tag:blogger.com,1999:blog-11719208.post5528252292051923348..comments2023-11-05T04:36:14.223-08:00Comments on The Mess That Greenspan Made: The "commodity speculators" - what's everyone worrying about?Timhttp://www.blogger.com/profile/16530974968126497397noreply@blogger.comBlogger10125tag:blogger.com,1999:blog-11719208.post-54984154064878374792008-05-28T18:00:00.000-07:002008-05-28T18:00:00.000-07:00Yes, but they're much smaller now. Almost impercep...Yes, but they're much smaller now. Almost imperceptible. Actually, it's been awhile for WSJ Marketbeat - a few months at least.Timhttps://www.blogger.com/profile/16530974968126497397noreply@blogger.comtag:blogger.com,1999:blog-11719208.post-27382184547210774992008-05-28T17:00:00.000-07:002008-05-28T17:00:00.000-07:00tim, do you still get goosebumps after seeing your...tim, do you still get goosebumps after seeing your name in wsj/blogs?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-11719208.post-57856065544290152752008-05-28T16:48:00.000-07:002008-05-28T16:48:00.000-07:00I do not recall a single comment during the housin...I do not recall a single comment during the housing bubble griping about high prices, demanding government action, or anything like that.staghoundshttps://www.blogger.com/profile/05976667812875074135noreply@blogger.comtag:blogger.com,1999:blog-11719208.post-40197044333744451992008-05-28T13:30:00.000-07:002008-05-28T13:30:00.000-07:00I hope that commodities bubbles continue for quite...I hope that commodities bubbles continue for quite longer. Most of my income goes for rent, education etc, and gas expense is quite tiny. Bubbling commodities will restrain (I hope) the Fed and governments from unleasing next liquidity wave.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-11719208.post-26704253063194817712008-05-28T12:22:00.000-07:002008-05-28T12:22:00.000-07:00Commodities bubble = BADStock bubble = GOODCommodities bubble = BAD<BR/>Stock bubble = GOODAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-11719208.post-29593729851118606132008-05-28T11:55:00.000-07:002008-05-28T11:55:00.000-07:00"(rents did not bubble, right?)"As a renter who's ...<I>"(rents did not bubble, right?)"</I><BR/><BR/>As a renter who's had to move around the country quite a bit due to work ( from 2002 - 2007 I moved 5 times ), I feel confident in writing that rents absolutely bubbled. I left a prime apartment in LA in 2002 where I was paying $900/m for a 2 bd/2ba - this place was very nice - I had lived there for five years. I moved back into SoCal (San Diego) in 2005 to find that most apartments had become condo conversions and in turn, rent had become astronomic in scale as speculators were having renters pay for their mortgages and HOA - of course you now had stainless appliances (all the same cheap Home Depot junk) and granite counter tops, but you had a fourth of the square footage and about three times the rental price. In my opinion, the value had greatly decreased, but you were now paying much higher prices for it. I moved back into the same neighborhood in LA, about a block from my previous apartment and was absolutely blown away by how much rent they were getting for the place ($2,800/m) - Rent is so high that many people are living with far more tenants in a place than they should, putting up curtains to divide the living room and splitting a one-bedroom apartment 3 ways - it's probably not legal. I, however, noticed that rents were exactly the same price right next to the ocean as they were 10 miles, even 60 miles inland, so I now live within a block from the beach and pay $2,500/mo for a 2bd/2ba - it's expensive, but I could be paying that or more living in a dump east of the 405. So did rents bubble? Oh yeah.Danhttps://www.blogger.com/profile/14611189349119964821noreply@blogger.comtag:blogger.com,1999:blog-11719208.post-51404343048630811642008-05-28T11:44:00.000-07:002008-05-28T11:44:00.000-07:00thanks Jerrythanks JerryTimhttps://www.blogger.com/profile/16530974968126497397noreply@blogger.comtag:blogger.com,1999:blog-11719208.post-46714619252838658922008-05-28T11:35:00.000-07:002008-05-28T11:35:00.000-07:00tim - i hope your newer readers appreciate all you...tim - i hope your newer readers appreciate all your subtle jabs at the government, financial markets, mainstream thinking, etc. - this is one of your better pieces of writing in a while - kudos!Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-11719208.post-90759392951988449522008-05-28T11:25:00.000-07:002008-05-28T11:25:00.000-07:00The difference with this bubble is that the past 2...The difference with this bubble is that the past 2 bubbles were in discretionary items: tech stocks and housing (rents did not bubble, right?). This bubble directly affects everyone and is why it is so much more in danger of leading to general inflation.<BR/><BR/>This type of laissez fair policy towards bubbles just does not work. Politicians eventually must give in to populism and ensure price stability and we are starting to see this. They are not idiots -- they are working within confines of democracy. The commodity derivatives market was brought in to prevent bubbles in commodity prices but it appears this has been subverted. <BR/><BR/>Unless of course the "speculative bubble" is just lack of supply and too much demand; i.e. not speculation at all?jessehttps://www.blogger.com/profile/02155122147972263497noreply@blogger.comtag:blogger.com,1999:blog-11719208.post-42484542082935265852008-05-28T10:20:00.000-07:002008-05-28T10:20:00.000-07:00More well-reasoned discussion on the subject from ...More well-reasoned discussion on the subject from Matthew Lynn at Bloomberg: <A HREF="http://www.bloomberg.com/apps/news?pid=20601039&refer=columnist_lynn&sid=a0sG1tzq.qQg" REL="nofollow">Commodities, Oil Bubbles Are Reason to Celebrate</A>.<BR/>Well, maybe <B><I>celebrate</I></B> isn't the right word.Timhttps://www.blogger.com/profile/16530974968126497397noreply@blogger.com