Why can't we have a realistic basis for optimism?

In his book, ‘Flourish’, Martin Seligman writes:

‘I am all for realism when there is a knowable reality out there that is not influenced by your expectations. When your expectations influence reality, realism sucks’ (p 236-7). I have been thinking about the sentiments in that paragraph at various times over the last couple of . . . → Read More: Why Can’t We Have A Realistic Basis For Optimism?

Gold Bubbles

UK financial writer Dominic Frisby argues “that both metals [gold and silver] are still in a bull-market phase. Any mania is yet to come.” In support, he notes that in 1980 gold bullion went from $400 to $873 an ounce in only 36 trading days, with silver trading from $16 to $50 in 37 . . . → Read More: Gold Bubbles

Fault Lines, by Raghuram Rajan

Raghuram Rajan’s book Fault Lines (Princeton University Press for the international edition, and Harper Collins for an Indian edition with a special chapter on India) is possibly the most thought-provoking contribution in the aftermath of the economic and financial crisis that has engulfed the West after 2007 with significant global repercussions.

The epilogue of . . . → Read More: Fault Lines, by Raghuram Rajan

Piling Into One Month Treasuries

The Great Credit Contraction grinds on as the system continues evaporating.  People are realizing the true nature of the worldwide fiat currency and fractional reserve banking system that is built on a fraudulent premise and has become a Ponzi scam of epic proportions, the largest in the history of the world.  Capital, both real . . . → Read More: Piling Into One Month Treasuries

Bubbles and Macro Risk

Frederic Mishkin says not all bubbles are a threat to the economy (link):

“Nonetheless, if a bubble poses a sufficient danger to the economy as credit boom bubbles do, there might be a case for monetary policy to step in. However, there are also strong arguments against doing so, which is why . . . → Read More: Bubbles and Macro Risk