Christmassy - Doomcast! |
Doug and Charlie ring in the Santa Rally and Festivus for the rest of us!
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Christmassy - Doomcast! |
I have come to the conclusion that bubbles, as I noted, are a function of human nature.C’mon. The historical record makes absolutely clear that Greenspan panicked time and again when speculation reached a fevered peak in financial markets. Instead of allowing the free market to cleanse itself and liquidate reckless gamblers employing too much debt and too many risky trades, he flooded Wall Street with liquidity and jawboned the speculators into propping up the casino. Within months of his August 1987 arrival, for example, he panicked on Black Monday and not only inappropriately flooded with liquidity a Wall Street that was rife with rotten speculation and a toxic product called “portfolio insurance”, but also intervened directly to garrote the markets attempt at self-correction. ***Read full article here***