He is smarter than most realize. That article he posted, man I could not have said it better (or even as good) myself. Ty hit the nail on the head. Some of you still do not get, still looking for the top. What is the point of shorting the top if your profits are paid to you in worthless currency? Think back to the basics, means of productions, raw & hard assets. That is what you want in a global credit burst. Not Ipod or Google searches.
what you dont realize is the austrians type have been calling the end of the world since... well ever since they read human action or murray rothbard or whatever
What you do not realize is that they have been right many times on smaller scale. Here, try this: http://en.wikipedia.org/wiki/Great_depression I know, an almost unheard of event. Who would have thought? If the historical perspective does not prove it, try simple math. It's all there. Or you can take a look at the LBOs, the players behind them and the assets in question. Of course, not all of them are smart money, but if you can figure what REALLY counts, you will quickly notice a pattern of a certain group of elite players. At least half of these buyouts are not of public companies, sometimes they are not even companies. And please note, I'm all for the 100% room to go UP UP UP. We're not there yet and it could last for another decade or two, for all I or anyone knows.
Lol, yeah right. When EVERY single year of their lifes they go out saying there a crisis is coming you have to get it right eventually. Plus there are plenty of time they've been wrong. every decade they had an excuse. forties was the wars and the 'interventionists' would destroy the world, seventies the collapse of bretton woods would destroy the world, eighties the debt problem, the 90s they didn't had anything to complain about but they said 'you are all going to pay for this boom, its coming', now they are all saying derivatives and the yen carry trade will extinct the human race. and the bullshyt goes on
Well now you are just showing your blatant ignorance. Financial & currency crisises have a history since the beginning of money, trade and commerce. The Austrian school of Economics has its roots to late 19th century. Prior to that, you can look back anywhere from a decade or two to a couple centuries and you have more than enough examples of the exact phenomenon they preach: England (on several occasions), France, Holland and USA(on few occasions) are big examples. In the 20th century alone, you have USA (again), Germany and even more recently, Asian financial crisis, Argenitian currency crisis, Russian financial crisis(es) & Mexican financial crisis. I'm leaving out a lot of the minor ones, but as mentioned in the article, look no further than Zimbabwe for a current event example. History would not repeat itself if everyone realized this. I was gonna write a much more detailed response, but what's the point, it is actually of benefit to me if you keep to your current line of thinking. The system needs many like you to believe in it.
a lot of the crisis you mentioned were caused by irrational behavior of market participants or government misnagement(such as yeltsin decision to devalue and default). the idea that a exotic type of gold standard would change human behavior(which is the result of millions of years of evolution) and 'fix' it, eliminating those kinds of cycles is doubious at best and downright harmful at worst(like the austrians saying during the great depression 'just keep your hands off the money supply and let the economy hit a bottom')
Wow, that statement alone says enough. Ok, let's stop the discussion, you have very little idea of what you are talking about. Reading mainstream headlines and doing zero research on the WHOLE situation, at least 5 years prior to the "official" word will never give you even close to a proper understanding. When I mention Russia's financial crisis, there is lot more to it than the very overdue "official" announcement. Just agree to disagree, it serves me no benefit to prove to you just how wrong you are. I'm just a crazy austrian school of thinking whacko, who bases his argument on cooked up numbers and fantasies thought up while dosing on LSD.
And he resorts to name calling, offenses and a conspiracy theory regarding the russian crisis. I have to say I'm not sightly surprised. Its hard to have a rational argument with people whom when faced with contrary evidence all they do is close their eyes