November 16, 2013 in Letters, Opinion

More bubbles to pop?

 

Concerning the Oct. 30 article “Rise on homes possibly peaked.”

The Dow Jones industrial average has reached a new high over 15,000. In many of our cities housing prices have rebounded, and in many cases are higher than before the last real estate bubble of the late 2000s.

The U.S. Federal Reserve Bank has lowered interest rates on borrowing to historic lows that, in part, is causing the speculative highs in stocks and real estate. A financial/economic bubble is being formed.

Very similar actions were taken during the stock market bubble of the early 2000s and the real estate bubble of the late 2000s. Those financial bubbles collapsed, resulting in major economic recessions.

Is history repeating here? Is a new financial bubble being created with the ensuing collapse of that bubble and the ensuing economic recession? Many of the same elected and appointed officials that created the previous financial bubbles and collapses have been re-elected or reappointed. We keep re-electing these same people.

If you don’t like the above, go look in the mirror.

Mark Johnson

Nine Mile Falls


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