Sunday, April 20, 2008

Are we headed for a new investment bubble?

Currently, we as the "normal" citizens of this country are suffering through the after effects of a housing bubble. Was this bubble caused by us? No! The only ones to blame are the Wall Street bankers who created the sub-prime mortgage and went on to trade these as if they had real value. Now, we as taxpayers are being asked to bail out these fools and their multi-million dollar a year jobs.

This economic problem hasn't even resolved itself and now a similar group of fools known as hedge fund managers is getting us into another bubble that will end in disaster!

Recently the prices of energy in the form of oil and natural gas has risen through the roof. Why? Simply put the hedge fund industry (those people who bought all those sub-prime mortgages) have been putting their bets on energy prices continuing to rise indefinitely.

I've got news for them! It isn't going to happen! I've been through this before in the 1970's and 1990's and the bubble always burst in energy.

Who are the hedge funders? A short answer is wealthy individuals trying to avoid taxes. But that isn't the only group in hedge funds. If you are a member of a union then you are also looking at your retirement funds being invested in this bubble. Expect losses in the next year or two is all I can say.

Meanwhile, when the losses start to pile up who are they going to call on to bail them out? You guessed it! The American taxpayer will once again be put on the spot by bought and paid for politicians!

Fair warning. Express your opinions about this coming fiasco to your elected officials now. It wont do any good, but at least you'll be on record as having given them the warning.

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