NJ5 on 09 July 2009
| Tony_Parker said: @NJ5 : I agree on the fact more debt rarely gets you out of a problem created by debt. It's true for individuals and it's most likely true for states too... What if Obama's plans succeed ? Well, we'll create new bubbles due to Zero rate policy, in stock market, or oil, or metals, or housing, anything could see its prices fly to the sky... Then we'll be back to the start when those new bubbles explode again, with deflation again, just with more debt. |
The problem with a commodity bubble is that people don't make profit from that, unlike with a housing or stock market bubble. An oil bubble would be destructive right from the start.
With the stock market maybe it would be possible, but I guess people are more wary after the 2000 crash. They're running out of bubbles to pump.
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