r Jim Rogers successfully predicted a rally in commodities back in 1999. New York University economist Nouriel Roubini predicted the collapse of the housing market and financial meltdown back in 2006.Now the two gurus are predicting each other to be incorrect. Rogers says Roubini’s forecasts for bubbles to pop in the gold and emerging-market stock markets is just wrong. “What bubble?” says Rogers, Bloomberg reported. “It’s clear Mr. Roubini hasn’t done his homework, yet again.”
Full article here>>>
Of course commodity prices are predisposed to rise. Roubini is wrong, intangible asset prices were artificially inflated (debt holdings, stock values, derivatives) at the expense of relative prices in hard assets. The commodoty rices are not really "rising", they are just realigning themselves with the relative value of smoke-and-mirror assets. The US$ is becoming one of those illusions.
ReplyDeletehttp://awarebrain.com/2009/11/11/governments-companies-and-people-all-watching-their-burn-rates/