a: Stock market ~
b: Warhol painting
What: "The Federal Reserve, by keeping interest rates artificially low, creates bubbles," says Faber. "How are you going to value a Warhol painting or a Picasso if interest rates are at zero? How are you going to value stocks when interest rates are at zero? You create a complete mispricing of everything in the system." What is the unifying point? They are both things that only a minority of people can participate in.
Useful?
Writer: Dr. Marc Faber
LCC:
Where:
Date: Oct 17 2013 9:28 AM
# 4118 Critique Analogy