90s: all stocks, but tech stocks in particular
2001: first half of 2005: all real estate, but American housing in particular
first half of 2005 - first half of 2008: commodities. oil, gold, silver, copper, food..
second half of 2008: US Treasuries, the dollar, the yen.
The loose money of the Fed has resulted in a roving speculative bubble that blobs from one section of the economy to another, sucking real investment along with it as it goes, and leaving tremendous overcapacity behind when it leaves. The amount of loose money pumped in from 2001-2004 grew the blob to such size that we've found trillions of dollars worldwide mis-invested into capital projects with no return. Down goes Bear Sterns, Lehman, Washington Mutual, Wachovia...
What's frightening now is that the over-investment is in US treasuries. At least when the loose money was in housing, a house was built. Now that it's in Treasuries, the loose money is funneled straight into the Washington productivity incinerator.
3 comments:
good point. I'd like to invest in something tangible (without investing in gold). Is that possible now that everything else has been swallowed by the blob?
But we do still make stuff here. For example, I was going to invest in this nice Xmas gift for you but I decided to save myself 20 bucks and jokify it right here on Tuna Melt for free.
The Bernanke T-shirt is hysterical. In college, about 6 months before eCommerce became for real, I ordered a funny Ludwig Von Mises T-shirt via mail order. They took my money and I never got my T-shirt and when I called the phone was disconnected. Greedy capitalist pigs.
Tangible investments? The Tuna Melter still holds onto his decade-old pipe dream that one day the Great Lakes region will be selling water to the Southwest. At the same time, entire towns in Michigan are going vacant in anticipation of a final end to American Auto. Anyone want to go halvsies on an underpriced house in foreclosure in Flint?
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