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candistyx (November 30, 1999 at 12:00 am)
I hope house prices plummet. I want to move out and my parents never want to sell their house.
dj4monie (November 30, 1999 at 12:00 am)
@stocktradinginvestor What are you talking about? Socialism for the Rich, the Moneyed and Lucky is what is happening now. A Social Democracy like what's in much of Western Europe is for the people, not the Corporations or Banks. Greece will default on its debt, you watch. The Government wouldn't let the banks that made horrible bets fail and that is socialism or welfare for the rich, they f-up they get bailed out, you lose your job, house, etc, and you don't get sh*t.
dj4monie (November 30, 1999 at 12:00 am)
@stocktradinginvestor That is only part of the problem. Structural change is needed because of other issues like people living longer and automation/robots replacing humans for most labor task. That will happen in your lifetime (if your under 50) by the time you retire you'll likely be among the last people to have experienced full time work. Work hours will be cut soon, you watch.
dj4monie (November 30, 1999 at 12:00 am)
@gijs370 Gold is not a bubble. Smart investors run to stable investments. Gold has been used as money or capital for what a thousand years. You think because we went off the gold standard under Nixon and into a fiat currency nonsense that this modernize the money system? If so, when why did we need the financial modernization act under Clinton??? We never needed to go off the goal standard. The Government wanted to run up debt so it could fund its war machine.
gijs370 (November 30, 1999 at 12:00 am)
So explain why gold is not in a bubble? Same graphs.
christo930 (November 30, 1999 at 12:00 am)
How did the tulip bubble destroy wealth? I can see minor wealth destruction by diverting food producing land to tulip bulb production. But it seems to me that very few people get very wealthy and almost everyone else who participated loses their money. So it's really a wealth redistribution phenomena. Aren't there a lot of people, particularly people who would be watching this video, demonstrating the same mentality that other bubble participants demonstrated when it comes to precious metals?
carlosZ1981 (November 30, 1999 at 12:00 am)
Yes.
4palacio (November 30, 1999 at 12:00 am)
is college the next bubble?
stocktradinginvestor (November 30, 1999 at 12:00 am)
In a non credit economy, people would still sell other assets to get into the hot asset and suppress the price of other areas to get into the hot area, and that would have a very similar effect to borrowing from future earnings because they intend to buy back whatever other goods they sell in order to buy the hot commodity with future earnings anyway. The cheaper other things get as a result, the more leveraged a "cash" based economy would be until 100% of all cash is allocated towards it.
stocktradinginvestor (November 30, 1999 at 12:00 am)
Bubbles still occur in any economy because capital tends to concentrate to the "hot" area. Bubbles always remain because human emotions always remain. The true solution therefore is not only a structural change to the system, but economical and financial training early on in people's lives to condition them to behave more rationally. In other words, financial and economic teaching in our school system |
