Tuesday, May 27, 2008
Dr. Ben Steil's idea that a "fiat currency bubble" may be much more important (and more dangerous) than any asset bubble makes more sense with each passing day.
Recall that Dr. Steil's views were mentioned here last week.
While poking around at Wikipedia in an attempt to answer the question of whether the typical definition of a "financial bubble" requires there to be broad participation by the public, this summary of bubbles throughout history was stumbled upon.
We've sure had a lot of bubbles since the U.S. severed the last link to gold back in 1971!
Yes, they have a lot of individual housing bubbles that could be grouped together but the post-1971 bubbles would still outnumber the pre-1971 bubbles above.
The Poseiden bubble???
Note that the answer to the question asked above regarding public participation is a tentative 'yes'. This casts even more doubt on the "bubble" label being properly applied to such things as oil and gold, unless, that is, you have a lot of friends that own oil futures and gold coins because I certainly don't (well, actually, lots of 'internet' friends probably own oil and gold but my 'in person' friends and relatives still think I'm a little crazy).