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Stk mkt bubble? redux, RE and bond bubbles explained?


BAREister

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Are not these bubbles, this mASS(_)_)ive reflation nothing more than "the pursuit of HAPPINESS", "happiness" in this case being the preservation and/or improvement of the status quo ante?

 

In anUDDER context entirely The BAREister came across the following quote, which he noted, here, at the time and promised to post later. He found it tonight rumaging about the stacks of papers that piled up in his lair.

 

The scene: an interview with a great maestro of opera, Franco Zeffirelli. (Ironically, this arises in the context of opera and it's themes of grand tragedy, happiness lost, etc. for which the current trajectory of the financial markets will one day prove well suited.)

 

The interviewer poses the question:

"And has Zeffirelli found happines?

'Oh yes. But in the moment of happiness, you also find despair. The moment you reach maximum pleasure, you think you're going to lose it. You become capable of horrendous things to preserve it."

London FT, Weekend ed. July 12/13 2003 at W3.

 

When HRFF read those lines he immediately thought of Wall St, the Bubble(s), the bursting of Bubble 1, a time of 'maximum' pleasure for stocks, then, a time of maximum? pleasure for bonds earlier this summer and, perhaps, in RE, now. The time of putative unsurpassed 'wealth' (albeit illusory) during the past quarter century, and the horrendous things that have ALREADY been done to preserve it, and might, yet still be done to maintain it as long as possible.

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