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No Tech Bubble Here, Says CNN: "This Time It's Different."
ErichTheRed writes I saw this on the Money page of CNN today. Apparently, various stock analysts have declared that this run-up in stock prices is different than the 1999 version. OK, we don't have the pets.com sock puppet, Webvan or theglobe.com anymore, but when Uber is given a valuation of $40 billion, can a crash be far behind?
The Feds don't have a choice except offer near zero-rate interest, if the alternative is capital destroying deflation. No one is forced to chase risky, high rates of return. The problem is the world has changed from a reserve-currency system where lending money was a low risk way of building equity, to an inflated fiat-currency system, where bank lending and bonds don't make a significant portion of the investor economy anymore. The system is rigged to favor speculation, rather than growth of industry, and for the top-tier players not to get burned when the system collapses.