Since I don't know what you mean by "bubble" that's hard to say. But in fact housing prices skyrocketed in California during the 70s despite the high interest rates. Go figure.
interest rates although high were still well below the prevailing inflation rate so people's wages were most likely going up faster than the cost of borrowing money!
And silver around $30...for now. Bernanke came out today and said...well: http://www.politicalforum.com/4541041-post1.html I am guessing QE3 will not be happening anytime soon.
like I said before.....he is waiting as he knows QE is very unpopular. But I think he also knows if he waits too long it will mean a larger dose of QE...perhaps a trillion or more!
Oooh..a trillion... ...that would make my gold and silver VERY happy. 'Fed Chairman Ben Bernanke came out today and announced the long awaited QE3 with a total Fed expenditure of $1.6 trillion dollars. On a related note, the price of gold jumped a record $167 by the close today. While Silver jumped a staggering 16% to close at $29.26.' Not a prediction, just a fantasy.
a fantasy perhaps.....but since Bernacke took the fed down this road, he has no choice anymore. No QE means a spectacular collapse worse than in 2008......its baked in the cake....so either QE 3 or get ready for armagedon
the stimulus only temporarily pumps up the economy....sort of like a junky gunky getting his fix. Once the stimulus wears out then either you need to stimulate again or the house of cards comes crashing down ( the hangover)
so you either keep stimulating indefinately until hyper-inflation hits, or you stop stimulating and the whole house of cards comes crashing down!
Hyperinflation -- it's just around the corner we never seem to turn. I love Austrian School fearmongering.
there is alotnof uncertainty about europe...once that is settled then it will move on its next leg up!
Its amazing how people think Gold is in a bubble. Has anybody looked at the St Louis Fed money supply reports. Give me a break. Why are central banks buyers? Why are the Chinese buying massive amounts through Hong kong? Why is there legislation in the senate right now that would remove capital gains from US gold and Silver coins? Why do virtually half the states have some form of legislation regarding the use of Gold and Silver as currency? Why are the Swiss contemplating going back to a 20% Gold Standard? Because its shiny? We need an anchor to our currency. Plain and simple.
central banks are getting nervous of all the money printing the US and the fed are doing and rightfully so! This is why gold is better,,,,,,nobody can inflate it away......and it owes nobody anything unlike a fiat system!
