All the ingredients for another financial meltdown still linger

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  • J-TX Allen, TX
    Sept. 25, 2013 1:42 p.m.

    Read Terra Nova's post. Priceless.

    Whenever the economy is artificially manipulated either by fiscal or monetary policy, it is ripe to implode. That would be the situation now.

    We would have been much better off to let the big banks and big auto fail, or go into bankruptcy and re-organize or be parceled out to smaller concerns, than to artificially shore them up through bailouts. We still own GM. The emergent economy would be more based in reality, more stable, and more cautious about rolling the dice, which is what we are all doing right now. And personally, I don't trust the dealer in this high stakes game.

    Full disclosure: I have a BA in Economics, 1987, Cum Laude.

  • SCfan clearfield, UT
    Sept. 24, 2013 1:45 p.m.

    Say No to BO
    I wondered why the stock market seemed to be doing so well in spite of a dangerous economy. No other place to put money and hope to earn any interest or profit today except the market. And as you pointed out, that is a big gamble as stocks change depending upon the news. Eventually this country will roll snake eyes. But of course it will be Bushs fault.

  • one vote Salt Lake City, UT
    Sept. 24, 2013 2:33 a.m.

    The next one is the gold bubble bursting.

  • Say No to BO Mapleton, UT
    Sept. 23, 2013 7:12 p.m.

    The underlying issue is that our money is worthless. There was a time when bank savings had some value. Now a long-term instrument like a CD pays 1% or so.
    Saving is for suckers, they say. Bonds? Well, with QE programs they aren't much better. You are competing with the Fed as they dump $85 Billion into the market each month.
    And that drives investors into stocks. Stock values are manipulated by market moving news, not the value of the products the companies sell. Such a plan resembles Las Vegas or the lottery.
    Loaning money from one bank to another is done at 0% interest.
    Ergo, our money has no value.
    The dollar as the world's currency is vulnerable. And if it loses stature it will impact our nation is untold ways, beginning with the interest we owe the world for our debts.

  • rvalens2 Burley, ID
    Sept. 23, 2013 12:02 p.m.

    "There are no simple answers." Eric J. Weiner

    I have to respectfully disagree. It would have been much cheaper (for the U.S.) to let the "too big to fail" fail and pickup the pieces afterwards. Saving big banks from their corporate boards' stupidity is not what the Federal government should be doing.

    If I fail, nobody is going to save me from bankruptcy. Why should multi-billion dollar banks be any different?

  • terra nova Park City, UT
    Sept. 23, 2013 11:40 a.m.

    This is a thoughtful and well written article. In essence he says: Beware another financial crisis looms. Unfortunately, he offers few recommendations on how to position yourself or your assets. It would be interesting to read his specific recommendations.

    The implications are: Live simply. Avoid debt. Marry, love and bless and be true to each other (it is a source of joy). Do not speculate. Learn all you can. Plant a garden (or support a community garden). Learn a little more. Be self-sufficient as you can and work with others in your community to do the rest. Keep learning. Invest in alternate means of energy production. Research and think. Set aside an emergency supply of core necessities. Ponder how to rotate it. Make room for prayer.

  • lost in DC West Jordan, UT
    Sept. 23, 2013 10:07 a.m.

    dudd-frank was supposed to end too-big-to-fail. It did not, it further entrenched it.

    larry summers refused to regulate derivatives in 1997. does BO really think he'd be a good candidate to head the fed with that record of miserable failure?

  • Pete1215 Lafayette, IN
    Sept. 23, 2013 9:31 a.m.

    "Bubbles develop when a glut of capital ends up chasing increasingly scarce assets." This is the way economists talk, because it sounds like some sort of laws of physics is in play. In reality, economics is about interacting human psychologies. Bubbles are an emergent phenomonon. And finance people hide their activity until disaster is at hand (like Bear Sterns did). So we will know of the next disaster when it is too late. In addition, financial firms have the equivalent of MLB all-stars, while the regulators are pretty good members of double-A ball clubs. So the situation is biased against us.