Otherwise, try registering a child in school and see if you have any luck!

And as for the comparison of the price of American gas and European gas.....that's not comparing apples to apples. A previous post correctly stated that American rural and suburban areas are not provided with public transportation. That's because everything is too spread out. Most people have to drive forseveral miles to even get to a major highway, myself included! So for us folks out in rural America, that's the only way we can get to work! And forget car-pooling! How do you car-pool when your neighbor is going in the opposite direction to where you work! The logistics don't allow for it!

As a transplanted European for almost a half century, I think I speak with authority when I say that you cannot possibly compare American lifestyle needs with European. America is still a vast country of highways and bi-ways, with some of it still wilderness. Europe on the other hand is extemely compact by comparison and sometimes you are unaware that you've left one town and entered into another town. So it's unfair for anyone to try to put Americans on a guilt trip by telling them that they are really getting their gas "cheap" compared to Europe! Don't buy that lie folks!!!

re: The Next Bubble After the Housing Crisis

WGR — Thu, 22 May 2008 15:06:41 GMT

This is an awesome article and thanks to the Mercola newsletter for bringing it to our attention. I am a financial professional and have not seen such a clear articulation of bubble formations and their collapse in my regular readings of Barron’s, Wall Street Journal, the Economist, etc. I will be adding Harper’s to my regular reading because of this article.

In the context of the current housing debacle and US debt, it presents a sobering view of the US economy’s future for many months to come.

The only comment needed:

PLEASE READ THE HARPER’S ARTICLE.

(Give it a good 30 minutes of your time to digest the knowledge presented.

Your body will be healthier for it and your mind will be better for it.)

re: The Next Bubble After the Housing Crisis

jack6 — Thu, 22 May 2008 15:04:21 GMT

the next bubble is anything related to stopping global warming. That's the new bubble and a lot of money is going into it and a lot of people are making and will make more money from it. I am beginning to see high paying jobs in the area and colleges are creating curriculum around it. Global warming is a big crock. No matter what we do to stop it, if God wants it to happen it will happen. It's God's will. And how do we know it will continue to get warmer, it may just get colder or stay the way it is. Like I said, it's God's will! We have nothing to do with it, He does.