PHOTO: AP  CRASH 1929

Today the prices of many assets are being held up by unsustainable fiscal and monetary stimulus.Interest rates of 1% or less in America, Japan, Britain and the Euro zone, have persuaded investors to take their money out of cash and to buy risky assets.

For all the panic last year, asset values never quite reached the lows that marked other bear-market bottoms, and now the rally has made several markets look pricey again.

Low rates have persuaded investors to move money out of cash. Investors withdrew $468.5 billion from money-market funds in the course of 2009. The “carry trade”—borrowing in low-yielding currencies to invest in high-yielding ones—is back in full swing. The Australian dollar has been a popular beneficiary.

But our problems still there. We still have banks too big to fail, we have not put the credit default swaps on an exchange, we have not reinstated Glass-Steagall Act, we keep in power the same people who missed the problems the last time, ETC,ETC,ETC…

So let´s be careful with the coloured glasses that we use to see the World because that may change…