DURING THE 1999 DOTCOM BUBBLE THE FED IGNORED THE SPECULATION UNTIL IT WAS SO OUT OF CONTROL THAT IT HAD TO THROW COLD WATER ON IT...
THE DOW AND NAZZ WERE LITERATELY MELTING UP...IN A NEAR VERTICAL "MOONSHOT."
FINALLY, GREENSPAN STEPPED IN ON THAT BUBBLE...RATES WERE RAISED JUST ENOUGH TO QUELL THE FLAMES...
BUT NOT ENOUGH TO STOP ALL SPECULATION IN THE FINANCIAL MARKETS....
REMEMBER THERE WERE STILL THOSE 401Ks TO "FUND." ...AND TO CHURN!
BUT THE BUBBLE WAS "FUN" ON WALL STREET... SO THE SPECULATION CONTINUED IN OTHER THINGS...THE DOW...REAL ESTATE... AND COMMODITIES.....AS RATES DECLINED TO RE-START THE BUBBLE ECONOMY
THEN THE REAL ESTATE BUBBLE KICKED IN... OK SAFE ENOUGH...BUT THAT DOES LET SOME MONEY "LEAK" INTO THE REAL ECONOMIC WHERE THE ORDINARY SLOBS CAN GET AT IT...VIA THE NOW DEFUNCT "HOME EQUITY ATM" MACHINE!!
THEN THE REAL KICKER...OIL AND COMMODITY SPECULATION....ESPECIALLY IN OIL....
BUT GOLD "PROVES THE PUDDING" ON THE DOLLAR...OR IS IT THAT THE "NEW MIDDLE CLASS" IN CHINA AND INDIA ARE "CONSUMING" GOLD NOW TOO??? BULLSHIT!
REMEMBER GOLD WAS THOUGHT TO BE A RELIC OF THE MIDDLE AGES UNTIL VERY RECENTLY AT LEAST IN THE FINANCIAL MEDIA...
NOW, SEPERATELY, THE EURO WAS ISSUED...AND THERE WAS AN ATTEMPT BY WALL STREET TO STRANGLE IT IN IT'S CRADLE. BUT THE TODDLER SURVIVED AND THE EURO NOW A STRAPPING TEENAGER! EVEN AS THE DOLLAR IS GETTING RATHER FAT AND OLD.
IN SHORT, THE DOLLAR IS GOING THE WAY OF ALL PAPER "RESERVE CURRENCIES"... IT WAS JUST TOO TEMPTING TO OVER-PRINT THE DOLLAR IN THE FACE OF THE DEFLATION COMING FROM CHINA... THE THEORY WAS THAT ALL THE "NEW MONEY" WOULD STAY IN "PRODUCTIVE" WALL STREET SPECULATIONS...AND NONE OF IT WOULD "SLOSH" INTO THE REAL ECONOMY.
WELL...NOW IT'S SLOSHING...BIG TIME...
THAT'S WHY 2000 AND 2008 ARE SO VERY DIFFERENT...
2008 SEES A SPECULATIVE ERA ENDING WITH NO REAL CHANCE OF COMING BACK...
IN 2000 THE FED WAS STILL DEALING WITH A DOLLAR THAT WAS AT 87 ON THE EURO...NOT NEARLY 160!!
IN 2000 GOLD WAS WHAT...$290? NOT $900+++ AND RISING.... AND OIL WAS GOING TO $10 NOT TO $200...
NO.
2008 IS DEFINITELY NOT 2000... THIS IS IMPORTANT BECAUSE SOME STREET TOUTS WILL BE PUSHING THESE DECLINES AS BUYING OPPORTUNITIES FOR THE IGNORANT MASSES...
BUT THE IGNORANT MASSES NOW HAVE NO MONEY...AND HAVE SPENT ALL OF THEIR 401k...AND ARE STILL IN DEBT UP TO THEIR ASSES...
AND IN 2000 THE INVESTMENT HOUSES AND BIG BANKS WERE STILL SOLVENT...
BECAUSE THEY DIDN'T ACTUALLY EAT THEIR OWN COOKING...! UNLIKE TODAY.
