tag:blogger.com,1999:blog-1620435937363284637.post6212214709572647154..comments2023-06-02T05:14:00.225-07:00Comments on Stocks, Bonds, and Currencies, Oh My!: The Business Cycle ContinuesJade Bondhttp://www.blogger.com/profile/14465766122372707431noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-1620435937363284637.post-85704430987986225892009-08-03T08:08:45.632-07:002009-08-03T08:08:45.632-07:00Close. Not impossible to own an asset unhedged, b...Close. Not impossible to own an asset unhedged, but the risks are significantly higher in this environment of massive market manipulation by central banks and governments. There are no guarantees, and I don't want to join the camp that claims everything is certain because of XYZ. What I'm saying is the most likely outcome is a boom-bust cycle like we've been having for generations, that monetarism is alive and well, and the consequences of global quantitative easing will be like the last round of global liquidity politics that create a bubble in some asset class that is most favored by the marketplace under whatever new guidelines the regulators decide to play with this time.<br /><br />What is most interesting is that the booms, bubbles, and busts of the past were never exactly like the one's that preceded them. That's why it's guesswork to try and proffer some guarantee of outcomes, this time or any time.<br /><br />The bottom line: Study monetarism (especially the Austrian economics theory of value and human psychology behind it) and watch for the signs of it in the next 3-5 years of global liquidity. Piles of money in the hands of people is a much more powerful force than selected examples of balance sheets and theories about debt servicing. Quantitative easing is the mechanism through which bankers change the measuring stick of past asset values. We have to learn how to analyze all over again with the new measuring stick.<br /><br />Thanks for your stimulating thoughts.Jade Bondhttps://www.blogger.com/profile/14465766122372707431noreply@blogger.comtag:blogger.com,1999:blog-1620435937363284637.post-3511883481431677922009-07-31T18:37:41.457-07:002009-07-31T18:37:41.457-07:00In short, you are claiming, it's impossible to...In short, you are claiming, it's impossible to own any asset unhedged, and that inflation, and a crash is a guaranteed event within 3 to 5 years?<br /><br />Heh.<br /><br />Anon, <br />Bob Dobb.Anonymousnoreply@blogger.com