[quote=livinincali]
The only thing the fed is masterful of is creating asset price bubbles. During the time when those bubbles are created it feels pretty good and looks pretty good but somewhere down the road it all comes crashing down. Then we wish the fed had never created the bubble in the first place. This time around it will be the same thing. Another asset price crash. Another round of nobody saw it coming. Another day of tears because this time it was different.[/quote]

Yes, this troubles me a lot. As all we know on this board, foreclosure is not the problem, foreclosure is the solution to years of mis-allocation of investments before that. How is that $240 billion allocated to Alibaba or $19 billion allocated to whatsapp…a good thing for our economy? Or how is that the huge speculation of real estate price around the world a good thing? Does that create sustainable economy growth or just bragging rights in the cocktail party?