Was the Last 40 Years One Big Bubble?

"But, what if the last 40 years were anything but normal?

What if, in the world of finance and economics, it was all just a big bubble?

One look at the chart from this recent Wall Street Journal story and it becomes instantly clear that stock market valuations over the last twenty years have been nowhere near normal. In fact, what were deemed â??generational lowsâ?? for valuations at the peak of the financial market crisis a year ago look like nothing of the sort over the broad sweep of time."


My own reading of that is that that is only since 1998 (approximately), or about 12 years rather than 40.

please read END THE FED by RON PAUL

[quote]Bill Roberts wrote:
My own reading of that is that that is only since 1998 (approximately), or about 12 years rather than 40.[/quote]

I think he’s counting since Nixon finally (1971) made the dollar into a purely fiat currency. That allowed, temporariliy, for governments to inflate without regard for consequences. It would take decades for people to wake up to the fact that the dollar is NOT a solid currency. We’re waking up to that now.

[quote]animal6fat9 wrote:
please read END THE FED by RON PAUL

The Fed will never ever go out of business short of a revolution, or unless confronted by someone like Andrew Jackson. That’s why we get men like Barack ‘Barney Fife’ Obama in office. We need an Andy Jackson but get Harvard shyster lawyers.

On Nixon “closing the gold window” (the expression at the time, in the sense of a bank window, a term that doesn’t seem to be used much anymore):

It was a ridiculous situation. The market value of gold was if I recall correctly somewhere around $100 per ounce or above.

Individuals were not allowed to exchange dollars for gold at the $35/ounce official valuation.

So for nearly all practical purposes, the dollar was not tied to gold then.

All that was happening is that foreign governments could buy gold from the US Treasury at $35/ounce and then if they liked, resell it for $100 or more per ounce.

Which had no value to the American people in any way: it had become purely a matter of letting ourselves be ripped off by the Treasury being required to sell to foreign governments at far below market value.