INVESTOR'S DAILY EDGE UNPLUGGED
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IN THIS ISSUE  
Laying Blame in the Wrong Places
On Movies, Ron Paul, and Selling Services
MEET THE TEAM
  MaryEllen Tribby
Publisher
  Jedd Canty
Business Director
  Jon Lewis
Managing Editor
  Nicole Reynolds
Marketing
  Jon Herring
Editor
ANALIST/EDITORIAL CONTRIBUTORS
  Charles Delvalle
  Andrew M. Gordon
  Dr. Russell McDougal
D.D.S.
  Rick Pendergraft
  Chris Johnson
Wednesday, December 19, 2007
  Laying Blame in the Wrong Places  

 

 

 

Rick Pendergraft

My article this past Monday regarding the Fed Chairs, Alan Greenspan and Ben Bernanke, generated quite a bit of interest.  I received numerous emails, most of them blaming Mr. Greenspan for both the Internet and real estate bubbles. 

I have news for you - he isn’t solely to blame for either. 

The Internet bubble was caused by irrational investors throwing money at any stock that had dot-com behind its name.  Don’t blame the former Fed chairman, when it was the investing public that would have bought stock in a company named dogs**t.com.  The stock (certainly with the symbol of POOP) would have debuted at $10 and investors would have driven it to $100 by the end of the day.  The Fed chairman had nothing to do with this irrational thinking. 

In fact, by raising rates 1.5 percent over the course of 1998 and 1999, the Fed kept the market from reaching even greater heights and then falling that much farther.  There was just too much money chasing too few goods and inflation would have reached dizzying heights.  The Fed raising rates kept inflation in check.

As for the real estate bubble, Mr. Greenspan is yet again only partially to blame.  Again, it was the investing public that just dumped money into any old piece of real estate.  Investors believed that real estate never went down.  WRONG!

If you don’t believe me, just look through your TV channel guide sometime.  There are shows on called Flip This House, Flip That House, Flipping Out, and Property Ladder.  These shows are all about using real estate as an investment vehicle.  Then there are all the infomercials about how to make a fortune in real estate.  The real estate bubble was no different than the Internet bubble.  Both resulted from investors overpaying for an asset.

I am not saying that part of the blame doesn’t fall on Mr. Greenspan’s shoulders.  But to blame only him is ridiculous.

Rick

P.S.  To let me know what you thought of today's article, send an e-mail to: feedback@investorsdailyedge.com.

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  On Movies, Ron Paul, and Selling Services  
 

Dr. Russell McDougal

 

Let’s answer a few IDE reader questions on IDE Unplugged, no?  I always prefer dialogue as opposed to monologue.  Here’s a question from reader PJ:

Dear Rusty,
Keep up the good work.  I think in order for us to free ourselves, a tipping
point in mass awareness has to be reached.  According to some, if only 5% of
the population knows about the Fed Reserve, their stranglehold on us will
fade away.  I am been studying this issue for a long time and think in about
5 years we will get a chance to pick the kind of govt we want.  Before that
we will experience "unrest of the deepest kind."  Have you seen the movies
Loose Change or Zeigeist on YouTube?  Check it out and perhaps you can
recommend it to your readers if u think it is appropriate. 

Hi, PJ.  I think the movie you’re referring to is properly entitled Zeitgeist.  Here’s a link.  I’ve seen both movies and am exceedingly disturbed about the events of 9/11 and what has become of our country while occupied by various “central banks” since inception.  Loose Change is definitely worth a viewing.

One man’s “conspiracy theorist” is another’s truth seeker.  I don’t worry about the labels of others.  Watch the movies and think for yourself is my sole advice.  Just like when you invest.  For the record, I am distinctly in disagreement with the Zeitgeist slant on “religion.”

Here’s another question from reader Doug:

To Rusty:
I don't buy we don't have the answer (regarding ridding ourselves of the Fed).  What do you think of the raid on the Liberty Dollar offices? And Ron Paul's "Honest Money Act" (HR 2756).  Even though it doesn't get rid of the Fed right away it removes their incentive to create inflation.  We have the answer but the media is making sure we don't hear it.  Why don't you print this for the readers?  Is it because the answer isn't a product for you to sell or you just didn't know about it?

Hi, Doug.  This may be the most negative question I’ve received from a reader to date.  Good one to address.  I’m not sure exactly what to think about the Liberty Dollar raid.  On one hand, I’m told that their use of the term “dollar” is what got them in trouble.  That is strictly verboten and the Liberty Dollar crowd was warned accordingly.  Otherwise, it is nothing but government scare tactics on those who infringe on government “legal tender” rights to monopolize us with their unconstitutional currency.  I’ll side with free market money, thank you.  This raid was just more protectionism.

Ron Paul’s “Honest Money Act” isn’t likely to pass any time soon.  He may be its only supporter in this exceedingly compromised body.  What do you think of my idea of tar and feathering them all?  Other than that, I’m all for Dr. Paul and most of what he proposes.  I stay out of politics to a large degree because we tend to receive more of the same regardless of who is voted in.  Ron Paul would clearly break that mold.  Let’s have this conversation a year from now.

As far as IDE having something to sell, I’m glad you figured that out, Doug.  You are free to take or leave the information provided on a daily basis.  You are also free to subscribe or not subscribe to any services offered.  Just like on TV.  You can watch the programs and ignore the advertising if you like.

Only on IDE can you receive a true “free lunch.”  You don’t even have to hit the surf button.  Not much to complain about there.

Rusty

P.S.  To let me know what you thought of today's article, send an e-mail to: feedback@investorsdailyedge.com.

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