THE PROBLEM WITH THE MEGA BUBBLE THAT BURST LAST YEAR...IS THAT EVERYONE WAS IN ON IT... EVERYONE!
EVERYONE WAS RELYING ON THE BUBBLE INSTEAD OF PRODUCTIVE WORK...
AND IT WAS NOT ONLY THE CONSUMER...IT WAS STATE GOVERNMENTS, LOCAL AND MUNICIPAL GOVENMENTS...BANKS...CORPORATIONS WHICH WERE NOT INVOLVED IN FINANCE IN ANY WAY...INSURANCE COMPANIES...AND NATURALLY THE FEDERAL GOVERNMENT...WHICH WAS BEHIND THE SCHEME IN THE FIRST PLACE...AND FINANCED IT TO THE BITTER END.
INDEED, THE GOVERNMENT SANCTIONED PRIVATE SECTOR RETIREMENT SCHEME IN WASHINGTON...WAS THE TAX SUBSIDIZED 401K... WHICH WAS A TAX SUBSIDIZED GIFT TO WALL STREET SPECULATORS AND INVESTMENT BANKS!
THE 401K WILL BE SEEN AS THE WORST PUBLIC POLICY DECISION OF THE 20TH CENTURY FOR THAT REASON... BUT THE 401K MADE THE ASSET BUBBLES A KEY PART OF WASHINGTON'S TOO BIG TO FAIL POLICY PLANNING...
IN TRUTH THE 401K SCHEME MANDATED THE ASSET BUBBLES...!
THUS, THE BUBBLE HAD BECOME SYSTEMIC IN IT'S INFLUENCE...
IN THE PAST WHEN WALL STREET WAS A CLUB FOR RICH MEN...PENNY STOCK PLUNGERS...AND OTHER GAMBLERS AND VICTIMS OF SIMILAR VICES... THE EFFECT OF A CRASH WAS LIMITED...
ALTHOUGH THE ROLE OF THE "COMMON MAN" IN BUBBLES GOES WAY BACK IN HISTORY TO THE TULIP MANIA..AND THE SOUTH SEAS BUBBLES...AND BEYOND. IN THE OLDER BUBBLES THE ORDINARY LABORER WAS DETACHED FROM THE MANIA...MAINLY BECAUSE OF POVERTY...
THE CURRENT BUBBLE WAS AT THE VERY CORE OF THE US ECONOMY..."THE BUBBLE" WAS AT THE VERY HEART OF THE AMERICAN "DEINDUSTRIALIZED" ECONOMY...AND THAT IS THE REAL PROBLEM.
OTHER THAN A QUICK AND MERCIFUL COLLAPSE AND LIQUIDATION...LITTLE CAN BE DONE...
WE CONTINUE TO FLAIL AWAY TO THE END...WHICH WILL PROBABALY BE A MASSIVE DOLLAR COLLAPSE...
WHEN GOLD COULD SOAR $1000 OR $2000 IN ONE DAY!!
