Sunday, November 28, 2010

Price Bubbles

The 10 Most Ridiculous Price Bubbles In History
http://www.businessinsider.com/most-ridiculous-bubbles-ever-2010?slop=1

For example, The Poseidon bubble

The price of Australian mining shares soared in late 1969, then crashed in early 1970.

I hear a lot pundits describing gold as a bubble.
Do you believe that we will have to go back to the gold standard?
But a gold standard never stopped any country from debasing its currency.
A gold standard will not prevent a government from trying to get something for nothing by debasing the currency.
And, it could not be easy, the Federal Reserve doesn't have enough gold to back all the dollars.

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