Dave Collum on Palisades Gold Radio
Tom welcomes Professor David Collum of Cornell University to review the markets. He explains why he prefers to write about niche topics.
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Actual wealth creation involves making life better, and the 1870s to 1940s are a good example. Since the 1940s, wealth creation has become much more gradual. GDP today does not consider inflation or planned obsolescence from cheap consumer goods.
David discusses the discontinuities that occurred in the early 1970s with the ending of the gold standard. The corrections over the past thirty years have not caused investors to change their behavior. The last real corrections occurred back in 1967 and 1981. Investor complacency today can be traced back to Greenspan’s actions in 1987.
He believes we are living in the “Dumbest Bubble in History.” Bubbles tend to be sovereign-backed and usually have a great story behind them. However, today’s bubbles and the recent real estate bubble are not based on anything but the faith in 12 Fed idiots who supposedly have your back.
FULL SHOW NOTES AND LINKS HERE