winslow

Commodity Bubbles and Valuation: Imperfect Together

Three major trends: the US dollar is being devalue, commodities are rising, and the US debt has ballooned; all have synchronous relations.
The big unanswered question is "Where has the US government been?" In the past, the US was considered a leader when global calamities struck. The current administration has taken laissez-faire to an extreme. Unfortunately, it's too late for Bush and his administration to change course (it's not even possible to discuss this concept).
What should have been done?

When housing prices were starting to go euphoric, the government needed to stop speculation.

Stricter regulation was needed for the Bear Stearns of the world. (who really understands the outcome of derivatives, CDO's, etc)
A strong dollar policy needed to be implemented.

An energy policy needed to be implemented. (This could have been done within the last 1-2 years, although 10-15 years ago would have been more intelligent....and not the use of hydrogen cars as Bush proposed along with ethanol)!

The concept of balanced budget is not in the government lexicon. In addition, the accounting methods used by the government are pretty much a charade.