"Its different this time". They said the same before and during the last crash.

Where most of these Gold Bugs are concerned, it's a bit of both. They more often or not do know their stuff. However there's a strong tendency in a fairly large subgroup to paranoid ranting.

The trick is to figure out what's ranting and what's not. Going on about fiat currency being fake money and fractional reserve banking being fraud sounds lunatic at first, but when one thinks about it, they're pretty much on the ball and it's just that until there's a crisis, the rest of us have all agreed to pretend that funny money isn't a problem.

Then there's all the stuff about conspiracies like the Plunge Protection team and an agreement amongst the central banks to rig the gold price. Looked like dead cert paranoia at first, but now most commentators would accept that while there's no smoking gun, there was a Plunge Protection Team of some sort at the end of the 90's. As for the latter, it can't be said to be out of the question either. Rigging markets is what central bankers are there to do. A Central Bank is a Soviet construct. If the intention weren't to rig markets we'd just leave it to markets and the price mechanism to sort out stuff like interest rates through supply and demand for money.

The most wacky of it shades into survivalism and hiding gold, food and ammo in the desert for the fall of global capitalism. It's pretty much Way Out There, but then there is the thought at the back of one's mind that we are using funny money and we have run up debts unprecedented in history. That sort of behaviour does almost always end in unpleasantness.

So in short, I'm afraid the answer is: yes and no.

FoFP

Reply to
M Holmes
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I think there's some fun coming there. Some of these folks will be up the proverbial creek without a paddle. They'd probably be in a position to claim misselling, but the counter-accusation of fraud will probably persuade them that they'll have to take their licks.

What will be interesting is whether it all gets bad enough that some of the more egregious bankers have to be prosecuted to keep the public happy.

FoFP

Reply to
M Holmes

Thanks for taking the time comment. I too have tended to pooh-pooh conspiracy theories (except JFK's assassination) in the past, but as I get older my regard for our financial institutions has decreased markedly.

Reply to
Doug Ramage

I'm waiting for all the purchasors of the new build that has just been finished near me and is 70% sold to BTLs to discover that there isn't a 1000% increase in the number of tenants prepared to pay a premium rent in the town. There's already (at least) one on the market and they've only been finished a month

tim

Reply to
tim (moved to sweden)

In message , Doug Ramage writes

I think that is very fair comment. I have no evidence but the stories I hear would indicate that for many brokers 'self cert' means 'write in this box the amount of loan you need divided by 3'. Hmm.

Reply to
john boyle

Just the tip of the iceberg (Swansea mortgage fraud - 800 properties) - and some lenders did not want to co-operate with the police :

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Reply to
Doug Ramage

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