“Asset bubbles are inevitable when the pool of good investment opportunities is much smaller than the pool of credit-money sloshing around seeking a higher yield. It really is that simple. It’s astonishingly easy to create hot money: just create the money in a central bank and then make it available to financiers, investment banks, global corporations and other Financial Elites at near-zero real rates of interest. It’s considerably more difficult to create a good investment opportunity: an investment that is worthy of the risk must have a sound base in fundamentals such as cash flow, return on investment, etc.”
http://charleshughsmith.blogspot.com/2013/06/why-serial-asset-bubbles-are-now-new.html
Related posts:
Wow much Dogecoin. Very competition. So money.
Too Big To Fail Is Now Bigger Than Ever Before
Kyle Bass at AC2012: The Engtanglement
Arbitrary enforcement, secrecy, self-interest, and the loss of government legitimacy
The US Imperium, Coming Dollar Difficulties and Investing Abroad
The Nearly-Free University
That Which Is Incapable of Reforming Itself Disappears
Bill Bonner: College is a con
Wendy McElroy: America’s Electronic Police State
A Great Handicap of Economies Run by Political Authorities
BEARCAT Bread And Circuses, Or Why I Ripped Up My Ticket
Surveillance Self-Defense International [2010]
15 Supreme Court Decisions that Shredded the Constitution
Americans Are War Weary ... And The Neocons Don't Like It
How the US government inadvertently created Wikileaks