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Originally Posted by Zythryn
As for the housing bubble, there is nothing malign involved. It is just the latest bubble.
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Hi Zythryn,
The rate 'bubbles' have been developing in the new millennia is a real cause of concern. While this bubble may be benign the increasing rate of bubbles is most definitely not (an indication of too much money and not enough good investments?).
By reducing interest rates the Reserve risks creating another credit bubble in response to the housing bubble.
It would be much easier for everybody if the politicians actually regulated blatant speculation and prevented these bubbles before they could harm anybody. Unfortunately, if they were responsible, they wouldn't be able to claim economic expansion.
Unfortunately it looks a bit like a Curates Egg.
Curate's egg - Wikipedia, the free encyclopedia
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The expression "a curate's egg" originally meant something that is partly good and partly bad, but as a result is entirely spoilt.
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