Reader Asks: Can the Bubbles Last Forever?

Read more on this subject: Economy – Economics USA
News Story Source: by Mish
Hi Mish,

Thanks for the great website. I read it every day. With the changes in the rules of the Fed from TARP, I have come to question how things will ever change. I believe the Fed will never raise interest rates (of any consequence). I think the Fed will buy assets in any crash in stocks, bonds, real estate, etc.

What if a law required that no real estate be sold for less than 10% of its purchase price? [Mish note: Bob said 10% but I think he means 110%. Alternatively, he does not want homes to sell for more than 110% of the previous sale to stop bubbles. I address both possibilities.]

Is anything wrong with my thinking? Can anything end this? I am an average income guy paying my bills.

Thanks for any insight.



Can this go on forever? That's a question I get asked all the time.

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