Saturday, January 9, 2010
Bubbles, What If They Are Not Preventable?
Experts have proven time and time again unable to detect economic and financial bubbles until after they burst, at which point it's too late. It seems the "next bubble" is always different enough from prior bubbles that nobody is sure what it is.
Because of this, we need a financial version of the Strategic Petroleum Reserve. As long as economic growth is positive, the fed should set aside some of the nation's money for the Strategic Monetary Reserve. This will allow a sufficient stimulus package the next time we get ourselves into a jam. And it will keep politicians' fingers out of the pot.
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