Credit Cards is next. Aside from that who knows where the next bubble is, too many bubble in the last decade were created on historical low interest rates and here we are again with historical low interest rates which will not do a damn thing for this economy. I feel sorry for anyone who actually thinks these rate cuts will help. THEY WONT.
I guess big Bill Fleckenstein will soon be writing a book about BEN Bernanke and how bad a job he did at the FED. telling us how wrong it is to lower interest rates to 1%. The idiot that is Bill Fleckenstein does not understand that just because interest rates are low and money is cheap that all lenders should lend to everyone and anyone. However, most lending institutions did just that and many are gone (NCC, WM, CFC) not to mention all those mortgage broker firms.
There are no more bubbles. There is no one left to lend to. Inflation may not come for some time. We are facing deflation for the moment look at all assets Metals. real estate, stocks, commodities, everything is going down. the only thing going up. $US DOLLAR -Ludwig Von Mises, Human Action http://mises.org/humanaction/chap20sec8.asp
SO I guess that means we should all run up our credit cards since the Gubbbbbmint is gonna pay for it and bail out all the Visa and Mastercard peeps... I'm going shoppin...
saw this headline on the newswires -The People's Bank of China yesterday reduced its benchmark one-year lending rate to 6.66 percent from 6.93 percent. - I am waiting for China to reduce to 0 %
people falsely assume that low rates necessarily cause a bubble. sometimes they do, sometimes they don't. what was japan's bubble the last 15+ years? what was the usa's bubble from the early 50s to mid 60s when rates were consistently low? low rates didn't solely cause the latest housing bubble, it was primarily caused by loose credit. low rates just made it worse.
Oh, NOW you tell me. 4 is my favorite number... explains why I never have any luck with Chinese chicks...