Financial Bubbles

             

Past experiences from financial bubbles are always overlooked. In my studies as a market analyst and businessman, I have seen how bubbles originate, and then cause damage.

                       

Bubbles are not stopped by Federal Reserve action on interest rates, as is usually suggested by pundits. That is because politicians always take over, and often influence any dampening efforts by the Fed. All with an adverse effect.

                       

It would, for example, have had done absolutely nothing with the internet bubble. Or even the mortgage bubble because interest rate adjustments then would have been applied too late. So the Fed has had little to do with the bubble solution all the time. In fact, it has aided and abetted the problem. (See the Earl J. Weinreb NewsHole® comments and @BusinesNewshole at Twitter.)