The runup in commodity prices reflects rapid decline in the dollar--where's the bubble here? It looks like we are simply paying the market price for the weakening dollar. I wouldn't expect to see these prices decline until the dollar picks up strength and investors relinquish their holdings into a buyer's market. Have I got it wrong that there's nothing abnormal about this market? If you want a useful government response, how about shoring up the dollar?
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The runup in commodity prices reflects rapid decline in the dollar--where's the bubble here? It looks like we are simply paying the market price for the weakening dollar. I wouldn't expect to see these prices decline until the dollar picks up strength and investors relinquish their holdings into a buyer's market. Have I got it wrong that there's nothing abnormal about this market? If you want a useful government response, how about shoring up the dollar?
Mar 03 17:48 pm
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All Comments by Malkiel »Commodities Bubble Needs to Burst [View article]